Getting Out of an MCA: Your Options

If trapped in a merchant cash advance with predatory terms, you have several options:

1. Refinance with Better Terms

The most common approach is refinancing your MCA with a more favorable loan like a working capital loan or line of credit with significantly lower rates.

2. Negotiate with Your Lender

Many MCA companies will negotiate if your business is struggling. You might reduce daily payment amounts or extend the agreement period.

3. Business Acquisition or Sale

If selling your business, the buyer typically takes on all debts. Some sellers negotiate with MCA companies to settle for less.

4. Debt Settlement

In rare cases, MCA companies will accept a lump sum payment significantly less than what you owe.