As a small business owner, you know you need access to capital…
(to keep the lights on and keep your business growing…)
…but you also know that bank loans are either unavailable or insanely hard to get.
That’s why merchant cash advance (MCA) loans have become popular so quickly.
But… there’s a dark side…
Most MCAs have sky-high interest rates and super-fast repayment terms – so your business may need another loan – fast.
(Some businesses owners have said MCA loans are like being addicted to heroin…)
There are options for MCA debt relief.
We’re going to explore how to restructure merchant cash advances to get the relief you need to save your business.
We’ll look at different strategies, including negotiating with lenders, consolidating your debt, or seeking out alternative financing options.
If you're struggling with MCA debt, don't wait – read on to learn how you can save your business and get back on track.
How does Merchant Cash Advance Negotiation Work?
Are you struggling to make payments on a Merchant Cash Advance (MCA) loan?
Negotiating with your lenders can be a helpful strategy.
Here’s the rub though…
Negotiation with MCA lenders can be scary...
...but with proper preparation and a willingness to compromise, you might reduce your payments and even get loan forgiveness.
Here are some tips to keep in mind when negotiating with MCA lenders:
Before negotiations… you should understand your financial situation and the terms of your MCA loan contract.
Know the repayment schedule and the interest rate.
Make sure to have all your financial statements, including bank statements and profit-and-loss statements, organized and ready to present to your lenders.
Understanding the terms of your MCA contract is super-important to successful negotiation.
Be aware of the potential risks and consequences of defaulting on your loan and how that may affect your credit rating.
Lastly, negotiation is all about finding a middle ground that benefits both parties. Be prepared to make compromises to reach a mutually beneficial solution. You may be able to negotiate a lower interest rate or a longer repayment period to reduce your payments.
Negotiating with MCA lenders can be a complex and difficult process.
If you are struggling to negotiate on your own, you may want to consider seeking the help of an MCA negotiation expert.
These professionals have experience in negotiating with MCA lenders and can help you navigate the process, potentially increasing your chances of a successful negotiation outcome.
The benefits of negotiating with MCA lenders can be significant.
One potential benefit is reduced payments. By negotiating a lower interest rate or a longer repayment period, you can potentially reduce your monthly payments and make them more manageable.
Another potential benefit is loan forgiveness. Some lenders may be willing to forgive a portion of your loan in exchange for a lump sum payment or an agreement to pay off the remainder of the loan in a shorter period.
In conclusion, negotiating with MCA lenders can be an effective strategy for those struggling with loan payments. By being prepared, understanding the terms of the contract, and being willing to compromise, you can potentially reduce your payments and even receive loan forgiveness. If you find the process too difficult on your own, consider seeking the help of an MCA negotiation expert.
Should You Enter into an MCA Consolidation Loan?
Merchant cash advance consolidation involves combining multiple MCA debts into a single loan with a longer repayment term, lower interest rates, and more manageable payments.
It can be a valuable option for businesses that find themselves with multiple MCA debts and are struggling to keep up with the associated high costs and stringent repayment terms.
One of the primary benefits of MCA consolidation is that it can significantly reduce the amount of interest paid over the life of the loan.
Because MCAs typically have higher interest rates than other forms of financing, consolidating them into a single loan with a lower interest rate can help businesses save money over time.
Here’s a problem though – it can be hard for businesses with MCAs to qualify for anything but another MCA loan.
Do You Want to Check out your options with an expert?
There are several types of MCA consolidation options available, including debt consolidation loans, balance transfers, and home equity loans.
One problem with these loans is they are usually tied to you personally instead of to the business, so you have significant personal risks using this type of financing.
What are Alternative Financing Options to get out of an MCA?
If your business can qualify for lower rate financing somewhere – that is usually the best option.
If possible, paying off MCAs with a SBA loan or bank financing can spread your payments out over many years and make repayment terms much more manageable.
Qualification for this type of loan can be time consuming and difficult but if you’re willing to invest the time and effort rates are low and payback terms are very reasonable.
For example, an SBA 7(a) loan has repayment terms from 5 to 25 years, with interest rates generally 2-5% above the prime lending rate.
(As of April 2023, the prime rate is 3.25% - so an SBA loan would have likely rates between 5.25 and 8.25%).
Bank loans can be difficult to qualify for...but it really depends on your bank. If a bank loan is a possibility it should often be your first choice.
Do you need help with Merchant Cash Advance Debt Relief? Reach out by phone at (800) 786-5696 or click the link below