1. Negotiate a Lump Sum Settlement
Funders routinely accept 30 to 60 cents on the dollar. The fastest way out.
2. Request Reconciliation
Submit a written reconciliation request with bank statements showing revenue decline.
3. Negotiate a Modified Payment Plan
Reduced daily payments by 30 to 50 percent in exchange for extended terms.
4. Challenge the Contract in Court
If the MCA functions as a loan, usury laws apply. Most MCAs exceed legal rate limits.
5. File for Bankruptcy Protection
Chapter 11 allows continued operation while MCA debts are restructured. Automatic stay stops all collections.
6. Refinance with Traditional Financing
Replace the MCA with an SBA loan or bank line of credit at a fraction of the cost.
7. Consolidate Multiple MCAs
Work with an attorney, not another MCA broker, to consolidate stacked MCAs.
8. Revoke ACH Authorization and Negotiate
Must be coordinated with legal representation as it triggers the default process.
9. Assert Legal Defenses
Fraud, unconscionability, state disclosure violations, or undisclosed fee deductions.
10. Hire an MCA Attorney
The foundation for every other strategy on this list. The consultation is typically free.