Missing a repayment on an MCA may seem like the end of the world. Many cash advance companies structure their repayments to be daily or weekly. This will drain a small business’ cash flow and make it harder to make the repayments over time. What does a business owner do to compensate for the lack of cash flow? Many take out ANOTHER cash advance! This means two repayments to make each day or week.
What to do with Stacked MCA loans?
Stacking MCA loans on a small business has become a common and predatory practice. If you miss a repayment from an MCA lender, do not panic and get another cash advance. This will only dig your hole deeper. A step we recommend is calling a financing company that can work with paying your debt off, and not adding to your debt. Eagle Business Credit is an invoice factoring company that works with small business owners to pay off their MCA debt, and grow with flexible financing on your terms.
What is the first step when you miss an MCA repayment?
The first step is to call the MCA company. It is in everyone’s best interest that you pay back the money borrowed, and the company may be willing to work out a new payment structure. If not, a debt consolidation company or new financing company that knows your entire situation can help. Do not seek additional financing without explaining the MCA repayments you owe. It is important that a new lender sees the entire financial picture of your needs and your debt.
How can Eagle Business Credit help companies missing MCA repayments?
Eagle Business Credit, a factoring company in Georgia, helps pay off MCA debts through invoice factoring. Factoring is a flexible financing solution that is debt-free and advances customer payments to the business owner, so you have the money to cover your costs. Improving your cash flow means you will be able to make the MCA repayments without incurring additional debt. If you miss MCA repayments and could benefit from paying off your MCA debt, give us a call. We can help.