“I cannot pay my mca merchant cash advance.” I missed payments and am behind on payments on my mca merchant cash advance and business loan. What can I do?
There are several steps you can take when you are behind on your mca merchant cash advance payments, or your business loan or personal loan is past due. These steps and others can or make it much less severe. One step is to payoff the past due loan by refinancing. Contact us below for help on how to fix missed payments on a mca merchant cash advance or business loan you have missed payments on, or cannot pay any more on.
Secure DocuSign 30 Second Application here.
Call us at Tel: 1-919-771-4177, or Question? Contact us here.
How to fix missed payments on a mca merchant cash advance or business loan and what to do when you are behind.
- Step 1 Contact the lender. Let them know you are having trouble paying the advance or loan. Be prepared to answer why you cannot pay it and how you will plan to catch up.
- Step 2 Ask the lender to work with you. Ask for lowered payments or suspended payments. If they refuse ask them to offer you a plan for payments you can handle. Determine in advance what you are able to pay. Tell the lender what you can pay and ask them to set up a payment plan for that.
- Step 3 Follow through on your agreement.
- Step 4 *How to Tip: If you will not be able to continue paying the cash advance or business loan, ask the lender for options. There are often options available just by asking for help or letting the letting know you cannot continue to make the payments.
What if you cannot pay the cash advance or business loan and cannot catch it up?
If you cannot continue paying the cash advance or business loan, ask the lender what the options are. For mortgage loans, many lenders have excellent options for assisting past due borrowers.
If it is not a mortgage loan, the best solution is usually to try to work with the lenders. When that is not possible, other options include:
1. Pay a settlement on the mca merchant cash advance or business loan.
If you consider this option, negotiate hard with the lender on how this will be reported on your credit. You want to push for the best possible credit bureau reporting of this event. If the lender reports the tradeline as “settled for less than full balance”, this may be the best reporting.
2. Applying with another lender
This is another excellent option if you can qualify. Payoff the cash advance or business loan with another loan. This works well if the balance of the loan you are past due on is low. If your current past due loan has not damaged your credit too much yet, this option may work.
3. Another option is to ask your current lender to modify the loan.
Your current loan is $500 per month and was for 48 months. You have 10 months left. Ask the lender to modify the mca cash advance or loan for a lower payment and for more months. In this case, ask them to lower it to $200 to $300 per month for 20 and 25 months.
Tell them this benefits both them and you. You will have a payment you can make and their loan will also be paid. Some lenders do not want to modify. If you can demonstrate to them that you will be able to pay the past due business loan by getting a lower payment, they may agree to it.
Provide documentation to support your request
Prepare a Quarterly or Monthly Profit & Loss statement to show the lender that you cannot pay now, however if they lower it, your budget will allow for their payment.
4. Take another hard look at all of your current expenses.
Can you easily reduce expenses somewhere else? Are there services that you are paying for that you really do not need and can cut? This can include business expenses and personal expenses.
FAQ’s – Frequently asked questions and comments
Question: I am behind on a merchant cash advance. How can I get out of it or get help?
Answer: Contact us to discuss your situation. We will suggest the best
option(s) for your business.
What other loan types can I get to payoff the mca merchant cash advance and business loan I am behind on? There are many options. The most common types are below.
“My mca cash advance company threatened me with a coj certificate of judgement.” What can I do?
Talk to the merchant cash advance company as much as it takes to make sure they do not file a coj in court. This can clean out your accounts.
“I have missed payments and am way behind on my cash advance. I was told I am in default.” “Is it too late to do anything?”
It is not too late. Talk to the lender about every possible solution. Show you are proactive in trying to reach a solution. You do not want them to file a certificate of judgement.
Other requests and needs: “I cannot catch up my cash advance. I am too far behind”. I have to stop paying my merchant cash advance. When these things happen, review any settlement possibilities and also the refinance options above.
Accounts receivables financing
Accounts receivables financing is another way to increase the cash flow you need to pay your current past due merchant cash advance or business loan. This can give you cash now which may be enough to pay the payments you missed and are behind on.
Consider an asset based loan
This includes a loan against equipment. Funding is between 24 and 42 months and includes a monthly payment. Earth moving equipment, Yellow Iron and “over the road” OTR rigs, semi-trucks are usually accepted.