Restarting daily payments: 3 ways to handle it

Is your cash advance company restarting your daily or weekly mca payments but you still cannot pay them?   Your business may need weeks, even months for sales to recover from the virus lockdown and make the payments.    Consider 3 ways to make the payments and avoid defaulting, further below. 

Restarting daily payments: How to make it work

Complete the application below to:

    • Extend the terms by refinancing
    • Consolidate your advances
    • Payoff the advances

Solve restarted mca payments-Secure Docusign Or Call Tel: 919-771-4177

Is your mca cash advance company restarting your daily payments? Top 4 options if you cannot repay

1. Extend the terms and refinance the contract:

Tell your cash advance company that you need more time for your sales to recover.     Ask if they will refinance the existing mca contract and extend the terms.   Calculate in advance the highest payment you can afford and ask if they can extend the contact to match those payments.  Provide data and documentation to support your request. This can include recent bank statements and a current budget such as a profit & loss statement.  Include your specific calculations showing the maximum payments you can make. Call the advance company, provide your supporting documentation and make your request.

For example: Your regular daily payments of $100 per day for the remaining 50 days of the contract are being debited again.  The remaining payments still total  $5,000.   After looking at your current and estimated future cash flow, you calculate that you can afford $60 per day for that contract.   That equals about 83 payments.   Ask if you can extend the term of that contract from 50 days to 83 days and tell them you feel you can handle a $60 daily payment. If they will not, contact or apply with us above. We will help you get through this process.

If you have more than one cash advance, then do the same calculations for the other contract(s).    First calculate the total of daily cash advance payments you can make.    Then you can figure out the maximum daily payment you can make for each contract .

2. Consolidate your advances

You can consolidate multiple advances with one loan. This helps you because the new loan will be a longer term than the advances you have now.  Most have a term at least 50%, and up to 100% longer than the current advances.  A condition written into the contract does not allow your business to take any more new debt without permission.

Consolidators take this condition seriously. Taking new loans violates the terms and puts you in default. It is then up to the lender to enforce a payoff demand of your contract.

A variation is known as a reverse consolidation. This is easier to be approved for and could improve your cash flow from cash advances by 25% to 50%.

3. Payoff the advances that have started debiting

Paying off the existing advances usually is the best way, but also the hardest way. A payoff happens by using a longer term asset based program to payoff existing advances. Borrowers that qualify for 24 months or more improve their monthly cash flow as much as 75% or more every month. They also get a weekly or monthly payment.

For Example: Your business has a cash advance originally for $50,000 that was paused. The current balance is $15,000 and the mca company is going to restart the payments. Regular payments are $550 per day. You have 27 payments left but still cannot make them. It will take your business at least another 2 to 3 months for sales to get close to normal.

With the current payments, you have about 5 weeks left in contract. If you can pay the contract off with a 24 months asset based loan, then your monthly payments are $792 per month = $37 per business day.  $37 % $550 = 7%.  You have reduced and improved your debt on the cash advance by approximately 93%.!   Your monthly outflow on this debt went from $11,500 down to $792.  

FAQ: Frequently asked Questions on restarting daily payments:

Can the cash advance company restart my daily payments even though I can prove my sales have not recovered?

They can restart your daily payments even if your sales need much longer to recover. Calculate what you can pay per day and propose a current and increasing payment to them as sales continue to increase. Provide them the documentation to support your numbers and proposal.

What can I do if the mca advance company won’t negotiate a payment I think I can handle?

Consider a consolidation of multiple advances or a refinance buyout of one of the advances. Another option is a payoff with an assed based longer term product which may be 12 to 24 months or longer and have a monthly payment.

What is the best way to get the mca advance company to work with me in taking the full payments out of my account again?

Tell them what is the most you can pay and give them reasons why. Give them data and documentation to back up what you say. This can include the most recent 3 months bank statements, a month to date statement, interim profit and loss, and balance sheet statements. Calculate and itemize your business income and expenses to prove your claim of the maximum daily payment you can make now.

Three times the daily payment: What is it? How to handle it

The lender says you need two to three times the daily payment to close a business loan.

What is three times the daily payment?

Your business needs three times the daily payment.  A daily payment of $150 requires $450 to be in the business account at closing.  How do you close this loan when you do not have the funds?  Our funding experts will guide you through the process.

Complete the application below or contact us.   Our hands-on representatives will get your business through this problem, avoid a decline, and get funding now. 

Get Funding now with 3 times daily payment experts – Secure Docusign
Or Call us at Tel:  1-919-771-4177

Example of needing three times the daily payment to get funding

Road Runner Roofing receives a $50,000 merchant cash advance offer.  The daily payment is $200 per day.  Just before closing, the advance company does a standard bank account verification check.  One of the items reviewed is the current balance, and Road Runner roofing has $400 in the account.   The cash advance company declines the loan.  They have $200 less than the $600 the lender wants.  What should they do?. Contact us now at Tel: 919-771-4177

So what else is the lender is looking for?   The lender looks at excessive recent overdrafts, low balances,  and low average balances.  Recent negative balances lasting more than a day or two are also a problem.  Take another look at these other cash flow trouble spots.  They can bring funding to a stop immediately and permanently.

Three times the daily payment: How to make sure you have it and get your deal done.

FAQ: Frequently asked Questions:

Question: What is three times the daily payment?

Answer: Three times the daily payment refers to a frequent requirement for closing an mca merchant cash advance. Take the daily payment your business has to pay and multiply it times 3. A daily payment of $250 would require a balance of $750 at closing to avoid a decline for not enough money in the business account to cover daily payments.

Question: Will we be declined for having less money in the account at closing than what is required?

Answer: Your business may still be funded, but the account balance is compared to the amount the lender wants to see. Your current and recent balances, average daily balances, overdrafts and nsf’s will also be reviewed.

Question: I don’t have the required closing amount in the business account for a cash advance now. What should I do?

Answer: Wait until you can make a deposit to meet the amount required for the mca cash advance company to fund. If that will take too long, then call the lender and tell them how much you have in your account now. Ask them if that is enough before the closing department does the account verification. Transferring money from another account is an option.

In conclusion:

You should be aware of the importance of how much money is in your business checking account while applying for a business loan.

As discussed, if your balances are too low, your business may get declined at the last minute, just before closing. Once you are declined, it is difficult to have the decline decision reversed. Make sure you know what account balances the lenders want to see!

Declined for a small business loan for recent low sales?

Are recent low sales keeping your business from getting a loan?

For many businesses, the low March, April and May sales months are keeping are keeping businesses from getting approved.

There is an approval fix!  Choose from several small business loans  your business can get with revenue drops as much as 75%!    Complete the secure application below.

Small Business Loan with low recent sales – Secure Docusign Or Call us at Tel:  1-919-771-4177

FAQ Frequently asked questions on getting a business loan with low recent sales

What are slow sales considered?

When sales are less than normal for a specific time period. Lenders consider any reduction of sales of more than 25% to be a significant reduction.

How do lenders look at a major decline in sales?

Lenders want to know why were sales low and for how long. They also want to know when sales are expected to rise again and how much. Lenders also look at the percentage drop in sales. If the business can survive, pay all expenses and make a profit are then evaluated in the loan decision.

How can I get a business loan when we are operating at 50% capacity?

There are several other types of financing a business may still be able to get now even with a big drop in sales. Asset based financing is the most likely, including using receivables, equipment or real estate.

My business tax returns last year were good. Why did the lender still decline us for the recent drop in business sales?

The lender is looking closest at the condition of your business right now and in the future. Lenders see a recent big downturn without knowing when sales will go back to normal as very high risk.

Have your business sales been low in the last few months?

Many businesses have had low or no sales in the last few months because of the Covid-19  lockdown.   Their many challenges include not being able to get financing.

Save your valuable time.   Don’t spend weeks racking up hours and inquires applying with lenders and programs that are almost certain to decline your business.   Apply with programs here that will lend even with much less demand during the virus. Get funded now.   Apply above.

Can we get business funding with no recent sales?

What are examples of declines in demand?:

March, April & May were much slower sales because of covid-19.
The most recent (3) months sales are looked at.   The total deposits per month are reviewed to determine trends.   Questions by the lenders include:
Is there a downturn?   If so, how much?   What were the customer’s average daily balances?   Were they overdrawn with NSF’s and overdrafts?

50% or 60% reduction in sales
Lenders look at how much of a reduction in business your business has had.  How steep of a reduction, how quickly, how long and has the business started to recover?   The main thing lenders will look at is the percentage sales drop.  Any drop in sales over 25% is considered significant.  Funding may still be possible with drops of 50% to 75%.    If a business has had a major drop in sales and needs a larger business loan, then they can add real estate to back the funding and get a much higher loan loan.

Some segments of your business were strong while others had very low sales.
Example:  A retail store’s overall sales in March, April & May were down 50%. In store customers dropped to almost 0 because of the lockdown.    However, because their website offers shipping and delivery of products, online sales were up 75%.

How to get a small business loan in spite low recent sales?

– Make your case.   Don’t just say business was bad.  Say more.
Example:   Explain why.  You can say “We had a drop in business and purchases because of the virus. In spite of that, we are now open and sales are increasing”.

Tips and steps to explaining low recent sales to lenders to help get a business loan

In the example above, provide the information when applying.  Explain how it was not the fault of your business, and you still had sales that are now increasing, both positive current trends. This shows that your business overcame obstacles and is rebounding.

Have all the following questions already answered about the slowdown in business and provide them when you apply.
How bad has it been?
What is the situation now?
How has it affected your business?
What are you doing about it?
When do you expect sales in rebound and increase?
How can you show the business will survive?

If your business has started to recover in May, consider loan options now.

How to get a small business loan during Coronavirus (Covid-19)

Programs are available to fund your business during Coronavirus-19. Many programs and options are available to get funding now. Choose from programs that are not restricted by industry type.

With business sales down during Coronavirus, many businesses are getting declined for a small business loan.

Need a fast business loan now?  Apply below

Small Business Loan during Coronavirus Now – Secure Docusign
Or Call us at Tel:  1-919-771-4177

Which business lenders are open and funding? Check out the:
Top Top 6 Fastest Business Loans available during Covid-19 Coronavirus during Covid-19 Coronavirus. Lenders are restricting industries they lend to and businesses are now being declined  because sales have dropped.  There are more exceptions for certain essential or critical business industries.

Understand which lenders to go to and why.   Consider how they look at your business and choose the right alternative business loans including bank statement loans, asset based loans, loans against equipment, vehicles or real estate.

Estimated Cost: $0
Total Time: 1 Day
Supplies Needed:  search information, time available.
Tools needed: Internet connection, phone, computer

How to get a business loan during Coronavirus Covid-19. How to steps, direction and tips.

Step 1.  Preparation:

Pick lenders that are still lending to your industry and the current situation your business is in.

Tip: Be flexible and open minded to all funding options. The funding option you prefer may not be available or restricted. Credit has tightened a lot for business loans and qualifying is considerably harder even if the program is available.

Decide on the main strengths of your business right now. Don’t apply with a program that considers where your business is weak right now.

Step 2.  Have your information ready to go:

Tip:  Consider all alternative programs that may be a better match for your business now.
Look at an asset based loan.

Business loans now during Coronavirus covid-19

Step 3. Contact lenders that clearly say they are making small business loans during the Coronavirus Covid-19

Review the programs available and continue to match the strengths combined with the needs of your business in deciding which program you should apply for or not.

Tip: Try to pre-qualify over the phone by calling.   With a representative, match the programs available with your company’s profile. List as much business income, collateral, and documentation of both you can to strengthen your request.

Documentation or proof may include bank statements, tax returns, copy of titles of equipment or vehicles.    List the stronger credit owner first because you will increase your chances for approval and also get higher offers.  For equipment purchases tell the lender how much down you have.

Call or complete an app to those lenders that are open and funding business loans during Coronavirus Covid-19

Step 4. Complete application for funding.

If you are approved, review terms and conditions including down payment requirements, fees and time to close.   If you are not approved contact the lender to discuss available options.

Submit the app to get small business loan options for your business during the coronavirus covid-19 pandemic.

Step 5.  When you are approved, request documents.

Review terms and conditions including any down payment requirements, fees and time to close.  If you are not approved contact the lender to discuss available options.

When you are ready to close, complete all closing items required and receive funding

Your decision on which business loan to close during Coronavirus Covid-19 should be heavily weighted in the short term on how likely your business can re-borrow under that program.

Small Business Loan during Coronavirus Now – Secure Docusign

FAQ How to get a small business loan during the continuing Coronavirus (Covid-19)

Can I get a small business loan while covid-19 continues?

We have several special alternative programs that are for virus and lower sales funding and match your business to the best program available.

Do we have any loan options during the virus with bad credit and lower deposits?

There are still cash flow and asset based business loan options available.   These include revenue based programs, business loans against trucks, trailers, construction equipment and real estate.

What emergency funding can we get after our PPP money runs out?

Cash flow and collateral based options are being approved.  If your business has most of it’s cash flow, then there are still options. Match your business strengths to programs that are open, approving and funding. Our programs specialize in taking customer’s profile and matching it to the most viable program.

Top 6 Fastest Business Loans available during Covid-19 Coronavirus

1 Cash flow loans or bank statement loans for Essential industries
2 Loans against vehicles or business vehicles
3 Paycheck protection program – PPP CARE
4 Business loans on Equipment
5 Advances on accounts receivables
6 Loans on Commercial Real Estate

Declined for not enough Collateral? Take these Steps

Has your business been declined for not having enough collateral?

Then choose from a small business loan that has 5 very flexible no collateral options.      Click on the Docusign application below because fast as same day or next day funding is just a click away.

Complete the secure docusign application now.
Or call us at Tel:  1-919-771-4177, or Question?

Business funding does not have to be hard to get.   Does your business have collateral or cash flow?   If so, there is a program that will fund your business.  Denied for not enough collateral?  See Tips, FAQ questions and answers below.

The most flexible business loan collateral options of all programs. If it can be used as collateral for a business loan, it will be!


Frequently asked questions FAQ declined for a business loan for insufficient collateral.

What does insufficient collateral mean?

You or your business did not have the assets that lender wanted to approve a loan. We specialize in funding business loans against collateral large and small using many asset types and with the toughest credit a borrower can have.

What can be used as collateral for a secured loan?

We can use equipment, vehicles, semi-trucks, trailers, and real estate for hassle free and quick funding.

What if I don’t have collateral?

A cash flow or unsecured loan can be approved. Pre-qualify immediately and get an approval and funding within hours in many cases.

Why do some loan companies want collateral?

To approve a business loan instead of declining it.   The lender can sell the collateral if a borrower defaults and recover what is owed to them. This lets them make more and higher offers.

Thank you for visiting our page on how to get approved for a business loan with not enough collateral.

How to get a hot shot truck loan

Get a hot shot truck and trailer loan now!

Hot Shot Truck Loan: Easy Steps and Tips 🚚

With a hot shot truck loan a driver can get a big rig tractor and trailer on the road.  Loans also include trailers such as gooseneck trailers, car haulers and semi -trucks.    Low credit scores may qualify and some start up options are available.
Secure DocuSign 30 Second Application here
Call us at Tel:  1-919-771-4177, or Question? Contact us here.

Estimated Cost: $0
Total Time: 1 Day
Supplies Needed:  time available.
Tools needed: Internet connection, phone, computer


How to get a hot shot truck loan

1. Make a list of the truck and trailers needed.
Include description, manufacturer, year and model numbers.

Have the description, manufacturer, year and model number ready for each tractor trailer truck and trailer.

Tip: Programs lend up to 95% maximum on qualifying trucks and trailers.
The vehicles and trailers must be free and clear. Have the information on the seller ready and whether the seller is a vendor or private party.

Look for lenders that specialize in hot shot truck and trailer financing.

2. Contact lenders that provide hot shot truck loans on trucks and trailers that you are looking for or already have.

Ask about their approval requirements and program options including credit scores, down payment needed, documentation required, time in business and time to close.   Decide which programs are the best match for your business based on the requirements and your own profile.  Give the funder basic information on the trucks and trailers.   Ask what your chances of approval are and if they can pre-qualify you.

Call the lenders that specialize in this financing

3. Provide any income verification you have to strengthen your request.

List the stronger credit owner first because you will increase your chances for approval and also get higher offers.  If your credit score is low but you can make a higher downpayment, tell the lender.   Approvals are another result of higher down payments.

4. Complete application for funding.

If you are approved,  review terms and conditions including down payment requirements, fees and time to close.   If you are not approved contact the lender to discuss available options.

Once you have matched the best program to your profile, complete the application.

5. When you are ready to close, request documents and finish the paperwork.

Complete all closing items required and receive funding

Look over all terms and conditions on offers. Consider early payoff options and compare terms on multiple offers. If declined, then apply with other programs. Ask what the decline reasons are and whether your application can be reconsidered if you resolve any decline reasons.

Secure DocuSign 30 second Application here
Call us at Tel:  1-919-771-4177, or Question? Contact us here.

FAQ Frequently asked questions on how to get a hot shot truck loan

How can I get a hot shot truck Loan?

To get a hot shot truck loan, provide information on the vehicle and trailer. The year, manufacturer, model number, cost and amount you have down are needed to start. An invoice or bill of sale may be required.

Do I need a down payment?

You will need at least a 5% to 10% down payment. A lower credit score requires a larger downpayment. Newer business less than a year old and up to 5 years may need 10% down.
Credit scores over 650 and 2 years in business can make a lower down payment or two payments at closing.

Can I buy my semi truck from a private party and not a dealer?

Lenders prefer or require the purchase to be from a licensed dealer. Private party purchases are scrutinized more. Proof of the current value, purchase history, lien history and current condition will be closely looked at on private purchases.

Need other options?
Check here for other small business loans without vehicles.

What is a concurrent loan? (Easy business funding)

Why get a concurrent business loan?

A concurrent loan is when your business continues to get more money while you pay down the original business loan.
Get new funding soon after you start paying down your new loan.   Your business is likely to qualify for new funding several times during the same loan through concurrent funding.

Apply below and say you want concurrent funding options.  Read more if a larger business loan is needed.

Secure DocuSign 30 Second Application here
Call us at Tel:  1-919-771-4177, or Question? Contact us here.

A concurrent loan allows your business to get fast new business funding with the least amount of review and paperwork

FAQ Frequently asked questions on a concurrent loan for businesses

What is a concurrent loan?

A concurrent loan is when the same lender makes another separate loan to a business before their existing loan is paid off. A concurrent loan can be as soon as 1 month after funding. A majority of lenders do not issue more funding shortly after an initial business loan is made.

Why get a concurrent loan instead of redoing the same loan for more money?

Lenders do not want to refinance the existing loan after only a month or two. The numbers in the contract would be wrong. As a result, it is easier to do another stand alone business loans separately. This is especially true if the lenders want to extend more funds often, such as monthly.

Won’t my existing lender give me less money because I already owe them?

The lender will give your business less if you still owe on the first loan. If you have a good payment history, they usually give you more than other lenders because you have a proven record with them. If you need more than they will give, then you can consider other lenders.

How can I get a concurrent loan?

Find out the balance on your current loan and requirements for getting more money.  Some contracts allow you to get more business funding after paying on your loan for just 1 month.  Many other contracts require your business to have paid the loan down 40% to 50% or more.


By knowing what your contract says, you know whether you may be eligible for concurrent funding.

Contact the lender if you are not sure and ask them how they handle a request for more money while your current loan still has a balance.  First check that your payments have been on time. You may find this the easiest business loan you have ever asked for!

Top 3 reasons: Why don’t banks lend to small business?

The reasons why banks will not lend to small business

Small businesses have a hard time getting a loan from banks. There are several reasons. The top 3 below.  

Your business can use excellent bank alternative programs here to get approved for funds.
⭐ Apply below now:

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1. Banks charge rates too low to take almost any losses

The lowest rates for business loans are at banks, savings and loans, credit unions and the sba.  Because rates are low, the bank will make much less interest income from the loan.    What can you do about it?   Get a business loan that a bank will not approve.   Review more small business loan options here.

2. Federally regulated

Banks are heavily regulated. Through state banking commissions, the federal reserve and fdic, bank’s level of risk in their lending programs is often reviewed and restricted.  As a result, banks put depositor funds at risk if they make loans that are too risky, especially larger commercial loans. If those loans default it could compromise the financial stability the bank and depositor funds.

3. Banks are much more risk adverse

Banks are risk adverse because of the low rates they offer.  So by earning less on each loan, the bank has to have more paying loans to make up for one default.   Banks are also adverse to many other risks, including economic cycles, natural disasters, health pandemics or outbreaks, stock market fluctuations and many more.

What are other reasons banks do not lend to small business? Banks need strong credit, financial statements and good collateral.

Business owners who do not have a high credit score, strong collateral and strong financial statements will probably not be approved at a bank.   As a result, your business needs a lot more funding options.    Apply above.

For instance, other funding options include a bank statement loan and also a loan on equipment.   Both have fast funding and little paperwork.

FAQ frequently asked questions on why don’t banks loan to small business?

Why won’t banks lend to small businesses?

Banks, savings and loans and credit unions only accept the lowest risk businesses because they offer among the lowest rates in small business lending. Their default rate has to be very low so they can only underwrite their low risk customers.

What do banks need to approve a business loan?

Banks look for excellent credit, collateral and the ability to repay. Cash flow as shown through business bank statements, financial statements and tax returns shows a business’s ability to repay. The collateral often needs to be the type a bank will accept and they closely look at the intended use of funds by the business.

My bank turned me down for a business loan. What are my options for business funding?

It depends on your credit, cash flow and collateral. Strong cash flow may qualify you for a business cash advance. If your credit is not good, then your business may need to get an asset based business loan where the collateral is the basis for approval.

My business was declined for insufficient cash flow even though our business has strong sales. Can we get another lender to approve it?

The bank reviewed your business net income after expenses and decided there isn’t enough profit left to pay the new debt. Check your bank statements to see if there are any non business expenses. On financial statements, look for depreciation, amortization and items that can be added back to profit or removed from the statements. Submit this to new lenders when applying or for re-consideration.

Why banks don’t lend to small businesses and how small businesses can get a business loan.

Additional Factors on why banks don’t lend to small business.

Net income for the new payment
Your most recent business net income or bank statements are used to calculate if your business can make the new payment. Not all business loans look at this, but banks do.

2 to 3 year cash flow history.
Traditional banks also ask for business financials including business tax returns for the most number of years, usually 2 or 3 years.

Type of business and industry
Banks consider the industry type in their business loan decision. Banks, savings and loans and credit unions usually prefer certain industry types over others because some industries are considered risky and restricted.

Time in business
Less than 2 or 3 years time in business will often be a decline reason

Other loans your business already has
If your business has any other loans already, that may be a reason to be denied a business loan by a bank. This is often called over obligated or sufficiently obligated.

Lack of financials such as interim financials
Not having the requesting financial statements can be a decline reason.

Not a homeowner.
If you are a business owners and not a homeowner, some lenders may decline you. Being a renter instead of a homeowner can be a decline reason.   Banks may see renters as less stable and therefore riskier.

Time at current business location
Businesses at their current location for less than 2 years may be denied by banks and other lenders.   Lenders will decline if they feel that stability is lacking.

Business account transfers: Affect on a business loan

Has your business been declined for a business loan for having non revenue business account transfers?

Certain transfers between business checking accounts are not counted as deposits or true business revenue by many lenders.
Get business funding programs that consider many transfers that are  automatically declined by most lenders.   Click on the Docusign application contact form below to get funding started today.   Same day and next day funding available.   Don’t be declined for having transfers between accounts.

Complete the secure docusign application now.
Or call us at Tel:  1-919-771-4177, or Question? Tell us what do you want to do?

FAQ’s Frequently asked questions on being declined for a business loan for transfers between checking accounts that are not revenue from sales.

Question:   My business has transfers between business accounts each month. Can you still fund a business loan with transfers between accounts?
Answer:   Business revenue transfers will be kept as part of the deposit totals and used to make an offer. Transfers that are not business revenue are deducted from total business deposits for the month.

Question:   Our business was declined for transfers into our business account. Why would the lender decline our business for that?
Answer:   Transfers into an account may not be business income from a customer. The lender believes those deposits did not come from a sale or service provided and are not true business revenue.

Question:  I was denied for a business loan because the loan company did not count transfers between business accounts that were business revenue. Why didn’t they count and include those transfers?
Answer: The most likely reason is that the repayment of the loan usually comes from one business account even when the business has more than one account.

Question: Our business makes transfers between accounts for payroll and other needs. Why are we penalized for that by lenders for a business loan?
Answer: Business revenue transfers will be counted by us towards your total revenue during the loan review. For other lenders you will have to ask them to review their decision. Provide documentation and evidence that those transfers are business revenue. Invoices and deposit detail may help.

How to get approved after being declined for having unacceptable transfers between business checking accounts. — Click on image to get started!

Customer examples of businesses that were declined and we were able to get an approval for and funded.

Example 1 :  A construction company had 7 deposits in May into their main business operating account.  During the month they had 5 transfers into that account from the other business account they have.   One of the remaining 2 deposits was for only $200.    The lender only gave the company credit for 1 deposit that month and declined them for not enough deposits due to transfers.
The customer came to us asking if we could help.  The transfers were true business revenue from their other account and we were able to get them approved for  $35,000 funding.   Why were we able to help them?   We looked at the account they transferred funds from and counted those funds as real revenue.   As a result, the fact they transferred funds did not matter.

Example 2:  A manufacturing company had 8 deposits into their account in May.   All 8 of those deposits were showing on their bank statements as
“E-mail money transfer in”.   Three funders declined the business for non business revenue transfers.   The customer told us those were payments from customers and not transfers between his business checking accounts.   The customer does not accept payment by visa or master card and needed to give his customers more payment options than  only being able to pay by check.    Through his bank, his company began offering a very convenient payment via E-mail option after which most of his customers switched to and began using.  The other lenders did not consider this and immediately declined him.

Was your business declined for a business loan due to transfers between accounts?  What can you do now?
Contact the lender to discuss this decline for having business account transfers.

Communicate with the lender and find out which transfers were not counted as revenue.  The decline reason probably did not have enough information.  Ask about the details.   Also ask about the specific policy that does not allow transfers between accounts to be considered business revenue in a loan evaluation .

How can you advocate your business to the lender?
Ask the lender what it will take to get approved.  Also ask if there are any changes you can make immediately that will change the decline to an approval.

When can you apply again?
Ask how long you have to wait before you can apply again.  Most lenders will make you wait at least 30 days before you can reapply.    As mentioned earlier, if you can determine what changes you need to make with your business as well as the type of of deposits,  then make those changes before reapplying.

Missed mca payments? Take these 4 steps now to fix the problem fast

Don’t panic: How to handle missed mca payments


Missing just 1 mca payment should not cause your business problems.   But what if you have more missed mca payments? What can you do to avoid problems?    In this post we will talk about 4 initial steps further below to take if you cannot pay cash advance payments. 

Also consider if you can instead get out of your merchant cash advances now.    Payoffs may be possible through a longer term loan that are asset based.

Apply below to get started now on safe ways to fix this problem before lenders take action against your business.

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You have missed mca cash advance payments. What should you do now? Several immediate solutions to save your business.

What can you do after missed mca payments including due to Covid-19 Coronavirus?

1. Communicate with the lenders immediately.

Contact the cash advance companies right away. Do not think the problem will work itself out or that you will probably catch up in a couple of days. Communication is key. It is better if you contact them before you miss more payments. However, if you already missed a payment then contact the advance companies that day or the next day at the latest.   Maybe the missed payments are not your fault.   Missed mca payments due to the coronavirus covid-19 pandemic may have impacted sales causing your business to miss mca payments.

2. Tell the cash advance companies what has happened and why.

But how do I explain this to the mca companies?
It depends on your situation. What is your cash flow situation right now?  Can you begin making the payments again right away? Figure out what you can pay, when, and how often.   Let them know what is happening with your business.    If you have a good reason for missing payments, tell them that reason.   If you can back it up with documentation, all the better.    Being proactive and communicating will be your best option at the beginning.  If the lender has no coj confession of judgement, you will still want to work out a payment plan to avoid a default.

3. Can you start making payments again?  If so, make an agreement with the advance companies to begin.

Call the cash advance companies even when you can start  making payments immediately. They still want to know why you missed mca payments.  That will help your case.  You may end up missing another payment later you did not expect to miss.   It is better if you are already on record as being in contact with the lender.

4. Payment plans after delinquent mca payments

Payment plans are best when the business can neither keep making the daily payments or paying off the advance. The cash advance company may be very willing to set up a payment plan. They will be able to get payments in full and the merchant will make the total sum of payments.   It is up to the lender to do this.   If your business wants to go this route then be ready to explain to the cash advance company why a payment plan will work for both of you.

Other Considerations

Missing consecutive payments

If you expect to miss more payments consecutively, then you want to decide if you can payoff the advances first. Paying off advances with another loan is better than continuing to miss payments.   You can choose from unsecured options such as a bank statement loan, and a large business loan if you need a lot.

Bouncing more mca payments.

If you know you cannot sustain your payments then paying off the advance may be the best option.   This is because missed payments will make it much more difficult for your business to borrow in the future and make this your worst option.    Many merchants would rather not take out a new loan.   However, if you are approved for a new loan that can payoff loans you cannot pay, you should strongly consider doing so.   Many businesses cannot even get approved for a payoff and don’t have that choice.


Paying off your merchant cash advances may be the best option.   But when is it better to payoff and when is it better not to?  It is usually better to payoff the cash advances when you know you cannot keep paying the current payments.   Paying the advance off with another loan works very well if you have less than 3 months or so left on the exiting advances. Taking out a loan to payoff a low balance is still much better than missing mca payments and defaulting.    You can avoid damaged credit, court action and trouble getting loans in the future.

When does it make sense to payoff one loan with another?

Example: A merchant has an advance with a daily payment of $100 and has a remaining balance of $3,000.  He has 30 payments left but he cannot keep making those last payments and will go past due and default. Before going past due the merchant is offered another loan for 6 months to payoff the $3,000. The new daily payment will be about $35 per day for 120 days.   The borrower can afford this easily.   Problem solved.   The business now has a payment they can afford and does not have to worry about paying the advance on time.

Extending the term

Extending the term is usually similar to a payment plan. Sometimes it is more informal and the cash advance company will just let the borrower continue making payments past the term without a formal contract.  At other times a formal new contract will be written that replaces the old contract.    Expect the mca company to charge penalties, fees and more interest as part of the new contract.

Lowering Payments

Getting your mca cash advance company to lower the payments works best when your business just needs short term cash flow relief for a week or two. Your business may just have a brief cash flow problem it needs to work around.   Be aware that mca companies are not receptive to businesses calling in multiple times and asking to lower payments for a while.    It is supposed to be a rare request rather than one of convenience.   Some lenders may only do this once during the term of the contract.     If you think your business will need to ask for lowered payments several times then find a different option.

Pausing payments

A pause for one to three weeks may be all a business needs.  As with lowered payments, your business has to be sure it will be able to restart and continue payments when the payment pause is over.     You should not pause payments if you need a longer term permanent solution.    Sometimes businesses will ask to pausing payments when they know they will have a problem again when the regular payments start back up.   If this is you, then you should put all your efforts into solving the problem permanently on the front end.

Settlements after significant missed mca payments

A settlement directly with the mca cash advance company can be considered when other options will not work.  Settlements usually happen after a merchant has failed with a payment plan or lowered payments and not able to handle regular payments anymore.    It is a step before a default but still considered better than a default situation.
Beware of 3rd party settlement companies that tell you to put a stop payment on a merchant cash advance company.

We believe this is the worst choice in almost all cases.

Many settlement companies will tell you to do this to buy time for them to negotiate with the mca cash advance companies on your behalf.     However, they still want you to pay them a lot of money upfront before they start negotiations for you.    We believe this is a very bad idea for your business for several reasons.

Let’s break down why:

Your advance will be declared in default immediately when you put a stop payment on them.  You certainly will not want to even consider this if you have not read your MCA contract in detail.   The contract will tell you all the actions the advance companies can take when you put a stop payment on their daily Payments.  Putting a stop payment on a merchant cash advance will definitely result in the strongest response against you by the mca companies.   If they have a coj, then they will file it against you almost immediately.    The settlement companies telling you to do this do not have to deal with the problems you will have! Do not do this!

Beware of companies that tell you to close your business checking account

MCA companies will react in about the same way as when you put a stop payment on their daily payment. They usually consider closing your business checking account to stop an mca merchant cash advance as an intentional default.

What is an intentional default?

An intentional default happens when a borrower takes an intentional action not to make good on the contract.  This is almost always combined with little or no communication with the cash advance company. Lenders think of the borrower as trying to evade an obligation and contractual promise to pay. Worse, their contract usually includes specific language that talks about what actions and remedies they can take if the borrower closes their account. We believe this is a bad option for almost all borrowers. Contact us above for much better options!


Defaults are the least desirable option.   The lender has declared that they are taking a loss on the loan.   The worst adverse action has already been taken against the merchant, which may include filing a coj confession of judgement. All efforts should be taken to avoid a default on a cash advance.
If the mca company has a coj confession of judgement, they can have it enforced through a court in one or two days.    Sometimes they can have it affirmed by a court the same day.

What can the cash advance company do then?

They can have the sheriff contact any bank they wish and demand that the bank verify if your business has a checking account there.   If so, the cash advance company can debit all the funds out of your account.

In conclusion

The tips above can guide you on how to handle specific situations with cash advance payments. If you continue to struggle with debt long term the National Foundation for Credit Counseling, NFCC can help with budgeting and strategic long term debt planning.

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FAQ Frequently asked questions on missed mca payments.

My business sales were down through covid-19 and I cannot pay my daily cash advance payments. What are my options?

Do not stop communicating with your mca merchant cash advance companies. Consider any ongoing relief programs they can offer. Look at asset based alternative programs to payoff your advances in the short and medium term if you have collateral.

I missed an mca payment. What can the merchant cash advance company do?

If you have only missed one or two payments then the mca companies are very unlikely to take action besides trying to contact you. If you have not talked with them yet and you miss more consecutive payments, then contact them asap.

My cash advance company has threatened to take action against me for missing payments. What can I do?

If your mca company has threatened to take legal action against you it means they probably have not done so yet. You still may have a chance for a good result. Look at what you can pay and consider offering to make the maximum payment you can.

If they refuse then put your offer in writing and email it to them certified. This may work strongly in your favor if there is future court action against you. It shows that you communicated with the cash advance companies and tried to work out a solution to fulfill your obligation to them with your worsened financial situation and they refused to work with you. Whatever your outcome ends up being, this action should put you in the best possible position later.

I don’t want to talk to the mca companies. They are very aggressive, rude and threatening. Why should I talk to them?

Talk with them because if you don’t they will take action against you. They may be able to put a freeze on your business checking account or block your account. You will not be able to use your business checking account if they do that. That will be the worst result for you and your business. Contact them to see if you can come up with a solution.

My cash advance company said they can lower or pause the payments. Which one is best?

Pausing the problems is best when your business has a short term cash flow problem for a few weeks and will be able to begin making the full daily payments again after that. Lowering the payments will be best if your business is going to keep having trouble making the regular payments later. If you cannot make the regular mca payments later then it is better to get the payments lowered long term until you have paid off the contract.

I have some delinquent mca payments right now. Should I payoff the mca payments or try to work out a compromise?

Payoff the cash advances if you are able through another loan when you cannot keep making the daily payments and will default. Work out a compromise with the lender when you have the cash flow to make a lower payment. Ask them not to declare you a default account.

Is it good for a settlement company to tell me to close my business checking account so that the mca companies cannot debit my daily payment?.

You should not close your business checking account to stop daily mca debits except in some rare cases. Closing your account automatically causes you to be in default. The mca company can also declare the act of closing your business checking account to stop the daily debit as an intentional default.

I missed some daily mca payments and the advance company is telling me I am in default. Can they declare me in default?

If the contract says missing a certain number of payments puts your account in default and you missed that number of payments then they can declare you in default. Negotiating is usually better even after you have been declared in default on a cash advance. Communicating with the advance company will usually get the best possible outcome for your business.