What is a COJ Confession of Judgement?

COJ confession of judgement definition

A document that lenders sometimes ask for to close a loan. Any lender with a coj can get a default judgement against you or your business in court and without a trial. Lenders can submit the judgement to your bank and debit available funds from your accounts.


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Get a loan without a coj. When the merchant cash advance company declares a default, a completed coj certificate of judgement allows mca companies to easily take legal action against a merchant.    Consider ways to payoff the advance or catch up with a cash flow loan.

What is a coj certificate of judgement? I need to stop a coj.

FAQ: COJ confession of judgement

What is a coj confession of judgement?

It is a document that lenders may ask for as part of closing a financial transaction. Any lender holding a coj can file the document in court upon a default and obtain a summary default judgement against you or your business immediately without a trial. Merchant cash advance companies then contact your bank to debit available funds from your accounts. Banks must comply with any court ordered judgement. In the confession of judgement you acknowledge guilt in advance if you default as described and declared by the lender.

How can I stop a coj?

The best way is to contact the lender immediately when you miss payments and come to a workout or settlement solution. You may be able to agree to a repayment plan that prevents them from filing the confession of judgement in court.

What can a cash advance company do with a coj?

An mca cash advance company can go to a court and automatically request a summary default judgement. They may be able to get it the same day. Read the coj closely. Learn under what circumstances and how a confession of judgement allows lenders to take court action against you or your business.

Can a merchant cash advance company shut down my business and lock my doors?

Merchant cash advance companies rarely take this step even when the language in the contract says they can. Immediately negotiating
with the advance company in good faith will almost always prevent this from happening.

Can an attorney get me out of a COJ Confession of Judgement?

An attorney can help advise you on the most viable options to deal with a coj. This is critical when you are behind or have defaulted. Seek legal help immediately on your choices before a lender takes court action against you after they have declared a default. Legal counseling may be your best investment when you cannot make any payments.

What are your options ?

Get a mca merchant cash advance or business loan with no coj certificate of judgment. We have business loan programs that do not require a coj, including large business loans to get out of your cash advances,  bank statement loans, loans against equipment, asset based loans and other options such as paying off your mca merchant cash advances.

If you feel a lender is about to take action against you, you can do the following to try to stop it.

      1. Contact the lender to try to come to a last minute agreement on a repayment plan, payment arrangement, settlement, or any type of agreement.
      2. Continue to actively communicate with the mca merchant advance company.   When the merchant does not communicate with the funder or lender, such as avoiding calls and not reply to correspondences, the merchant cash company takes the strongest action.   Callers ask, “will they freeze my account?”.
      3. If you do not communicate with the mca company, they may block your business checking account.
      4. Keep paying the daily payments if possible while you work towards a solution.  When the merchant stops payment on their daily advance causing the daily merchant cash advance payment to not be paid and rejected, the mca merchant cash advance company may declare a default.

    What can I do if the merchant cash advance company still declares a default?

    1. Keep the business checking account from which the daily payment is drawn open.   Anytime the merchant closes their business checking account and the daily merchant cash advance payment bounces and is rejected, the mca merchant cash company can declare it an immediate default.
    2. Stay visible, open and available.    Sometimes a merchant disappears or if you go out of business, it  shows the mca merchant cash advance company that you are still trying to work with them and reduce their losses.   They may still decide to negotiate with you and agree to a workout solution.


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