Is closing your business checking account to stop an mca cash advance a good idea?
Shutting down your account is a bad idea and the worst way to get out of a merchant cash advance. Consider much better alternatives to stop an mca such as Payoff and Consolidation options. Apply below.
Call 919-771-4177 for more info.
Lenders may consider closing an account an intentional default.
Choose much safer alternatives, such as:
✅ Lower Payments
✅ Longer Terms
Get started on safer, better solutions. Apply Now, below:
Call Tel: 1-919-771-4177.
FAQ frequently asked questions on closing a business checking account to stop mca cash advance payments
Can I close my business checking account to stop a cash advance daily debit?
Closing your account is not allowed and may be considered an intentional default. Call the cash advance lender and try to work out a solution. Payoff or consolidation options are available if you are not offered a repayment plan you can pay.
What will they do if I close my account without telling them?
It can be called an intentional default and you can be sued. They are much more likely to take legal action against you and your business through a lawsuit filed in state or county court. There could be accusations of fraud if accusations of an intentional fraud are made.
What are better options?
Working with the cash advance lender to negotiate a lower payment is almost always better than closing the account. That should only be seen as a possible last option under extreme circumstances. In many cases, the bank has called the loan due and you must come to a negotiated solution with the lender to avoid a default.
The following is what many debt settlement programs tell customers to do.
- Sign a contract which allow them to represent your firm in communications with lenders and mca merchant cash advance companies after missed mca payments.
- Pay their company to start the process.
- Close your business checking account per their instructions or advice.
- Allow them to represent you in negotiations.
There are several problems and possible severe consequences to closing your business checking account to stop paying cash advances or loans and signing a debt settlement contract .
- The lender can also consider this an intentional default or fraud.
- The lender or mca company can file a certificate of judgement and may also be able to debit funds in other accounts you may have at the same bank or other banks
- You may not be able to talk to the lenders or cash advance companies directly any more even if you want to. Language in the contract may not allow you to talk contact the funder directly
- You may not have influence or say in the final agreement.
The contract you sign take power and decisions out of your hands and puts much of it in the hands of a 3rd party.
Other options to closing your business checking account
- Contact the lenders directly and try to discuss your financial situation and reach an agreement with the lenders yourself.
- Payoff the merchant cash advances with other loans if the balances are low enough
- Discuss your financial situation with a business attorney
- Filing bankruptcy
The advantage of some of these options in general is that they either show you are sincerely trying to work with your lenders to settle your debt, are forming a coherent strategy to do so, or have officially determined that you cannot pay. These also have advantages over closing your account.