Restarting Daily Payments: 3 Ways to Best 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 avoid defaulting, further below.

Restarting daily payments: How to make it work


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Complete the application above to:

    • Extend the terms by refinancing
    • Consolidate your advances
    • Payoff the advances
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 the highest amount you can afford to pay daily and ask if they can extend the contact to match that amount.  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 amount you can pay. Call the advance company,  and use your supporting documentation to make your case.

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 more payments.   Ask if you can extend the term of that contract from 50 days to 83 days and confirm you can handle a $60 per day. If they will not, contact or apply with us above. We will help you get through this process.   The lender will also verify balances and what your business can afford. 

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 payments you can make.    Then figure out the maximum you can pay daily 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 ones you have now.  Most have a term at least 50%, and up to 100% longer than the current positions.  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 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 positions. 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 that are $550 per day. You have to pay 27 more 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 obligation is $792 per month = $37 per business day.  $37 % $550 = 7%.  You have reduced and improved your debt by approximately 93%.!   Your monthly outflow on this debt went from $11,500 down to $792.  


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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 positions. 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.


How to Lower Daily MCA Merchant Cash Advance Payments

Do you need to lower daily mca merchant cash advance payments – immediately?

Is your account sometimes overdrawn because the mca companies keep debiting the daily payment?   Do you have multiple advances and do not know what to do if your daily mca payment is too high?  What can you do?


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Apply for one of several options below that do not involve settlements, closing your bank account, being declared in default, nor having a cash advance company file a coj certificate of judgement against you.   If your payments were temporarily lowered and the cash advance company is restarting the daily payments, consider term extensions or consolidations.

How to lower your daily mca merchant cash advance payments.

1:  Negotiate with the mca merchant cash companies to extend the term and lower the payments.  Offer to pay a lower amount for a longer amount of time or make changing daily payments based on a percentage of sales.

2:  Give the cash advance company solid reasons why you cannot pay the current daily advances.

3:  Get an alternative loan or consolidation loan to payoff the advances.

4:  Use the equity in assets such as a real estate loan or loan against equipment to payoff the advances.

Get lower daily payments now without adverse action against you or your business.

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FAQ, Frequently asked Questions on how to lower daily mca merchant cash advance payments

Can I get a monthly payment loan to pay these off?

Yes. One of the ways to lower your daily mca merchant cash advance payments is to get an alternative loan to pay off the mca cash advances. By doing so, you will be lowering the payment because your monthly payment on the loan to pay off the mca’s will be much lower than the monthly amount you were paying on the daily cash advances.
Usually, you will be paying 50% to 75% less if you are successful in securing a monthly loan to pay the mca’s off.

What if the cash advance companies do not want to lower the payments?

You may have to push hard to get a concession. If your business had a true hardship, such as a hurricane or another type of hardship, make that known. If that fails, read the mca merchant cash advance contract in detail.

Make sure you know exactly what can happen if you do not pay. It may be advisable to seek legal advice through an attorney if you know you cannot repay the advances.
If you know in advance your business will not be able to repay the advances, you can use the time in advance to:
– Determine what your options are
– Know what actions you can legally take

I cannot pay my advance. What can I do?

Check your state laws to find out if your state has special protections and laws. Some laws vary by state. Negotiate with the cash advance company either directly final options may include bankruptcy.

Should I get my Attorney to contact the mca merchant cash advance companies?

Whether you should get an Attorney involved in talking with the cash advance companies varies on a case by case basis. In some cases, having your Attorney contact and negotiate with the cash advance companies is a good idea. If you are offering to work with the merchant cash advance companies and they are not working with you, this may be a good situation in which your attorney contacts them.

Some mca merchant cash advance companies are more willing to work with customers than others. If you do not feel comfortable negotiating or discussing your past due debt with mca merchant advance companies, this may be another reason to involve an Attorney.


Average Daily Balance for a Business Loan

What is average daily balance?

It is also know as the average ledger balance and is the daily average for one month at your bank.

How does it affect me? If it is too low it can affect you in several ways:


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❎ Paying fees on bank accounts
❎ Being declined for personal loans and services
❎ Being declined for business loans or services

If it is not high enough, it may be a reason for a decline with a lender who does not tell you what the requirement is.

We specialize in low cash flow businesses and as a result, will get the best program for your company.  For approvals with low average balances, ✅  Below Now:


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Frequently asked questions FAQ: Average daily balance for a business loan

What is average daily balance?

It is the average of your ending daily balances for a one month cycle in your account. Lenders may decline business loans when it is too low, not believing your company has the daily cash flow to handle a new loan. It is also sometimes called the average ledger or collected balance.

What does the average daily balance have to be?

Lenders look for certain minimum amounts and often want to see at least $1,000. Others want a $1,500 average and as high as $2,500. A higher amount gives lenders more confidence that your business has the cash flow to handle the new debt.

Why does the average daily balance in my business account matter?

Low average balances are a major factor in your request being denied. The higher the average daily balance, the more likely you are to getting approved and for a higher amount.

Keeping high daily balances is challenging for businesses.    Many use almost all of the funds that are in their account immediately after it is deposited.

What is average daily balance and why does it matter?

Why do lenders care about average daily balances?

Lenders, especially short term lenders, also want your business to keep more in your account than what their future payment will be.   The lower it  is, the more worried they are you will not be able to make payments to them.    As a result, they take any new payment into consideration when making the approval or decline decision.   Lenders may also consider what the percent of your loan payments will be as a percentage of total deposits.  This is similar to a debt to income ratio that many lenders use to assess business cash flow and affordability.

Many businesses that are declined for this reason may get declined for having less than $10,000 in deposits per month or also for the account being overdrawn.
Contact us for other options because there are specialty programs for this issue.    We hope this information can assist you and also help you decide what to do next.   Contact us or call us if you have any questions.

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