Frequently Asked Questions
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A Merchant Cash Advance (MCA) is a financing option where businesses receive a lump sum of capital in exchange for a percentage of future sales or receivables. Unlike traditional loans, MCAs are based on your business’s cash flow and are repaid through daily or weekly deductions from your sales. While they offer quick access to funds, MCAs often come with high repayment costs and can lead to aggressive collection practices if payments are missed.
No, MCAs are structured as the purchase of future receivables, not traditional loans. This means they are not governed by the same laws and usury limits as conventional business loans, allowing MCA companies to charge higher effective interest rates and employ aggressive collection tactics.
Defaulting on an MCA can lead to severe consequences, including lien notices being sent to your customers, restrained/frozen credit card processors, lawsuits, and frozen bank accounts. Some MCA agreements include confession of judgment clauses, allowing lenders to obtain judgments without court proceedings. At Off Ramp, we specialize in providing legal assistance and business consulting to help you navigate these challenges to protect your business.
If you’re overwhelmed by MCA debt, The Off Ramp Team offers a free review of your borrowing situation. Our confidential review is conducted by experienced professionals who can provide legal support, business consulting, and ethical finance options. We focus on delivering customized solutions to help you regain control of your finances and protect your business from predatory lending practices.
The Off Ramp Team helps business owners transition out of harmful or unsustainable financial obligations – especially Merchant Cash Advances (MCAs). We provide strategic consulting, legal resources, and ethical financing solutions to help you stabilize your business and regain control.
Common red flags include:
– Multiple daily/weekly ACH debits
– Falling behind on payroll, rent or vendor payments
– Taking new MCAs to pay off old ones (a “stacking” cycle)
– Stress or confusion around daily cash flow
If this sounds familiar, it’s time to talk to our team for a confidential review.
Yes. Many of our clients come to us with multiple MCAs draining their cash flow. We evaluate your entire debt structure and provide a customized action plan. This may include negotiating lower payments, restructuring debt, stopping daily withdrawals, and accessing better financing options.
Stopping ACH withdrawals typically involves revoking authorization with your bank and the MCA provider. However, doing this is most likely a breach of your agreement and without a legal strategy in place, can lead to lawsuits and accelerated collection actions. We recommend consulting with our professionals before taking such steps to ensure your actions are legally sound and strategically planned.
Yes, many MCA contracts include personal guarantees, making you personally responsible if your business defaults. It’s crucial to review any agreements carefully and seek legal advice to understand your personal liability fully. The Off Ramp Team offers comprehensive reviews and legal support to help you navigate these complexities.
Yes. For eligible businesses, we connect you with ethical lending partners and alternative funding options with transparent terms. This can include term loans, revenue-based financing, or bridge capital that doesn’t drain your cash flow.
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Regardless of the presence of a signed COJ, you still have legal rights. An experienced attorney can file answers and oppositions to lawsuits, assist in preventing the entry of a judgment, challenge improper service, or dispute the enforceability of the agreement. The Off Ramp Team collaborates with legal professionals to provide you with the necessary support to defend your rights effectively.
MCAs typically don’t appear on personal or business credit reports unless you default and the account goes to collections or results in a legal judgment. However, the daily withdrawals can severely impact your cash flow, affecting your ability to meet other financial obligations and indirectly harming your credit.
Yes, MCA debt can often be settled, especially if your business is experiencing financial hardship. We work directly with you and your funders to negotiate settlements and create sustainable solutions for your business.
We offer a free review within 24–48 hours of your introductory call. After we assess your situation, we provide a step-by-step action plan and begin engaging with legal resources if needed. Time is critical – don’t wait until a judgment is filed or your accounts are frozen.
We are entrepreneurs and business owners just like you. Our mission is simple: to help business owners escape unsustainable funding traps and rebuild strong, ethical financial foundations. We offer confidentiality, integrity, and results – not false promises.
Need a plan to get out from under MCA debt or cash flow issues?
Schedule your free consultation with The Off Ramp Team today and take the first step toward financial relief and control.