Asset recovery services for MCA funders

MCA Debt Resolution & Asset Recovery for Merchant Cash Advance Funders

Helping Businesses Resolve MCA Debt — While Helping Funders Recover Distressed Capital

Merchant Cash Advances can provide businesses with fast access to working capital, but when daily or weekly withdrawals begin exceeding what the business can reasonably support, both the merchant and the MCA funder can face a serious problem.

For the merchant, cash flow can become increasingly strained.

For the MCA funder, an otherwise productive account can deteriorate into delinquency, default, collection activity, litigation, or a potential total loss.

Michael Lewis Group can help provide another avenue.

Through our business debt resolution relationships, we can assist qualified companies with significant Merchant Cash Advance debt and other eligible unsecured business obligations by exploring structured solutions that may include:

• MCA debt restructuring

• Merchant Cash Advance modification

• Business debt settlement

• Payment restructuring

• Creditor negotiations

• Distressed MCA resolution

• Defaulted MCA workout strategies

• Unsecured business debt resolution

The objective is not simply to move debt from one lender to another.

The objective is to determine whether an overleveraged business can reach a realistic, sustainable resolution with its creditors.

Are MCA Payments Overwhelming Your Business?

Businesses frequently begin with one Merchant Cash Advance and later obtain additional advances to cover operating expenses or existing payment obligations.

Eventually, multiple daily or weekly withdrawals can create a cycle in which new financing is being used to service old financing.

A business that may otherwise be viable can become overwhelmed by:

• Multiple stacked MCA positions

• Large daily ACH withdrawals

• Weekly MCA payments

• Declining revenue

• Cash-flow shortages

• Merchant Cash Advance defaults

• MCA collection pressure

• UCC-related creditor issues

• Lawsuits or judgments

• Difficulty qualifying for conventional financing

The program we work with is specifically designed to review businesses experiencing payment pressure, stacking, defaults or cash-flow strain and whose owners are willing to consider restructuring, modification or settlement alternatives.

Taking another advance is not always the answer.

Sometimes the existing obligations need to be addressed first.

MCA Debt Help for Business Owners

If your business is struggling with Merchant Cash Advance payments, we can help determine whether your situation may qualify for a structured review.

Potential solutions may include negotiations designed to:

Reduce Immediate Payment Pressure

Large daily or weekly withdrawals can consume the cash a company needs for payroll, inventory, rent, suppliers and normal operations.

Restructure Existing Business Debt

Qualified MCA and unsecured business obligations may be evaluated for restructuring or modification based upon the company's financial condition.

Negotiate Settlements

Certain distressed obligations may qualify for negotiated settlement depending upon the creditor, account status, available cash flow and circumstances of the business.

Create a Sustainable Payment Strategy

The objective is to identify what payment level the business can realistically support rather than continuing an unsustainable payment cycle.

Position the Business for Future Financing

Excessive MCA debt and multiple stacked advances can make conventional bank, SBA and commercial financing extremely difficult. The attached program materials specifically identify active MCA debt and daily/weekly debit pressure as obstacles to conventional loan underwriting.

Resolving the existing debt may help place the company in a better financial position for future financing.

Who May Qualify for MCA Debt Resolution?

We are particularly interested in speaking with business owners who:

• Have approximately $50,000 or more in total MCA or eligible unsecured business debt

• Have multiple Merchant Cash Advance positions

• Are overleveraged or stacked

• Are struggling with daily or weekly payments

• Have experienced a decline in revenue

• Have fallen behind on payments

• Are currently in default

• Are facing aggressive collection efforts

• Have liens, lawsuits or judgments associated with business debt

• Want to avoid taking another high-cost advance simply to meet existing obligations

The program's current submission guidelines use a $50,000 minimum total MCA/business debt balance and specifically identify stacking, defaults and cash-flow pressure as qualification factors.

MCA Asset Recovery Solutions for Funders and Lenders

Have Distressed or Defaulted MCA Accounts?

We are also interested in working directly with:

Merchant Cash Advance funders, MCA lenders, ISO organizations, business funding companies, portfolio managers, collection departments and holders of distressed business debt.

Traditional collection efforts do not always produce the best economic result.

A merchant may still operate a viable business while being unable to maintain the original daily or weekly payment schedule.

When that happens, the choice does not necessarily have to be limited to:

Continue aggressive collections — litigate — obtain a judgment — or write the account off.

There may be another approach.

Qualified distressed accounts can be reviewed to determine whether the merchant and creditor may be able to reach a workable resolution.

Turn Distressed MCA Accounts Into Potential Recoveries

Michael Lewis Group has decades of experience in asset recovery, finance and commercial lending relationships.

We understand that recovering something meaningful from a troubled asset may be considerably better than pursuing an account until there is nothing left to recover.

Our objective with distressed MCA accounts is straightforward:

Identify Viable Merchants

Some merchants are not failed businesses.

They are businesses whose debt structure has become unsustainable.

Determine Actual Cash-Flow Capacity

A realistic analysis of the merchant's revenue, existing obligations and available cash flow can help establish whether a workable payment structure exists.

Facilitate a Structured Resolution

Depending upon circumstances, eligible obligations may be considered for modification, restructuring or settlement.

Preserve Potential Recovery

An operating business producing revenue generally creates more potential for creditor recovery than a business that has been pushed out of operation.

Provide Another Recovery Channel

Funders may be able to refer distressed accounts for evaluation rather than relying exclusively on internal collections, outside collection agencies or litigation.

Why MCA Funders Should Consider a Workout Strategy

Every distressed MCA account is different.

However, funders frequently encounter merchants suffering from:

• Excessive stacking

• Revenue deterioration

• Multiple daily ACH withdrawals

• Insufficient operating cash

• Default on one or more positions

• Competing creditor demands

• UCC lien pressure

• Lawsuits

• Judgments

• Collection expenses

• Businesses approaching closure

The underlying program specifically evaluates merchants with multiple MCA positions, overleveraging, declining revenue, defaults and aggressive collection activity.

Once a business closes entirely, recovery opportunities can diminish substantially.

A negotiated workout may sometimes provide a better economic outcome for both merchant and creditor.

MCA Debt Is Different From Traditional Commercial Debt

Merchant Cash Advance problems frequently involve several creditors simultaneously.

One merchant may have:

First position MCA debt.
Second position MCA debt.
Third or fourth positions.
Business credit cards.
Unsecured business loans.
Vendor obligations.
Bank loans or secured debt.

Not all obligations can necessarily be handled in the same manner.

Current program guidelines identify potential eligible obligations as including MCA balances, unsecured business loans or lines, business credit cards and certain vendor debt. Secured loans, tax obligations, payroll, leases and similar obligations generally fall outside the program.

That is why each situation requires an individual review.

Industries We Can Review

MCA debt affects businesses throughout the economy, including:

• Restaurants

• Retail businesses

• Trucking and transportation companies

• Medical and healthcare businesses

• Contractors

• Construction companies

• Real estate-related businesses

• Professional services firms

• Manufacturers

• Wholesalers

• Automotive businesses

• Hospitality companies

• E-commerce businesses

• Service companies

Different industries also create different creditor issues. For example, restaurants and retailers may depend heavily on card-processing revenue, while trucking companies may have factoring or receivable arrangements that complicate creditor claims.

Information Needed for an Initial MCA Debt Review

You do not need to prepare an elaborate loan package to start the conversation.

For an initial review, we generally want to know:

Business name

Type of business

Approximate annual or monthly revenue

Number of current MCA positions

Names of MCA funders

Approximate outstanding balance of each account

Total daily or weekly payments

Whether any accounts are currently delinquent or in default

Whether liens, lawsuits or judgments exist

What changed in the business

What weekly payment the company believes it could realistically sustain

The formal program guidelines ultimately request lender agreements, recent business bank statements and documents relating to liens, lawsuits, judgments or defaults.

For MCA Funders, Portfolio Managers and Collection Departments

If your company has distressed MCA paper, defaulted merchant accounts or accounts where conventional collection efforts are producing limited results, contact us.

We would like to speak with MCA funders interested in establishing an additional recovery channel for appropriate accounts.

This is particularly relevant where:

• The merchant remains in business

• The company continues generating revenue

• Current payments are no longer sustainable

• Multiple MCA positions are competing for cash flow

• The merchant wants to resolve the debt

• Traditional collection efforts have stalled

• Litigation may cost more money without guaranteeing meaningful recovery

We are not suggesting that every defaulted MCA account can be recovered.

We are suggesting that some distressed accounts deserve a workout analysis before they become complete losses.

For Merchants: Don't Wait Until the Business Stops Operating

If your company has reached the point where every day begins with worrying about ACH withdrawals, bouncing payments, MCA defaults or creditor calls, it may be time to evaluate another strategy.

The sooner the financial picture is reviewed, the more alternatives may remain available.

Do not take another Merchant Cash Advance simply because you believe there is no other option.

Let us first determine whether your existing debt can be addressed.

Merchant Cash Advance Debt Resolution & Asset Recovery

Michael Lewis Group works with businesses, lenders and financial organizations on unusual and difficult financial situations.

Our objective in distressed MCA situations is to create a practical bridge between merchants who need sustainable debt solutions and creditors seeking meaningful recovery of capital.

Business Owners

If you are struggling with:

MCA debt, stacked Merchant Cash Advances, daily ACH payments, MCA defaults, unsecured business debt or aggressive collection activity, contact us for an initial discussion.

MCA Funders and Lenders

If you have:

defaulted MCA accounts, distressed merchant portfolios, nonperforming MCA paper or difficult recovery situations, contact us to discuss establishing a referral and recovery relationship.

Contact Michael Lewis Group

Merchant Cash Advance Debt Resolution
MCA Default & Workout Assistance
Distressed MCA Asset Recovery
Business Debt Restructuring
Commercial Asset Recovery

Michael Lewis Group
michaellewisgroup.com

mca@michaellewisgroup.com 

Confidential inquiries welcomed.