Debt Restructuring

Debt Restructuring for Business Loans & Merchant Cash Advances (MCA) can lower monthly debt payments by 40% to 70%.

Were you forced to use HIGH-INTEREST Rate MCA’s or other Short-Term Debt to grow your business or keep it afloat during the bumpy past few years?

You aren’t alone. We talk to business owners on a daily basis trying to wiggle out of the high daily or weekly payments.

MCAs can be a liquidity deathtrap from which many businesses never recover. Restructuring is the best solution – not bankruptcy and certainly not reverse consolidations.

Restructuring Business Debt & MCA Debt

• Our Debt Restructuring Partner’s MCA & Business Debt Restructuring experts and attorneys restructure your existing Cash Advance Contracts with your existing Cash Advance Providers.
• Immediately and permanently lower your debt payments by 40% – 75%
• Reduce your total payback amount!
• $30,000 Minimum Debt Restructure

Monthly Savings can be accomplished with no:

• New loans
• Minimum FICO Score
• Collateral needed
• Upfront fees
• Satisfaction Letters and all UCC Liens released upon completion of the program.

Need help now? Call (317) 589-0118 or Schedule a Free Consultation

Restructuring will allow you Affordable Payment Plans

All Programs involve affordable pay plans designed with you to fit your budget, with a timeframe that meets your business’s needs.

Why? It’s simple. Because you can’t cure a debt problem with more debt.

Regain control of your cash flow and your business before it’s too late! Because if your MCA debt problem is severe enough, and you don’t act swiftly and decisively, then your window of opportunity to fix the problem will close.

At that point, your business that was built with sweat equity and money will usually have no choice but to file for bankruptcy. Don’t let this happen to you. What would you do then? How would you feel knowing there were strategies you could have used to save your business and your livelihood if you had only acted sooner?

Businesses Who Have Been Helped By Debt restructuring on their Business Loans and Merchant Cash Advances

Would you like to learn your options?

Call (317) 589-0118 or Schedule a Free Consultation

What is a Merchant Cash Advance?

Backstory:

Since The Great Recession of 2008 into 2009, access to affordable working capital has been hard to come by for many small businesses in America. Banks routinely say “NO”, and business owners get that message loud and clear.

Your business needed working capital for that big project, or for that equipment purchase, or for that planned expansion, or to finance that next client order.

Cash flow is the life blood of any business, but small businesses can be especially challenged in this area.

Enter the Merchant Cash Advance, or “MCA” as they’re called in the industry.

By definition, a Merchant Cash Advance is the purchase by an MCA Funder of “future sales deposits – or future accounts receivables” expected by a business. An MCA Funder purchases “future sales” for less than their current value (normally 40% -50% less) which is reflected in what they call their “factor rate” (i.e. a typical factor rate is 1.49 which means you will pay back the funds you take times 1.49) (keep reading… this will be explained in more detail).

Our example is “the average”. We have seen MCA’s for as low as 1.11 for 12 months, but this is rare.

The MCA funding company provides you with a discounted lump sum of cash up front with a payback total and timeframe based on either:

1.daily or weekly fixed payments or

2.a specified daily percentage of future sales

Either way, these figures are derived from the average of the business’s most recent 3 or 6 months of revenue as shown by the business’s bank statements.

Most importantly, an MCA agreement is structured in a way that adds up to tremendous and unsustainable costs for this type of short-term financing.

Since MCA funders are purchasing your business’s future receivables, this is not considered a “loan” and the business is not considered a “borrower”. By not “lending” to a “borrower”, MCA funders bypass usury laws which address excessive interest rates thereby allowing them to charge loan-shark rates.

What’s the math look like?

It’s the factor rate that tells you the general cost of funding.

A 1.49 factor rate means that you are paying 49% interest for the amount of time you have those funds. That’s right, for the amount of time you have those funds!

Most MCA’s are issued for 3-6 months (and certainly less than a full year). For example let’s say you have a term above is only for 115 days.

To convert the 49% into an “annual” figure, you would first divide the 49% by the 115 days (49/115) and get 0.426, which is the “daily” percentage cost of the financing. Then, you simply multiply that daily figure by 360 days in a business year to get your annualized percentage rate – which, in this case, is over 153%!

Crazy, yes! Unsustainable, right? Do you think a lot of business owners realize they’re paying over 100% annually for many of the MCA transactions they do? Answer: No way!

Do you know how many businesses have more than one MCA on their books right now?

The sad fact is that if a business has 3 or more MCA’s, there’s an overwhelming chance that the business will fail.

Which leads us to discuss MCA Stacking.

Most MCA Funders prohibit stacking. It exists. Typically requiring 50% of the account paid down.

Stacking is when you have more than 1 MCA at a time.

You put a 2nd MCA on top of a 1st, and a 3rd on top of a 2nd, and so on, until the business’s cash flow is so squeezed that it can’t continue to support scheduled payments and it’s left with multiple “stacked” MCAs to pay back. It’s similar to a Ponzi scheme,  in that the 2nd MCA is used to make payments on the 1st, and the 3rd is used to pay the 2nd, etc.

Many in the industry have referred to MCA stacking as a ‘liquidity death trap” which usually destroys the business if not remedied quickly. Stacked MCAs act like a cancer eating away at the business’s cash flow.

If it is not immediately eradicated, the business will die.

Because, let’s face it, if a business can’t repay their first MCA due to the lack of sufficient cash flow, it is flawed logic to think that it will be able to handle 2 or more MCAs with that same cash flow. The exorbitant cost of MCA capital usually makes “stacking” the last nail in a business’s coffin.

Yet the MCA industry and its armies of aggressive “brokers” and “underwriters” do these “stacking” transactions routinely, and even proudly advertise to their brokers that they will go out to an 8th position!!! 8th position…really?! Talk about doing something to the detriment of your business!

If this all sounds familiar….

Talk to Us Before It’s Too Late

Talk to us about your situation and find out how this proven strategy will dramatically lower your debt payments in just days and save you money on your total payback amount.

RECAP

• Our Partner’s MCA Debt Restructuring experts and attorneysrestructure your existing Cash Advance Contracts with your existing Cash Advance Providers.
• Immediately and permanently lower your debt payments by 40% – 75%
• Reduce your total payback amount!

This can be accomplished with no:

• New loans
• Minimum FICO Score
• Collateral needed
• Upfront fees
• Satisfaction Letters and all UCC Liens released upon completion of the program.

Next Steps to Get Rid of the High Payment Stress…

Schedule a Call https://www.bizfundfirst.com/schedule 0r Just Call (317) 589-0118

Gather Documents and prepare forms prior to our phone meeting.

Items that will be helpful for our discussion and will be needed by our debt restructuring partners:

1. 1-page fillable DR application. Please sign, date, & scan back with the rest of your submission. Please do not alter any part of this document, as it has specific language that we need to fulfill our compliance and financial privacy requirements.

2. Income Projection form. List what you think your revenue (sales only) will be for the next 3 calendar months. It is important to     be realistic. Also use this form to tell us why you have a financial hardship now.

3. Debt Schedule. Please fill out in its entirety. Accuracy is paramount.

4. Copy of all signed funding contracts that you are looking to restructure. (If you do not have them handy in a desktop folder, simply search your email using each funder’s name and hit enter. You can also search using the word “DocuSign” (w/o the quote marks) and everything you have signed from DocuSign will populate.

• Important: if you can’t locate the contracts, DO NOT call the MCA companies to request duplicates. The customers service personnel have their antennae up and are specially trained for their clients calling for their contracts. They recognize this action as a pre-cursor to a DR or some other legal activity. You have the element of surprise working in your favor.  

5. Business Bank Statements – Most recent month and month-to-date.

6. Copy of front and back of client’s valid driver’s license.

Once these DR items are received, they are forwarded to the debt restructuring specialists. They  will review the file and get back to us within an hour or two to let us know what the next step is to keep the file moving forward, as we want to help alleviate your financial pain as quickly as possible. 90% are approved to begin debt restructuring.