MCA Debt Resolution

Bank loans and easily accessible capital for small businesses can be hard to find for most small business owners.  Banks and high end business lenders make borrowing money difficult.  In fact, in 2021, less than .001% of businesses in the United States and its territories were able to receive an SBA 7a loan.  

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Small business owners then turn to easy to get capital.  Those funds are usually unsecured Merchant Cash Advances (MCA) or small business loans from alternative lenders.  Even the best lenders who serve in this space do not have strong lending terms which benefit the small business owner and his or her business.  However, faced with the need for capital and the lack of other options, small business owners still take on capital in the form of a Merchant Cash Advance, Term Loan, or Small Business Line of Credit.  In 2021, The US Small Business Administration estimated that over 72% of small business owners had either explored or taken on Merchant Cash Advance, Term Loan, or Small Business Line of Credit.

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What Happens To Many

What happens to many small business owners when they take on alternative funding can be and usually is harmful to their businesses.  However, while we hope that all small business owners pay off their alternative funds and we do not tortiously interfere with clients ability to pay back their funds, we see the following happen to small business owners daily.

• Small business owners just cannot pay back a daily or weekly payment.

• Hardships cause small businesses to have a hard time on payback terms.

• Brokers and in some cases lenders entice or in many cases lie to small business owners, ultimately having the small business owner take on more MCA debt.

• Small business owners stack cash advances to arrive at an amount of capital needed but once they face payback terms, they are unable to keep up with the terms and default.

 

What Beacon Client Solutions Does

We understand that small business owners do not intend to put themselves in a hole with attaining capital.  In most cases, once small business owners are facing their debt with small business creditors, they are not prepared for what is coming or has likely already happened.  Creditors will use a host of avenues to address small business recovers from threatening small business owners, placing liens on their business bank accounts, personal bank accounts, credit card processors, as well as file lawsuits in States which are not close to their businesses and generally favor small business creditors.  

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The team at Beacon will get to know the client, understand what has happened, and customize a strategy that:

1. Educates the client on what is happening, what can happen, and how Beacon will help. 

2. Protects the business owner.

3. Protects the business owners business.

4. Addresses their hardship.

5. Identify potential and address current UCC liens.

6. Addresses organizational issues preventing the successful payment of the debt,

7. Work with the creditors to resolve the debt issue

8. Utilize our legal network of outstanding attorneys for both pre-litigation actions and current litigation which has been filed by the creditor.

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