B2B Collections Collection Tips Merchant Cash Advance Collection

Dealing with Merchant Cash Advance Collections? 4 Ways to Get Out of MCA Debt

Merchant cash advances can help small businesses get funding in a pinch, but sometimes delivering the receivables to the funder proves difficult. Letting the business that gave you the advance (or the MCA collection agency) know that you need time and help to deliver as promised on your MCA debt can be intimidating.

To help you face your issues with merchant cash advances head-on, here are four strategies to help you pay them off quickly:

Make a lump-sum payment from “local resources.” Instead of defaulting or seeking another MCA to fund your last one, consider paying it off with funds you have available, or those you can obtain at better rates. Savings, a personal loan from a friend or relative, venture capital, or selling items you don’t need are all good ways to get cash fast. Whatever source of funding you choose to pay off your MCA debt, make sure that it has low interest rates and will not harm your credit rating. 

Renegotiate the advance proactively. MCAs aren’t loans, so it may be possible to adjust the total amount owed and monthly payments. Explain your current financial situation to the MCA company and ask if they would be willing to reduce the gross sum and monthly payment amount. 

Work out a payment plan. Even if your funding provider or MCA collection agency can’t adjust the total amount owed, they may be able to work with you to establish a payment plan. Open communication is important when negotiating either with merchant cash advance collections, or directly with your funder. Be honest with them and they may be able to revisit the timeline of the advance or explore other options to help you stay on track. It helps to be proactive and approach the MCA collection agency with a manageable plan of your own that takes into account any financial difficulties you may have. 

Consider invoice factoring. Work with an invoice factoring company that will buy your unpaid business invoices at a lower price. They will advance up to 85 percent of your invoices, which can help you deal with your MCA debt.

We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on merchant cash advance collections, to ensure your business gets paid.

Ready to read more about MCAs? Check out these articles:


If you have unpaid debts that need to be recovered, commercial debt collection may be a good option for your business. A commercial debt collection agency can help you with the process of recovering past-due accounts and provide guidance on best practices for managing accounts receivable. 

Led by a team of experienced commercial debt collection attorneys, Monetaria Group has helped hundreds of businesses recover and collect their outstanding debts and payments. Schedule a FREE consultation with our expert team to see how we can help you recover your money today!