Tag: Debt collection lawyers

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Merchant Cash Advance Collection

How MCA Companies Can Collect Defaulted Advances

Monetaria Group explains what happens when you default on a merchant cash advance.

As a leading merchant cash advance collections agency, Monetaria’s mission is to help our clients recover what is owed to them. Serving many businesses in the merchant cash advance, we are uniquely positioned to understand the challenges of funding businesses that may look to default on their obligations and attempt to block our clients from collecting their payments in an efficient and effective manner. 

In this article, we’ll share our insights on the process of collecting defaulted merchant cash advances.

What Happens When a Merchant Cash Advance Goes into Default?

Defaulting on a merchant cash advance generally means that the business that was funded is generating sufficient revenue to satisfy the terms of the merchant agreement with the funder but chooses to obfuscate its contractual duties to continue delivering as per the terms of the agreement. Another way a merchant can default is by not communicating with the funder that their revenue has decreased and that they need to reconcile their payments commensurate with their current revenue stream. 

 Completely defaulting on an advance is typically a last resort. Other- more productive- ways of managing a payment plan a merchant can’t keep up with is communicating their difficulties with their funder and restructuring the payment plan along terms more commensurate with the revenue they are presently generating, or in more dire circumstances, renegotiating the amount owed in more dire scenarios.

When the business advanced starts blocking or bouncing payments, and stops communicating with the funder about their declining revenues and intentions, this is usually considered a default according to the terms of most merchant agreements. In other words, the obligation is on the merchant to notify the funder that their revenue has declined.  

When the merchant defaults, the funder may be moved to pursue methods to collect what is outstanding, such as hiring a third-party collection agency with experienced merchant cash advance collectors or onboarding a debt collection attorney to collect what they’re owed through the courts. In some cases (like Monetaria), a number of collection agencies have experienced commercial debt collection attorneys on staff, to easily pursue legal remedies if it becomes necessary.

How to Collect A Defaulted Merchant Cash Advance?

At our collections agency, we understand that businesses defaulting on an MCA you advanced can put your funding business in a difficult position. That’s why we recommend reaching out to experienced debt recovery and collection agencies capable of exploring all available angles if you find yourself needing to recover funds.

At Monetaria, our team of experienced commercial debt recovery experts and attorneys work tirelessly to help MCA companies collect on defaulted advances. Our collection process is designed to be efficient and effective, using a combination of legal, financial, and technical strategies to ensure that debts are collected and businesses are able to continue operating.

We believe in a fair and transparent approach to collections and always work closely with our clients to ensure that they understand the process and are comfortable with the steps we are taking to collect their debts. Whether through negotiation, settlement, or legal action, we strive to achieve the best possible outcome for our clients.

 

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

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 debt collection attorneys, Monetaria 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!

 

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B2B Collections Collection Tips

Commercial Debt Collection For Beginners

The debt recovery lawyers at Monetaria explains Commercial Debt Collection for Beginners.

 

Business owners are often far too busy running their businesses to actively chase vendors and customers to pay their invoices, but if you’re not getting paid the money you’re owed, the business will quickly find itself without the cash flow needed to continue, much less grow and scale up. 

Knowing how to collect what you’re owed is crucial to ensure the financial stability and success of your business. Here is a guide to commercial debt collections for beginners:

What is Commercial Debt?

Commercial debt is a business-to-business transaction debt collection transaction:

Your business provided products or services to another business for it to be able to provide its own services and now needs to collect payment for it. Commercial debt is a common way for businesses to access capital and product, but it must be managed carefully in order to ensure that the company remains solvent and can repay what it owes in a timely manner.

How To Collect Commercial Debt?

In an ideal world, everyone would promptly pay their creditors quickly and easily, but we don’t live in a perfect world.

If a business is withholding payment, the creditor has several options: they can reach out and offer a payment plan, negotiate the amount owed, or pursue more aggressive methods, such as hiring a third-party collection agency with experienced commercial debt collectors or onboarding a debt collection attorney to collect what they’re owed through the courts. In some cases (like Monetaria), a number of collection agencies have experienced commercial debt collection attorneys on staff, to easily pursue legal remedies if it becomes necessary.

Why Hire a Debt Collection Agency?

There are many reasons to hire a third-party debt collection agency to help you recover your business-to-business debt. They include (but are not limited to):

Experience and Expertise: A debt collection agency has the expertise and resources to effectively collect outstanding debts that may be difficult for you to recover on your own.

Save You Time and Energy: Collection efforts can be time-consuming and require a lot of effort. Hiring a debt collection agency can free up your time and resources to focus on doing what you do best while letting them handle the intricacies of debt collection.

Tactful and Professional Approach: Collection efforts can be delicate and a debt collection agency can handle the process professionally and tactfully to avoid damaging your customer relations.

Ensure legal compliance: A debt collection agency is familiar with the laws and regulations surrounding debt collection and can help ensure your efforts are compliant with the law.

Increase your chances of collecting the debt: A debt collection agency has experience and expertise in negotiating with debtors and has a higher success rate in collecting outstanding debts compared to businesses trying to collect on their own, without the resources and knowledge of an experienced firm.

Selling Debt To A Collection Agency

Another way of handling a debt owed to you is selling and offloading it to a collection agency.

This means you are transferring ownership of the debt from the original creditor to the collection agency, who will then attempt to collect the debt from the borrower and keep what they can collect.

This is usually done when the original creditor has been unable to collect the debt and just wants to get an even smaller sum so they can move on. The sale of the debt is typically done at a discount, with the collection agency paying a lower amount for the debt than what is owed, reflective of their chances of recovering the full sum.

 

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

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 debt collection attorneys, Monetaria 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!

 

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Collection Tips

How Does Merchant Cash Advance Collections Work?

Monetaria Group debt collections lawyers discuss what is merchant cash advance collections and how it works.

 

Many small businesses often turn to merchant cash advances (MCAs) when they need extra cash to supplement their cash flow, invest more capital in their business, or whenever they are in a pinch. The process of obtaining an advance is often quick, sometimes taking only one or two days, which can be attractive to a struggling business. However, MCAs can be expensive, which can make it easy for merchants to fall into a cycle of debt or miss payments. So,

what is merchant cash advance collections and how does it work?

When a merchant cash advance business needs assistance collecting payments on outstanding balances, they often turn to a third-party collection agency- like Monetaria- to help them with their debt recovery. These agencies typically have extensive experience in recovering outstanding receivables and use a variety of tactics to get deliver for our clients. This may include negotiations, developing payment plans, and even legal action. They handle the case, utilizing their expertise and knowledge, which allows their clients to focus on growing their businesses instead of worrying about how to get paid. 

A third-party collections agency might also attempt to seize a merchant’s assets, and levy their business bank accounts. On behalf of the funder, they may work to freeze their personal and business banking accounts, contact a business’s vendors or brokers and merchant processors to convince them to pay the collection agency directly since the business has defaulted on their loans, and if the merchant is using a payroll company, the MCA funder may also attempt to interfere in that arrangement.  

It is incumbent on a business to understand what they are agreeing to when applying for a merchant cash advance and have a payment plan in place. Because they may be a riskier financing proposition, many MCA companies protect their capital by including personal guarantees and liens on receivables in the contract, in case they need to put the account into collections to recover funds.

Commercial collection services are regulated by a number of federal and state laws. These laws outline the rights and responsibilities of both the creditor (the business trying to collect the debt) and the debtor (the business that owes the debt).

At the federal level, the Fair Debt Collection Practices Act (FDCPA) sets out rules for how consumer debt collectors can interact with debtors. While the FDCPA applies to personal, family, and household debts, and not to debts incurred by businesses,  many states have their own debt collection laws that apply to commercial debts, and these laws may provide additional protections for debtors. In addition to these laws, there are also industry-specific regulations that may apply to commercial debt recovery and collection. For example, the healthcare industry is subject to the Health Insurance Portability and Accountability Act (HIPAA), which has provisions related to the collection of medical debts.

Commercial debt collection agencies can employ certain collection methods that are banned under consumer collection regulations for non-commercial entities.  These agencies need to be licensed and bonded before performing collections in most states, so when looking at hiring a third-party collection agency, it’s critical to ensure they are qualified and credentialed. 

Monetaria Group is led by a team of debt collection attorneys, which lets clients know all their debts and cases are being handled legally and competently, with no chance of trouble down the road. Monetaria is the number one solution for businesses looking to recover debts in the merchant cash advance and commercial debt space. With our innovative approach, experienced team, and commitment to customer service, we have established ourselves as the go-to choice for businesses looking to get the money they are owed. If you are a business owner struggling to recover money, don’t hesitate to reach out to Monetaria for assistance: we have the expertise and resources to deliver the results you need.

 

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

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 debt collection attorneys, Monetaria 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!

 

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What is Monetaria?

What is Monetaria?

The debt recovery lawyers at the Monetaria Group specialize in merchant cash advance and commercial debt collections and recovery.

 

What is Monetaria?

Monetaria is a debt recovery and collections agency that specializes in merchant cash advance collections and commercial debt recovery and has quickly established itself as the number one solution for merchant cash advance funders and other businesses looking for a debt collection partner.

With over 10 years of experience and led by a team of renowned commercial debt collection attorneys, Monetaria has risen to the top of the industry thanks to its innovative approach to debt recovery. We understand that each case and circumstance is unique and requires a personalized approach in order to be effectively recovered, which is why we offer a range of services designed to meet the needs of businesses of all sizes.

There are two primary collections services Monetaria is perhaps most known for:

The first is our merchant cash advance collections program. This program is designed specifically for merchant cash advance businesses that have outstanding payments on advances, delinquent clients or multiple defaults. When MCA companies are ready to recover the debt and partner with a third-party collections agency, Monetaria is there to help.

Commercial collections– or business-to-business debt collection- is another important debt recovery service Monetaria offers. This program is designed for businesses looking to recover debts from other businesses who are neglecting payments and invoices and has seen hundreds of major companies recoup payment for their services rendered or products sold.

The team at Monetaria has extensive experience in recovering outstanding receivables, and we use a variety of tactics to deliver for our clients. This may include legal action, negotiations, and even mediation. Whatever it takes, within the confines of the law, Monetaria is committed to helping businesses recover the debts they are owed. 

A key advantage of working with Monetaria is our cadre of experienced professionals, which includes debt collection lawyers, collectors, and other experts who are well-versed in the complexities of the debt recovery process. This diverse and highly skilled and effective team ensures we are able to provide a level of service that is simply not possible with other debt recovery companies.

On top of our single-minded focus on each client’s case, customer care and communication are core values for us. From our lengthy experience, we understand that recovering debts can be a stressful and overwhelming process, and do everything we can to make it as easy and hassle-free as possible for our clients. This includes providing regular updates on the status of the recovery process, always being available to answer any questions clients may have, and working closely with them to develop a customized recovery plan that meets their specific needs.

Monetaria is the number one solution for businesses looking to recover debts in the merchant cash advance and commercial debt space. With our innovative approach, experienced team, and commitment to customer service, we have established ourselves as the go-to choice for businesses looking to get the money they are owed. If you are a business owner struggling to recover money, don’t hesitate to reach out to Monetaria for assistance: we have the expertise and resources to deliver the results you need.

 

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 debt collection attorneys, Monetaria has helped hundreds of businesses recover and collect their outstanding debts and payments. See testimonials from our delighted and satisfied clients here, and schedule a FREE consultation with our expert team to see how we can help you recover your money today!