If your business is unable to make daily or weekly payments to your merchant cash advance, there are several options available to you.
1. Reconciliation
In brief, the first one is reconciliation. Reconciliation is a process by which you reconcile your income or future receivables that you have sold to the merchant cash advance company under the guidelines of your contract. The result of that is you could drastically lower your daily or weekly payments so that they match or reconcile with your actual income. This is a fantastic option that allows you to not breach your contract and give you relief you need when you are able to make payments, but just not the full payment because of lower revenues.
2. Settlement Plan
The second option is a settlement plan. This is better suited for where, for the foreseeable future, you need significantly better terms. In other words, you examine the reconciliation process, and just trying to lower the payments to be more in line with your revenue doesn't give you the relief necessary to save your company.
3. Bankruptcy
The third option is a bankruptcy solution. In the corporate bankruptcy and most times, you believe your company can survive — but because the overall debt or daily, weekly, or monthly payments is no longer sustainable with your current revenue, and you need to reorganize your debt.
Every situation is unique. If you have questions, contact our office. We'd love to help you.
The material and information contained on this website is for general information purposes only. You should speak with an experienced attorney in your area before making any legal decisions.
