Negotiating with merchant cash advance (MCA) lenders can be challenging for small business owners. MCA lenders often have aggressive collection tactics and may not be willing to work with borrowers who are struggling to make payments.
As a result, borrowers may feel overwhelmed and unsure of how to proceed. Are you struggling to make payments on your MCA and wondering how to talk to your lender about a payment plan?
4 key considerations for a payment plan
When negotiating a payment plan with an MCA lender, it is essential to approach the conversation with a clear understanding of your financial goals. You should be prepared to provide detailed financial information and explain why you need a payment plan.
Before negotiations, you must consider the following:
- Your current financial situation, including income and expenses
- The amount of the MCA, your current payment schedule and other terms of the MCA agreement
- The proposed payment plan, including the amount and frequency of payments
- The potential consequences of defaulting on the MCA
You want to negotiate a payment plan that is realistic and achievable. By providing detailed financial information and explaining your situation, you can work with the lender to find a solution that works for both parties. Your lender may be willing to work with you to avoid default and potential legal action.
Pursuing a fair outcome
Negotiating with an MCA lender for a payment plan requires careful planning and preparation. By seeking legal help, you may ensure the protection of your rights and business interests as you pursue a fair outcome. In addition, having legal guidance can provide you with valuable support throughout the negotiation process, helping you navigate the complex MCA landscape.