Aggressive collection tactics from your merchant cash advance (MCA) lender can be overwhelming for you and your business. If your MCA lender is threatening to enforce their UCC lien against your small business, this can freeze your bank accounts and disrupt your operations. What questions can you ask your lender in order to initiate a negotiation?
Can you please stop your harassing calls and messages?
Respectfully ask the lender to stop making abusive collection calls and sending threatening messages. You can state that you will discuss a resolution moving forward if they agree to a professional dialogue.
Is it possible to ask for an adjustment of the payment amount?
In addition, you should check your MCA agreement for a reconciliation clause right away. If there is such a clause, you can request a payment adjustment if your revenue has dropped. It is vital to present your current sales figures to ask for a true percentage-based payment to replace a fixed daily sum.
Can we discuss new payment terms over a longer period?
You can also focus the conversation on extending your repayment term. You can propose a longer schedule, for example, from three months to six months. This approach shows a commitment to pay while easing your urgent cash flow strain.
What steps can we take to avoid going to court?
Further, you can ask the lender to discuss a path forward that keeps both parties out of court. You can propose settlement options and explain that it is faster to reach a negotiated agreement than dispute a contested UCC lien enforcement action.
Working toward reaching a mutual agreement
When facing a harsh UCC lien threat, it is essential not to panic or delay. With thorough legal guidance, engaging in respectful and honest communication with your lender may set the stage for a strong negotiation. Additionally, having a legal advocate on your side may help you fight the lender’s aggressive moves as you work toward reaching a mutually beneficial agreement.