For unsuspecting (and often desperate) small business owners who took out Merchant Cash Advances as a lifeline to save their livelihood, the filing of a Confession of Judgment (COJ) becomes the businesses deathblow.
Small businesses, like all businesses, need cash to operate. But for many small businesses, gaining access to much-needed capital is difficult – especially when COVID hit. While programs such as PPP and SBA EIDL provided some assistance, businesses without an established track record of success or poor credit history have few options. Many traditional financing sources (such as banks) don’t find it worth their while to take the risk, especially if the amount needed is small.