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 can be difficult. This is especially true if the business doesn’t have an established track record of success or has a poor credit history. 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.