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What Is a Merchant Cash Advance?

If your business has taken a merchant cash advance, in essence, you have sold future receivables — in other words, your income. Ideally, you only have one of these. In fact, most merchant cash advance contracts strictly only allow you to have one — in fact, maybe only one loan or advance at all.

 

 

If your business has taken a merchant cash advance, in essence, you have sold future receivables — in other words, your income. Ideally, you only have one of these. In fact, most merchant cash advance contracts strictly only allow you to have one — in fact, maybe only one loan or advance at all.

What to Do If You’re Struggling to Make Merchant Cash Advance Payments

If you find that you're in a situation where you might be struggling to make your merchant cash advance payments, it's critical that you adhere to the contracts and reach out to them in a proactive manner. In essence, you can expect that because you have sold the rights to future income or receivables, that they will want to collect on those — and their methods of collecting vary, but their rights per your contract should be detailed.

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. 

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