MCA debt relief: what the law actually says
If merchant cash advance payments are crushing your business, the law is more on your side than it was five years ago. This page is the plain English version of what has changed, with every claim linked to a primary source. It is general information, not legal advice.
Federal enforcement is real
Federal regulators have gone after cash advance companies for taking money from business accounts without permission. One case returned more than 9.7 million dollars to small businesses. In another case, a company and its owner were permanently banned from the industry after regulators alleged they deceived small businesses, forced confessions of judgment, and made threats.
New York changed the game
New York banned confessions of judgment against out-of-state business owners in 2019. And New York's Attorney General won a judgment of more than one billion dollars against a merchant cash advance operation, cancelling more than half a billion dollars of merchant debt for over 18,000 small businesses.
Twelve states now require cost disclosures
California, New York, Utah, Virginia, Texas, Georgia, Florida, Louisiana, Connecticut, Kansas, Missouri, and Vermont have all passed laws requiring providers to disclose the real cost of covered small business financing before you sign. The details differ by state. Find yours in our state directory.
Red flags the regulators have acted on
- Anyone who tells you to stop paying and park your money in an escrow account while you hope for the best.
- Anyone who wants a large deposit before doing any work.
- Anyone who pressures or threatens you. Regulators permanently banned one company from the industry over conduct like that.
Where to start
Start by knowing your numbers. Then look at your options while your accounts are open and your payments are current. Owners generally have more choices before a default than after one.
See funding options that may fit your business
See Your OptionsGo deeper
- Business debt settlementDebt settlement means negotiating with the people you owe to accept less than the full balance.
- MCA consolidationConsolidation means replacing several merchant cash advances with one new financing, ideally at a lower total cost with one payment you can plan around.
- Business debt restructuringRestructuring means renegotiating what you owe, the payment size, the schedule, sometimes the balance, so the debt fits what your business actually earns.
Keep Going Capital is a marketing and comparison service, not a lender. We do not make credit decisions. We connect business owners with independent funding providers.