Many merchant cash advance (MCA) agreements are marketed as receivables purchases, but in practice, some operate more like high-interest loans. These arrangements may include fixed daily payments, limited or ineffective reconciliation provisions, and repayment terms that do not meaningfully adjust when revenue fluctuates. When repayment obligations are effectively absolute, the structure of the agreement may warrant closer legal review.

We are not a law firm and do not provide legal services. However, through our backend partners, independent attorneys may be retained on a client’s behalf to evaluate whether an MCA agreement is being enforced in a manner consistent with applicable law. When appropriate, those attorneys may pursue legal strategies intended to challenge unfair terms, reduce payment pressure, or address practices that place excessive strain on a business’s cash flow.

Our role is to help business owners understand the nature of their MCA agreements, coordinate access to appropriate legal resources, and ensure clients are informed about potential options available to them. By facilitating this process, we help businesses move toward sustainable solutions without taking on additional high-cost debt.

Fixed daily or weekly payment obligations—especially when combined with limited or nonfunctional reconciliation provisions—can place significant strain on a business’s cash flow. In many cases, these payment structures do not meaningfully adjust when revenue declines, despite being marketed as flexible receivables-based arrangements. When payments remain fixed regardless of performance, the agreement may warrant closer legal review.

Through our backend partners, an independent attorney may be retained on a client’s behalf to assess whether fixed payment terms and the lack of effective reconciliation create enforceability or compliance concerns under applicable law. Where appropriate, those attorneys may pursue legal strategies intended to challenge oppressive terms, seek payment relief, or address practices that unfairly shift all risk onto the business owner.

Our role is to help clients understand how these payment structures work in practice, coordinate access to appropriate legal resources, and ensure they are informed about potential paths forward. By facilitating attorney review when appropriate, businesses may be able to pursue relief without resorting to additional high-cost financing.