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MCA Restructuring Fees and Costs Across the Board

BY Value Capital Funding

December 11, 2023

Comparing Providers: MCA Restructuring Fees and Costs Across the Board

As a small business owner facing overwhelming merchant cash advance (MCA) debt, you want to regain stability and get back on track to your goals. Professional MCA debt restructuring services can help, but providers vary widely in their fees and costs. Comparing those fees across different firms is crucial to make an informed choice.

Understanding MCA Restructuring Fees

MCA restructuring fees generally include:

  • Consultation fees: These fees are typically charged for the initial consultation with a restructuring provider to discuss your situation and develop a plan.  Upfront fees are out there, but at Value Capital Funding, we don’t think you should ever pay them.
  • Attorney fees: If legal counsel is involved in the restructuring process, you will also be responsible for attorney fees.  At Value Capital Funding, all Program fees, including attorney fees are included in any new restructured payment.  That is typically 50% – 75% reduction from what you are scheduled to be paying as per your contracts.
  • Restructuring service and administration fees: These fees cover the costs of the restructuring provider’s services, such asnegotiating with your lenders and developing a new repayment plan.  Again, they are out there in a la carte fashion, however, we don’t think you should pay them.
  • Success or contingency fees: Some restructuring providers charge a success fee or contingency fee, which is a percentage of the debt that is forgiven or reduced as a result of the restructuring.  We never do at Value Capital Funding, and we don’t think you should pay for services in this niche that way.  Curious why?  Since it is too involved for a blog post, please contact us today to discuss your own scenario in 100% complete confidence.

It’s important to establish your business goals as they relate to this acute problem.  Understand that in many instances, like stage 4 cancer, if not handled quickly and correctly, it’s too often fatal. 

It’s very important to know what’s covered in any proposed MCA restructuring plan and to ask providers to explain fees upfront.  This is why at Value Capital Funding, we only offer MCA debt restructuring services with singular, all-inclusive and affordable pricing.  Remember, if you’re suffering with excessive merchant cash advances, they’ll never take care of themselves.

The Importance of Fee Comparison

Given the wide variety in fee structures between different MCA restructuring firms, comparing costs across providers is essential. Contrasting fees helps you locate the best value and a solution that fits your budget. Avoid partners with hidden or upfront fees.

Factors to Consider When Comparing MCA Debt Restructuring Fees

Key factors to consider when comparing MCA debt restructuring fees include:

  • Total fees for your specific debt amount: The total fees charged by a restructuring provider will vary depending on the amount of your debt. Be sure to have discussions with multiple providers before making a decision in case you don’t like what you first see.\
  • Fees for your particular situation: The complexity of your situation may also affect the fees charged by a restructuring provider. For instance, if you have multiple MCA loans or your financial situation is complex, you may be charged higher fees.
  • Inclusion of all costs and avoiding any hidden fees: Be sure to ask providers if their fees are all-inclusive or if there are any additional costs that you may be responsible for. Some providers may charge hidden fees, such as monthly account management fees or late payment fees.
  • Experience and effectiveness of the provider: When choosing an MCA restructuring provider, it’s important to consider their experience and effectiveness. Look for a provider with a proven track record of success in helping small businesses restructure their MCA debt.  Use online reviews to help you decide. 
  • Customer service and account management: It’s also important to choose an MCA restructuring provider that offers good customer service and account management. You should be able to easily reach your account manager if you have any questions or concerns.

How to Gather Information from Different Providers – Especially in a Time Crunch

When battling with too many merchant cash advances, time is certainly not your friend.  Every day brings yet another pull on your business bank account. 

Be strategic in gathering information from different MCA restructuring providers, you should call them directly. Chemistry matters, and you should pick a team that gives you a warm a cozy feeling, and one that instills confidence that they can get the job done.  Of course, you need to ask about all of the fees associated with their services and get everything in writing, but reputable companies like Value Capital Funding will already provide them to you – even if you didn’t remember to ask.

How to Analyze and Compare MCA Debt Restructuring Fees

Once you have gathered your intel from multiple providers, you can begin to analyze and compare their fee structures and value proposition. Be sure to consider all of the factors listed above, such as the total fees charged, the experience of the provider, the customer service offered, and of course, the results discussed.

Value Capital Funding’s Competitive Edge

At Value Capital Funding, our MCA restructuring fees are designed to provide exceptional ROI and value without breaking the bank. We offer:

  • Customized plans tailored to your unique debt situation: We understand that every business is different, and we take the time to develop a customized restructuring plan that meets your specific needs.
  • Competitive, fair pricing that meets or beats industry averages: We are committed to providing our clients with competitive, fair pricing and a great value.
  • Complete transparency around our straightforward fee structure: We believe in complete transparency with our clients. We will explain all of the fees associated with our services upfront, so you know exactly what to expect.
  • Maximum results for the most affordable overall cost: Our goal is to help our clients achieve the maximum results from their MCA restructuring at the most affordable overall cost.

Case Study

Here is a case study of how Value Capital Funding helped a small business owner resolve their MCA debt:

Client: A small business owner in the restaurant industry

Debt: $100,000 in MCA debt Challenge: The business owner was struggling to make their daily MCA payments and was at risk of defaulting.

Solution: Value Capital Funding worked with the business owner to quickly develop a customized restructuring plan that eliminated their daily payments completely and reduced their outlay by 60%.

The business owner was now able to make their weekly payments on time and used some of the savings to restart his own salary.  Sound familiar?  It’s common – we see this kind of owner sacrifice every single day – but it still stinks.

Choosing an MCA Debt Restructuring Partner

Choosing an MCA debt restructuring partner is a very important business decision. By following the tips above, you can compare MCA debt restructuring fees and choose a provider that is right for your business that you have good chemistry with.

Here are a few additional tips:

  • Don’t wait until it’s too late. If you’re struggling to make your MCA payments, it’s important to seek help early on. The longer you wait, the more difficult and expensive it may be to resolve your debt.
  • Be upfront with your lenders. If you’re having trouble meeting your payment obligations, be honest with your lenders and communicate your situation. They will usually be willing to work with you to develop a modified repayment plan but only for a short period of time – maybe a few weeks.  We call this a DIY (do-it-yourself) Fix, and it works if your cash flow is hindered in the short run only. 
  • Get everything in writing. Once you’ve chosen a provider, be sure to get all of the terms of your restructuring agreement in writing. This will help to clarify your relationship and make you feel much more comfortable.

If you’re ready to discuss your MCA debt restructuring options, contact Value Capital Funding today. We offer a free consultation to help you understand your situation and quickly develop a plan that meets your needs.

We understand that MCA debt restructuring can be a complex and stressful process. We are here to help you every step of the way. Our experienced team of professionals will work with you to quickly develop a customized plan that reduces your debt and helps you get back on track to financial success.  Contact us today and see how quickly we can relieve your pain.  Many are amazed at what can be done.