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What Influences MCA Restructuring Fees and Cost

BY Value Capital Funding

December 8, 2023

Fee Factors: What Influences MCA Restructuring Fees and Cost?

When businesses seek relief from overwhelming merchant cash advance (MCA) debt, professional restructuring services can provide a lifeline. However, these services come at a cost. As you evaluate partners for MCA debt restructuring, it’s critical to understand the fees involved and what elements influence those costs. In this post, we’ll explore the factors that impact MCA debt restructuring fees so you can make informed decisions.  Importantly, if you have merchant cash advances that are unsustainable please read on for help.

Types of MCA Restructuring Fees

There are a few common types of fees charged by MCA debt restructuring companies:

  • Consultation fees for initial analysis and strategy development
  • Attorney fees to handle legal aspects 
  • Service fees for executing the restructuring plan
  • Administrative fees covering documentation, communication, and processing

Keep in mind these standard fees can vary significantly between restructuring firms. Understanding how providers calculate fees is essential, but the most important item is the value that you receive in exchange for your fee. It’s critical to weigh the overall debt relief and savings you’ll gain against the fees charged. The right partner will provide maximum value for a fair cost.

Factors that Influence MCA Restructuring Fees

Several important factors impact what MCA restructuring companies charge for their services:

  1. Amount of debt – The size of your merchant cash advances, and their associated outstanding balances owed usually directly affect fees. More debt equals higher fees in dollars, but the same % should be used.
  2. Complexity – More complicated cases with multiple MCA lenders or legal issues typically have higher fees. Untangling complex debt scenarios takes more time and expertise, leading to increased costs.
  3. Restructuring strategy – The approach taken, from negotiation to litigation, impacts costs. More aggressive strategies like lawsuits raise legal costs. Amicable negotiation is ideal to control fees.
  4. Duration – Drawn out restructuring processes result in increased fees over time. Quick resolutions save money.
  5. Experience of the firm – More seasoned firms with greater expertise may have higher consultation fees. However, their expertise may yield better outcomes that offset higher costs.
  6. Customer service – The level of personalized service and account management a provider offers can influence fees. More touchpoints may increase costs but improve the experience.

Being aware of these fee factors provides helpful context when evaluating and budgeting for MCA debt restructuring plans. However, the most important aspect of any MCA debt restructuring decision you make should be about the value you receive in exchange for the fees you pay. Choose a partner committed to maximizing debt relief and business savings in an affordable way.

Transparency in Fee Structures

To make informed decisions, transparency around fee structures and pricing is critical in the MCA debt restructuring industry. At Value Capital Funding, we make our fees clear and understandable right from the start. We also take time to explain exactly what goes into calculating our pricing. Education empowers our clients to get the affordable debt relief they deserve.

Competitive Pricing

In addition to transparent fee structures, Value Capital Funding employs competitive, fair pricing strategies that benefit clients. We conduct benchmarking to ensure our fees align with or beat industry averages. Our mission is providing the most value at the most affordable cost. We feel so strongly about our value proposition that we named our company Value Capital Funding.  We pass savings from our efficiency and expertise on to our clients.

Customized Fee Plans

Rather than a one-size-fits-all approach, Value Capital Funding customizes fee plans based on each client’s unique situation. We carefully account for factors like debt amount, case complexity, and client needs when proposing fees. This tailored structure provides optimal value to each business we serve. Our experts take the time to understand your business’ circumstances fully. 

Avoid Hidden Costs

Unfortunately, some MCA debt restructuring firms conceal fees or surprise clients with unexpected costs. At Value Capital Funding, we reject this approach. Our clear communication and customized plans give clients confidence there are no hidden fees. We uphold transparency and honesty as core values. From start to finish, we provide comprehensive estimates, so there are no surprises, only value.

Cash-in on Clarity: Explore Value Capital Funding’s Transparent Fee Structures

Choosing an MCA debt restructuring partner is an important decision. Get the clarity you deserve by exploring Value Capital Funding’s transparent, customized fee structures and pricing today. Contact us to learn more and take the first step toward affordable MCA debt relief. Our experts are ready to help you resolve unsustainable merchant cash advance debt and put your business back on stable ground.

Cut Through the Confusion – Speak to Our Experts

Excessive MCA debt never takes care of itself.  Contact us today to explore how MCA debt restructuring can help you get back on the road to growth.