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Types of Fees Charged for MCA Restructuring Services

BY Value Capital Funding

November 8, 2023

The Downward Spiral: Impact of Negative Cash Flow Caused by MCAs on Business

The Downward Spiral: Impact of Negative Cash Flow Caused by MCAs on Business

Negative cash flow caused by excessive MCAs can feel like a looming storm cloud, casting shadows over a business’s financial well-being. It’s the moment when expenses surpass income, plunging a company into a whirlpool of problems that seem to have no end.

If you’re a business owner, you know the struggle of grappling with negative cash flow caused by high daily and weekly MCA payments and the toll it takes on your dreams. At Value Capital Funding, we’re here to shed light on the dark corners and offer solutions that can help, such as MCA debt refinancing & debt restructuring and, to steer your ship back to calmer waters.

Understanding the Ripples of Negative Cash Flow Caused by MCAs

The ripples of negative cash flow caused by excessive MCA daily and weekly payments can have a domino effect on a business. It can disrupt the day-to-day operations, making it tough to cover essential expenses like paying suppliers or meeting payroll commitments – including your own.

This ripple can spread wider, straining relationships with suppliers, causing delays in deliveries, even sowing seeds of discontent among your employees, and if left unchecked can even destroy personal relationships. Opportunities for growth might slip through your fingers, and investments that could have propelled your business forward suddenly seem out of reach.

To make matters worse, negative cash flow caused by excessive MCA payments might force you to rely on new high-cost MCA loans just to keep the lights on. This spiraling cycle of debt can take a toll on your mental well-being, clouding your judgment and stalling your momentum.

Value Capital Funding: Your Beacon in the Storm

At Value Capital Funding, we understand the challenges you face when negative cash flow caused by excessive MCA payments strikes. Our team of financial professionals is dedicated to helping you find a way out of the darkness. We offer solutions that can ease your burden and guide you toward financial stability and growth.

FDIC Bank Term Loans: A Beacon of Hope

When the storm threatens to pull you under, FDIC Bank Term Loans act as your lifebuoy. These loans offer creditworthy borrowers a lifeline to fuel growth, stability, and your financial well-being.

  • A Breath of Fresh Air with Competitive Rates – With interest rates ranging from 8.5% (prime) to 16.99% APR, FDIC Bank Term Loans offer a breath of fresh air compared to the average MCA rate that many borrowers pay now. Access funds without being weighed down by heavy interest costs, leaving room for vital operations and growth.
  • Riding the Waves with Extended Repayment Terms – Flexibility shines through in their repayment terms, spanning from 2 to 10 years. This extended horizon lets you structure repayments in sync with your cash flow, preventing strain and allowing room for expansion.
  • Security and Serenity with FDIC Backing – FDIC Bank Term Loans are backed by the Federal Deposit Insurance Corporation, offering security and peace of mind for both businesses and lenders. This safety net minimizes risk, making FDIC Bank Term Loans a trusted and dependable source of financing.  You always get monthly repayments, long maturity terms and solid offer sizes.

FDIC Bank Lines of Credit: Your Lifeline

For creditworthy businesses navigating stormy seas and unpredictable tides, FDIC Bank Lines of Credit are your lifeline.

  • Navigating with Flexible Financing – While the average credit card interest rate now well over 20% APR, FDIC Bank Lines of Credit offer a competitive alternative. These lines of credit come with lower rates usually between 8.5% (prime) and 16.99% and flexible access to funds, allowing you to manage cash flow challenges strategically without resorting to high-interest options.
  • Serenity in Uncertain Times – Economic uncertainties can send tidal waves through your business operations. Having access to funds is vital for survival and growth. FDIC Bank Lines of Credit offer that much-needed peace of mind, ensuring you have the financial resources to weather the storm and seize opportunities.

Navigating the Storm: The Power of Debt Restructuring

Imagine Debt Restructuring as your guiding star through the stormy seas of negative cash flow caused by unmanageable MCA payments. With our seasoned attorney-led teams by your side, this approach offers hope for businesses weighed down by overwhelming debt. 

Since there’s no new loans to qualify for, we have over 90% approval rates.

For those unable to refinance in time, or at all, our legal experts roll up their sleeves to negotiate with creditors, reshaping the terms of your Merchant Cash Advance (MCA) agreements. This adjustment usually brings immediate relief, setting a new course toward improved cash flow and sustainable growth.

Businesses that have embraced MCA debt restructuring have quickly felt the winds of change. On average, their new payments have dropped significantly by 50% to 75%. These aren’t just numbers; they translate to actual breathing room for your business, giving you the space you need to thrive – without any new loans, no collateral requirements, no upfront fees, and no minimum FICO score required.

A Personalized Path to Financial Resurgence

Just as no two storms are alike, no two businesses are the same. Our attorney-led teams understand this, crafting tailored solutions for your unique situation.

We work diligently and quickly to reshape MCA payment schedules, reduce payment amounts, and extend repayment periods. This personalized approach lets you regain control over your financial destiny, offering stability and fresh opportunities for success.

MCA debt restructuring goes beyond the surface, diving deep into existing agreements. We strive not only to adjust payment terms but also to reduce outstanding principal balances. Imagine a weighty MCA balance dropping from $100,000 to less than $75,000, spread over a more manageable timeline and no daily repayments. This reduction eases your immediate financial burden while setting the stage for long-term health.

Embark on a Path to a Brighter Future with Value Capital Funding!

Tackling negative cash flow caused by excessive MCA debt isn’t just about surviving the storm; it’s about steering your ship toward a brighter horizon. At Value Capital Funding, we’re committed to helping you navigate these challenges and providing tailored solutions to improve cash flow, reduce MCA debt burdens, and create a roadmap to growth.

Our comprehensive approach, whether through Debt Refinancing or Debt Restructuring, empowers you with the tools you need to chart a course to success.

Don’t let negative cash flow caused by excessive MCA payments capsize your dreams. 

Reach out to Value Capital Funding today and take the first step toward a financially secure and prosperous future. Our team of experts is here to guide you through the process and help you make the right financial choices for your business’s long-term success.

Ready to reclaim your financial voyage? Contact us at 800-944-6280 at Value Capital Funding today!

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