Merchant Cash Advances (MCAs) were sold as fast, friction-light capital. For many small businesses, they were exactly that—until one advance turned into two, three, or five. Those stacked MCAs pull daily or weekly ACH debits, bleed cash flow, trigger defaults, and block nearly every other form of financing.
For factoring brokers, this is usually where the conversation ends. It shouldn’t. A growing set of MCA workout & restructuring solutions can lower payments, consolidate multiple advances, and stabilize cash flow—and they pay referral commissions to the brokers who bring them qualified clients. In other words, this is a HOT new product you can add to your toolkit today.
What “Stacked MCAs” Really Do to a Business
- Cash-flow drain: Multiple daily/weekly debits create whiplash variability and ongoing negative balances.
- Operational stress: Owners juggle payroll, suppliers, and tax obligations around ACH hits.
- Credit deterioration: UCC filings, payment interruptions, and NSF activity close doors to traditional credit.
- Collections & litigation risk: Some MCA contracts include aggressive remedies (e.g., COJ in certain jurisdictions), quick escalations, and account sweeps.
- Financing roadblock: Banks, term lenders—and yes, factors—often say come back when the MCAs are under control.
Result: otherwise, factorable companies become unfundable until the MCA stack is addressed.
The Solution Set: MCA Workouts & Business Debt Restructuring
These are commercial services (not consumer debt relief) that focus specifically on business obligations like MCAs, revenue-based financing, and short-term high-cost loans.
Common Approaches
- Payment reduction & term extension
- Negotiate a lower total daily/weekly outflow and stretch the remaining balance over longer terms.
- Consolidation / one payment plan
- Replace multiple ACH pulls with a single managed payment to a workout administrator.
- Balance reductions/settlements
- In distressed situations, negotiate reductions in exchange for structured payments.
- Legal defense/strategy (when needed)
- Attorney-led responses to aggressive collections, levies, or judgments; prioritize business continuity.
What this unlocks for brokers: Once outflow is rationalized, the client may qualify for factoring, A/R lines, PO finance, or equipment/term—you win the relationship now and the financing later.
Where Brokers Get Paid
Most reputable MCA workout providers maintain broker/ISO partner programs because this business is referral-driven.
Typical commission models
- Flat fee per closed client: often $500–$1,500+ once the plan is signed and first payment clears.
- Percentage of fee collected: 10%–20% of the provider’s engagement fee.
- Volume tiers/overrides: higher payouts for consistent monthly referrals; some offer 2-tier structures.
Compliance note: Always disclose your referral relationship to the client. Keep marketing factual (no guarantees or legal claims), and let the provider represent their own terms and success rates.
Sample Outreach Copy You Can Use
Subject: Drowning in daily MCA debits? There’s a way out.
Body:
“If multiple MCA payments are crushing cash flow, we can help you reduce and consolidate them into one manageable plan. Our vetted partners negotiate directly with your MCA providers, lower outflow, and stabilize operations—so you can get back to running the business.
Reply ‘HELP’ and we’ll schedule a 15-minute review.”
Packaging This as a Service on Your SA-Series Website
Add a dedicated page: “MCA Workout & Debt Restructuring” with:
- Problem–Solution overview (plain language)
- 3-step process (Assessment → Negotiate → Stabilize)
- Short intake form (name, business, total MCA balance, weekly payments, # of funders)
- Trust elements (IACFB member, privacy, disclosure)
- CTA: “Request a Free MCA Relief Assessment”
Why This Belongs in Your Product Mix—Now
- High relevance: Defaults and delinquencies are climbing; stacked MCAs are more common.
- Monetize the “no’s”: Earn a commission and rescue the relationship.
- Pipeline builder: Post-workout, the client often becomes factorable or term-loan eligible.
- Defensible value: You’re not selling a commodity—you’re solving a survival problem.
Bottom Line for IACFB Brokers and Consultants
Stacked MCAs are crushing otherwise viable businesses. As a broker, you can either walk away—or step in with a commission-paying solution that stabilizes your prospect today and sets up tomorrow’s finance deal.
We’ll keep the provider list, payout details, and partner contacts current in the Academy and cross-linked in LendersDirectories.com. Add the MCA Workout page to your site, start the conversations, and turn declines into dollars.