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No business in America escaped the effects of the global pandemic. Unemployment skyrocketed, consumer confidence dropped, and the GDP contracted. Experts anticipate the country will feel the effects of the pandemic for years to come, and nobody can predict the obstacles business owners might still face.
Merchant cash advance companies quickly discovered many clients could not make their payments as agreed. They witnessed the detrimental effects of the pandemic sooner than most other businesses today. Their clients opted to prioritize debts and save their cash, hoping to save their business in a time of uncertainty. The MCAs weren’t affected, as they automate the payments. Nevertheless, they did witness a decline in payments in the months of March, April, and May, and this trend continues today. Fortunately, attorneys work with clients who find they are in this difficult situation, which also helps MCAs.
Many clients called and requested modifications to avoid collection activities. Small business owners wish to avoid merchant cash advance legal issues, bank restraints, frozen bank accounts, and more. Fortunately, MCAs wanted to avoid taking actions such as these. They recognized a merchant cash advance default hurt their business as well because it would force them to take legal action. Pursuing bank levies, UCC liens, and things of that nature take time away from their businesses. As a result, they have been willing to work with clients or a client’s merchant cash advance attorney to avoid a merchant cash advance breach of contract.
Helping Clients in Need
Fortunately, merchant cash advance providers find they have opportunities to help business owners during this troublesome time. While the government stepped in and attempted to help small businesses across the country, bureaucracies work slowly, and many business owners found they needed funds before the government could provide them. Banks helped corporations get the funds they needed to continue operations, but overlooked small business owners when doing so. This is where merchant cash advance providers stepped in to help. Some companies borrowed money at that time only to discover the pandemic lasted longer than they anticipated and they can’t repay the funds. Merchant cash advance attorneys help clients work out an arrangement with the MCA to resolve the issue.
Time is of the Essence
Business owners find merchant cash advance businesses help companies in need of funds and do so rapidly. Often, these business owners find they have funds in hand in a matter of days. Small business owners remain the backbone of the American economy, and small businesses make up 45 percent of the country’s GDP, with the majority employing less than 20 workers. Merchant cash advance businesses stand ready to help these companies during this tough time. Unemployment numbers are on the decline, many states appear to be getting control of the virus, and the economy looks like it is rebounding. The funds provided by these providers help business owners make it over the hump and get back on their feet once again where they belong. When a business owner uses this service and finds they cannot pay as agreed, merchant cash attorneys can be of assistance. They work with clients and MCAs to reach an agreement that is favorable to all.
If you are experiencing difficulty keeping up with your current MCA obligation or have fallen behind on any other business loans MCA Defense Now can help. Please contact us today for your free consultation.