Can't Afford Your MCA Payments? What to Do Next

If your Merchant Cash Advance payments have become unsustainable — daily or weekly ACH withdrawals that consume too much of your cash flow — you're not alone, and you have options. But the first step is understanding your situation clearly before acting.

Step 1: Understand Your Current Payment Burden

Before exploring relief options, calculate how much of your revenue is going to MCA payments. A common benchmark: if MCA payments (across all positions) consume more than 10–15% of monthly revenue, the burden may be unsustainable. If you have multiple stacked positions, the combined burden may be significantly higher.

Use our MCA payment calculator to estimate your current payment burden as a percentage of revenue. Gather your MCA agreements, the remaining balance on each, and the daily or weekly payment amount for each position.

Step 2: Understand Your Options

There are three primary paths businesses explore when MCA payments are unsustainable:

• Buyout / Refinance — Replace your MCA with a different financing structure (term loan, line of credit). Requires qualifying for new financing. Learn more.
• Restructuring — Negotiate new payment terms with your existing MCA provider. No new financing required. The provider must agree. Learn more.
• Settlement — Negotiate a payoff for less than the full remaining balance. Requires a lump sum. The provider must agree. Learn more.

These are not interchangeable. Read our comparison guide to understand the differences in detail.

Step 3: Know What Doesn't Work

Some common approaches that can make the situation worse:

• Taking another MCA to cover current MCA payments. This is called stacking, and it increases your total burden. It may provide temporary relief but worsens the underlying problem.
• Assuming an SBA loan can refinance your MCA. Under SBA SOP 50 10 8, MCA debt became ineligible for SBA refinancing effective June 1, 2025. Read the rules.
• Stopping payments without a plan. Defaulting on an MCA can trigger aggressive collections, UCC filings, or confessions of judgment. Understand the consequences before stopping payments.
• Ignoring the problem. MCA providers can act quickly. The earlier you understand your options, the more paths may be available.

Step 4: Gather Your Information

Whichever path you explore, you'll need to present a clear picture of your situation. Gather:

• All current MCA agreements and remaining balances
• The daily or weekly payment amount for each position
• 3–6 months of business bank statements
• Monthly revenue and average daily balance figures
• Information on any other business debt or obligations
• Business and owner credit information

Step 5: Get a Review

Once you understand your situation and your options, the next step is to get a review of your specific circumstances. Appropriate Capital reviews your information and helps identify which capital solutions may be appropriate — whether that's a buyout, restructuring, settlement, or another path entirely.

Submit your information for a capital review, or explore all MCA relief options first to understand the landscape.

If You're Already in Default

If you've already missed MCA payments or received default notices, read our guide on MCA default options. The options available may be more limited, and the timeline may be shorter — but understanding what's possible is still the first step.