How MCA Settlement Negotiations Actually Work

The Starting Point: Understanding What You Owe

Before any negotiation can begin, you need a clear picture of your total MCA obligations. This means gathering:

• All active MCA agreements and their terms
• Remaining balances on each position
• Payment history (what has been paid, what is overdue)
• Any legal notices or correspondence received
• Bank statements showing current cash flow

This is the foundation. Without it, it is impossible to develop a credible negotiating position.

Why Funders Sometimes Settle

MCA funders are not charities, but they are also not always interested in pursuing expensive, time-consuming litigation. A settlement can be preferable when:

• The merchant has limited recoverable assets
• Litigation costs would reduce the net recovery significantly
• The merchant presents a credible financial case
• A lump sum now is worth more to them than a payment plan over years

Understanding what motivates funders is a key part of negotiating effectively on your behalf.

What Happens During Negotiation

Initial Outreach

We contact the funder or their attorney directly. This establishes that the merchant is represented and that a structured resolution is being pursued.

Financial Disclosure

We present relevant financial information — cash position, revenue, other obligations — to make the case for why a settlement is in both parties' interest.

Offer and Counteroffer

Negotiations typically involve a series of offers and counteroffers. This is normal and expected. The final number depends on factors including the funder's policies, the strength of your case, and the cash available for settlement.

Agreement and Documentation

If terms are reached, everything is documented before any funds change hands. The agreement should clearly state what is being settled and that the funder releases their claims.

What to Expect Realistically

Not every case results in a settlement. Some funders will not negotiate. Some situations are too far along legally to resolve outside of formal proceedings.

What we commit to is honest communication at every stage. If a settlement is unlikely in your case, we will tell you — not string you along.

The Fee Question

We only collect a fee when we achieve a result for you. If we don't deliver a resolution, you owe us nothing. This aligns our incentives with yours.