MCA Debt Settlement FAQ — Every Question, Straight Answers
Answer-first: Common questions we answer every day during free consultations, grouped by topic, answered honestly, with no sales pitch. If you don't see your question, schedule a consultation or call (877) 817-0404.
About MCA settlement
What is MCA debt settlement?
Merchant cash advance settlement is a negotiated reduction of what your business owes on one or more MCAs. The lender agrees to accept less than the contracted balance in exchange for a structured payment plan or lump sum. Unlike bankruptcy, settlement keeps your business operating. Unlike refinancing, it doesn't require qualifying for another loan.
How much does settlement reduce my debt?
Clients who complete the program typically pay approximately 50-65% of their enrolled debt, inclusive of program fees. Actual outcomes depend on the lender, debt size, your business situation, and how early you engage. Results vary, these are typical ranges, not guarantees.
How long does MCA settlement take?
Most programs complete in 12-36 months. Smaller debts with cooperative lenders resolve faster. Larger stacked-MCA situations take longer.
Will MCA settlement affect my credit?
Yes, though the extent depends on your current credit state. If you're already behind on MCA payments, your business credit is already impacted. Settlement typically causes additional short-term impact but closes the debt in a documented way, which lenders treat differently than an unresolved default or judgment.
About BDA
Are you a law firm?
No. BDA is a debt settlement company, not a law firm. We don't provide legal advice. For situations that require legal defense, active lawsuits, confessions of judgment filed, complex bankruptcy questions, we work with partner attorneys or refer you directly.
What does BDA actually do?
We negotiate with MCA lenders on your behalf to reduce what you owe. We handle all the lender communication, structure the settlement agreement, and manage your program payments. You stop answering lender calls.
How long has BDA been in business?
Since 2015. Eleven years as of 2026.
Where are you located?
Englewood Cliffs, New Jersey. We serve clients in all 50 states except Washington (which has specific restrictions).
Who is Alex Shiyan?
Alex founded BDA in 2015 and continues to lead the company as CEO. More on the About page.
About costs and fees
Do you charge upfront fees?
No. The FTC Telemarketing Sales Rule prohibits charging fees before at least one enrolled debt is settled. We operate squarely within that rule.
How are your fees calculated?
Performance-based percentage of enrolled debt. Typical program fees run 15-25% of enrolled debt, paid over the program timeline, only after settlements begin executing.
What if I can't make a program payment?
Tell us immediately. We restructure rather than let clients default out. The alternative helps nobody.
Are there hidden fees?
No. Full fee structure is disclosed in writing before enrollment. If you don't want to enroll after reviewing the fees, you don't.
About qualifying
What's the minimum debt to qualify?
$30,000 in combined MCA or business debt is the practical minimum. Below that, settlement usually doesn't save enough to cover program fees.
What kinds of businesses does BDA work with?
Service-based businesses specifically: trucking, restaurants, construction, auto services, medical and dental, retail, manufacturing, agriculture, skilled trades, consulting, and similar. We don't typically work with e-commerce or single-payer business structures.
What if my business is already in default?
BDA helps in default-stage situations regularly, about a quarter of our current clients came to us after their first missed payment. Default narrows the timeline but rarely closes options. The earlier you engage post-default, the more leverage remains. The 15-minute consultation walks through your specific situation and tells you what's realistic.
What if I've already been sued?
BDA coordinates with our attorney network to defend on the legal side while we negotiate settlement on the rest of your MCA debt. One consultation, one plan, one point of contact for the integrated approach. Most legal-stage situations are still solvable; the consultation tells you exactly where you stand on the legal exposure and what realistic outcomes look like for the settlement piece.
About the process
What happens in the free consultation?
Fifteen minutes. We ask about your debt, your business, and your current situation. Based on that, we tell you honestly whether we can help. No pressure to enroll on the call.
How do you negotiate with lenders?
Our team contacts each lender with documented representation authority. We handle all back-and-forth. You stop answering collection calls.
Do I talk to the lenders myself?
Once enrolled, no. We handle all lender communication.
What if the lender refuses to settle?
Some do. Some require more negotiation cycles than others. If a lender is truly unwilling to settle, we may recommend legal defense or alternative approaches for that specific debt.
About alternatives
Settlement vs. bankruptcy?
Settlement keeps your business open and off public record. Bankruptcy (Chapter 7) liquidates assets. Bankruptcy (Chapter 11) restructures at $25K-$100K+ in legal fees and stays on credit 10 years. Settlement usually resolves faster and costs less, but it's not right for every situation.
Settlement vs. consolidation?
Settlement reduces what you owe through negotiation. Consolidation pays what you owe at a better rate through a replacement loan. Both end the crisis, they fit different situations. See MCA Consolidation for details.
What about taking another MCA to pay off the current one?
Don't. This is the trap that created the problem. Another MCA compounds the daily drain and accelerates toward default.
Can I negotiate with lenders myself?
You can try. Most MCA lenders refuse direct borrower negotiation. Solo negotiation rarely succeeds; it's not impossible but it's significantly harder than through a firm with an established track record.
About specific situations
I have a confession of judgment filed, can you still help?
Sometimes. Post-COJ situations are harder and often require legal defense coordination. The consultation will tell you honestly whether settlement-only is realistic.
I closed my business, can you still help?
Yes. Post-closure MCA debt is common. Settlement often still works because personal guarantees keep you liable even after business closure.
My MCA has a personal guarantee, what does that mean?
Personal guarantees are standard on MCAs. They mean you're personally liable for the business debt if the business can't pay. Settlement addresses personal guarantees in the settled agreement, typically released when the settled amount is paid.
What if my MCA lender has placed a UCC-1 lien on my business?
UCC-1 liens are common. They're addressed during settlement, typically released as part of the settled agreement.
Still have questions?
Schedule a free consultation, fifteen minutes, no obligation.
CTA: Free Consultation
MCA Mechanics, Costs & Compliance
What's the difference between a merchant cash advance and a loan?
Legally and structurally, they're completely different. A loan has a fixed interest rate, scheduled monthly payments, and is regulated by lending laws. An MCA is a "purchase of future receivables", the lender is technically buying a percentage of your future revenue at a discount. Because of this distinction, MCAs aren't subject to interest rate caps or most consumer-protection lending laws. That's why factor rates can effectively run 40-100%+ APR with no legal limit. It's also why MCA brokers can't truthfully call them loans, they're a different financial product entirely.
What is a factor rate, and why do MCA lenders use it instead of APR?
A factor rate is the multiplier applied to your funded amount to calculate your total repayment. A $50,000 advance with a 1.44 factor rate means you owe $72,000, that's 44% on top of the principal. Lenders use factor rates because they're much smaller-looking than the equivalent APR. A 1.44 factor rate over 12 months is roughly 80% APR. Over 6 months, it's 160%+ APR. The factor rate hides the true cost from owners who don't run the math.
What is a UCC filing, and why does my business have one?
A UCC-1 (Uniform Commercial Code) filing is a public record placed on your business when you sign certain types of contracts, including every MCA. It alerts traditional lenders (banks, SBA, equipment financiers) that you have "high-risk commercial transactions." Most owners don't realize they signed up for one. UCC filings block conventional refinance. They have to be removed via Zero Balance Letters submitted to the Secretary of State after each MCA is settled. BDA handles this as part of the program.
Can I be sued for missing MCA payments?
Yes, and most MCA contracts make it especially fast. Buried in nearly every MCA contract is a "confession of judgment" (COJ) clause that waives your right to defend yourself in court. If you default and the lender files the COJ, judgment is entered against you within days, often without your knowledge. This is why owners in default need both settlement (to resolve the debt) and attorney coordination (to handle the legal exposure). BDA coordinates with our attorney network on legal-stage situations.
What is a Zero Balance Letter (ZBL)?
A document from a lender confirming that an MCA balance has been resolved, settled, paid off, or otherwise closed. BDA obtains these as part of the program completion process. ZBLs aren't automatic when you finish paying, most lenders won't issue them unless requested. Once you have ZBLs from each settled MCA, they're submitted to the Secretary of State to remove the UCC filings on your business. Without that submission, the filings can linger for 5 years. ZBLs are how you become bankable again.
What happens if I can't make a BDA payment one week?
BDA's program has a hardship clause built in, unique in this industry. If you're having a bad week, you can skip that week's payment as long as you notify your specialist by Wednesday. There's a small $19.95 administrative fee that comes from the custodial account. No penalty, no cancellation, no harm to your settlement. Try not to skip the first two payments while negotiations are starting, but after that, it's there for the bad weeks every business has.
Will MCA settlement affect my business credit?
MCA settlement primarily affects business credit, not personal credit (assuming your MCA wasn't personally guaranteed in a way that's already been reported). The UCC filings and any settled balances may show on commercial credit reports during the program. After the program completes and ZBL letters remove the filings, business credit recovers, typically becoming bankable again within 18-24 months. Personal credit impact depends on whether any lender pursued personal guarantees, which we evaluate on the first call.
Why won't a bank lend to me with active MCAs?
Active UCC filings on your business signal "high-risk commercial transactions" to every traditional lender. Banks see them as a sign of cash flow distress and active short-term debt. Even if your business is profitable, the filings alone block most conventional refinance. This is also why "consolidation" through traditional lending is impossible while MCAs are active, banks won't touch a business with multiple active UCC filings, regardless of the underlying numbers. Removing the filings is the unlock for bank eligibility.
How long does MCA settlement actually take?
For most BDA clients, full program completion runs 18-24 months. The first 2-4 weeks are setup and lender notification. Active negotiations begin in month 1. Settlements typically complete progressively across the program, some lenders settle in the first 3-6 months, others take longer depending on how aggressive they are. Throughout, your monthly payment stays the same (the "set in stone" payment). The program ends when all enrolled debts have ZBL letters and UCC filings are removed.
What does BDA cost?
BDA operates on FTC Telemarketing Sales Rule-compliant performance-based fees. There's a one-time setup fee (typically $395-$995, often negotiated based on your situation) added to your first weekly payment. Beyond that, fees are built into your sustainable monthly payment, split between an Enrolled fee and Settlement Success fee, plus a $99/month maintenance fee for the FDIC-insured custodial account. No upfront fees beyond setup. Performance-based: BDA doesn't get paid the success fee until debts settle. Full fee structure is walked through line by line on your enrollment call.
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