MCA Debt Settlement, Reduce What You Owe Your MCA Lenders
Merchant cash advance settlement reduces what you owe by negotiating with your MCA lender to accept a lower lump-sum or structured payoff than your contracted balance. BDA has been helping service businesses settle MCA debt since 2015, ideally before default, while you still have leverage. Learn more about business debt relief. Learn more about free consultation.
If daily ACH withdrawals are draining your operating account and another MCA isn't the answer, settlement is. We negotiate directly with your lenders to reduce what you owe, stop the daily drain, and give you a path back to cash flow.
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What is MCA debt settlement?
Merchant cash advance settlement is a negotiated reduction of what your business owes on one or more MCAs. Your lender agrees to accept less than the contracted balance, typically between 50% and 65% of what was originally owed, 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. And unlike walking away from the debt, it ends the situation in a documented, enforceable way.
Who MCA settlement works for?
Settlement works best for businesses that:
- Have $30,000 or more in MCA or combined business debt
- Are still operating (not closed)
- Are service-based, trucking, construction, restaurants, auto services, medical practices, manufacturing, retail, agriculture, skilled trades
Where you are in the timeline matters less than people think. Most of our clients are still making payments but stretching to do so. About a quarter come to us after their first default, before legal action escalates. A smaller share come to us with a lawsuit or confession of judgment already filed, for those situations, BDA coordinates with our attorney network to handle the legal side while we negotiate settlement on the rest.
Settlement doesn't fit every situation. We'll tell you honestly during the consultation whether it fits yours.
How does BDA's settlement process work?
Step 1, Free consultation (15 minutes). We review your debt, your business, and your current situation. No obligation. No pressure. If we can help, we'll explain how. If we can't, we'll tell you that too and point you toward someone who can.
Step 2, Financial analysis. We look at your lender agreements, payment history, cash flow, and exposure. We identify which debts qualify for settlement, which need a different approach, and what realistic outcomes look like for your specific situation.
Step 3, Negotiation. Our negotiators contact each lender on your behalf. We handle the back-and-forth. You stop answering their calls.
Step 4, Structured payoff. Once terms are agreed, payments go through our program. You make one affordable monthly payment instead of multiple daily ACH drains. The lender receives the settled amount. The debt closes.
Most programs complete in 12 to 36 months depending on debt size and complexity.
What does MCA settlement actually cost?
Our fee is a percentage of enrolled debt, charged on a performance basis, no settlement, no fee. There are no upfront fees. The FTC's Telemarketing Sales Rule prohibits charging before at least one debt settles, and we operate squarely within that rule.
We disclose our full fee structure in writing before you enroll. No surprises. If you want to walk away after the consultation, there's nothing to walk away from.
What's the difference between MCA settlement and the alternatives?
| Option | Keeps business open | Cost | Credit impact | Timeline |
|---|---|---|---|---|
| MCA Settlement | Yes | 15-25% fee + settled balance | Medium | 12-36 months |
| Another MCA | Maybe | Factor rate 1.3-1.5x | Compounds | Immediate, worsens later |
| Bankruptcy (Ch. 7) | No, liquidates | $10K-$30K legal fees | Severe, 10 years | 3-6 months |
| Bankruptcy (Ch. 11) | Yes, restructured | $25K-$100K+ legal fees | Severe | 6-24 months |
| Do nothing | Until default | Compounds | Severe at default | Weeks to default |
Why BDA?
We're not an attorney-founded firm, and we're not a call center. BDA was founded in 2015 by Alex Shiyan to solve one specific problem: small service businesses trapped in MCA debt who need a way out before default, before lawsuits, while there's still a business worth saving.
What that means in practice:
- Real negotiators, not a call center. When you enroll, you get assigned to a negotiator who handles your case start to finish. Clients name them in reviews, our team doesn't hide behind "the company."
- Service-business focus. We understand why MCA debt hits a trucking company different from a retail shop. Industry specificity matters when we're negotiating.
- Pre-default positioning. Most of our clients come to us still making payments. That's the window where settlement works best, and it's the window other firms often miss.
- 11 years of lender relationships. We know who negotiates, who doesn't, and what a realistic number looks like before we send the first letter.
Under the slider, a one-line stat block: "4.9/5 rating from 193 business owners. 11 years settling MCA debt."
How much can I save with MCA settlement?
Clients who complete the program typically pay approximately 50-65% of their enrolled debt, inclusive of program fees. Actual outcomes depend on the lender, the debt amount, your business situation, and how early you engage. Results vary, these are typical ranges, not guarantees.
Will MCA settlement ruin my business credit?
Settlement has credit implications, but so does the alternative. 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 a default or judgment on public record.
What if I have a confession of judgment filed against me?
If a COJ has already been filed, settlement is harder but still possible in most cases. BDA coordinates with our attorney network to address the judgment while we negotiate settlement on the rest of your MCA debt. One consultation, one plan, one team handling both pieces. The 15-minute call walks through your specific legal exposure and tells you what's realistic.
How long does MCA settlement take?
Most programs run 12-36 months. Smaller debts with cooperative lenders resolve faster. Larger stacked-MCA situations take longer. Your consultation will give you a realistic timeline for your specific situation.
Do I have to close my business during settlement?
No. Our clients continue operating during the program. Settlement is specifically designed to keep your business running, that's the point.
What if I can't make the program payment?
Tell us immediately. We don't disappear clients for missed payments. We restructure. The alternative, defaulting out of the program, helps nobody.
Heading: Ready to see if settlement makes sense for your situation?
Body: Fifteen minutes on a call. No pressure, no obligation. We'll look at your debt, your business, and tell you honestly whether we can help.
Button: Schedule Free Consultation → /free-consultation/
