Merchant Cash Advances (MCAs) were sold as fast, friction-light capital. For many small businesses, they were exactly that—until one advance turned into two, three, or five. Those stacked MCAs pull daily or weekly ACH debits, bleed cash flow, trigger defaults, and block nearly every other form of financing.

For factoring brokers, this is usually where the conversation ends. It shouldn’t. A growing set of MCA workout & restructuring solutions can lower payments, consolidate multiple advances, and stabilize cash flow—and they pay referral commissions to the brokers who bring them qualified clients. In other words: this is a HOT new product you can add to your toolkit today.

What “Stacked MCAs” Really Do to a Business

• Cash-flow drain: Multiple daily/weekly debits create whiplash variability and ongoing negative balances.

• Operational stress: Owners juggle payroll, suppliers, and tax obligations around ACH hits.

• Credit deterioration: UCC filings, payment interruptions, and NSF activity close doors to traditional credit.

• Collections & litigation risk: Some MCA contracts include aggressive remedies (e.g., COJ in certain jurisdictions), quick escalations, and account sweeps.

• Financing roadblock: Banks, term lenders—and yes, factors—often say come back when the MCAs are under control.

Result: otherwise factorable companies become un-fundable until the MCA stack is addressed.

The Solution Set: MCA Workouts & Business Debt Restructuring

These are commercial services (not consumer debt relief) that focus specifically on business obligations like MCAs, revenue-based financing, and short-term high-cost loans.

Common Approaches

1. Payment reduction & term extension

   • Negotiate lower total daily/weekly outflow and stretch remaining balance over longer terms.

2. Consolidation / one payment plan

   • Replace multiple ACH pulls with a single managed payment to a workout administrator.

3. Balance reductions / settlements

   • In distressed situations, negotiate reductions in exchange for structured payments.

4. Legal defense / strategy (when needed)

   • Attorney-led responses to aggressive collections, levies, or judgments; prioritize business continuity.

What this unlocks for brokers: Once outflow is rationalized, the client may qualify for factoring, A/R lines, PO finance, or equipment/term—you win the relationship now and the financing later.

Where Brokers Get Paid

Most reputable MCA workout providers maintain broker/ISO partner programs because this business is referral-driven.

Typical commission models

• Flat fee per closed client: often $500–$1,500+ once the plan is signed and first payment clears.

• Percentage of fee collected: 10%–20% of the provider’s engagement fee.

• Volume tiers / overrides: higher payouts for consistent monthly referrals; some offer 2-tier structures.

Compliance note: Always disclose your referral relationship to the client. Keep marketing factual (no guarantees or legal claims), and let the provider represent their own terms and success rates.

How to Qualify and Position the Opportunity (Broker Playbook)

Red flags your prospect is a fit

• Two or more MCAs; total daily/weekly ACHs choking cash flow

• NSFs, supplier slow-pays, payroll panic, or tax arrears

• Lenders turning them down specifically due to MCA burden

Discovery questions

• “How many daily/weekly debits hit your account? Total dollar amount each week?”

• “Any missed payments, default notices, or legal threats?”

• “What do you need your weekly payment to be to stabilize operations?”

Explain the path (plain language)

1. Assessment: “We’ll review your agreements and current cash flow.”

2. Proposal: “The workout team negotiates with each MCA to reduce and/or restructure payments.”

3. Stabilize: “You move to a single, manageable payment. No more five different debits.”

4. Rebuild: “Once stabilized, we re-evaluate you for factoring or other financing.”

Set expectations

• It’s not a same-day fix; typical resolution timelines range from 2–6 weeks depending on the stack.

• Owners must cooperate and stay current on the new plan for the strategy to hold.

• Legal involvement may be required in escalated cases.

Sample Outreach Copy You Can Use

Subject: Drowning in daily MCA debits? There’s a way out.

Body:
“If multiple MCA payments are crushing cash flow, we can help you reduce and consolidate them into one manageable plan. Our vetted partners negotiate directly with your MCA providers, lower outflow, and stabilize operations—so you can get back to running the business.
Reply ‘HELP’ and we’ll schedule a 15-minute review.”

Packaging This as a Service on Your Website

Add a dedicated page: “MCA Workout & Debt Restructuring” with:

• Problem–Solution overview (plain language)

• 3-step process (Assessment → Negotiate → Stabilize)

• Short intake form (name, business, total MCA balance, weekly payments, # of funders)

• Trust elements (IACFB member, privacy, disclosure)

• CTA: “Request a Free MCA Relief Assessment”

(We’ll publish a turnkey page you can add for a small setup fee and link to from your nav. See the Academy for details.)

Why This Belongs in Your Product Mix—Now

• High relevance: Defaults and delinquencies are climbing; stacked MCAs are more common.

• Monetize the “no’s”: Earn a commission and rescue the relationship.

• Pipeline builder: Post-workout, the client often becomes factorable or term-loan eligible.

• Defensible value: You’re not selling a commodity—you’re solving a survival problem.

Implementation: Where to Find Providers

We will list vetted MCA workout & restructuring companies inside the Academy and link them in LendersDirectories.com. Each listing includes:

• Services offered (restructure, settlement, legal support)

• Minimum debt and ideal client profile

• Referral commission structure

• Partner contact info and onboarding steps

FAQs You’ll Get From Owners (And Straight Answers)

Q: Will this hurt my ability to get financing later?
A: The goal is the opposite—stabilize cash flow so you can qualify for options like factoring.

Q: Can you guarantee a lower payment?
A: No guarantees—every file is different. But these providers exist to negotiate lower outflow and consolidate hits; that’s the objective.

Q: Is this bankruptcy?
A: No. It’s a commercial workout focused on restructuring business obligations, often without court proceedings.

Q: How long does it take?
A: Many files see meaningful relief proposals within 2–4 weeks; complex stacks can take longer.

Broker Checklist (Clip & Use)

• □ Confirm # of MCAs and weekly total outflow

• □ Note any defaults, levies, COJs, or legal escalations

• □ Gather recent bank statements (90 days) & MCA agreements

• □ Submit to one vetted provider (avoid shopping the file to many)

• □ Disclose your referral relationship in writing

• □ Track status; revisit factoring once payments stabilize

Bottom Line

Stacked MCAs are crushing otherwise viable businesses. As a broker, you can either walk away—or step in with a commission-paying solution that stabilizes your prospect today and sets up tomorrow’s finance deal.

Typical Commission Models