8 Documents to Gather Before Calling an MCA Settlement Firm

To get your merchant cash advance (MCA) debt settlement case off to a good start, you need to have your documents ready to go. This way, you can help your lawyer prepare a strong defense, and you will be in a position to answer questions about your legal needs. It isn't always clear that these documents are in your possession, so if you are thinking about hiring an MCA debt settlement company, allow plenty of time to gather the necessary records.

Here are the main categories of records your MCA settlement company will need:

Merchant Cash Advance Contracts and Agreements

It is critical for your merchant cash advance settlement lawyer to know exactly what you signed - and when. While some companies may draft similar contracts for each MCA they offer, they will sometimes make material changes, and your attorney will need to review all of the language of all of the relevant documents.

Some examples of contracts and agreements your attorney may want to review:

• Addenda
• Collateral pledge agreements
• Demand and replacement notes
• Exhibits
• MCAs (fully executed with all signatory lines signed and notarized)
• Personal guarantees (signed and notarized)
• Security agreements

If you don't have copies of your documents, that's okay. Many law firms are able to subpoena their clients' records. But if you do have copies, these can be extremely helpful to your legal team.

Merchant Cash Advance Receipts

Receipts may also prove helpful, though it can be challenging for many clients to ensure they have all of their receipts on hand. Along with your contracts and agreements, your MCA receipts can provide your lawyer with critical information about your advances - information that can prove highly effective for debt negotiation purposes and can help protect your business against liability.

Correspondence with the MCA Company

Do you have written correspondence with the MCA company? Whether you received it in the mail, by email, or by some other means, your attorney will want to review these records as well. Even text messages, instant messages, and private messages on social media could contain pertinent information - it is worth reviewing them so they can be catalogued in the event they are needed at a later date.

In many situations, business owners are able to gain significantly more from sharing their written correspondence with the MCA company than they risk losing. If you can easily locate and access these records, provide them to your attorney to see if they prove useful.

Evidence of Inability to Pay

Another set of records to provide consists of evidence of your inability to pay. While you will want to be selective about what records you provide here, showing that your company cannot reasonably pay what you owe can be helpful in many circumstances.

Some examples of the types of records you may want to share:

• Current bank account and loan statements
• Evidence of negative cash flow or declining revenues
• Notices from creditors and landlords indicating that your business is behind on its bills

With these, your attorney may be able to negotiate with the MCA company for reduced payment obligations or other favorable terms. If the MCA company insists on full payment, evidence of your inability to pay may reduce the chances that you will face unnecessary collection efforts, and these records could also play an important role in your defense strategy should the MCA company attempt to sue.

The Importance of Communication with Your Attorney

Providing all of these records early allows you to communicate more effectively with your legal team throughout the debt settlement process. If your attorney already knows what to expect (and not to expect), then he or she can help ensure that your company makes strategic decisions during the negotiation.

You will want to continue communicating with your attorney about your business's cash flow and ability to pay going forward as well. Once you have a written debt settlement agreement, your attorney will want to know if your ability to pay has changed. If you are unable to pay the amount specified in your agreement, your attorney will need to intervene to protect your business against potential collection efforts and litigation. If you are able to pay as agreed, following through with your obligations will keep more options available should you ever need your attorney's help in the future.

Working with an experienced MCA settlement attorney is the best way to avoid costly mistakes and make informed decisions. A critical early step is making sure you have the records your attorney needs to advise you appropriately.