MCA Debt Restructuring: A Step-by-Step Process

Restructuring sounds complex. The mechanics are not. What separates results is sequencing.

Phase 1: Intake (Week 1)

• Collect all MCA contracts and amendments.
• Pull the last 90 days of bank statements.
• Build a current balance sheet for each position.
• Identify any COJs, UCC filings, or active lawsuits.

Deliverable: a one-page position map and a realistic exit range.

Phase 2: Stabilize cash flow (Weeks 1–2)

• Coordinate any ACH adjustments with a restructuring offer ready to deliver same-day.
• Brief the funders that representation has been engaged — most pause aggressive collection immediately when an organized intermediary appears.

Phase 3: Negotiate (Weeks 2–8)

• Send each funder the same restructuring term sheet.
• Counter and close position-by-position.
• Settle the most distressed positions for lump sums; restructure the rest into extended terms.

Phase 4: Document (Weeks 8–12)

• Signed settlement / restructure agreements for each position.
• UCC termination commitments.
• Written confirmation of credit reporting language.
• Updated ACH authorizations matching the new schedule.

Phase 5: Monitor (ongoing, 6–12 months)

• Confirm UCCs are actually terminated.
• Watch for funders attempting to re-collect outside the new agreement.
• Adjust if business performance changes materially.

Typical outcome

Combined daily/weekly withdrawals drop 50–75%. Total payoff drops 20–40%. The business stays operational throughout. Talk to us to see what a restructured plan would look like for your numbers.