Merchant cash advances and other alternative products are an incredible resource for merchants who need capital fast. Having the funds necessary to grow a business at the right time is critical. Yes, the cost is high…
…but despite the high cost, businesses encounter countless circumstances that necessitate taking a cash advance.
We are not lawyers…actually, we are far from lawyers. We are, however, experts in the financial industry. There are many problems that confront lenders:
We see advertisements giving a myriad of reasons why MCAs and other alternative products are the best form of financing for a business; the process is simple, funding is quick and efficient, there are no credit checks and no collateral is needed in order to get funded…and the list goes on.
It is no surprise that statistics show the merchant cash advance industry is riddled with
defaults and judgments. When a merchant defaults, the clock begins ticking. Time is of the essence. Every minute of every day reduces the lenders’ likelihood that they will be able to collect the debt in full. At the same time MCAs
have caused the birth of hundreds of new debt relief companies which, inexplicably, encourage merchants to stop paying, take a break, or just default. Again, all detrimental to the industry.
Phoenix Funding Advisors is continuously searching for better ways to resolve defaults, recover monies for the lenders, and improve financial business health for the merchants. With the decision to ban COJs in New York for out-of-state merchants signed on August 30, 2019, timing becomes an even greater obstacle for the lender to collect quickly. (There are never any up-front out-of-pocket costs to the lender for any of our services.)
Our preferred method. Without the ability to collect, the lenders options are limited to writing off or selling the debt for pennies on the dollar. We believe there are much better ways to make the lender (and the investor) whole again.
PFA does more than just working out a repayment plan. We assess the merchant’s business, including any real estate or assets that may be available for liquidation.
In the absence of full refinance, we may provide funds to the merchant in the form of a loan, equity partnership, or a combination, which proceeds will then be paid directly to you from escrow funds to satisfy the balance.
It is important that the collection process begins immediately…best done immediately upon a single missed payment and before further deterioration. We don’t think of ourselves as collectors, instead we facilitate a transparent discussion as to how the 
merchant can pay back the lenders and create a win-win situation for all parties involved.