Get Immediate Cash for Your MCA Defaults and Business Judgments
We broker defaulted MCA loans and business judgments—fast, confidential, and nationwide
Commercial Debt Liquidation Selling MCA & High-Yield Portfolios
The era of aggressive collections is over. Regulatory pressure and "Stacking" risks have made liquidation the only viable path to de-risk your balance sheet. This is the definitive protocol for selling MCA debt.
Market Intelligence: The 2025 Correction
The Merchant Cash Advance market is facing a regulatory correction. Recent billion-dollar judgments (such as the Yellowstone Capital settlement) have redefined the risk of holding defaulted paper.
Simultaneously, the "Stacking Crisis" has pushed default rates to nearly 21%. If you hold 3rd or 4th position paper, your recovery probability via traditional collection is near zero.
New disclosure laws in NY, CA, UT, and VA are effectively reclassifying many MCAs as loans. This exposes lenders who collect aggressively to massive legal liability. Divestiture transfers this regulatory risk to the buyer.
The Liquidity Imperative
Carrying defaulted paper is a drain on working capital. Writing off these assets as doubtful accounts negatively impacts your income statement. Strategic debt sales convert this liability into non-recourse capital.
The "Stacking" Decay
Value decays exponentially with every new position a borrower takes. Our protocol identifies "Stacked" risks immediately, allowing you to exit before the borrower files for bankruptcy or enters a debt consolidation program.
The AI Valuation Shift
Buyers in 2025 are using AI-driven underwriting. They pay premiums for "Fresh" defaults (0-60 days) with high data integrity (verified bank statements and contracts). Old, dormant paper is being priced at historic lows.
Technical Appendix: The MCA Asset Class
Merchant Cash Advance (MCA) debt is a specialized asset class based on future receivables. Unlike bank loans, the cost is represented by a factor rate rather than APR. The role of the MCA provider is critical in maintaining the chain of title.
For small business lenders, the "Yellowstone Effect" has made regulatory compliance the primary driver for selling debt. Holding onto toxic paper in a high-interest rate environment is no longer a viable strategy.
Valuation Metrics:
Eligibility for sale often hinges on monthly revenue consistency and the absence of "Confession of Judgment" clauses in restricted states. Buyers evaluate the total repayment required, including any fixed amount structures, to determine the Net Present Value (NPV) of the portfolio.
Stop Managing Defaults. Monetize Them.
Your portfolio of uncollectible accounts has a quantifiable market value. Engage our protocol to receive a confidential valuation and convert your distressed assets into immediate capital.
Direct Mandate Access:
Jeffery Hartman Director of Portfolio Liquidity & Asset Disposition