{"id":12677,"date":"2024-11-20T18:40:39","date_gmt":"2024-11-20T18:40:39","guid":{"rendered":"https:\/\/comparedbusiness.com\/uk\/?p=12677"},"modified":"2024-11-20T18:40:40","modified_gmt":"2024-11-20T18:40:40","slug":"merchant-cash-advance-default","status":"publish","type":"post","link":"https:\/\/comparedbusiness.com\/uk\/blog\/merchant-cash-advance\/merchant-cash-advance-default\/","title":{"rendered":"Merchant Cash Advance Default: How to Avoid It?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"12677\" class=\"elementor elementor-12677\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b573d03 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b573d03\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-eac37f9\" data-id=\"eac37f9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cf3d956 elementor-widget elementor-widget-text-editor\" data-id=\"cf3d956\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>When it comes to securing quick funds, a <span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/merchant-cash-advance\/small-business-owner-guide-to-merchant-cash-advance\/\">Merchant Cash Advance<\/a><\/strong><\/span> might seem like the perfect solution, but it can also lead your business into hot water if you\u2019re not careful &#8211; yes, we mean merchant cash advance default. It can steer your business in the wrong direction.<\/p><p>And the truth is, without proper planning and cash flow management, repaying MCAs can become overwhelming. In this article, you\u2019ll explore practical strategies to prevent MCA loan default, ensuring that an MCA works as a stepping stone for growth, not a pitfall for failure. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aa0b34c elementor-widget elementor-widget-heading\" data-id=\"aa0b34c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"understanding_mca_default_what_it_means\"><\/span>Understanding MCA default: What it means<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-af3f618 elementor-widget elementor-widget-image\" data-id=\"af3f618\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"722\" height=\"480\" src=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/Understanding-MCA-Default.png\" class=\"attachment-medium_large size-medium_large wp-image-12679\" alt=\"Understanding MCA Default\" srcset=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/Understanding-MCA-Default.png 722w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/Understanding-MCA-Default-300x199.png 300w\" sizes=\"(max-width: 722px) 100vw, 722px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-822f384 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"822f384\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6004407\" data-id=\"6004407\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ead3ec1 elementor-widget elementor-widget-text-editor\" data-id=\"ead3ec1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>MCA default occurs when a business fails to meet the repayment terms agreed upon with the MCA provider. <span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/merchant-cash-advance\/merchant-cash-advance-vs-business-loan\/\">Unlike traditional loans<\/a><\/strong><\/span>, an MCA is repaid through a fixed percentage of future card sales, so if a business experiences slower sales than expected, default can become a real possibility. But what exactly does MCA loan default entail?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-04658fe elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"04658fe\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6ef6182\" data-id=\"6ef6182\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2705f29 elementor-widget elementor-widget-heading\" data-id=\"2705f29\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Definition of default<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-50bb509 elementor-widget elementor-widget-text-editor\" data-id=\"50bb509\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>MCA loan default isn\u2019t just about missing a payment &#8211; it\u2019s about the inability to meet the daily or weekly deduction obligations tied to your sales. Since MCA repayments are based on revenue, a downturn in sales can make it hard to meet these obligations.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5042453 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5042453\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a48104f\" data-id=\"a48104f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-53ccf34 elementor-widget elementor-widget-heading\" data-id=\"53ccf34\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Consequences of default<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2eeb67b elementor-widget elementor-widget-text-editor\" data-id=\"2eeb67b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The consequences of an MCA loan default can be severe, affecting both cash flow and long-term business prospects. If the default isn\u2019t managed early, the MCA provider may increase fees or take legal action, leading to bank account freezes or even lawsuits.<\/p><p>Additionally, defaulting on an MCA can damage your business\u2019s credit score, which can limit future access to financing options like accounts receivable factoring, bank loans and merchant services from other providers. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a5ea1f4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a5ea1f4\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1aef872\" data-id=\"1aef872\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2957a92 elementor-widget elementor-widget-heading\" data-id=\"2957a92\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Early warning signs<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b85cfb1 elementor-widget elementor-widget-text-editor\" data-id=\"b85cfb1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Recognising early signs of default can help your business take proactive measures. One of the most common red flags is declining sales. If your business experiences a revenue slump, you\u2019ll want to immediately assess whether you can still manage the MCA\u2019s daily deductions.<\/p><p>Another early indicator is cash flow issues &#8211; if cash on hand isn\u2019t sufficient to cover operating expenses along with MCA repayments, you may be on the brink of default. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-4fd1064 elementor-hidden-mobile elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4fd1064\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-44f79d1\" data-id=\"44f79d1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-48c9ce8 elementor-widget elementor-widget-heading\" data-id=\"48c9ce8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<p class=\"elementor-heading-title elementor-size-default\">Do you need a Merchant Cash Advance?<\/p>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-49e88c8 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"49e88c8\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-size-md elementor-animation-grow\" role=\"button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get A Quote Today<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-75d0095 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"75d0095\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5c8c55d\" data-id=\"5c8c55d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cc89435 elementor-widget elementor-widget-spacer\" data-id=\"cc89435\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-column .elementor-spacer-inner{height:var(--spacer-size)}.e-con{--container-widget-width:100%}.e-con-inner>.elementor-widget-spacer,.e-con>.elementor-widget-spacer{width:var(--container-widget-width,var(--spacer-size));--align-self:var(--container-widget-align-self,initial);--flex-shrink:0}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container,.e-con>.elementor-widget-spacer>.elementor-widget-container{height:100%;width:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer{height:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner{height:var(--container-widget-height,var(--spacer-size))}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty,.e-con>.elementor-widget-spacer.elementor-widget-empty{position:relative;min-height:22px;min-width:22px}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon,.e-con>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon{position:absolute;top:0;bottom:0;left:0;right:0;margin:auto;padding:0;width:22px;height:22px}<\/style>\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bd38012 elementor-widget elementor-widget-heading\" data-id=\"bd38012\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"major_causes_of_mca_default\"><\/span>Major causes of MCA default <span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8d560a5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8d560a5\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-160ee5a\" data-id=\"160ee5a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-17aba11 elementor-widget elementor-widget-text-editor\" data-id=\"17aba11\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Understanding the primary reasons behind MCA default is key to avoiding financial pitfalls.<\/p><p><strong>1. Declining sales<\/strong><\/p><p>The most common cause of an MCA default is a significant drop in sales. You\u2019re paying for the MCA repayments with your daily\/weekly revenue; failing to keep the needle moving up can result in a struggle to meet the repayment obligations. For instance, a retail store relying on holiday sales might face serious repayment challenges during the off-season.<\/p><p>If your business doesn&#8217;t plan for these fluctuations in cash flow, the probability of default increases. To counter this, businesses should create a realistic sales forecast, accounting for seasonal dips and unexpected downturns.<\/p><p><strong>2. Overborrowing<\/strong><\/p><p>Taking too many MCAs or borrowing more than your business can handle is another fast track to default. It increases the pressure on revenue streams and can turn cash advances into a debt spiral, leaving your business with insufficient funds to convert multiple repayments.<\/p><p><strong>3. Unrealistic sales projections<\/strong><\/p><p>Optimism is a great asset for business owners, but overestimating future sales can be dangerous when taking an MCA. If sales don\u2019t meet the projections you used to justify taking on the advance, you\u2019ll find yourself unable to make consistent repayments, which will trigger an MCA loan default.<\/p><p><strong>4. Inadequate profit margins<\/strong><\/p><p>When businesses have thin profit margins, even a slight increase in costs can lead to financial strain. If the profits aren\u2019t enough to cover the daily MCA deductions along with operational expenses, default becomes almost inevitable.<\/p><p>For example, a coffee shop operating on thin margins may use an MCA to boost capital for a new marketing campaign, but if the campaign doesn\u2019t result in higher sales, those daily repayments will eat into its already limited profits.<\/p><p><strong>5. Failure to understand MCA terms<\/strong><\/p><p>Some businesses enter MCA agreements without fully understanding the terms, including the costs, repayment percentages and additional fees. Without a clear understanding of how repayments will affect daily cash flow, you can quickly become overwhelmed. This is why it\u2019s integral to get help from an experienced accountant and financial planner.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-687728c elementor-widget elementor-widget-image\" data-id=\"687728c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"768\" height=\"431\" src=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/Causes-of-MCA-Default-768x431.png\" class=\"attachment-medium_large size-medium_large wp-image-12680\" alt=\"\" srcset=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/Causes-of-MCA-Default-768x431.png 768w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/Causes-of-MCA-Default-300x168.png 300w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/Causes-of-MCA-Default-1024x574.png 1024w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/Causes-of-MCA-Default-1536x861.png 1536w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/Causes-of-MCA-Default.png 2022w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7c554d9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7c554d9\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9eaf6ae\" data-id=\"9eaf6ae\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e3f4c1c elementor-widget elementor-widget-spacer\" data-id=\"e3f4c1c\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-05df41c elementor-widget elementor-widget-heading\" data-id=\"05df41c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"how_to_avoid_merchant_cash_advance_default\"><\/span>How to avoid merchant cash advance default?<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-66ed26e elementor-widget elementor-widget-image\" data-id=\"66ed26e\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"727\" height=\"473\" src=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/How-To-Avoid-MCA-Default.png\" class=\"attachment-medium_large size-medium_large wp-image-12681\" alt=\"\" srcset=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/How-To-Avoid-MCA-Default.png 727w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/11\/How-To-Avoid-MCA-Default-300x195.png 300w\" sizes=\"(max-width: 727px) 100vw, 727px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-30c82e5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"30c82e5\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-aba260e\" data-id=\"aba260e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cb2172a elementor-widget elementor-widget-text-editor\" data-id=\"cb2172a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Avoiding an MCA default requires careful planning and proactive management. It\u2019s not rocket science, but without a strategy, businesses can quickly find themselves in hot water. Here are some actionable ways:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-dca9d75 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"dca9d75\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c12c6fd\" data-id=\"c12c6fd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f4b3952 elementor-widget elementor-widget-heading\" data-id=\"f4b3952\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">1. Evaluate MCA terms carefully<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-21a58f4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"21a58f4\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e747b23\" data-id=\"e747b23\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-37da93e elementor-widget elementor-widget-text-editor\" data-id=\"37da93e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Before taking out a normal or emergency Merchant Cash Advance, it\u2019s crucial to read the fine print. Repayment terms, fees and the percentage of sales taken daily or weekly. A great deal might not be so great if it stains your cash flow. Ask yourself, \u201cCan I manage these deductions during slower sales periods?\u201d<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-421b82d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"421b82d\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5c4c040\" data-id=\"5c4c040\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-61ebaaf elementor-widget elementor-widget-heading\" data-id=\"61ebaaf\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">2. Monitor cash flow regularly<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0dc0c0d elementor-widget elementor-widget-text-editor\" data-id=\"0dc0c0d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Maintaining healthy cash flow is key to avoiding default. Regularly monitor your incoming revenue and outgoing expenses, making sure you always have enough to cover the MCA repayments.<\/p><p>It\u2019s not enough to just pay attention during good sales months &#8211; keep an eye on it year-round. For example, an e-commerce store might see a spike in sales during a Black Friday promotion, but poor cash flow management after the season could result in repayment issues. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-918c906 elementor-blockquote--skin-border elementor-blockquote--button-color-official elementor-widget elementor-widget-blockquote\" data-id=\"918c906\" data-element_type=\"widget\" data-widget_type=\"blockquote.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor-pro - v3.25.0 - 03-11-2024 *\/\n@charset \"UTF-8\";.entry-content blockquote.elementor-blockquote:not(.alignright):not(.alignleft),.entry-summary blockquote.elementor-blockquote{margin-left:0;margin-right:0}.elementor-widget-blockquote blockquote{background:transparent;border:0;color:#3f444b;font-size:100%;font-style:normal;margin:0;outline:0;padding:0;quotes:none;vertical-align:baseline}.elementor-widget-blockquote blockquote .e-q-footer:after,.elementor-widget-blockquote blockquote .e-q-footer:before,.elementor-widget-blockquote blockquote cite:after,.elementor-widget-blockquote blockquote cite:before,.elementor-widget-blockquote blockquote:after,.elementor-widget-blockquote blockquote:before{content:none}.elementor-blockquote{transition:.3s}.elementor-blockquote__author,.elementor-blockquote__content{font-style:normal;margin-bottom:0}.elementor-blockquote__author{font-weight:700}.elementor-blockquote .e-q-footer{display:flex;justify-content:space-between;margin-top:12px}.elementor-blockquote__tweet-button{align-self:flex-end;color:#1da1f2;display:flex;line-height:1;position:relative;transition:.3s;width:-moz-max-content;width:max-content}.elementor-blockquote__tweet-button:hover{color:#0967a0}.elementor-blockquote__tweet-button span{font-weight:600}.elementor-blockquote__tweet-button i,.elementor-blockquote__tweet-button span{vertical-align:middle}.elementor-blockquote__tweet-button i+span,.elementor-blockquote__tweet-button svg+span{margin-inline-start:.5em}.elementor-blockquote__tweet-button svg{fill:#1da1f2;height:1em;width:1em}.elementor-blockquote__tweet-label{white-space:pre-wrap}.elementor-blockquote--button-skin-bubble .elementor-blockquote__tweet-button,.elementor-blockquote--button-skin-classic .elementor-blockquote__tweet-button{background-color:#1da1f2;border-radius:100em;color:#fff;font-size:15px;padding:.7em 1.2em}.elementor-blockquote--button-skin-bubble .elementor-blockquote__tweet-button:hover,.elementor-blockquote--button-skin-classic .elementor-blockquote__tweet-button:hover{background-color:#0967a0;color:#fff}.elementor-blockquote--button-skin-bubble .elementor-blockquote__tweet-button:hover:before,.elementor-blockquote--button-skin-classic .elementor-blockquote__tweet-button:hover:before{border-inline-end-color:#0967a0}.elementor-blockquote--button-skin-bubble .elementor-blockquote__tweet-button svg,.elementor-blockquote--button-skin-classic .elementor-blockquote__tweet-button svg{fill:#fff;height:1em;width:1em}.elementor-blockquote--button-skin-bubble.elementor-blockquote--button-view-icon .elementor-blockquote__tweet-button,.elementor-blockquote--button-skin-classic.elementor-blockquote--button-view-icon .elementor-blockquote__tweet-button{height:2em;padding:0;width:2em}.elementor-blockquote--button-skin-bubble.elementor-blockquote--button-view-icon .elementor-blockquote__tweet-button i,.elementor-blockquote--button-skin-classic.elementor-blockquote--button-view-icon .elementor-blockquote__tweet-button i{left:50%;position:absolute;top:50%;transform:translate(-50%,-50%)}.elementor-blockquote--button-skin-bubble .elementor-blockquote__tweet-button:before{border:.5em solid transparent;border-inline-end-color:#1da1f2;content:\"\";left:-.8em;position:absolute;top:50%;transform:translateY(-50%) scaleY(.65);transition:.3s}.elementor-blockquote--button-skin-bubble.elementor-blockquote--align-left .elementor-blockquote__tweet-button:before{border-left-color:transparent;border-right-color:#1da1f2;left:-.8em;right:auto}.elementor-blockquote--button-skin-bubble.elementor-blockquote--align-left .elementor-blockquote__tweet-button:hover:before{border-right-color:#0967a0}.elementor-blockquote--button-skin-bubble.elementor-blockquote--align-right .elementor-blockquote__tweet-button:before{border-left-color:#1da1f2;border-right-color:transparent;left:auto;right:-.8em}.elementor-blockquote--button-skin-bubble.elementor-blockquote--align-right .elementor-blockquote__tweet-button:hover:before{border-left-color:#0967a0}.elementor-blockquote--skin-boxed .elementor-blockquote{background-color:#f9fafa;padding:30px}.elementor-blockquote--skin-border .elementor-blockquote{border-color:#f9fafa;border-inline-start-width:7px;border-style:solid;padding-inline-start:20px}.elementor-blockquote--skin-quotation .elementor-blockquote:before{color:#f9fafa;content:\"\u201c\";display:block;font-family:Times New Roman,Times,serif;font-size:100px;font-weight:900;height:.6em;line-height:1}.elementor-blockquote--skin-quotation .elementor-blockquote__content{margin-top:15px}.elementor-blockquote--align-left .elementor-blockquote__content{text-align:left}.elementor-blockquote--align-left .elementor-blockquote .e-q-footer{flex-direction:row}.elementor-blockquote--align-right .elementor-blockquote__content{text-align:right}.elementor-blockquote--align-right .elementor-blockquote .e-q-footer{flex-direction:row-reverse}.elementor-blockquote--align-center .elementor-blockquote{text-align:center}.elementor-blockquote--align-center .elementor-blockquote .e-q-footer,.elementor-blockquote--align-center .elementor-blockquote__author{display:block}.elementor-blockquote--align-center .elementor-blockquote__tweet-button{margin-left:auto;margin-right:auto}<\/style>\t\t<blockquote class=\"elementor-blockquote\">\n\t\t\t<p class=\"elementor-blockquote__content\">\n\t\t\t\tAccording to an article in Zippia, bank studies have shown that almost 82% of businesses close due to cash flow issues. \t\t\t<\/p>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d02e3c5 elementor-widget elementor-widget-spacer\" data-id=\"d02e3c5\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a0f79a5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a0f79a5\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cc2c307\" data-id=\"cc2c307\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8143e1d elementor-widget elementor-widget-heading\" data-id=\"8143e1d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">3. Negotiate MCA terms<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c90d38c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c90d38c\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-02d143f\" data-id=\"02d143f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ff9db46 elementor-widget elementor-widget-text-editor\" data-id=\"ff9db46\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>What\u2019s the biggest <span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/merchant-cash-advance\/advantages-disadvantages-of-merchant-cash-advance\/\">advantage of MCA<\/a><\/strong><\/span>? The flexible repayment structure. Right? But they can become a roadblock in your cash flow as well. If the initial terms of your MCA seem too aggressive, don\u2019t hesitate to negotiate. MCA is not regulated in the UK (at the time of writing) so you can always discuss possibilities with providers.<\/p><p>Many<span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/merchant-cash-advance\/best-merchant-cash-advance-companies\/\"> reliable MCA providers in the UK<\/a><\/strong><\/span> will be willing to adjust the percentage or offer more flexible repayment plans. You don\u2019t need to sign the first contract put in front of you.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9a7b1f4 elementor-widget elementor-widget-heading\" data-id=\"9a7b1f4\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">4. Avoid taking multiple MCAs<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-72cf556 elementor-widget elementor-widget-text-editor\" data-id=\"72cf556\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>It can be tempting to stack multiple MCAs, especially when cash is tight, but this is a dangerous strategy. Taking on several advances at once increases your repayment obligations and raises your probability of default. It\u2019s like digging yourself into a deeper hole.<\/p><p>If you find yourself needing additional financing, consider other options like a business loan or a line of credit.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-06dcf51 elementor-widget elementor-widget-heading\" data-id=\"06dcf51\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">5. Consult a financial advisor<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-177ae2f elementor-widget elementor-widget-text-editor\" data-id=\"177ae2f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Sometimes, a fresh perspective can make all the difference. Consulting with a financial expert allows you to evaluate your overall health and assess whether an MCA is the right choice for your business. They can also help you structure a realistic repayment plan to reduce the risk of default.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8ff2bc6 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"8ff2bc6\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-size-md elementor-animation-grow\" role=\"button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get MCA Quotes Today<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d605b28 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d605b28\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cdfd6a8\" data-id=\"cdfd6a8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b53fd49 elementor-widget elementor-widget-spacer\" data-id=\"b53fd49\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-699821e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"699821e\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-617f2ed\" data-id=\"617f2ed\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d67bc7b elementor-widget elementor-widget-heading\" data-id=\"d67bc7b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"alternatives_to_taking_out_an_mca\"><\/span>Alternatives to taking out an MCA<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-70152a0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"70152a0\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7289cb0\" data-id=\"7289cb0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5e0978b elementor-widget elementor-widget-text-editor\" data-id=\"5e0978b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>While an MCA can provide quick access to cash, it\u2019s always good to have other options in sight as well. If you\u2019re looking for ways to boost capital while avoiding the risks of MCA loan default, here are some alternative financing options:<\/p><p><strong>1. Business loan<\/strong><\/p><ul><li>Lower risk of default as they have a fixed repayment amount that isn\u2019t dependent on your daily or weekly sales.<\/li><\/ul><p><strong>2. Line of credit<\/strong><\/p><ul><li>Draw as much or as little as you need and only pay interest on the amount you use. Line of credit ensures you\u2019re not locked into high repayment percentages like with <span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/merchant-cash-advance\/merchant-funding\/\">merchant funding.<\/a><\/strong><\/span><\/li><\/ul><p><strong>3. Invoice financing<\/strong><\/p><ul><li>Lower probability of default since repayments are tied to the collection of outstanding invoices.<\/li><\/ul><p><strong>4. Crowdfunding<\/strong><\/p><ul><li>A creative alternative to traditional small business financing. It involves raising money from backers who believe in your product or service. In many cases, you won&#8217;t owe them anything other than the product\/service. <\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9421c4a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9421c4a\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3c7c848\" data-id=\"3c7c848\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-47c69dd elementor-widget elementor-widget-heading\" data-id=\"47c69dd\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"avoid_the_risk_of_mca_default_by_connecting_with_reliable_providers_with_comparedbusiness\"><\/span>Avoid the risk of MCA default by connecting with reliable providers with ComparedBusiness<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0141b68 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0141b68\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0f4a189\" data-id=\"0f4a189\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c70d9b9 elementor-widget elementor-widget-text-editor\" data-id=\"c70d9b9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>ComparedBusiness aids you in securing merchant cash advance funding from the top lenders in the UK who offer flexible terms. Just submit your requirements in less than 2 minutes and we will match you with them. You can pick and choose the best option as per your business requirements. This service costs you no money.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-dcb428a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"dcb428a\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a0fa2f1\" data-id=\"a0fa2f1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4a06ae0 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"4a06ae0\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-size-md elementor-animation-grow\" role=\"button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get MCA Quotes Today<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e5b1ca3 elementor-widget elementor-widget-spacer\" data-id=\"e5b1ca3\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>When it comes to securing quick funds, a Merchant Cash Advance might seem like the perfect solution, but it can also lead your business into hot water if you\u2019re not careful &#8211; yes, we mean merchant cash advance default. It can steer your business in the wrong direction. And the truth is, without proper planning &#8230; <a title=\"Merchant Cash Advance Default: How to Avoid It?\" class=\"read-more\" href=\"https:\/\/comparedbusiness.com\/uk\/blog\/merchant-cash-advance\/merchant-cash-advance-default\/\">Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":12684,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-12677","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-merchant-cash-advance"],"_links":{"self":[{"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/posts\/12677"}],"collection":[{"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/comments?post=12677"}],"version-history":[{"count":4,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/posts\/12677\/revisions"}],"predecessor-version":[{"id":12685,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/posts\/12677\/revisions\/12685"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/media\/12684"}],"wp:attachment":[{"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/media?parent=12677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/categories?post=12677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/tags?post=12677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}