MCA Debt Settlement: Paying 40–70 Cents on the Dollar

Most merchant cash advance funders would rather get paid something today than chase a defaulted balance for months. That is why settlement works.

What settlement looks like

A settlement is a lump-sum (or short-term) payment that closes out the full balance for less than what is owed. Typical ranges:

• 40–55% when the funder believes the business is at imminent risk of closing.
• 55–70% when the business is struggling but operational.
• 70–85% when the file is current but cash flow no longer supports the payment schedule.

The further into distress, the lower the settlement — but the higher the collection risk and legal cost on your side. Timing is everything.

What funders look at

• Recent bank statements (12 weeks is typical).
• Other MCA positions and their status.
• Whether the personal guarantor has reachable assets.
• Whether a Confession of Judgment is already in place.

The package you present matters as much as the number you offer.

Lump sum vs. structured

Lump sums get the deepest discount. If you can raise 40–50% of the balance from a friendly investor, retained earnings, or an asset sale, you will land the best deal. Structured settlements (paid over 3–12 months) are still available but cost more in total dollars.

Get it in writing

Every settlement must include a signed release, a UCC termination commitment, and a confirmation that the account is reported as "settled in full" — not "charged off."

We negotiate dozens of these each month. Send us your case and we will tell you what range is realistic.