Majority of your MCA companies are headquartered in the State of New York as the judicial system had been MCA friendly birthing a legal filing incubator for contract disputes that have led to the demise of many, many great American businesses nationwide. Most MCA companies employ full-time legal teams that file hair-trigger defaults on merchants with very limited notice, if any at all. While this has been the norm for years some looked a little deeper recognizing that although the contracts agreed to reconciliation in wording, many MCA companies do not make them fully functional leaving in possession a key characteristic of traditional loan repayments. In order to NOT be considered an illegal usury loan, MCA companies must allow you to request a change in payments regularly based on the company's incoming business revenue ONLY in accordance with your contracted 'Repayment Percentage' NOT what's best for MCA companies.
 
If your business does not generate income the MCA company has NO rights to revenue in non-earning periods. By definition a compliant and legally functional MCA contracts repay term is purely infinite due to the MCA company purchasing 'future' business receivables NOT originating a business loan. The obligation to deliver the future business receivables is conditioned upon the continuance of the business's lifespan and NO further. In a loan, there is an 'unconditional' right to repayment regardless of the state of the recipient's business or financial affairs. In true MCA transactions, repays to the MCA company are directly linked to and 'contingent' upon the natural ebbs and flows of agreed upon contracted Repayment Percentage of 'future business receivables'. Days with no receivables automatically recalculate into further days of what could become a lengthy and volatile payoff period. Modified repay is NOT reconciliation!
 
To make certain the repays are, or look, 'conditional', MCA companies must make certain that the borrower DOES NOT unconditionally agree to "repay" the MCA. Unreconciled flat daily/weekly debits of a struggling MCA holders bank balance vs incoming future business receivables result in NSFs, in turn, excessive fees and in some cases bankruptcy. If true reconciliation was activated from day one of funding over MCA companies aggressively seeking to recoup their monies payment issues would be minimal. The fact that the MCA companies are systematically debiting and not forward reviewing throughout the contract goes against common sense risk management. Bankruptcy is NOT considered a breach of contract or an element of default as MCA contracts DO NOT possess the unconditional right to repayment afforded to loans. NO interest rate, payment schedule or time period which repay must be collected by MCA companies.​​​​​