Callee Debt Solutions provides free advice on the process of debt settlement, restructuring, and Merchant Cash Advance (MCA) debt relief to companies looking for ways to stop their unsustainable debt cycle. We’re here to help business owners understand how to solve their debt problems and get back on track.
A lot of small businesses suffer from debts or fall into a financial crisis and have to deal with it by downsizing and reducing their expenses. It’s normal for businesses in this situation to look for working capital to bridge the gap.
Oftentimes, businesses take out short-term loans. If the short-term loan is a merchant cash advance the business will find themselves overleveraged, in a debt cycle, seeking relief from cash advance debt to free up cashflow.
Merchant Cash Advances: Easier to Get, Harder to Maintain
The lending process of traditional lenders takes at least 30 to 90 days, which is way too long for a business in need of immediate cash. These traditional lenders evaluate the business model very carefully. Due to the recession in the early 2000s, the money lending process has been really difficult.
On the hand, short-term lenders evaluate the amount of money the business has, how much they have leftover at the end of the month and what their debt-to-income ratio is. Once this evaluation is done, they can fund businesses in less than 48 hours.
This path seems easy at first but in the long run, businesses notice that it wasn’t such a great idea. The rates are high and fixed, and the repayment timeline for these cash advances is less than a year.
Merchant cash advances always seem like a great way to escape financial challenges and rebuild the business. It’s easy to think that if the business gets the money it will help to get things back on track. Business owners always think that paying the money back should be easy. They don’t take the long-term effect of the cash advance into mind.
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For instance, when you take a cash advance loan of $100,000, you have to pay back $150,000 between 6-9 months. That’s a 1.5% factor rate. In the long run, profits will be lost, every gain that the business should have gotten would go straight to paying the advance. To keep up with this, businesses end up taking out more loans and getting stuck in a cycle of MCA debt. Small businesses with accounts receivable of net 30, 60, and 90 days, usually fall prey to these types of predatory loans.
Merchant cash advances are short-term fixes
that end up creating long-term problems.
Merchant Cash Advance (MCA): Red Flags
One of the ways to know if a business is drowning in this arrangement is to check if the business owner can pay themselves. When the business cannot expand, do any marketing, or take care of needed expenses then that becomes a huge red flag. The profit the business is making is flowing out rather than in.
Callee Debt Solutions: Your Way Out
When businesses find themselves in a situation like this, it may look like there’s no way out. This is where Callee Debt Solutions comes in.
We negotiate lower payments to help our clients reduce financial stress. Due to our strong relationships with 80 to 90 percent of lenders in the market, we have had great success with assisting business owners with reducing debt fast. We help businesses manage unsecured debt in two ways, business debt restructure and business debt settlement.
For businesses who are ready to eliminate their financial hardships and improve cashflow, they must;
Qualify for our program
Chat with a debt relief specialist to identify if our solutions are a good fit.
Provide documentation
It is helpful to have lender agreements and three months of bank statements readily available during the qualification process.
Receive a comprehensive business debt relief consultation
This in-depth consultation will develop a customized strategy on how to regain control of the business finances.
Once approved and enrolled, we work out affordable payments to settle what is due.
Prepare for enrollment
For the best cash advance problem solvers, connect with Callee Debt Solutions today. Call 239-488-7103 or schedule a time with one of our MCA debt relief specialists.
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