Stefan Bernarsky
Business Financial Stress and Its Profound ...

Running a small business is often romanticized as a pursuit of passion and innovation, but beneath the surface lies a complex reality filled with significant challenges.

Among the most formidable of these is financial stress, a silent yet potent force that can undermine a business owner's most crucial asset: their ability to make sound, strategic decisions.

This article explores the deep-seated ways financial pressures can hijack your judgment, along with actionable strategies to fortify your mental and financial resilience.

Business Financial Stress and Its Profound Impact on Entrepreneurial Decision-Making
Stefan Bernarsky
Business Cash Flow Help, Talk to Your Creditors

Every small business owner knows the feeling.

It's that gut-wrenching moment when you look at your bank balance and realize it's lower than you'd like.

The invoices are piling up, and the money isn't coming in fast enough.

This isn't just a hypothetical scenario; it's a common, and often stressful, reality for many entrepreneurs.

A business, no matter how profitable it is on paper, can't survive without a healthy cash flow. It's the lifeblood of your operation, covering everything from payroll to purchasing inventory.

When it's tight, it can feel like you're in a financial pressure cooker. But here’s the thing: you're not alone, and there are proactive steps you can take.

One of the most powerful, yet often overlooked, strategies is to open a dialogue with your creditors.

This article will walk you through why, how, and when you should talk to the people you owe money to, transforming a potential crisis into a manageable situation.

Business Cash Flow Help, Talk to Your Creditors
Stefan Bernarsky
Bad Business Financing Eats Profits

As a small business owner, you're the engine of your enterprise. You're the visionary, the strategist, the marketer, and often, the accountant. You understand that profitability is the lifeblood of your company. You watch your sales numbers, scrutinize your expenses, and tirelessly work to increase your margins. But what if a hidden threat is silently gnawing at your profits, a threat you might not even realize exists? This threat is bad business financing. It's the high-interest loan you took out in a moment of desperation, the predatory line of credit that seemed too good to be true, the convoluted equipment lease that's costing you more than the asset itself. These seemingly innocuous financial decisions can act like a slow-moving poison, siphoning off your hard-earned revenue and leaving you with less to invest in growth, less to pay your team, and ultimately, less to put in your own pocket.

The allure of quick cash can be strong. A new opportunity arises, a critical piece of equipment breaks down, or a sudden cash flow crunch threatens to derail your operations. In these moments, the first offer that comes your way, regardless of its terms, can look like a lifeline. But this is where the danger lies. A bad financing deal doesn't just cost you money in the short term; it creates a long-term drain on your resources. It's a weight that gets heavier with each passing month, forcing you to constantly run faster just to stay in the same place. This article will be your guide to understanding the various ways bad business financing can eat your profits, and more importantly, how you can avoid these pitfalls and secure a financial foundation that truly supports your business's growth. We will delve into the different types of bad financing, the warning signs to look out for, and the strategic decisions you can make to ensure your financing works for you, not against you.

Bad Business Financing Eats Profits
Stefan Bernarsky
Unseen Threats in Small Business Financing

Your business is more than just a company; it's a testament to your relentless effort and unwavering vision.

You've fought through countless challenges, from market downturns to unforeseen emergencies.

But there’s a new, more insidious threat lurking in the shadows of the financial world—one that preys on your moments of vulnerability.

This isn't a simple risk; it’s a sophisticated attack.

When cash flow tightens or you face an unexpected setback, predatory lenders see it as an open invitation to seize your hard-earned assets and ultimately dismantle your dream.

Their methods are subtle, their promises are slick, and their contracts are designed to be a financial trap.

Understanding this threat is the first step to defending yourself and securing your business's future.

The time for passive learning is over. This is a call to arms for every business owner.

Unseen Threats in Small Business Financing
Stefan Bernarsky
Short-term Business Debt Trap and How to ...

Short-term Business debt isn't a long-term solution; it's a financial chokehold.

Think about your daily or weekly payments.

They don’t just happen; they actively steal from your business's future.

You’re constantly scrambling, watching every dollar you earn get siphoned off the moment it hits your account.

This isn't a business; it's a treadmill. You’re running faster and faster just to stay in the same place.

And what about the interest?

That small percentage on a merchant cash advance or line of credit is a financial mirage. When you calculate the true Annual Percentage Rate (APR), you'll see a number so high it will make your head spin.

This is money that could have been used for a new marketing campaign, a much-needed piece of equipment, or even an emergency fund.

Instead, it’s gone. You're not just paying for money; you’re paying a premium for your own financial instability. This constant stress isn’t just bad for your business; it's eating away at your health, your focus, and your ability to lead. You need to act, and you need to act now.

Short-term Business Debt Trap and How to Refinance

DEAL TABLE: $900,000 IN MCA LOANS PAID OFF TO A LONG-TERM LOAN + $500,000 IN WORKING CAPITAL

DEAL TABLE: $900,000 IN MCA LOANS PAID OFF TO A LONG-TERM LOAN + $500,000 IN WORKING CAPITAL

DEAL TABLE: $900,000 IN MCA LOANS PAID OFF TO A LONG-TERM LOAN + $500,000 IN WORKING CAPITAL

General Contractor and Builder with Merchant Cash Advance MCA loans and other high-interest, short-term debt totaling $900,000.

The Company was paying $123,842 total monthly payments to MCA companies and short-term debt providers.

At closing, all MCAs were paid off for a discounted amount and zero-balance letters (ZBLs) were issued to the Company from the MCA loan companies.

The Company’s new total monthly payment is now $48,612 (payment reduction of over 60%, down from $123,842), and they were given $500,000 of working capital at closing.

How Merchant Cash Advance MCA Loan Refinancing and Consolidation Works

How Merchant Cash Advance MCA Loan Refinancing and Consolidation Works

Merchant Cash Advance MCA refinance and consolidation pays off all your MCAs to a zero balance and stretched your business debt over a longer period, therefore lowering your total monthly debt payments by 50% to 90%+.

We always prefer to hear more details of your business financing situation and goals, now and in the future, prior to making specific recommendations. Please book a consultation call here —>

Kanjorski Partners LLC’s consultants and advisors are equipped to handle most any MCA stressed and/or distressed situations.

Generally we have two types of MCA refinance programs and processes:

1) Short-term MCA Relief (Payoff and Consolidation to a Longer Term)

  • 3 to 5-business-day process (app to closing) for MCA payment relief and working capital

  • MCAs paid off to a zero balance at closing and UCC removed

  • Cost of capital ranges from 18% to 28% (pending underwriting risk assessment)

  • Weekly or Bi-weekly payment options (determined in underwriting)

  • 12 to 18-month term (pending underwriting)

  • Reduce your total monthly debt service payments by 50% to 60%

2) Long-term Full Refinance (Payoff and Refinance all business debt to a Longer Term)

  • Full refinance and payoff of all business debt (will leave a bank, SBA or AR factoring relationship in place)

  • 3 to 4-week process (app to closing) for a full refinance (recap) of all business debt

  • Working capital provided at closing (determined in underwriting)

  • One monthly payment

  • 2 to 3-year term (and in some cases and industries, 5 to 7-year+ or longer)

  • SBIC, private equity and investment banking is also available for special situations

  • MCAs paid off to a zero balance at closing and UCC removed

  • Cost of capital ranges from 12% to 18% (pending underwriting)

  • Monthly payment is principal and interest

  • Interest only (IO) “relief” period for 6 to 9-months after closing

  • Reduce your total monthly debt service payments by 60% to 90%

Merchant Cash Advance (MCA) Refinancing and Restructuring

Merchant Cash Advance (MCA) Refinancing and Restructuring

SHORT-TERM MCA REFINANCE —> 12 to 18-month term —> weekly and/or bi-weekly payments
—> 3-5 days application to closing —> APPLY HERE

LONG-TERM MCA REFINANCE —> 24 to 36-month term —> monthly payments
—> 2 to 3-weeks application to closing —> APPLY HERE

What happens if you default on Merchant Cash Advance (MCA) agreements?

What happens if you default on Merchant Cash Advance (MCA) agreements?

“…Defaulting (missing or stopping payments) on a Merchant Cash Advance (MCA) can potentially drain your business’ bank account, trigger aggressive collection action under Uniform Commercial Code (UCC) and civil litigation. Default under the provisions of a Merchant Cash Advance (MCA) agreement can put your business and you personally in a difficult position.

If you cannot continue to afford your Merchant Cash Advance (MCA) payments,
there are solutions for you and your business!….”

Is Merchant Cash Advance (MCA) a Good Idea?

Is Merchant Cash Advance (MCA) a Good Idea?

“….Merchant Cash Advance (MCA) is a trap for small businesses.

Easy to get into and hard to get out of Merchant Cash Advances (MCAs) should be the last resort for small business owners that need funding quickly or who may not qualify for a traditional bank loan.

Before you consider taking a Merchant Cash Advance (MCA), please seek other alternative (non-bank) financing as there are much better options out there for your business…..”

How to Get Out of Merchant Cash Advance (MCA)

How to Get Out of Merchant Cash Advance (MCA)

Ways To Stop Paying Merchant Cash Advance (MCA)
When You Cannot Afford to Pay Them

1) MERCHANT CASH ADVANCE (MCA) REFINANCE:
Refinance and payoff your Merchant Cash Advance with a new term loan or line of credit
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidation

2) MERCHANT CASH ADVANCE (MCA) RESTRUCTURE:
Re-negotiate your Merchant Cash Advance agreement(s) to longer terms with lower payments that your business can manage and afford to pay back on a new weekly, bi-weekly or monthly payment schedule
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services

Continue to full post….

Read our post to hear about all of your options and to setup a
FREE consultation call for Merchant Cash Advance (MCA) Solutions…..

⚠️ CAUTION! ⚠️ Warning Signs of Problems with Merchant Cash Advance (MCA) & Other Business Debt

⚠️ CAUTION! ⚠️ Warning Signs of Problems with Merchant Cash Advance (MCA) & Other Business Debt

If you answer “YES” to any of these questions below, there are solutions and we can help!

Do you currently have more than one Merchant Cash Advance (MCA)?

Do the Merchant Cash Advance (MCA) companies get paid before you do?

Negative balance and/or frequent Not Sufficient Funds (NSFs) in your business bank account due to automated Merchant Cash Advance (MCA) ACH payments?

Have you seen a decrease in your gross sales deposits or income since taking out your Merchant Cash Advance (MCA)?

MERCHANT CASH ADVANCE SOLUTIONS:

Merchant Cash Advance (MCA) Debt Refinance-
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidation

Merchant Cash Advance (MCA) Debt Restructuring-
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services

Merchant Cash Advance (MCA) Help & Information for Business Owners-
https://www.kanjorskipartners.com/merchant-cash-advance-information-and-resources-refinancing-restructuring-stop-merchant-cash-advance-lower-merchant-cash-advance-payments

Disadvantages of Merchant Cash Advance (MCA)

Disadvantages of Merchant Cash Advance (MCA)

What are the Disadvantages of Merchant Cash Advance (MCA) ?

“…Merchant Cash Advance (MCA) has many disadvantages that you should be aware of before you enter into a MCA receivables purchase agreement. Weigh these disadvantages against the potential benefits.

1. MERCHANT CASH ADVANCE (MCA) IS AN EXTREMELY EXPENSIVE FORM OF FINANCING
2. MERCHANT CASH ADVANCE (MCA) IS A SHORT-TERM FINANCING OPTION, NOT A SOLUTION
3. MERCHANT CASH ADVANCES (MCAs) DO NOT SOLVE CASH FLOW PROBLEMS
4. SELLING FUTURE SALES IN A MERCHANT CASH ADVANCE (MCA) AGREEMENT IS DANGEROUS…”

Read our full post about the “Disadvantages of Merchant Cash Advance (MCA)”

How much does your MCA Broker get paid for each advance (loan)?

How much does your MCA Broker get paid for each advance (loan)?

“…When your business financing broker is presented with an “Approval” from the Merchant Cash Advance (MCA) company, your broker chooses from a list or tier of “Offers” at each Merchant Cash Advance (MCA) company. This list of offer options contains variable commission rates and payback terms and cost to the borrower. (Ex.- $100,000 in “funding” at a 1.35x factor rate or $135,000 payback). Your “trusted, friendly broker” adds from 0.10x to 0.15x to the offer and presents it to you as: $100,000 in “funding” at a 1.50x factor rate of $150,000 payback…”

VIEW OUR POST: “Does Your Business Financing Broker Actually Help You and Your Business?” and download our full PDF report for FREE

Does Your Business Financing Broker Actually Help You and Your Business?

Does Your Business Financing Broker Actually Help You and Your Business?

“…On a $100,000 Merchant Cash Advance (MCA), a broker who sold the advance to their client (you) receives between 10% and 15% of the total amount funded. So your broker receives $10,000 to $15,000 (10% to 15% of the total “funding”) the day after you get “funded”…

Yes. That is not a typing or mathematical mistake on our end. We assure you of this. This is the reality of how grossly over-compensated your broker is for selling you a high-cost and very short-term business financing option…”

VIEW OUR POST: “Does Your Business Financing Broker Actually Help You and Your Business?” and download our full PDF report for FREE

How to get payment credits or money back from Merchant Cash Advance (MCA)!

How to get payment credits or money back from Merchant Cash Advance (MCA)!

Get immediate payment credits or money back from Merchant Cash Advance (MCA) companies.

FREE Consultation with our Merchant Cash Advance (MCA) Refinancing & Restructuring experts.

Fill out the inquiry form below and we will get you started on MCA refunds STARTING TODAY!

Struggling with Merchant Cash Advances (MCAs)?

Struggling with Merchant Cash Advances (MCAs)?

WHAT HAPPENS NOW THAT A BUSINESS CANNOT CONTINUE TO PAY?

“Merchant Cash Advance (MCA) companies use extremely aggressive, shaming and dirty, back-handed collection tactics to attempt collections on defaulted or struggling businesses.

One common [destructive collection] tactic is collection attempts under Article 9 of the Uniform Commercial Code (UCC) which allow creditors who have filed a valid UCC lien on some or all of a business’ assets to notify accounts receivable creditors of the business to pay them and not the business.

Even when a business speaks to the MCA company and attempts to work out a payment plan that they can afford, the MCAs normally immediately start using these aggressive collection tactics and do not agree to a modification (Restructure) of the MCA. The business is now running out of options to deal with their MCA debt.”

Visit our post and download our latest FREE FULL MCA REPORT-

“The Critical Dangers of Merchant Cash Advances”

********

Solutions are available to get you and your business out of the destructive MCA cycle.

MERCHANT CASH ADVANCE SOLUTIONS:
MCA Debt Refinance-
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidation

MCA Restructuring-
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services

Merchant Cash Advance "RENEWAL" Offers

Merchant Cash Advance "RENEWAL" Offers

Merchant Cash Advance "RENEWAL" Offers:

Here’s why we suggest that you NEVER, EVER, EVER accept a
Merchant Cash Advance “RENEWAL” Offer
”…Our main goal with this report is to educate you on the true cost and danger of taking MCAs for your business. If you listen to or learn anything from this report, please, please, please, never, ever, ever take a “Renewal” from an MCA company…”

”…As a general rule within the MCA industry, when a business pays back 50% or more of the MCA total contract they are normally qualified for a “RENEWAL” which simply means that the MCA company is willing to give you more “funding” since you are 50%+ paid in to your current MCA contract….”

Visit our post and download our latest FREE FULL MCA REPORT-

“The Critical Dangers of Merchant Cash Advances”

********

Solutions are available to get you and your business out of the destructive MCA cycle.

MERCHANT CASH ADVANCE SOLUTIONS:
MCA Debt Refinance-
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidation

MCA Restructuring-
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services

The Vicious Merchant Cash Advance Cycle

The Vicious Merchant Cash Advance Cycle

The Vicious MCA Cycle:
MULTIPLE MERCHANT CASH ADVANCES

Excerpt from our latest report on the dangers of MCAs…

“…The reason the vicious cycle of MCAs can sustain itself for some period of time is because of one simple word in the industry, “stacking”. MCA “stacking” is to put a second MCA on top of a first MCA

********

Visit our post and download our latest FREE FULL MCA REPORT-

“The Critical Dangers of Merchant Cash Advances”

********

Solutions are available to get you and your business out of the destructive MCA cycle.

MERCHANT CASH ADVANCE SOLUTIONS:
MCA Debt Refinance-
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidation

MCA Restructuring-
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services

MERCHANT CASH ADVANCE: Refinancing & Restructuring

MERCHANT CASH ADVANCE: Refinancing & Restructuring

Excerpt from our latest report on the Merchant Cash Advance (MCA) Industry…

MERCHANT CASH ADVANCE (MCA) Receivables Purchase Agreement structure has 6 critical parts which all add up to a HUGE and UNSUSTAINABLE, even predatory cost for this type of expensive and short-term financing:

1) PURCHASE AMOUNT: Amount of future accounts receivables and/or sales deposits purchased

Merchant Cash Advance (MCA) Restructuring Services

LOWER YOUR PAYMENTS: MERCHANT CASH ADVANCE RESTRUCTURING

Merchant Cash Advance restructuring can be a simple process. Your creditors will not tell you this though.

Avoid bankruptcy. Stop harassing and stressful collection activity. Solve your business’ Merchant Cash Advance (MCA) debt situation.

Restructuring services are provided by New Horizons Restructuring LLC, a Kanjorski Partners related restructuring service entity.

View our FREE white paper report on Merchant Cash Advance (MCA) Restructuring:

“THE CRITICAL DANGERS OF MERCHANT CASH ADVANCES”

Merchant Cash Advance Reconciliation Services

Our extensive experience in MCA contract review, accounting reconciliation and our vast knowledge of legal collections throughout the US can help your business potentially get refunds and/or credits from either temporary or permanent over-payments owed to you contractually from the MCA companies.

Merchant Cash Advance Reconciliation and Collection and Recovery of Over-Payments — KANJORSKI PARTNERS, LLC

BERNARSKY ADVISORS

Business Finance & Strategy Advisors
Refinance. Restructure. Reorganize.
Help with Business Debt, Loans and Merchant Cash Advance (MCA)

1-833-460-1535