The fine print is not just fine – it’s lethal. Here’s how to dodge the financial landmines (and what to do if you already stepped on one).
What it says: Personal Guarantee (PG)
What it means: “If your business can’t pay, we’ll come for your house, your car, and maybe even your childhood dreams.”
MCAs love this one. You sign for your business, but suddenly your personal bank account is getting love letters from a collections attorney. The personal guarantee clause turns your business obligation into your personal nightmare. It’s like watching your LLC disappear in a puff of smoke, only to realize the smoke is your 401(k) burning.
Reality check: One missed payment and boom—lien on your house, garnished wages, and your kids’ college fund looking real nervous. It’s the kind of clause that makes you think twice about using your own name on anything ever again.
What it says: “This is not a loan.”
What it means: “But we’re still going to act like it is—and charge you 200% interest without calling it that.”
The MCA industry swears they’re buying a piece of your future revenue. But when the daily payments don’t change, even when sales tank, guess what? You’re on the hook just like a loan. Only now, none of the consumer protections apply. It’s a loan in a Halloween costume—except the trick’s on you.
What it says: Origination fee, processing fee, NSF fee, early payoff fee (yes, even paying early will cost you).
What it means:“We’re going to make sure you owe us more than you ever borrowed—just because we can.”
You thought you were getting $50K. After fees, it’s $45K. Add in the inflated repayments, and you’ll end up shelling out $75K. Oh, and don’t even think about paying off early. There’s a fee for that too, because freedom costs extra. Some MCA agreements hit you with a prepayment penalty, meaning if by some miracle you manage to pay off the advance early, they charge you extra for depriving them of future prof
Term
Translation
Impact
Confession of Judgment
“I lose by default.”
Lenders seize your funds without warning.
Daily ACH Withdrawals
“Daily drain, no matter your income.”
Bleeds your account dry—slowly, daily.
Reconciliation Waiver
“No adjustments, no mercy.”
Payments stay high even when your sales collapse.
Personal Guarantee
“Your business debt = your personal ruin.”
Lenders can take your assets.
Purchase of Receivables
“Not a loan, but totally a loan.”
Avoids legal caps while charging obscene rates.
Excessive Fees
“Nickel-and-dimed into oblivion.”
You get less, owe more, and regret everything.
Owners blindsided by COJs. Lives wrecked by 6 stacked MCAs. Accounts frozen in the middle of payroll week. This isn’t fiction—it’s finance, the horror edition. Even regulators are waking up and finally doing something, which tells you how bad it’s gotten.
If you’re stuck in this mess or circling it warily, you’re not alone—and you’re not powerless. Read the fine print, or better yet, get someone who eats fine print for breakfast to read it for you.
Need backup? Business Debt Adjusters is the anti-MCA cavalry.
Your contract already tried to kill your business. Let’s return the favor—professionally, of course.
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