Daka Capital Group is a company that offers cash advances from $5,000-$500,000 to small-to-mid-sized businesses. According to the company’s website, www.dakacapitalgroup.com, Daka Capital considers all credit types and no collateral is needed. The company is located at 132 Franklin Place, Woodmere, NY, 11598 and can be reached at 800-773-9917.

How Are Merchant Cash Advances Repaid?

Merchant cash advances are usually paid back by deducting a percentage from the business’s sales, which can happen daily or weekly. This method can put a strain on the business’s cash flow. These loans typically have short terms, and the APR (Annual Percentage Rate) is influenced by the business’s success and the length of the loan. As a result, APRs tend to be quite high, meaning you could end up paying back significantly more than you initially borrowed.

How To Restructure MCA loans

Restructuring Merchant Cash Advance (MCA) loans involves negotiating with the lender to modify the terms of the existing agreement to make it more manageable for your business. Here are steps you can consider when attempting to restructure MCA loans:

  1. Assess Your Financial Situation:
    • Evaluate your current financial condition, including cash flow, revenue projections, and outstanding debts. Understand the reasons behind your financial challenges.
  2. Communicate with the Lender:
    • Open communication with your MCA lender is crucial. Explain your financial difficulties and express your willingness to work together to find a solution. Enlisting the help of a professional may increase your chances of finding an agreeable solution.
  3. Request a Restructuring Agreement:
    • Propose a restructuring agreement that better aligns with your business’s cash flow. This could involve extending the repayment term, reducing the daily or weekly repayment amounts, or adjusting the factor rate.
  4. Negotiate Terms:
    • Be prepared to negotiate with the lender. Discuss alternative terms that would make the repayment more sustainable for your business while still addressing the lender’s concerns.
  5. Seek Professional Assistance:
    • Consider hiring a debt resolution company with experience in MCA negotiations. They can provide expertise in dealing with lenders and help present a compelling case for restructuring.
  6. Review Legal Implications:
    • Understand the legal implications of restructuring. Ensure that any modifications to the agreement are clearly documented and reviewed by legal professionals to protect your interests.
  7. Explore Debt Settlement:
    • Investigate options for settling MCA debt. This may involve negotiating a settlement for a lump sum payment.
  8. Create a Repayment Plan:
    • Once a restructuring agreement is reached, develop a realistic repayment plan that aligns with your business’s cash flow. Ensure that you can meet the modified terms without jeopardizing your financial stability.
  9. Monitor Progress:
    • Regularly monitor your business’s financial performance and adherence to the restructured terms. Stay in communication with the lender to address any issues promptly.

Remember that each business’s situation is unique, and the success of restructuring depends on the willingness of the lender to cooperate. Professional guidance can significantly improve your chances of reaching a favorable agreement.

How To Negotiate MCA Loan Reductions

Negotiating Merchant Cash Advance (MCA) loan reductions can be a challenging process, but with the assistance of a debt relief firm, you can improve your chances of reaching a favorable outcome. Here’s a step-by-step guide:

  1. Select a Reputable Debt Relief Firm:
    • Choose a debt relief firm with experience in negotiating MCA reductions. Look for firms with a track record of successfully helping businesses in similar situations.
  2. Assessment of Financial Situation:
    • Work closely with the debt relief firm to conduct a thorough assessment of your business’s financial situation. Provide detailed information on your cash flow, outstanding debts, and financial challenges.
  3. Documentation Review:
    • Gather all relevant documents, including MCA agreements, financial statements, and communication with the lender. The debt relief firm will review these documents to understand the terms and conditions of the MCA.
  4. Communication with the MCA Lender:
    • The debt relief firm will initiate communication with the MCA lender on your behalf. They will explain the financial difficulties your business is facing and express the need for a reduction in the MCA amount.
  5. Negotiation Strategy:
    • Develop a negotiation strategy with the debt relief firm. This may involve proposing a lump-sum settlement for a reduced amount or negotiating for more favorable terms, such as a lower factor rate or extended repayment period.
  6. Legal Expertise:
    • Debt relief firms often have legal experts who can assess the legal aspects of the MCA agreement. This includes reviewing for any potential violations or areas where negotiations can be strengthened.
  7. Counteroffer Handling:
    • Expect that the MCA lender may provide counteroffers. The debt relief firm will handle these counteroffers, negotiating on your behalf to achieve the most favorable terms for your business.
  8. Agreement Documentation:
    • Once an agreement is reached, the debt relief firm will ensure that all terms are clearly documented. This includes any reduction in the MCA amount, changes to the repayment terms, and a clear plan for resolution.
  9. Payment Structuring:
    • If a reduced lump-sum settlement is agreed upon, the debt relief firm will work on structuring a payment plan that aligns with your business’s financial capabilities.
  10. Monitoring and Compliance:
    • The debt relief firm will monitor the implementation of the agreed-upon terms and ensure compliance. They will be the point of contact between your business and the MCA lender throughout the process.
  11. Resolution and Debt Freedom:
    • Once the negotiated terms are fulfilled, your business achieves resolution and potentially debt freedom. The debt relief firm’s involvement ensures a strategic and professional approach to the negotiation process.

Working with a debt relief firm provides expertise, negotiation skills, and legal support, increasing the likelihood of a successful MCA loan reduction. It’s essential to choose a reputable firm with a proven track record in debt resolution.

Have Business Debt With Daka Capital Group?

If your business is juggling payments for merchant cash advances (MCAs), business loans, or other debts, the challenge of repaying these debts, such as those from Daka Capital Group, can feel overwhelming. CuraDebt has a track record of successfully assisting businesses in resolving such debts, paving the way for a more secure financial future. Daka Capital Group advertises cash advances of up to $500,000 for small-to-medium-sized businesses. However, the short repayment terms often associated with merchant cash advances can lead to high Annual Percentage Rates (APRs), confession of judgments, and other liens on business and personal assets. This combination makes repayment challenging and can trap businesses in a cycle of debt. It’s essential to know that merchant cash advances are not the only option for obtaining cash for your business. There are alternatives that are more affordable and less likely to lead to a debt cycle. 

In Need Of Business Debt Relief?

Exploring different options will help business owners ensure that the financial assessment of their business’s situation is accurate and comprehensive. CuraDebt Business has been helping small businesses for over 22 years nationwide and is one of the oldest and most experienced in the debt relief industry. As of May 2023 CuraDebt Business received a score of 5 out of 5 on CustomerLobby for a total of 1179 customer views. CuraDebt Business is an Accredited Member of the American Fair Credit Council. Contact us toll free today for a free consultation. 1-877-504-0981. Not only do we handle business debt relief, we also offer personal debt relief and tax debt relief.

At risk of defaulting or currently defaulting on your Merchant Cash Advance Loan? Contact us today to find out how we can help.

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