Pemberton Business Resolution

Situations

Help is arranged around what is happening to you, not around what we sell. Start with the situation closest to yours.

I was declined

Being declined tells you something, but it doesn't pass judgment on your business. Five things account for most declines, and every one of them has a fix or a workaround.

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I'm behind on payments

Falling behind on remittances for an advance is serious, but it can be negotiated. The next few business days count for more than anything that has already happened.

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I have more than one advance

Two positions can be fine. When you hold three or more, each one taken to cover the last, even a profitable business can run out of cash. Getting out begins with a single table that tells the truth.

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I want out

You can get out of a merchant cash advance in five ways: paying it down, paying it off early, refinancing it, settling it or letting it run its course. Every option has a cost, and not all of those costs are measured in dollars.

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I was declined

You were declined. This is what that means, and what it doesn't.

Being declined tells you something, but it doesn't pass judgment on your business. Five things account for most declines, and every one of them has a fix or a workaround.

First, in order

  1. Request the reason in writing Funders and banks will usually name the requirement you fell short on: time in business, deposits, NSF days, an open position or credit. What you fix depends on which one it was.
  2. Go through your bank statements from the past three months and count the days with an NSF or a negative balance Those are the days an underwriter counted, and more than three or four in a month is the most frequent hidden cause.
  3. Hold off on applying everywhere at once Sending a dozen applications in one week signals distress to the next underwriter and may set off hard credit pulls you never needed.
  4. Ask yourself whether you still need the money on the same timeline If the need can wait and a bank or SBA lender can say yes within six weeks, that route costs less.

Want to talk it through? Reach a person.

I'm behind on payments

You've fallen behind on the daily or weekly payments. These are the steps to take ahead of the next draft.

Falling behind on remittances for an advance is serious, but it can be negotiated. The next few business days count for more than anything that has already happened.

First, in order

  1. Go through the default and reconciliation sections in your agreement before today is over Find out whether there is a confession of judgment, which state's law governs, and whether the agreement includes revenue-based reconciliation.
  2. Get in touch with the funder before you miss a third draft, not once you already have — Most funders would rather adjust the daily amount than start collections. That conversation gets tougher once a notice has been sent.
  3. Find the true figure: your total daily remittances divided by your average daily deposits Past roughly 15–20%, most businesses can't keep up with the load. Whether a restructure will do or a bigger change is needed comes down to that number.
  4. Don't cover the old advance by taking a new one Stacking can turn a cash-flow problem into insolvency in just a few months.
  5. Get an attorney involved the same week a notice, UCC lien or lawsuit shows up Judgment and lien matters run on short deadlines, and missing them can cost you some defences.

Want to talk it through? Reach a person.

I have more than one advance

You have more than one advance open. This is how to see everything you carry and what brings it down.

Two positions can be fine. When you hold three or more, each one taken to cover the last, even a profitable business can run out of cash. Getting out begins with a single table that tells the truth.

First, in order

  1. Write down each position with its funder, date, amount received, total purchased amount, daily or weekly draft and remaining balance — Owners almost never have this in one place. Until that exists, no one can say what your options really are: not you, not a partner, not an attorney.
  2. Total your daily load and divide it by your average daily deposits — That share is the whole story. Below 10% you can manage, 10–20% is tight, and over 20% calls for a change right away.
  3. Read every agreement for a clause that bars stacking A new advance could already breach an older agreement, and that affects which next steps are safe.
  4. Sort your positions by carrying cost and end date A few finish within weeks, and letting them run off could help more than any refinance.

Want to talk it through? Reach a person.

I want out

You want out of your advance. These are all the ways out, along with what each one really costs.

You can get out of a merchant cash advance in five ways: paying it down, paying it off early, refinancing it, settling it or letting it run its course. Every option has a cost, and not all of those costs are measured in dollars.

First, in order

  1. Look in your agreement for the remaining purchased amount and any discount for paying early Because a factor rate is fixed, paying early saves you nothing unless the agreement spells out a discount. Plenty of agreements include one, and most owners never ask about it.
  2. Get a payoff letter from the funder The letter gives the exact amount and the date it holds until. Anything else is guesswork.
  3. Weigh what it costs to pay it off against what the replacement would cost If a refinance costs more over its life than what's left on the advance, it isn't a way out; it just extends your stay.
  4. Work out whether you really want a smaller daily amount or to be finished — They lead to different options. Be clear about which one you want before anyone tries to sell you either.

Want to talk it through? Reach a person.

Other situations

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