Multi-State Healthcare Staffing Agency: Reducing $3.6 Million in MCA Debt

merchant cash advance client advocacy

Case: $3.6 Million in Outstanding MCA Debt

A multi-state healthcare staffing agency engaged MCA Stacking Solutions (MCASS) while facing a significant cash flow challenge. The agency had approximately $3.6 million in outstanding merchant cash advance (MCA) debt spread across 12 different MCA companies. Together, these funders were collecting a total of $150,000 every week.

The size and frequency of these payments placed considerable pressure on the agency’s cash flow. The company needed room to cover its operating expenses, meet its other financial obligations, and continue serving its healthcare staffing clients. At the same time, it needed a practical path to repay or refinance the MCA debt without putting its business at further risk.

Strategy: Reduce Weekly Payments and Create Time to Refinance

MCASS was brought in to address two immediate priorities. The first was to negotiate temporary payment reductions with all 12 MCA companies. Lower weekly obligations would help the agency preserve working capital and keep its operations running without defaulting on its MCA agreements or other expenses.

The second priority was to extend the repayment timeline. MCASS aimed to give the agency enough time to secure refinancing and negotiate discounted payoff amounts with the MCA companies.

Drawing on its prior experience and established working relationships with the 12 funders, MCASS opened negotiations and worked toward a temporary arrangement that better matched the agency’s available cash flow.

Resolution: Weekly Payments Reduced by 50% in Ten Days

Within just ten days of its engagement, MCASS achieved significant progress by:

  • Reducing Weekly Payments by 50%: Negotiated a reduction in the agency’s weekly MCA payments from $150,000 to approximately $75,000, providing immediate cash flow relief.
  • Securing a $3.3 Million Refinancing Commitment: Helped the agency gain additional time to obtain a refinancing commitment from a lender.
  • Meeting the Lender’s Conditions: Addressed two requirements for loan approval: limiting MCA debt repayments to $2.2 million and obtaining discounted payoff agreements from all 12 MCA companies.
  • Negotiating with All 12 Funders: Successfully secured agreements from every MCA company to accept the discounted payoff amounts required by the refinancing lender.

Conclusion: $1.1 Million in MCA Debt Savings

By securing the required discounted settlements, MCASS helped the agency satisfy the lender’s conditions and move forward with refinancing. The agency saved $1.1 million on its MCA debt, completed the refinancing process, and remained in business.

This engagement demonstrates how timely payment restructuring, strong lender relationships, and coordinated settlement negotiations can help a business manage significant stacked MCA obligations. By first reducing the immediate cash flow burden and then negotiating discounted payoffs, MCASS helped the healthcare staffing agency create a workable route toward financial stability.