Merchant Cash Advance Debt Relief for Landscaping Companies

Landscaping company owner reviews paperwork beside a lawn mower and work truck as the season changes.

By the CredibleLaw Editorial Team | Updated October 2026 | National Legal Resource & Referral Network

Landscaping is one of the most seasonal businesses in America, and merchant cash advance contracts are among the least seasonal financial products ever written. When those two facts collide, the result is a pattern CredibleLaw sees every fall and winter: a lawn care, landscape maintenance, or hardscape company that took an advance in March to fund crews, materials, and equipment, then watches a fixed daily debit drain its account through November while the work, and the revenue, dry up.

This guide explains how MCA debt relief works specifically for landscaping companies. It covers the reconciliation rights that matter most to seasonal businesses, how H-2B payroll commitments and payroll taxes interact with MCA withdrawals, what a funder’s UCC lien can and cannot reach on your trucks and mowers, what happens when a funder contacts your HOA or property management clients, and when settlement, litigation defense, or a Subchapter V reorganization may make sense.

CredibleLaw is a national legal resource and attorney referral network, not a law firm. We connect landscaping business owners with independent, licensed attorneys who handle merchant cash advance disputes. Nothing on this page is legal advice, and every outcome depends on your contract, your state, and your facts.

Seasonal Revenue Down, Daily MCA Debits Still Running? An attorney in the CredibleLaw network can review your MCA agreement, your bank statements, and your seasonal revenue history and explain which options may fit your business. Call (888) 201-0441 or request a confidential case review. Call (888) 201-0441 | Request a Confidential Case Review

Key Takeaways for Landscaping Business Owners Most MCAs are sold as a purchase of a percentage of future receipts. If your receipts fall in the off-season, a genuine reconciliation clause should let your payments fall too.New York’s Appellate Division weighs three factors when deciding whether an MCA is really a loan: a reconciliation provision, a finite term, and recourse if the merchant files bankruptcy. Seasonal revenue drops put the reconciliation factor to a real-world test.H-2B employers carry a federal three-fourths hours guarantee, and unpaid payroll taxes can become personal liability for owners. Neither obligation should be sacrificed to keep an MCA current.A UCC-1 financing statement generally does not perfect a security interest in titled trucks and trailers, but a judgment creditor can still pursue them after a court judgment.Funders may notify your commercial customers to pay them directly. Getting ahead of that letter protects your client relationships.Subchapter V eligibility is currently capped at $3,424,000 in debt. Congress passed a bill on October 1, 2026 to raise it permanently to $7.5 million; check whether it has been signed before relying on the higher figure.

Why Landscaping Companies Take Merchant Cash Advances

The landscaping calendar front-loads costs. Before the first mow of the season, an owner may be paying for H-2B petitions and worker travel, mulch and stone, plant material, fuel, insurance renewals, and repairs on mowers, skid steers, and trucks that sat all winter. Meanwhile, commercial maintenance clients often pay on net-30 or net-60 terms, so the money for April’s work may not arrive until June.

The workforce numbers explain the pressure. The U.S. Bureau of Labor Statistics counts roughly 1.19 million landscaping and groundskeeping workers nationwide, and the National Association of Landscape Professionals reports that the landscape industry is the largest user of the H-2B seasonal worker program, accounting for nearly half of H-2B guest workers in a typical year. Labor arrives on a fixed date; revenue follows weeks later.

Banks are often slow to lend into that gap, especially for companies with uneven monthly statements. MCA funders are fast. Many approve within a day based on recent bank deposits, and spring deposits look strong. That is exactly the problem: the advance is underwritten on peak-season revenue and repaid partly in the off-season. For a broader look at how advances are structured, see how merchant cash advances work and our comparison of an MCA versus a business loan.

The Seasonal Mismatch: Fixed Daily Debits Against a Revenue Curve That Is Not Flat

In theory, an MCA funder buys a percentage of your future receipts, often called the “specified percentage” or “holdback.” If you take in less money, the funder receives less. In practice, most agreements collect a fixed daily or weekly amount calculated from the revenue you showed at underwriting. The contract may say the fixed amount is only an estimate of the percentage, and that you can ask for an adjustment. Whether that adjustment mechanism actually works is the central question for a seasonal business.

The worked example below uses round, hypothetical numbers to show how quickly the gap grows when a landscaping company’s receipts follow the weather.

Worked Example: A Spring Advance Meets a Northern Winter Advance funded (March) $80,000 Factor rate / purchased amount 1.45 / $116,000 Specified percentage in contract 12% of receipts June deposits used to set the debit $210,000/month ≈ $10,000 per business day Fixed daily debit (12% of $10,000) $1,200 per business day November deposits $70,000/month ≈ $3,333 per business day What 12% of November receipts would be ≈ $400 per day (fixed debit takes ~36% of receipts) November gap over 20 business days $24,000 debited vs. ≈ $8,000 reconciled → ≈ $16,000 extra January deposits (snow removal only) $35,000/month ≈ $1,667 per business day What 12% of January receipts would be ≈ $200 per day (fixed debit takes ~72% of receipts) If the contract’s reconciliation clause is genuine and the owner invokes it in writing with bank statements, the payment should move toward the percentage the funder bought. If the funder ignores or refuses a properly supported request, that conduct can become evidence in a defense. These figures are illustrative only; run your own numbers with the MCA revenue holdback calculator or the MCA APR calculator.

Notice what happens in the example. In peak season the fixed debit and the contractual percentage are roughly the same, so nobody notices the difference. By November the fixed debit is three times what the funder bargained for, and by January it consumes most of the company’s incoming cash. The owner has not “defaulted” in any moral sense; the business is behaving exactly the way a landscaping business behaves every year. The question is whether the contract and the funder treated it that way.

Your Reconciliation Clause Is the Most Important Page in Your Contract

For seasonal businesses, reconciliation is not a technicality. It is the feature that supposedly makes an MCA a purchase of receivables rather than a loan. In LG Funding, LLC v. United Senior Properties of Olathe, LLC (2020), New York’s Appellate Division, Second Department, held that courts usually weigh three factors when deciding whether repayment is absolute (pointing toward a loan) or contingent (pointing toward a sale): whether there is a reconciliation provision, whether the agreement has a finite term, and whether the funder has recourse if the merchant files bankruptcy. The court focused on reconciliation language that let the funder adjust payments only at its “sole discretion,” and it allowed the merchant’s usury claim to proceed.

Since then, courts in New York and in federal bankruptcy courts have looked closely at whether a reconciliation right is mandatory or illusory. Some courts have found that a mandatory, workable clause supports treating the deal as a true sale. Others have found clauses that are discretionary, buried, or never honored point toward a disguised loan. Outcomes vary by court, contract language, and facts, so no reconciliation argument is a guaranteed win.

What a landscaping owner can control is the record. If revenue drops in the fall, an attorney may advise you to:

Find the reconciliation section of every MCA you signed and note who may request it, how often, what documents are required, and whether adjustment is mandatory (“shall”) or discretionary (“may”).
Request reconciliation in writing, using the method the contract specifies, and attach the bank statements it asks for.
Keep copies of every request, every response, and every debit that continued after the request.
Track receipts monthly so the seasonal decline is documented, not just described.

CredibleLaw has two deeper guides on this issue: MCA reconciliation rights explains how to exercise the right, and MCA reconciliation clause breach lawsuits explains how a funder’s failure to reconcile can be used in litigation. Our overview of factor rates versus APR shows why the effective cost of an advance can rise sharply when collections continue at peak-season pace.

H-2B Crews, Payroll Commitments, and the Collision With MCA Withdrawals

Landscaping companies that use H-2B workers make payroll commitments that do not flex with cash flow. Under 20 CFR § 655.20(f), an H-2B employer must guarantee to offer each worker hours equal to at least three-fourths of the workdays in each 12-week period of the job order (each 6-week period for job orders shorter than 120 days). If the employer offers fewer hours, it owes the worker what the worker would have earned. The regulation also addresses return transportation and other employer obligations.

Federal appropriations laws have at times barred the Department of Labor from spending money to enforce the three-fourths guarantee, as the DOL’s H-2B Fact Sheet #78 explains, but the guarantee still appears in the regulation and in the job order the employer certifies. An immigration attorney is the right person to advise on your current obligations. The practical point for MCA planning is simple: wages owed to your crew are a fixed commitment, and an MCA debit sized to June revenue can make a rainy September or an early frost into a payroll crisis.

When an owner is choosing between making payroll and keeping an MCA current, that is usually the moment to talk with an attorney about reconciliation, a negotiated modification, or a temporary stop to the debits. Our guide to what to do when you can’t afford MCA payments walks through those options.

Payroll Taxes Come First: The Trust Fund Recovery Penalty

Federal income tax withholding and the employee share of Social Security and Medicare are “trust fund” taxes: the business holds them for the government. Under 26 U.S.C. § 6672, any responsible person who willfully fails to pay those taxes over can be held personally liable for a penalty equal to the unpaid trust fund amount. The IRS Internal Revenue Manual treats paying net wages when funds are not available to cover the withholding as a willful failure, and courts have described willfulness as a conscious decision to pay other creditors instead of the government.

An MCA funder is one of those “other creditors.” If daily debits are pulling cash that should be set aside for payroll tax deposits, the owner may be trading a contract dispute for personal tax liability that a business bankruptcy may not erase. For that reason, attorneys commonly advise landscaping owners to protect payroll tax deposits first and address the MCA through reconciliation, negotiation, or legal defense. A CPA or tax attorney should be part of that conversation.

Trucks, Trailers, Mowers, and Skid Steers: What a UCC-1 Lien Reaches

Nearly every MCA comes with a UCC-1 financing statement filed against “all assets” of the business. For an equipment-heavy landscaping company, owners want to know one thing: can the funder take my equipment? The answer depends on the type of asset, who else has a lien on it, and whether the funder has a court judgment. Our guide to whether an MCA can take business equipment covers the general rules; here is how they apply to a landscaping fleet.

Titled trucks and trailers

Under UCC § 9-311, as adopted in each state, filing a financing statement is generally not effective to perfect a security interest in goods covered by a certificate-of-title statute, such as motor vehicles and many trailers, unless they are inventory held for sale. A lender perfects its interest in a titled truck by having its lien noted on the title. A blanket MCA UCC-1 usually does not do that. Perfection matters most for priority against other creditors and in bankruptcy, where an unperfected interest can often be set aside.

That is not the same as saying the trucks are safe. Once a funder obtains a court judgment, it can act as a judgment creditor and, subject to state exemption and priority rules, ask a sheriff or marshal to levy on non-exempt property, including vehicles. The time to protect the fleet is before a judgment is entered.

Mowers, skid steers, and other untitled equipment

Commercial mowers, compact track loaders, aerators, and similar equipment typically are not titled, so a properly filed UCC-1 can perfect a security interest in them. If that equipment was bought with dealer or manufacturer financing, the equipment lender may hold a purchase-money security interest that has priority over an earlier blanket lien under UCC § 9-324, if the requirements of that section were met. In a dispute, the equipment lender, not the MCA funder, may have the first claim on financed machines.

Why the lien itself hurts during spring financing

Even without enforcement, an active UCC-1 can block the spring credit line or equipment loan a landscaping company needs. Our guides on a UCC lien on business assets, a UCC lien preventing new funding, and a UCC lien blocking an SBA loan explain the impact. When an MCA is paid or settled, the funder should file a termination statement; UCC § 9-513 sets the rules for requesting one, and a UCC lien removal attorney can help when a funder will not file it.

Caution Before Selling Equipment Selling trucks or mowers to raise cash, or moving them to a related company, while an MCA dispute is pending can raise fraudulent-transfer and contract-breach issues. Talk to an attorney before transferring any significant asset.

When the Funder Contacts Your HOA, Property Manager, or Municipal Client

Many landscaping companies earn most of their revenue from recurring commercial contracts: homeowners associations, apartment communities, office parks, retail centers, and public entities. Those monthly invoices are receivables, and receivables are what an MCA claims to have purchased. Under UCC § 9-406, once a customer (the “account debtor”) receives a proper notice that its payments have been assigned and should go to the assignee, the customer generally can no longer satisfy its bill by paying you. A customer that receives such a notice may also ask for reasonable proof of the assignment.

For a landscaper, a letter from a funder to a property manager can do as much damage as a bank levy: it can delay payments, confuse the client, and threaten a contract renewal. Whether a particular notice is valid depends on the agreement, the amounts, and state law. Our guide to a UCC lien on receivables explains the mechanics, and an attorney can respond to the funder and, if appropriate, help you communicate with clients.

Federal contracts are different. Assignments of payments under federal government contracts are governed by the Assignment of Claims Act, 31 U.S.C. § 3727 and FAR Subpart 32.8, which require, among other things, that the assignment run to a financing institution, cover the unpaid amount, and be filed with the contracting officer and disbursing office. If your company maintains grounds on a federal installation, an attorney should review whether any funder’s claim to those payments meets those requirements. State and municipal contracts have their own rules.

Stacking: How Spring Advances Become Winter Defaults

Stacking is the industry term for taking a second or third advance while the first is still outstanding. Landscaping owners often stack in late spring, when the first advance’s debits start to bite and the season’s biggest jobs have not paid yet. Each new funder takes its own daily debit, and by fall the combined withdrawals can exceed what the business takes in.

Many MCA agreements prohibit additional financing without the funder’s consent, so a stack can create a contractual default even before payments are missed. Funders also tend to sue each other’s merchants at the same time, in the same courts. CredibleLaw’s guide to MCA stacking lawsuit defense covers how attorneys sort competing claims, and the MCA stacking calculator shows how combined debits compare with your deposits. Taking another advance to cover the last one rarely fixes a seasonal cash gap; it usually moves the default later and makes it larger.

Your Options at a Glance

The right path depends on how far the situation has progressed. This table summarizes the common options an attorney may evaluate for a landscaping company. It is a starting point for a conversation, not a recommendation.

Option	Often fits when	What it may accomplish	Main risks or limits
Reconciliation request	Revenue has dropped seasonally and the contract has a usable clause	Brings debits closer to the purchased percentage; builds a record	Funder may refuse; clause may be discretionary
Negotiated modification or forbearance	Business is viable but needs off-season relief	Reduced or paused payments for a defined period	Poorly drafted terms can waive defenses or add fees
Lump-sum or structured settlement	Owner can raise funds or commit to a payment plan	Resolves the balance, ideally with UCC termination and guarantor release	Forgiven debt may be taxable; funder may insist on a high percentage
Litigation defense	Funder has sued, frozen accounts, or entered a judgment	Raises recharacterization, usury, breach, and procedural defenses	Cost, time, and outcome uncertainty
Subchapter V reorganization	Multiple funders, viable business, debts under the eligibility limit	Automatic stay; plan payments over time; keep operating	Court oversight, trustee, eligibility limits, cost
Orderly wind-down or Chapter 7	Business is no longer viable	Ends the business in a controlled way	Personal guarantees may survive; asset loss

For a broader comparison, see MCA settlement versus bankruptcy and our overview of merchant cash advance legal defenses.

Settlement Strategy in the Off-Season

Timing affects leverage. In the off-season, a landscaping company’s bank statements document exactly the revenue decline that a reconciliation clause is supposed to address. That record can support a request for reduced payments and, if the funder has ignored reconciliation, a negotiation that reflects the risk the funder faces in litigation. On the other hand, a company with almost no winter revenue has less cash to offer, and some funders move quickly to sue when debits start bouncing.

A well-built merchant cash advance settlement usually addresses more than the dollar figure. Attorneys commonly look for an agreed payment schedule that matches the season, a release of the personal guarantee, dismissal of any pending lawsuit, vacatur or satisfaction of any judgment, and a commitment to file a UCC termination statement. If part of the balance is forgiven, it may be reportable as income; see MCA settlement tax implications and Form 1099-C and IRS Topic 431 on canceled debt, and ask your tax professional before signing.

Be cautious with debt settlement companies that are not law firms. They may be able to negotiate, but they cannot appear in court, answer a lawsuit, or raise legal defenses. If a funder has sued or is threatening suit, a licensed attorney is the safer choice.

If You Have Been Sued, Frozen, or Hit With a Confession of Judgment

When collection escalates, deadlines move fast. A summons and complaint usually carries a short response window, often 20 to 30 days depending on the court and method of service, and missing it can lead to a default judgment. Our guide to the first 48 hours after an MCA lawsuit lists the steps to take immediately, and merchant cash advance lawsuit defense explains the defenses attorneys commonly raise.

Frozen account or bank levy. A funder with a judgment may restrain or levy a business account. See merchant cash advance bank levy and how to respond to an MCA bank levy in 24 hours.
Confession of judgment. New York amended CPLR § 3218 in 2019 to bar entry of confessions of judgment against defendants who do not reside in the county where it is filed, which generally excludes out-of-state businesses. Older or in-state judgments may still be challenged; see confession of judgment.
Default judgment already entered. It may be possible to move to vacate, depending on the reason for the default and the defenses available. See MCA default judgment defense.
Personal guarantee. Most landscaping MCAs include an owner guarantee. See MCA personal guarantee defense and whether an MCA can take personal assets.
Accelerated or unauthorized debits. See how to stop MCA ACH withdrawals before changing banks or revoking authorizations on your own.

Subchapter V Bankruptcy for Landscaping Businesses

When a company owes several funders and the debits are unsustainable even with reconciliation, a reorganization may be worth evaluating. Filing a bankruptcy petition triggers the automatic stay under 11 U.S.C. § 362, which generally halts lawsuits, levies, and collection activity, including ACH debits by creditors. Subchapter V of Chapter 11 is a streamlined process designed for small businesses, with no creditors’ committee in most cases and a plan that can be confirmed without creditor consent if legal requirements are met.

For a seasonal business, one practical question is whether a plan can match payments to the season. Plans are built around projected disposable income, so a landscaping company may be able to propose a schedule that reflects its revenue curve, subject to court approval. Bankruptcy also gives the debtor tools to challenge improperly perfected liens, which is one reason the titled-vehicle issue discussed above matters.

Eligibility is changing. Subchapter V is currently limited to debtors with no more than $3,424,000 in qualifying debt. On October 1, 2026, Congress passed the Bankruptcy Threshold Adjustment Act, which would permanently raise the limit to $7.5 million, as reported by the National Law Review. As of this update, the bill awaited the President’s signature, and coverage indicates it would apply only to cases filed on or after enactment. A bankruptcy attorney can confirm the current limit before any filing decision.

Learn more in Subchapter V bankruptcy, Chapter 11 for small businesses, whether bankruptcy can stop ACH withdrawals, and MCA bankruptcy options.

Regulators Are Paying Attention to MCA Practices

Landscaping owners are not the only ones questioning how some advances are structured. In January 2025, the New York Attorney General announced a $1.065 billion judgment and settlement with Yellowstone Capital and its affiliates, which included cancellation of more than $534 million in debts owed by over 18,000 small businesses nationwide. The Attorney General alleged that the companies collected fixed amounts regardless of revenue while calling the transactions receivables purchases. The office had earlier obtained a judgment of more than $77 million against Richmond Capital Group and related parties.

Several states now require commercial financing disclosures that cover MCAs, including California, Florida, New York, Texas, Utah, and Virginia, among others. In several of those states, enforcement belongs to a regulator rather than to the merchant, and a disclosure violation does not automatically void the contract. Our merchant cash advance laws by state guide summarizes the rules, and the FTC’s credit and finance guidance addresses deceptive financing practices. Enforcement actions against other funders do not decide your case, but they show which practices courts and regulators are scrutinizing.

What Not to Do When MCA Debits Outrun Your Revenue

Do not skip payroll tax deposits to keep the MCA current. Personal liability under the trust fund recovery penalty can outlast the business.
Do not close your account or revoke ACH authorization without advice. It may be a contract default that accelerates the balance and invites a lawsuit.
Do not take another advance to cover the first. Stacking usually enlarges the eventual default.
Do not move equipment, vehicles, or receivables to a new entity without counsel. Transfers during a dispute can create fraudulent-transfer claims.
Do not ignore a summons, restraining notice, or customer notification letter. Each one starts a clock.
Do not sign a forbearance or settlement without review. Some terms waive defenses, add fees, or reaffirm personal guarantees.

An Off-Season Action Checklist for Landscaping Owners

Gather every MCA agreement, guarantee, and addendum, plus any UCC-1 filings (search your state’s Secretary of State UCC database).
Pull 12 months of business bank statements and mark every MCA debit by funder.
Chart monthly receipts so the seasonal decline is visible on one page.
Read each reconciliation clause and submit written reconciliation requests that follow the contract’s procedure.
Set aside payroll tax deposits and confirm your H-2B wage obligations with immigration counsel if you use the program.
List your fleet and equipment, noting which items are titled and which are financed by an equipment lender.
List commercial clients by monthly billing so you know which receivables a funder may target.
Save every funder communication, including texts, voicemails, and emails.
Speak with an MCA defense attorney before the next missed debit, not after the first lawsuit.

How CredibleLaw Helps Landscaping Companies

CredibleLaw is a national legal resource and referral network. When you call or submit a request, we gather basic information about your situation and connect you with an independent, licensed attorney in our network who handles merchant cash advance matters. That attorney decides whether to take your matter and explains fees directly. CredibleLaw does not provide legal advice and is not a party to any attorney-client relationship.

An attorney reviewing a landscaping company’s situation will typically look at the reconciliation clause and the funder’s response to any request, the full payment history against seasonal revenue, any stacking and anti-stacking provisions, lien filings against the fleet and equipment, notices to customers, the personal guarantee, and any pending suits or judgments. You can learn more about our network on the MCA defense attorney page, explore MCA debt relief for small businesses, or compare our guides for related trades: construction, contractors, and trucking.

Frequently Asked Questions

Can an MCA funder keep taking the same daily payment when my landscaping revenue drops in winter?

It depends on your contract. Many MCAs describe the fixed payment as an estimate of a percentage of receipts and include a reconciliation clause that lets you request an adjustment when revenue falls. If the clause is mandatory and you follow its procedure, the funder may be required to adjust. If the funder refuses or the clause is illusory, that can support a defense. An attorney can review the specific language.

What is a reconciliation clause, and why does it matter for seasonal businesses?

A reconciliation clause is the contract term that adjusts your payments to match your actual receipts. New York courts consider whether a genuine reconciliation provision exists as one of three key factors in deciding whether an MCA is a sale of receivables or a disguised loan. For a landscaping company with predictable off-season declines, the clause is often the most important term in the agreement.

Is my landscaping MCA actually an illegal loan?

Possibly, but not automatically. Courts look at the whole agreement, including reconciliation, whether the term is finite, recourse if the business files bankruptcy, the personal guarantee, and default provisions. Some MCAs have been recharacterized as loans and found usurious; many others have been upheld as sales. The analysis is fact-specific and depends on which state’s law governs.

Can an MCA company take my trucks and trailers?

A blanket UCC-1 filing generally does not perfect a security interest in titled vehicles, because perfection for titled goods usually requires notation on the certificate of title. However, after a funder obtains a court judgment, it may be able to levy on non-exempt property, including vehicles, under state law. Protecting your fleet usually means addressing the dispute before a judgment is entered.

Does the MCA funder have first claim on my financed mowers and skid steers?

Not necessarily. If an equipment dealer or lender financed the purchase and met the requirements for a purchase-money security interest, that lender may have priority over an earlier blanket lien under UCC § 9-324. Your loan documents and the UCC filings will determine priority.

Can the funder contact my HOA or property management clients?

Under UCC § 9-406, an assignee can notify your customers to pay it directly, and a customer that receives proper notice generally can no longer satisfy its bill by paying you. Whether a specific notice is valid depends on your agreement and the facts. An attorney can respond to the funder and help you protect client relationships.

Should I stop paying payroll taxes to keep my MCA current?

No. Withheld payroll taxes are trust fund taxes, and under 26 U.S.C. § 6672 a responsible person who willfully fails to pay them over can be held personally liable. Choosing to pay other creditors, including an MCA funder, instead of the IRS can be treated as willful. Speak with a tax professional and an attorney.

How do H-2B obligations affect my MCA situation?

H-2B employers make wage commitments that do not shrink with cash flow, including the three-fourths hours guarantee in 20 CFR § 655.20(f). If MCA debits threaten your ability to meet those commitments, that is a strong signal to pursue reconciliation, a modification, or legal advice quickly. An immigration attorney can confirm your current obligations.

I took several advances in the spring. Is stacking a problem?

It can be. Many MCA agreements prohibit additional financing without consent, so a second or third advance can trigger a default under the first. Stacked debits also compound the seasonal gap. Attorneys handling stacked MCAs evaluate each contract and may pursue a coordinated strategy rather than funder-by-funder negotiations.

Can I settle my landscaping MCA for less than the balance?

Many MCA disputes resolve through settlement, but the amount depends on your defenses, the funder, the stage of collection, and your ability to pay. A good settlement typically includes a UCC termination, release of the personal guarantee, and dismissal of any lawsuit. Forgiven amounts may be taxable, so involve your tax advisor.

When is the best time to negotiate with an MCA funder?

Before a lawsuit or judgment is usually better, because more options remain open. For landscaping companies, off-season bank statements can document the revenue decline that reconciliation is supposed to address, which may support a negotiation. An attorney can help you decide when and how to approach the funder.

Will filing Subchapter V stop MCA withdrawals?

Filing a bankruptcy petition generally triggers the automatic stay, which halts most collection activity, including creditor ACH debits. Subchapter V eligibility is currently limited to $3,424,000 in qualifying debt, and Congress passed a bill on October 1, 2026 to raise that limit to $7.5 million. Confirm the current limit with a bankruptcy attorney.

What should I do if I receive a summons from an MCA funder?

Do not ignore it. Note the response deadline, which is often 20 to 30 days, gather your agreement and bank statements, and contact an MCA defense attorney right away. Missing the deadline can result in a default judgment that is harder and more expensive to undo.

Does CredibleLaw represent landscaping companies?

No. CredibleLaw is a national legal resource and attorney referral network, not a law firm. We connect business owners with independent, licensed attorneys who handle merchant cash advance matters. Any representation is between you and the attorney you choose.

Talk With an MCA Attorney Before the Next Debit Hits CredibleLaw can connect your landscaping company with an independent attorney who reviews MCA agreements, reconciliation rights, lien filings, and lawsuits. Call (888) 201-0441 or request a confidential case review. There is no obligation, and calling does not create an attorney-client relationship. Call (888) 201-0441 | Request a Confidential Case Review

Legal Disclaimer: This page is for general informational purposes only and is not legal, tax, or financial advice. CredibleLaw is a national legal resource and attorney referral network, not a law firm, and does not provide legal advice. No attorney-client relationship is formed by reading this page or contacting CredibleLaw. Laws differ by state and change over time, and the outcome of any matter depends on its specific facts. Attorney Advertising. Prior results do not guarantee a similar outcome. Review our Referral Disclosure and Legal Disclaimer.

Sources and Further Reading

New York CPLR § 3218 — Judgment by Confession