MCA Debt Relief for Trucking Companies: When Brokers Pay Slowly
By Century Relief ·
Quick answer
Trucking companies get squeezed by merchant cash advances because brokers and shippers pay invoices in 30 to 60 days, while MCA debits come out every business day, on top of fuel, insurance and truck payments. Relief usually means settling the balances with each funder, reducing the payments and stopping the daily or weekly withdrawals so the trucks keep moving. Century Relief often reduces combined payments by 60–70%; results vary by case.
Why merchant cash advances hit trucking companies so hard
- Freight pays late. Brokers and shippers commonly pay on 30-, 45- or 60-day terms. A daily ACH debit starts the next business day.
- Costs come first. Fuel, insurance, tolls, driver pay and maintenance are due before the load is paid for, and a single breakdown can wipe out a week of margin.
- Rates swing. When spot rates drop or a contract lane ends, revenue falls fast, but the MCA debit stays the same unless the contract allows an adjustment.
- Truck and trailer notes stack on top. Equipment payments don’t flex, so the daily debits come out of what’s left for fuel and payroll.
How stacking starts in a trucking business
It usually begins with one gap: a broker pays late, a truck is down for repairs, or insurance renews at a higher premium. One advance covers it. Then another funder offers a second advance to cover the first payment. A few months later, several funders are debiting the account every day and the freight payments that finally arrive are already spoken for. See realistic ways out of a merchant cash advance contract.
What relief looks like
- A full review. We look at every advance, the daily and weekly debits, any factoring agreement and your real deposits, including how long brokers are taking to pay.
- Settlement with each funder. We negotiate directly with each MCA funder to settle the balance, reduce the payments and stop the daily or weekly withdrawals.
- A payment the business can carry. Century Relief often reduces combined payments by 60–70%, so the trucks keep running. Results vary by case.
- Protection if a funder sues. If a funder files a lawsuit, we hire an independent attorney on the client’s behalf. See what happens when an MCA company sues.
What to do this week
- Don’t take another advance to cover the last one.
- Pull your contracts, including any factoring agreement, and the last three months of bank statements so you can see every debit next to your freight deposits.
- Check for a reconciliation clause. Many MCA contracts let you request lower payments when receipts drop. Ask in writing and include your deposit history.
- Know your liens. Most funders file a UCC lien that can block equipment financing. Here’s how UCC liens from MCA funders get removed.
- Answer any lawsuit or default notice quickly. Deadlines move fast. Here’s when a funder can freeze your bank account.
Frequently asked questions
Can a trucking company settle merchant cash advance debt?
Yes. Carriers and owner-operators can settle MCA balances by negotiating with each funder. A settlement can reduce what you owe, lower the payments and stop the daily or weekly withdrawals. Results vary by case.
Can I use freight factoring if I already have an MCA?
Sometimes, but check both contracts first. Factoring and many MCAs claim the same receivables, and selling invoices to a factor without the funder’s consent can count as a default under some MCA agreements.
Should I take another advance to cover a slow broker payment?
Usually not. Each new advance adds another daily debit before the delayed invoices are paid. Get every advance reviewed before you sign anything new.
What happens if a funder sues my trucking company?
Respond to the lawsuit before the deadline. If a funder sues a Century Relief client, we hire an independent attorney on the client’s behalf.