MCA & Business Debt Relief in California
If daily or weekly MCA payments are draining your California business, you have more options than taking another advance. Century Relief negotiates with MCA funders on behalf of businesses in Los Angeles, San Diego, the Bay Area and Sacramento and statewide.
| California at a glance | |
|---|---|
| MCA disclosure law | Yes |
| Confessions of judgment | Pre-signed clauses generally void |
| Usury as a lever | Limited for business borrowers |
| Where we work | Los Angeles, San Diego, the Bay Area and Sacramento and statewide |
In California, MCA debt shows up most often among businesses in restaurants, health care, trucking and professional services. Whether you're in Los Angeles, San Diego, the Bay Area and Sacramento or a smaller town, the process is the same and happens by phone and video.
Default, lawsuits and judgments in California
A missed debit usually triggers the default clause. Expect calls to you and any personal guarantor, a demand for the full remaining balance, and possibly a lawsuit, often filed in New York because that's what most contracts specify. A New York judgment can then be domesticated in California and enforced against your accounts.
Good news on one front: Judgments by confession are unenforceable in California courts since January 1, 2023 (Code Civ. Proc. § 1132). For a California business, that means a funder generally has to file a lawsuit and win it before it can garnish your accounts here, which buys time to negotiate.
California rules that affect your settlement
Disclosures. California requires cost disclosures, including an estimated APR, on MCAs of $500,000 or less (since 2022), bans several junk fees to small businesses (since 2024) and will license MCA providers from July 2028.
Interest limits. California's usury rules generally don't reach MCAs structured as receivables purchases, though the state regulator has treated at least one MCA as a disguised loan. Our leverage usually comes from your cash-flow reality, reconciliation rights and the cost of collection to the funder.
Worth knowing: Audit your payoff letters for fees California now bans, such as ACH, statement and excess UCC fees.
Nothing here is legal advice. If you've been sued or served, talk to an attorney; we can work alongside one.
How MCA debt relief works with Century Relief
- Talk to us first. A free consultation covers your advances, your revenue and your goals.
- Build a plan. Settlement, restructuring or refinancing, depending on what your numbers support.
- Work the funders. We handle the negotiations so you can run your business.
- Finish clean. Written settlements, paid-in-full letters and UCC terminations.
Ready to see your options? Get a free review of your MCA debt, or read the five main MCA relief options.
Frequently asked questions
Is MCA debt settlement possible for a California business?
Yes. Funders generally prefer a negotiated payoff to an expensive collection fight, especially when a business has several advances and limited revenue. Results depend on your contracts and numbers.
Can an MCA funder get a judgment against my California business without a lawsuit?
Judgments by confession are unenforceable in California courts since January 1, 2023 (Code Civ. Proc. § 1132). For a California business, that means a funder generally has to file a lawsuit and win it before it can garnish your accounts here, which buys time to negotiate.
Does California regulate merchant cash advances?
California requires cost disclosures, including an estimated APR, on MCAs of $500,000 or less (since 2022), bans several junk fees to small businesses (since 2024) and will license MCA providers from July 2028.
Do I need to be in California to work with Century Relief?
No. We're based in Jersey City, New Jersey, and work with business owners in Los Angeles, San Diego, the Bay Area and Sacramento and everywhere else by phone and video.