MCA & Business Debt Relief in Massachusetts
Merchant cash advance rules vary by state, and Massachusetts has its own on confessions of judgment, interest and disclosures. Here's how they affect a Massachusetts business trying to get out from under MCA debt, and how Century Relief can help.
| Massachusetts at a glance | |
|---|---|
| MCA disclosure law | No |
| Confessions of judgment | Pre-signed clauses generally void |
| Usury as a lever | Possible if an MCA is treated as a loan |
| Where we work | Boston, Worcester, Springfield and Lowell and statewide |
In Massachusetts, MCA debt shows up most often among businesses in health care, restaurants and professional services. Whether you're in Boston, Worcester, Springfield and Lowell or a smaller town, the process is the same and happens by phone and video. Massachusetts businesses face high rents and payroll costs, so a daily MCA debit can quickly crowd out operating expenses, especially for restaurants and health care practices.
Default, lawsuits and judgments in Massachusetts
Funders move fast after a default: collection calls, a demand for the full balance, and sometimes a lawsuit within weeks. Even when the case is filed out of state, the resulting judgment can be registered in Massachusetts and used to freeze business accounts, so it pays to negotiate before it gets that far.
Good news on one front: Massachusetts voids agreements to confess judgment in a future action (G.L. c. 231, § 13A). For a Massachusetts 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.
Massachusetts rules that affect your settlement
Disclosures. Massachusetts has no MCA-specific disclosure law, so funders aren't required to show you a standardized total cost or APR. We calculate it for you during your review.
Interest limits. Massachusetts's criminal usury law applies above 20% a year unless the lender filed a notice with the Attorney General. That gives us another point to raise when we negotiate.
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
Can MCA debt be settled in Massachusetts?
Yes. MCA funders in Massachusetts, as elsewhere, often accept reduced payoffs or longer payment plans when a business can't keep up with the original debits. The outcome depends on your contracts, your revenue and how many funders are involved.
Can an MCA funder get a judgment against my Massachusetts business without a lawsuit?
Massachusetts voids agreements to confess judgment in a future action (G.L. c. 231, § 13A). For a Massachusetts 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 Massachusetts regulate merchant cash advances?
Massachusetts has no MCA-specific disclosure law, so funders aren't required to show you a standardized total cost or APR. We calculate it for you during your review.
Do I need to be in Massachusetts to work with Century Relief?
No. We're based in Jersey City, New Jersey, and work with business owners in Boston, Worcester, Springfield and Lowell and everywhere else by phone and video.