MCA & Business Debt Relief in Texas
Merchant cash advance rules vary by state, and Texas has its own on confessions of judgment, interest and disclosures. Here's how they affect a Texas business trying to get out from under MCA debt, and how Century Relief can help.
| Texas 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 | Houston, Dallas–Fort Worth, San Antonio and Austin and statewide |
In Texas, MCA debt shows up most often among businesses in construction, trucking, health care and restaurants. Whether you're in Houston, Dallas–Fort Worth, San Antonio and Austin or a smaller town, the process is the same and happens by phone and video.
If you miss MCA payments in Texas
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 Texas and enforced against your accounts.
Good news on one front: Texas voids confessions of judgment signed before a lawsuit (Civ. Prac. & Rem. Code § 30.001). For a Texas 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.
Texas rules that affect your settlement
Disclosures. Texas requires disclosures and provider registration for MCAs (HB 700, effective September 2025), with a December 31, 2026 registration deadline for existing providers.
Interest limits. Texas removed MCAs from its account-purchase safe harbor, but how usury applies is still unsettled. Our leverage usually comes from your cash-flow reality, reconciliation rights and the cost of collection to the funder.
Worth knowing: Under HB 700, a funder can't set up automatic debits of your account unless it holds a perfected first-priority lien.
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
- Map the stack. We list every position, balance and debit date.
- Check your leverage. Reconciliation rights, disclosure compliance and the state rules above all matter.
- Negotiate. We approach each funder with a realistic proposal based on your actual revenue.
- Close it out. Settlements are documented and lien releases requested.
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 Texas?
Yes. MCA funders in Texas, 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 Texas business without a lawsuit?
Texas voids confessions of judgment signed before a lawsuit (Civ. Prac. & Rem. Code § 30.001). For a Texas 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 Texas regulate merchant cash advances?
Texas requires disclosures and provider registration for MCAs (HB 700, effective September 2025), with a December 31, 2026 registration deadline for existing providers.
Do I need to be in Texas to work with Century Relief?
No. We're based in Jersey City, New Jersey, and work with business owners in Houston, Dallas–Fort Worth, San Antonio and Austin and everywhere else by phone and video.