Value Capital Funding says most MCA help calls involve stacked debt

Value Capital Funding says 87% of struggling business owners who seek help are juggling two or more merchant cash advances, with many carrying four or more. The Boca Raton firm says the pattern is creating severe cash flow pressure and pushing some companies into a cycle of repeated borrowing.

Why it matters: - Merchant cash advance stacking can turn a short-term cash flow fix into a longer-term debt trap. - Value Capital Funding says the daily or weekly withdrawals tied to multiple MCAs can overwhelm business cash flow and distract owners from operations. - The firm says restructuring or consolidation can give owners a payment structure that better matches actual revenue.

What happened: - Value Capital Funding reported that 87% of callers seeking help are managing two or more merchant cash advances at the same time. - The firm said many callers are carrying four or more MCAs. - In some cases, business owners are dealing with as many as 13 separate MCAs, each with its own repayment schedule and withdrawal demand. - The report was issued by Value Capital Funding, a Boca Raton, Florida-based debt restructuring firm that works with business owners across the United States.

The details: - About 68% of callers have between $100,000 and $500,000 in total MCA debt. - Another 25% arrive with more than $500,000 stacked across multiple lenders. - The firm said the pattern often starts with one advance used to cover a shortfall. - Owners then add more advances in an effort to borrow out of trouble or after working with brokers who promised solutions that did not materialize. - Ferne Kornfeld, principal and debt consultant at Value Capital Funding, said the company sees this pattern repeatedly. - Barry Kornfeld, principal at Value Capital Funding, said many owners feel embarrassed or trapped when they call. - Jeff Kornfeld, principal and finance consultant, said consolidation or restructuring can provide immediate relief and let owners refocus on their businesses.

Between the lines: - The report frames MCA stacking as a systemic financing problem rather than a series of individual mistakes. - That matters because stacked advances can crowd out growth spending, weaken planning, and make recovery harder even for otherwise viable companies. - The firm’s pitch is straightforward: align debt service with business cash flow before the repayment burden becomes unmanageable.

What's next: - Value Capital Funding said it will continue offering MCA debt restructuring, refinancing and consolidation to small business owners nationwide. - The firm says clients can explore ways to combine multiple obligations into a more manageable structure. - The expected outcome is less lender juggling and more time focused on operations and growth.