GLOSSARY
Glossary of Terms
A quick-reference guide to the words and acronyms that come up most often in MCA debt relief and business debt negotiation.
Plain-language termsMCA glossaryOwner education
- Arbitration
- When the lender brings in a third party to dispute their side and it is faster than a lawsuit. We have 30 days to respond if it is not responded they can take everything from assets, personal belongings, accounts etc.
- Bank Statements
- Always request the last 3 available statements.
- Electronic Fund Transfer (EFT)
- Form that allows electronic funds to be drafted directly from a client’s bank account.
- Hardship Letter
- Describes explanation on why the debts cannot be paid. (Hardship Letter examples will be provided).
- Insufficient or Non-Sufficient (NSF)
- A Payment that is returned by a bank because the account holder did not have enough money in their account to cover the payment amount. Draft was attempted but funds were unavailable.
- Judgement
- Legal document issued by the court. It allows lenders to collect the debt owed to them. Judgement freezes the account and processor.
- Merchant Cash Advance (MCA)
- Type of financing option particularly those with low credit card sales. An MCA provides a lump sum of money which is repaid by future receivables.
- Month-to-Date (MTD)
- Statement showing bank activity for current dates.
- No Fee Retainer and Power of Attorney
- Allows counsel to speak on the client’s behalf. (without these documents counsel is not able to reach out).
- Summons and Complaint (Lawsuit)
- Legal process in a civil lawsuit. Once a summons is filed counsel has 30 days to file an answer. If it is not settled in 30 days, a judgement is enforced.
Have more questions?
Our team can walk you through any of these terms in the context of your MCA or business debt.
Get Started Today