Personal guarantees
Many MCA agreements include a personal guarantee from the owner. Ask exactly what the guarantee covers and when it can be enforced. The FTC has alleged that some providers misrepresented whether personal guarantees applied.
Confessions of judgment
A confession of judgment lets a provider obtain a court judgment without a normal lawsuit if certain conditions occur. In an October 2023 case, the FTC alleged that RCG Advances used confessions of judgment to seize personal and business assets in situations its contracts did not permit. Ask whether the agreement includes one and under what conditions it could be used.
Withdrawal authority
Read how much the provider may withdraw, how often, and from which accounts. Confirm what happens once the balance is paid. The FTC has alleged that some MCA providers made unauthorized withdrawals.
Default and fees
- What counts as a default, and is a single missed payment enough?
- What fees apply to returned payments, stop-payments, or defaults?
- Can the full remaining balance become due at once?
- Is there a UCC filing or lien, and what assets does it cover?
Use of brokers and sharing of your information
Ask who will receive your application and documents. Ventr3 shares inquiry details with a funding provider only as described in its privacy policy, and keeps bank statements with approved reviewers.