Can l stop paying my MCA loans with an attorney's help?
l have 4 MCA loans, one-day a company called me and they promised to reduce my loan amounts. All l have to do is instead pay to scroll account plus their fee.
Is this legal and/or HARMFUL to my business?
Han, first of all, an MCA is not considered a loan. It is a Merchants Cash Advance, which is tied to your credit card receipts. What the caller is most probably suggesting is that you consolidate your four different MCAs into a single account. This is totally legal and may be helpful to your business if it reduces the interest that you now pay on the advances. It will be easier to manage a single source of MCA. Take into consideration any up-front fees that the new company charges for the consolidation to see if the cost/benefit ratio makes sense.
I believe that what they are asking you to do is to pay into an "escrow" account. This will tie up your revenue until the liability (your MCA loan) is paid off. This method will provide more assurance to the loaner regarding the loan being repaid however it will likely tie up some of your capital. The question for you is whether you can afford to tie up this revenue instead of using it to help your business. This is a decision only you can make, however I would recommend you talk to an accountant and a lawyer prior to making any decision. You will need to clarify what the offer means and identify what risks it may present to your business and the information the accountant and lawyer can provide will be most beneficial for you. More analysis of your situation is required here.