Fitzgerald Advisors · Direct portfolio brokerage

MCA Default and Receivables Divestiture

At a glance: A defaulted merchant cash advance position needs a transaction-specific review of the purchased receivables, contract terms, reconciliation provisions…

Fitzgerald Advisors · Portfolio Advisory

Review the contract, funding history, collections, and legal status before marketing an MCA-related position.

By Fitzgerald Advisors editorial team · Updated September 27, 2026

An agreement described as a purchase of future receivables can raise issues different from an ordinary business loan. Characterization depends on the terms, facts, and applicable law. Avoid assuming that every MCA is a loan or that every receivables-purchase label controls the outcome.

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