Technically, no, because you probably can't pay all the MCAs on Day 1. Practically, you can either settle one at a time or all at once. For triage, see the options guide for multiple stacked MCAs.
What does settling one MCA have to do with the contract for the other MCAs?
Technically, it probably does not matter, unless one MCA is a renewal of another from the same MCA Funder. Most of the MCA forms we've seen only have a cross-default for "any other agreement with [MCA Funder]," and one of the forms on file says "any other agreement with CFS."
What happens to the other MCAs when you stop paying all the MCAs and start paying into your settlement fund?
Technically, you are defaulting on all of your MCA contracts by not paying, and the whole unpaid purchased amount is due, plus Reasonable Damages, which in one of the forms filed with the SEC is 25% or $5,000, whichever is more, and 9% interest. The Appellate Division in New York enforced this in People v Richmond Capital in February of 2026.
One MCA Funder's (Pawn Funding) form filed with the SEC states that it is a default if you cause another party's ACH debit to come back for the R-codes R08, R10, or R29 and you do not provide a written explanation within two business days. So, if you stop paying one MCA Funder, you may default on the contract with another. If you signed an ACH authorization form, use a stop payment (R08) or a written revocation, and do not let the debit come back as R29, which could be a misrepresentation the funder could sue over.
How long does it take to get enough money to settle multiple stacked MCAs?
Normally, it takes a couple months or more. If you owe three MCA Funders $900, $700, and $500 per day, that is $2,100 per day or $46,200 per month (22 business days). Settling all of them for $105,000 would take about 2.3 months. Meanwhile any could sue, and in New York you would have only 20 days after personal delivery or 30 days after other service to answer under CPLR 320(a).
You also need money for payroll float, defending one MCA Funder, and the program fee. A 20% fee on $171,000 enrolled is $34,200, which increases the percentage from 50-65% to 70-85%.
Where do you put the money you are collecting to settle the MCAs?
Discuss this with a lawyer before an MCA Funder sues you. A judgment creditor can use a Restraining Notice under CPLR 5222(b) to freeze double the amount of the judgment in any account in your name for one year, and the statute's exemptions protect natural persons, not business accounts. So, if MCA Funder C gets a judgment of $60,000, it could freeze up to $120,000, possibly your whole settlement fund, and your settlements with MCA Funders A and B would default. Once the notice is served on your bank, you cannot move the money. An all-assets UCC filing may not cover a new settlement account, since UCC 9-312(b)(1) perfects a deposit-account lien only by control, but a Restraining Notice reaches any account in your name.
What if one funder sues while you're settling the others?
You should settle with the MCA Funder that can freeze your money the fastest, or get its written agreement not to. That is any MCA Funder that has already sued you, can use a Confession of Judgment, or can send notices to your customers under UCC 9-406 redirecting invoice payments. Confessions of Judgment are more limited now: New York's CPLR 3218 limits filing to the debtor's county, and Texas's HB 700 voided them for sales-based financing as of September 1, 2025.
Should you settle stacked MCAs one at a time or all at once?
It depends on whether you can raise all the funds at once and whether bankruptcy is an option if negotiations fail. Under 11 USC 547(b), a payment to a creditor within 90 days of the bankruptcy petition date may be avoided. If you pay Funders A and B in month two, cannot settle with C, and file bankruptcy in month four, the payment to A may be clawed back.
| Feature | Rolling Settlement Closing | Global Settlement Closing |
|---|
| Description | Sign and pay each funder as the cash reserve builds | Each agreement conditioned on the others, all funded on one day through refinancing, asset sales, or new capital |
| Cash Needed | Less at once, and each payoff frees cash flow | All of it at once |
| Leverage | More room for a holdout, since later funders see earlier deals | None after signing, but one walkaway sinks the deal |
| Preference Risk | Multiple payment dates | One payment date |
What should be included in each MCA settlement agreement when there are multiple agreements?
Each MCA Settlement Agreement should include:
- A release of all claims against the business and each guarantor by name
- Dismissal with prejudice of any lawsuit, or satisfaction of any judgment
- Cessation of all ACH debits
- Withdrawal of all 9-406 letters sent to your customers
- A UCC-3 termination with the filing numbers and a filing date (under UCC 9-513(c), the sale of accounts receivable is treated differently than a loan)
- No agreed judgment for the full amount, which some funders demand for a payment plan; instead, cap any post-default claim at the unpaid settlement amount, with an opportunity to cure
Frequently Asked Questions about Multiple MCA Settlements
How is my tax return impacted by multiple MCA settlements?
Each MCA settled results in canceled debt income, and if $600 or more is canceled, the funder files a 1099-C. Settle four in one year and all four 1099-Cs land on that return. The insolvency exclusion applies only to the extent you are insolvent immediately before each discharge. So timing (two in December, two in January) matters. Consult your CPA first.
What if one of the MCA funders will not settle at all?
You will have to defend against that MCA funder while settling with the others. A funder facing a strong loan argument may settle for the least, regardless of its place in the stack. In July of 2026 a bankruptcy court recharacterized 19 MCA contracts from the same funder as loans. If you cannot settle with all of them and your business has $3,424,000 or less in debt, you can file for bankruptcy under Subchapter V.
What if I can only make the payments on one of the MCA settlement payment plans?
Four settlement payment plans can rebuild the stack, and one frozen account can default them all. Pay lump sums to as many funders as possible, and use payment plans only with funders that insist on one.