Frequently Asked Questions

New Matrix Capital is a capital advisory firm specializing in business financing strategy, MCA resolution, and contract review. We help small and medium-sized businesses navigate complex financing decisions.

Unlike brokers or lenders, we work on behalf of business owners as advisors. We do not originate loans or sell financial products. Our role is to provide strategic guidance, protect your interests, and help you understand your options before making important financial commitments. We may receive compensation from third-party providers in connection with successful placements.

No. New Matrix Capital is neither a lender nor a broker. We are an advisory firm. This distinction matters because it means our interests are aligned with yours, not with any financing provider.

While we may receive compensation from third-party providers in connection with successful placements, our advisory model means we can recommend against unfavorable deals, negotiate better terms, or find alternatives to high-cost financing when that serves your interests best.

We work with small and medium-sized businesses across all industries. Our clients include:

• Retail and e-commerce businesses
• Restaurants and hospitality
• Construction and contractors
• Manufacturing companies
• Healthcare practices
• Professional services firms
• Transportation and logistics
• Wholesale and distribution

Whether you're facing MCA debt, need help understanding a financing contract, or want strategic guidance on capital decisions, we can help.

Our fees vary based on the complexity of your situation and the services you need. We offer several engagement models:

• Initial Consultation: Complimentary. We review your situation and explain how we can help.
• Contract Review: Flat fee based on document complexity.
• MCA Resolution: Typically structured as a percentage of documented savings.
• Ongoing Advisory: Monthly retainer for continued strategic support.

We're transparent about our fees upfront. There are no hidden costs. If we don't believe we can provide meaningful value, we'll tell you.

A merchant cash advance is a type of business financing where a company receives a lump sum in exchange for a percentage of future sales. Unlike a loan, an MCA involves the purchase of future receivables.

MCAs are repaid through daily or weekly automatic debits from your business bank account. The total repayment amount is determined by a factor rate, not an interest rate. A factor rate of 1.40 means you repay $1.40 for every $1.00 received.

While MCAs can provide quick access to capital, they often carry very high effective costs. A 6-month MCA with a 1.40 factor rate translates to an APR equivalent of over 100%.

MCA stacking occurs when a business takes out multiple merchant cash advances simultaneously. This often happens when one MCA is not enough to cover expenses, leading owners to seek additional advances.

The danger is compounding: each additional MCA adds to your daily payment burden. If you have three MCAs pulling $500 each per day, that's $1,500 leaving your account every business day. This quickly becomes unsustainable for most businesses.

Stacking also creates a debt spiral. As cash flow tightens, businesses take more advances to cover the payments on existing ones. We've seen businesses with 5, 6, even 10 stacked positions. At that point, the business is essentially working to pay back funders, not to generate profit.

Yes. MCA resolution is one of our core services. We help businesses restructure or resolve MCA obligations through legitimate, strategic means.

Our approach includes:

• Complete analysis of all current positions and true effective rates
• Cash flow modeling to understand the full financial picture
• Direct negotiation with funders for modified terms
• Strategic sequencing of paydowns
• Identification of refinancing opportunities when appropriate

We don't recommend or work with debt settlement companies that advise businesses to default. That approach damages your business relationships and can lead to lawsuits, UCC enforcement, and judgment execution.

A factor rate is a decimal number that represents the total amount you will repay relative to the amount you received. For example, a factor rate of 1.35 means you pay back $1.35 for every $1.00 you receive.

Factor rates are intentionally confusing because they obscure the true cost of financing. To understand what you're really paying, you need to convert the factor rate to an APR equivalent.

Here's an example: If you receive $100,000 with a 1.35 factor rate and repay over 6 months, you're paying $35,000 in fees. Annualized, that's roughly 70% APR. Shorter terms push the effective APR even higher, sometimes exceeding 150%.

We help businesses calculate the true cost of their financing so they can make informed comparisons and decisions.

A Confession of Judgment is a clause in a financing contract that allows the funder to obtain a court judgment against you without notice, a hearing, or an opportunity to present a defense. By signing, you essentially waive your right to contest any claims.

COJ clauses have been banned in consumer contracts for decades, but they remain common in business financing agreements. They are enforceable in some states even when the business is located elsewhere.

If a funder alleges you have defaulted, they can use the COJ to immediately freeze your bank accounts, seize assets, and begin collection without proving their case. This is why we strongly recommend having contracts reviewed before signing and negotiating to remove or limit COJ provisions whenever possible.

A UCC (Uniform Commercial Code) filing is a public notice that a lender has a security interest in your business assets. It is a lien filed with the state that alerts other creditors that certain assets are pledged as collateral.

UCC filings are common in business lending and are not inherently problematic. However, the scope of the filing matters significantly:

• Blanket UCC: Covers all business assets including inventory, equipment, and receivables
• Specific UCC: Covers only certain named assets
• Personal Guarantee UCC: May extend to personal assets beyond the business

Blanket UCC filings can complicate future financing because subsequent lenders will be subordinate. We help clients understand the implications of UCC filings and negotiate for more favorable terms when possible.

Business financing contracts are complex and often contain provisions that can create serious problems. Key areas to examine include:

• Total repayment amount: Not just the monthly payment, but what you pay in total
• Prepayment terms: Can you pay early? If so, do you still owe the full factor?
• Default triggers: What constitutes default? Some contracts have broad default definitions
• Confession of Judgment: Is there a COJ clause? Can it be removed?
• UCC filing scope: What assets are being pledged as collateral?
• Personal guarantee: Are you personally liable? Is your spouse?
• ACH authorization: What happens if you revoke? Is it a default trigger?
• Venue and jurisdiction: Where would disputes be heard?

We provide detailed contract reviews that identify risks and provide recommendations before you sign.

Our process is straightforward:

• Step 1 - Initial Contact: You reach out via phone, email, or our application form. We schedule a brief call to understand your situation.
• Step 2 - Discovery: We review your current financing, contracts, and cash flow. This helps us understand the full picture.
• Step 3 - Analysis: We calculate true costs, identify risks, and develop strategic options.
• Step 4 - Recommendations: We present our findings and recommended approach. You decide how to proceed.
• Step 5 - Execution: If you engage us, we implement the strategy, whether that is negotiation, restructuring, or ongoing advisory.

The initial consultation is complimentary and confidential. We'll be honest about whether we can help.

Resolution timelines vary based on the number of positions, the funders involved, and the business's financial situation. Generally:

• Single position: 2 to 8 weeks for negotiated modification
• Multiple stacked positions: 2 to 6 months for full restructuring
• Complex situations: 6 to 12 months for comprehensive resolution

Some cases resolve quickly when funders agree to modified terms. Others require more extensive negotiation, especially if the business's cash flow is severely constrained. We set realistic expectations upfront and keep you informed throughout the process.

The specific documents depend on your situation, but typically we request:

• All current financing contracts and agreements
• 3 to 6 months of business bank statements
• Current payment schedules and outstanding balances
• Any correspondence with funders
• Basic business financials if available (P&L, balance sheet)

We understand that businesses in distress may not have perfect records. We work with what you have and help organize the information needed to move forward.

We treat client information with strict confidentiality during the advisory process. We don't share your financial details, business information, or contact information with third parties without your consent as outlined in our agreement.

Unlike lead generation sites that sell your information to dozens of brokers, we are an advisory firm. Your trust is essential to our relationship, and we take data protection seriously. Our data use practices are fully disclosed in our Master Client Services Agreement.

Debt settlement companies for business financing have emerged as a problematic industry. Their typical approach involves advising you to:

• Stop making payments to your funders
• Revoke ACH authorization to block withdrawals
• Accumulate funds in a separate account they control
• Wait for funders to accept a reduced settlement

This approach is dangerous for several reasons:

• Revoking ACH often triggers default provisions
• Funders may immediately pursue legal action
• Confession of Judgment clauses allow instant judgment and asset seizure
• Your business relationships and credit are damaged
• Settlement companies charge high fees regardless of outcome

We take a different approach: strategic negotiation while maintaining relationships and avoiding unnecessary legal exposure.

Warning signs of predatory financing include:

• Pressure tactics: Urgency to sign today, claims that offers expire immediately
• Obscured costs: Refusal to provide APR equivalent or total repayment amount
• No prepayment benefit: You owe the full factor even if you pay early
• Confession of Judgment: Especially in states where they are enforceable
• Blanket UCC on personal assets: Collateralizing assets beyond business needs
• Excessive broker fees: Multiple points or fees stacked on top of already high costs
• Lack of transparency: Unwillingness to explain terms or provide documentation

If something feels wrong, it probably is. Get a second opinion before signing.

If you have applied for business financing online, your information was likely sold through a lead network. A single application can be distributed to dozens of brokers within minutes.

These lead networks are how the alternative lending industry sources prospects. When you fill out a form on what appears to be a direct lender's site, you are often submitting to a lead aggregator that sells your data to multiple buyers.

We can help you:

• Identify where your information was distributed
• Submit opt-out requests to major networks
• Implement call filtering strategies
• Document harassment for potential legal action if necessary