Skip to main content

Federal National Funding Capital Group 

Construction Company Case Study: $106K Monthly MCA Payments Reduced to $40K

July 24, 2026

Construction Company Case Study: $106K Monthly MCA Payments Reduced to $40K

A Strategic Case Study by Federal National Funding Capital Group

 Introduction: When Construction Growth Turns Into Cash Flow Pressure

In 2026, construction companies are scaling faster than ever:

 Larger contracts
 Higher revenue volume
 Expanding crews and operations

But with that growth comes a hidden risk:

Over-reliance on Merchant Cash Advances (MCAs)

This case study highlights a real-world scenario where a construction company:

  • Faced $106,000 per month in MCA payments

  • Was experiencing severe cash flow pressure

  • Was approaching default and operational instability

And how we helped them:

 Reduce payments to $40,000/month
 Eliminate daily withdrawals
 Restore financial control

This case study follows our proven framework:

 MCA Default
→ Capital Restructuring
→ Asset Preservation
→ Commercial Real Estate Workout
→ Confidential Consultation

 MCA DEFAULT: The Breaking Point for Construction Companies

 The Situation

  • Industry: Construction / Contracting

  • Monthly Revenue: $750,000

  • Total MCA Debt: $1.1MM

  • Monthly MCA Payments: $106,000

  • Daily Withdrawals: $5,000+

 The Problem

 Cash flow was consistently tight
 Payroll cycles were stressed
 Vendor payments were delayed

 The Risk

  • UCC liens across multiple lenders

  • Increased collection pressure

  • Potential legal escalation

Recommended Reading:

 Key Insight:

Construction companies don’t fail from lack of work—they fail from cash flow misalignment

 CAPITAL RESTRUCTURING: The $106K → $40K Solution

The objective was clear:

 Reduce payment burden
 Eliminate daily withdrawals
 Stabilize operations

 Core Solution:

MCA LOAN CONSOLIDATION : MCA Consolidation Experts | Cash Flow Relief & High-Capacity Funding Business Term Loans & Revolving Lines of Credit | Flexible Growth Capital Investment Real Estate Loans | Residential & Commercial Financing Authority

 The Strategy

Step 1: Debt Mapping

  • All MCA positions identified

  • Payment schedules analyzed

  • Total burden calculated

Step 2: Custom Consolidation Structure

A structured facility was designed to:

 Pay off multiple MCA lenders
 Replace daily withdrawals
 Align payments with revenue

Step 3: Execution

  • Coordinated lender payoffs

  • Negotiated positions

  • Transitioned to new structure

 BEFORE vs AFTER

BEFORE:

  • $106,000/month MCA payments

  • Daily ACH withdrawals

  • Multiple lenders

AFTER:

  • $40,000/month structured payment

  • No daily withdrawals

  • One consolidated facility

 RESULTS:

 62% payment reduction
 Immediate cash flow relief
 Operational stability restored

 Key Insight:

The turning point wasn’t more jobs—it was restructuring the debt

 ASSET PRESERVATION: Protecting the Business

Before restructuring, the company considered:

 Selling equipment
 Cutting crews
 Delaying projects

 Strategic Preservation

Through distressed debt solutions, we preserved:

 Equipment and operational capacity
 Workforce stability
 Revenue-generating projects

 Advanced Strategies Include:

  • Sell assets before foreclosure (strategically)

  • Avoid bankruptcy auction scenarios

  • Structured lender negotiations

  • Maintain operational continuity

 Complex Considerations:

  • Bankruptcy restructuring

  • Chapter 11 asset sales

  • Distressed asset repositioning

 Avoided due to successful restructuring

 Key Insight:

Preserving operations is critical in construction—once lost, recovery is difficult

 COMMERCIAL REAL ESTATE WORKOUT: Leveraging Hidden Value

The company owned:

 Yard and warehouse property

 Strategic Opportunity

We explored:

 Cash-out refinance
 Bridge loan
 Equity extraction

 Commercial Real Estate:

FNF Capital Group Announces Commercial Real Estate Financing Programs up to $500 Million

 Advanced Applications:

  • Distressed commercial real estate restructuring

  • Distressed multifamily refinancing

  • Multifamily workout solutions

  • Bankruptcy real estate sales

  • Avoid foreclosure through structured exits

 Key Insight:

Real estate often provides a secondary path to full debt resolution

 TRANSITION TO LONG-TERM CAPITAL

After stabilization, the company transitioned into:

Bank Statement Loans for Revolving Lines of Credit, Business Term Loans & MCA Consolidation Loan Programs : Federal National Funding

 Benefits Achieved:

 Predictable monthly payments
 Improved liquidity
 Ability to bid on larger projects
 Financial stability

 

Related Articles:

 CONFIDENTIAL CONSULTATION: The Turning Point

The company acted before default.

That made all the difference.

 Timing Impact

Early Action:

 Better terms
 More options
 Faster execution

Delayed Action:

 Legal escalation
 UCC enforcement
 Reduced flexibility

 Reality:

Acting early preserved both the business and its growth trajectory

 FAQ SECTION

Can construction companies consolidate MCA debt?

Yes—construction companies are strong candidates due to revenue volume and contracts.

How much can payments be reduced?

Typically 50–80%. In this case: ~62%.

Can daily payments be eliminated?

Yes—replaced with structured monthly payments.

What if multiple MCA lenders are involved?

This is common—consolidation resolves stacked debt.

Is bankruptcy required?

No—most cases are resolved without bankruptcy.

 Final Takeaway

This construction company didn’t fail—they were overleveraged.

And with the right structure:

 Payments reduced from $106K → $40K
 Daily withdrawals eliminated
 Business stabilized

The difference between pressure and control is structure

MCA Consolidation Program with Savings Up to 80% – Request Your Free Consultation Here

  ✔ Soft Credit Pull • ✔ No Obligation • ✔ Nationwide Programs Available

                                             Call: 1-800-774-3056
                            Speak with an MCA Consolidation Advisor today.