Risk disclosure advocates for the financial Institutions and Broker Shops
Important Notice for Financial Institutions and Broker Shops
At MCAHELP.ORG, we strongly encourage financial institutions and broker shops to provide clear risk disclosures and educational materials to prospective clients. It is critical to inform clients about the potential dangers of overfunding and stacking and debt addiction, which can lead to harmful consequences. Merchant Cash Advances (MCAs), much like industries such as tobacco, alcohol, and gambling, carry inherent risks. While MCAs can offer valuable support to businesses in need, misuse and poor guidance can result in significant financial harm. Providing appropriate warnings and risk indicators and warning disclosures empowers clients to make informed decisions and avoid long-term debt traps.
If you are a financial institution or broker shop and would like to receive sample disclosures on risk education, please contact us at RISKDISCLOSURES@MCAHELP.ORG
Understanding Debt Addiction
Being in debt doesn’t always mean you have a debt addiction. Many people borrow for emergencies or business needs. But debt addiction is different—it can be someone who keeps borrowing, ignores the risks, and relies on debt to cope with stress or problems.
It often goes hand-in-hand with other issues like overspending. Taking out funding to fuel those habits is a sign of losing control. And as debt piles up, the stress can make other addictions worse. We refer you to a service who can take assessment and further give guidance for debt addiction.