I ran a small business for a couple of years and took a merchant cash advance through my processor when money got tight. The payments and cost drained the business, we closed, and now there is still a balance left that has not been paid for a long time. I do not have business revenue anymore. Am I personally stuck with this, or does the business closure change anything?
Business closure does not automatically erase the balance. The answer depends on the contract, business structure, whether you personally guaranteed the advance, whether the processor has setoff rights, and whether the funder has filed or can file a claim. Pull the agreement and look for personal guarantee, security interest, default, collections, and processor repayment language. If the business is closed and there is no realistic payment source, compare settlement, dispute review, and bankruptcy advice before making a payment promise you cannot keep.