My employer put me on an MCA as a guarantor and now my PayPal is frozen. What can I do?

I worked for a small business and was told I was signing payroll or bonus paperwork. Later I found out my name was on a merchant cash advance agreement as a guarantor even though the business received the money, not me. Now an account connected to me has been frozen and I am being treated like I owe this debt. How do I figure out whether I am actually liable, and what should I do first?

Posted by
Tom A.
Answered

Start by preserving the paper trail. Save the agreement, signature pages, emails, texts, payroll documents, account-freeze notices, and anything showing what you were told when you signed. If you were misled into signing as a guarantor, the issue may involve fraud, authority, employment law, and contract enforceability, not just MCA debt. Do not negotiate or admit liability until an attorney reviews the documents. You need to know whether the guarantee is valid, whether the funder relied on false information, and what process caused the account freeze.

Matthew Elling
+ Ask New Question
Recent Resources
State-by-State Asset Exemptions for Business Owners Facing Merchant Cash Advance (MCA) Default (2026 Guide)
Learn more ->
Merchant Cash Advances Are Not Truly Unsecured: The Personal Guarantee Changes Everything
Learn more ->
Rebuilding Credit After MCA Dependence
Learn more ->
Getting Out of MCA Debt 101
Learn more ->
The Anatomy of an MCA Agreement
Learn more ->