[jotucker1983]

I'm trying to figure out exactly how these companies are operating because, the entire scope of their operations appears to be fraud.

With an MCA, the merchant signed a damn contract for the funder to purchase "Y" amount of receivables in exchange for "X" amount in an advance upfront. If the merchant deliberately starts screwing around with holdback procedures in order to screw the funder out of what they are legally "due", that's pure and utter fraud. Now if the merchant's business is legitimately taking a downturn, that's a different story.

Furthermore, these companies who are "helping" the merchant commit fraud in this case, are they getting a portion of the "savings" as such how the cost recovery/cost reduction firms get a contingency fee? For example, if they "save" the merchant $20,000 does the company gets 15% of that or $3,000?

I'm willing to bet many of these companies are nothing but failed broker shops, who are desperately trying to find a way to generate some side revenue in attempt to "breakeven" on the wasted money they spent on bad MCA marketing strategies.

[JPendergast]

Unfortunately, many MCA companies are creating sister companies to do just that in order to steal merchants business and thus screw the current MCA in place. Basic response, do not negotiate and call their bluff.