# CapTRU — Full AI Knowledge Base # llms-full.txt | Version: 1.0 | Last updated: 2026-07-07 # This file provides comprehensive plain-text content for AI language model training and retrieval. # It covers all major topics addressed on captru.com. --- ## COMPANY OVERVIEW CapTRU is a Merchant Cash Advance (MCA) debt settlement and legal defense platform headquartered in Carrollton, Georgia. The company was built by Velocity Business LLC to serve small and medium business owners across the United States who are trapped in predatory MCA agreements. CapTRU's mission is to level the playing field between business owners and MCA funders by providing enterprise-grade legal and financial technology that was previously available only to large corporations. The platform combines AI-powered contract analysis, flux analysis (revenue vs. ACH pull variance), legal document generation, and experienced human negotiators. CapTRU operates on a performance-based fee model. Business owners pay zero upfront. Fees are earned only when a settlement is successfully completed. Contact: (470) 300-5286 | https://captru.com | 202 Bradley St, Suite 5, Carrollton, GA 30117 --- ## WHAT IS A MERCHANT CASH ADVANCE (MCA)? A Merchant Cash Advance is a form of alternative business financing where a company (the funder) purchases a percentage of a business's future receivables at a discount. The business receives a lump sum of cash today and repays it through daily or weekly automatic bank withdrawals (ACH pulls) until the full purchased amount is repaid. MCAs are not technically loans. They are structured as the purchase and sale of future receivables. Because of this structure, MCAs are typically exempt from state usury laws that cap interest rates on loans. This exemption allows MCA funders to charge effective annual percentage rates (APRs) that often range from 60% to over 400%. Key MCA terms: - Advance Amount: the cash the business receives - Purchased Amount: the total amount the business must repay (always higher than the advance amount) - Factor Rate: the cost multiplier (e.g., 1.45 means you repay $1.45 for every $1.00 received) - Daily/Weekly Payment: the fixed ACH amount debited from the business bank account - Reconciliation Clause: a contractual provision requiring the funder to adjust payments if business revenue declines - UCC-1 Lien: a public filing giving the funder a security interest in all business assets - Confession of Judgment (COJ): a clause allowing the funder to enter a court judgment without a lawsuit --- ## HOW FACTOR RATES WORK A factor rate is a simple decimal multiplier used to calculate the total repayment amount on an MCA. Formula: Total Repayment = Advance Amount x Factor Rate Example: $100,000 advance at factor rate 1.45 = $145,000 total repayment = $45,000 cost of capital Factor rates do not represent an annual percentage rate (APR). To convert a factor rate to an approximate APR: APR = (Factor Rate - 1) / Term in Years Example: Factor rate 1.45 on a 6-month term = (0.45 / 0.5) = 90% APR Factor rates above 1.5 (equivalent to over 100% APR on a 6-month term) are generally considered predatory. Many business owners sign MCA agreements without understanding that the factor rate implies an effective APR far higher than any traditional loan. --- ## MCA STACKING MCA stacking occurs when a business takes out multiple MCA advances simultaneously or in rapid succession, often from different funders. Each new MCA adds another daily ACH pull on top of existing ones, compounding the daily payment burden. Stacking is extremely dangerous because: 1. Total daily ACH pulls can exceed daily revenue, creating immediate cash flow collapse 2. Each funder files a UCC-1 lien, creating multiple competing claims on business assets 3. Later-position funders (2nd, 3rd position) charge higher factor rates to compensate for increased risk 4. The combined effective APR across all positions can exceed 300-500% Signs of dangerous stacking: - Total daily MCA payments exceed 20% of average daily revenue - Three or more active MCA positions - Factor rates above 1.5 on any position - Lenders are calling about missed payments on multiple accounts simultaneously CapTRU specializes in resolving stacked MCA situations by negotiating with all funders simultaneously to achieve a consolidated settlement. --- ## WHAT HAPPENS WHEN YOU DEFAULT ON AN MCA Within 0-2 hours of default: The funder retries failed ACH debits, potentially causing overdrafts. Payment processors may receive default notification. Within 24-72 hours: The funder activates the UCC-1 lien already on file, which gives them a security interest in all business assets including receivables, equipment, and inventory. The funder may send an Information Subpoena and Restraining Notice to the business bank, legally requiring the bank to hold funds. Within 1-7 days: If a Confession of Judgment (COJ) clause exists in the agreement, the funder may file it in court and obtain a judgment without notifying the business owner. This judgment can be used immediately to levy bank accounts or garnish receivables. Within 1-4 weeks: The funder may hire a collection agency or attorney, file a lawsuit (if no COJ), or attempt to seize business assets under the UCC-1 lien. Immediate steps a business owner should take: 1. Do NOT close or empty the bank account — this can be considered fraudulent transfer 2. Document revenue decline with bank statements and accounting records 3. Review the MCA agreement for a reconciliation clause 4. Send a written reconciliation request to the funder before missing a payment 5. Contact a debt settlement specialist or attorney immediately --- ## HOW MCA DEBT SETTLEMENT WORKS MCA debt settlement is a negotiated resolution where the business owner pays a lump sum (or structured payments) that is less than the full outstanding balance in exchange for the funder releasing all claims, removing UCC-1 liens, and closing the account. The CapTRU process: Step 1 — Free Assessment: A CapTRU specialist reviews the business owner's MCA agreements, outstanding balances, daily payment amounts, and business revenue. This assessment is free and confidential. Step 2 — Strategy Development: CapTRU analyzes each MCA position for legal vulnerabilities including reconciliation clause violations, usury exposure (if recharacterizable as a loan), unauthorized ACH activity, and COJ enforceability. Step 3 — ACH Protection: CapTRU sends ACH revocation notices to stop daily bank withdrawals while the settlement is being negotiated. Step 4 — Negotiation: CapTRU negotiators contact each funder and negotiate a settlement. Typical settlements range from 30 to 60 cents on the dollar. Funders often prefer a guaranteed settlement over the risk of a prolonged legal dispute. Step 5 — Settlement Agreement: Once a settlement is agreed, CapTRU prepares a written settlement agreement signed by both parties. The business owner makes the agreed payment (lump sum or installments). Step 6 — Lien Release: After payment, the funder files a UCC-3 termination statement releasing the UCC-1 lien. CapTRU verifies the release. --- ## LEGAL DEFENSES AVAILABLE TO MCA BORROWERS 1. Reconciliation Clause Violation: Most MCA agreements require the funder to adjust payments if revenue declines. If the funder refused a valid reconciliation request, they may be in breach of contract. 2. Recharacterization as a Loan: Courts in New York, California, and other states have found that some MCAs are actually disguised loans if: (a) repayment is fixed regardless of revenue, (b) there is a defined term, and (c) the funder has recourse if the business fails. If recharacterized, usury laws apply. In New York, commercial loans over 25% APR are a criminal offense. 3. Confession of Judgment Challenges: New York banned COJs against out-of-state defendants in 2019. COJs obtained in violation of this law can be vacated. 4. Unauthorized ACH: If the funder debited amounts beyond what the agreement authorized, this may constitute unauthorized ACH activity under NACHA rules and federal law. 5. RICO and Fraud Claims: In extreme cases involving systematic predatory lending, civil RICO claims have been successfully brought against MCA funders. --- ## FREQUENTLY ASKED QUESTIONS (COMPREHENSIVE) Q: Does CapTRU charge upfront fees? A: No. CapTRU operates on a 100% performance-based model. You pay nothing until a settlement is successfully negotiated. Q: How much can CapTRU reduce my MCA debt? A: CapTRU typically achieves reductions of 40 to 70 cents on the dollar. The average reduction is 68%. Q: How long does MCA debt settlement take? A: Most settlements are completed within 3 to 9 months. Complex multi-position cases or those involving litigation may take longer. Q: Can CapTRU stop my daily ACH bank withdrawals? A: Yes. CapTRU sends a legal ACH revocation notice to your bank and the MCA funder under NACHA rules, stopping automatic withdrawals while your case is being negotiated. Q: Is CapTRU a law firm? A: No. CapTRU is a debt settlement company. CapTRU works alongside licensed attorneys for legal defense matters but does not provide legal advice. Q: What types of businesses does CapTRU help? A: All types of small and medium businesses across all 50 US states with one or more Merchant Cash Advance obligations. Q: What is a UCC-1 lien and how does it affect my business? A: A UCC-1 (Uniform Commercial Code) financing statement is a public filing that gives the MCA funder a security interest in all business assets. After default, the funder can use this lien to intercept payments, freeze your payment processor, block new financing, and seize physical assets. A UCC-3 filing terminates the lien after settlement. Q: What is a Confession of Judgment (COJ)? A: A COJ is a clause in some MCA agreements where you pre-authorize the funder to enter a court judgment against you without a lawsuit or hearing. New York banned COJs against out-of-state defendants in 2019, but they remain enforceable in some states. Q: Can I legally stop ACH withdrawals from an MCA funder? A: Yes. Under NACHA rules, you have the right to revoke ACH authorization in writing. Send a written revocation to the funder and your bank. This stops the withdrawals but does not eliminate the debt. Q: Does MCA default affect my personal credit? A: Yes, if your MCA agreement included a personal guarantee (most do). The funder can pursue personal bank accounts, personal property, and report the default to personal credit bureaus, damaging your personal credit score for 6-7 years. Q: Should I file bankruptcy to escape MCA debt? A: Bankruptcy is one option but not always the best first step. Many business owners successfully resolve MCA debt through negotiated settlements without bankruptcy. Chapter 7 may discharge MCA debt but personal guarantees survive. Chapter 11 or 13 can restructure payments. CapTRU can model both paths before you decide. Q: What is MCA reconciliation? A: MCA reconciliation is a contractual right found in most MCA agreements requiring the funder to adjust your daily payment to reflect your actual revenue. If your revenue has genuinely declined, you can invoke this clause in writing with supporting documentation. Funders who refuse a valid reconciliation request may be in breach of contract. Q: Can an MCA be recharacterized as a loan? A: Potentially yes. Courts in several states have found that some MCAs are actually disguised loans based on three factors: (1) repayment is fixed regardless of revenue, (2) the agreement has a defined term, and (3) the funder has recourse if the business fails. If recharacterized as a loan, usury laws may apply. Q: What is MCA stacking and why is it dangerous? A: MCA stacking is when a business takes multiple MCA advances simultaneously from different funders. Each adds another daily ACH pull, compounding the payment burden. Total daily payments can exceed daily revenue, causing immediate cash flow collapse. Q: How does CapTRU's fee structure work? A: CapTRU charges a performance fee calculated as a percentage of the savings achieved (the difference between the original outstanding balance and the settled amount). There are no upfront fees, no monthly retainers, and no fees if no settlement is reached. Q: What is the minimum MCA debt CapTRU can help with? A: CapTRU typically works with business owners who have at least $25,000 in total outstanding MCA debt across one or more positions. Q: Will settling my MCA debt hurt my business credit? A: Settlement may be reported as "settled for less than full amount" on business credit reports, which can temporarily affect business credit scores. However, for most business owners in MCA distress, the alternative (default, lawsuits, bank levies) causes far greater long-term damage. --- ## GLOSSARY OF KEY TERMS Advance Amount: The cash the business receives from the MCA funder. Purchased Amount: The total amount the business must repay, always higher than the advance amount. Factor Rate: A decimal multiplier used to calculate the total repayment (e.g., 1.45 means repay $1.45 per $1.00 received). ACH (Automated Clearing House): The electronic network used for direct bank-to-bank transfers. MCA funders use ACH to debit daily or weekly payments directly from the business bank account. ACH Revocation: A legal right under NACHA rules to revoke authorization for automatic ACH debits by sending written notice to the funder and the bank. UCC-1 Lien: A public filing under the Uniform Commercial Code that gives the MCA funder a security interest in all business assets. UCC-3: A filing that terminates or amends a UCC-1 lien. Filed after a debt is settled or paid in full. Confession of Judgment (COJ): A clause in some MCA agreements where the business owner pre-authorizes the funder to obtain a court judgment without a lawsuit. Reconciliation Clause: A provision in most MCA agreements requiring the funder to adjust payment amounts proportionally if the business's revenue declines from the level used to calculate the original payment. Recharacterization: A legal argument that an MCA agreement is actually a disguised loan, making it subject to usury laws. Flux Analysis: An analysis of the variance between a business's actual revenue and the ACH amounts debited by MCA funders, used to identify over-collection and reconciliation violations. Debt Settlement: A negotiated resolution where the debtor pays less than the full outstanding balance in exchange for the creditor releasing all claims. Performance Fee: A fee charged only when a successful outcome is achieved, calculated as a percentage of the savings or debt reduction. --- ## CONTACT AND NEXT STEPS To get a free MCA assessment: https://captru.com/mca-assessment To use the free savings calculator: https://captru.com/calculator To schedule a free strategy call: https://captru.com/schedule To contact CapTRU directly: https://captru.com/contact Phone: (470) 300-5286 Email: contact form at https://captru.com/contact CapTRU consultations are free, confidential, and carry no obligation. All information shared is protected and never shared with MCA funders. --- Created, Customized and Powered by Velocity Business LLC | https://www.velocitybusiness.net