MCA debt in Arkansas
According to the SBA Office of Advocacy, Arkansas is home to about 292,700 small businesses employing roughly 46% of its workforce. Most of those jobs are in health care, restaurants and retail, and owners in those sectors are frequent targets of MCA offers.
Arkansas MCA law: what actually protects you
Cost disclosure rules
Arkansas is not among the states that require standardized MCA cost disclosures. That makes an independent review of each offer more important.
Confession-of-judgment rules
Arkansas law is restrictive about confessions of judgment. If your MCA contains one, have an Arkansas attorney review whether it could be used against you.
Usury and rate caps
Arkansas is unusual: its constitution caps interest at 17% for most non-bank lenders (Amendment 89), with no general exemption for business loans. That matters only if an MCA is treated as a loan rather than a purchase of receivables, which is a question for an attorney, but it gives Arkansas owners more potential leverage than in most states.
Arbitration clauses
In 2021 the Arkansas Court of Appeals (EBF Partners v. Letha's Pies) sent an MCA dispute to arbitration under the contract's clause. Check whether your agreement requires arbitration before assuming you'll be in an Arkansas court.
What this means for Arkansas owners
Arkansas's rules on confessions of judgment in business contracts aren't as clear-cut as in some states, so treat any confession clause as live until an attorney tells you otherwise. On the rate side, Arkansas is one of the few states where usury law could still matter if an MCA is recharacterized as a loan, so the effective annual rate on each of your advances is worth calculating.
If you're behind on an MCA in Arkansas
- Check whether your contract requires arbitration, and where.
- Medical and dental practices: see our healthcare page on matching payments to reimbursement cycles.
- Restaurants and hospitality: see how split-funding MCAs work and our food service page.
- Map every position before negotiating. See how to evaluate an MCA stack.
- Check for UCC liens before applying for new financing. See how to check for a UCC lien.
How we help Arkansas owners
Most firms that call Arkansas owners about MCA relief are paid by the outcome they sell. We're paid a flat fee for advice, so we can tell you when renegotiating yourself, reconciliation, refinancing, a licensed settlement provider or an attorney is the better route.
Start with our MCA debt relief consulting overview, or see MCA debt help in other states.
We work with owners throughout Arkansas, including Little Rock, Northwest Arkansas (Fayetteville, Springdale, Rogers, Bentonville), Fort Smith, Jonesboro and Conway.
Frequently asked questions
Renaissance Capital Advisors provides strategic consulting and referral services only. We are not licensed attorneys, CPAs, financial advisors, or a debt settlement company. Regulated debt-resolution work is performed by appropriately licensed third parties. Nothing on this page constitutes legal, tax, accounting, or financial advice. Consult a licensed professional before making binding decisions.