MCA debt in Kentucky
According to the SBA Office of Advocacy, Kentucky is home to about 393,900 small businesses employing roughly 43% of its workforce. Most of those jobs are in restaurants, health care and manufacturing, and owners in those sectors are frequent targets of MCA offers.
Kentucky MCA law: what actually protects you
Cost disclosure rules
There is no Kentucky law requiring MCA providers to disclose an APR or total cost of financing. You'll need to work out the real cost yourself, or with an advisor.
Confession-of-judgment rules
Kentucky voids any power of attorney to confess judgment given before a lawsuit (KRS 372.140). A pre-signed confession in an MCA shouldn't be usable in Kentucky courts.
Usury and rate caps
Kentucky allows any agreed rate on loans over $15,000 (KRS 360.010), so usury rarely helps a Kentucky business with a sizable MCA.
What this means for Kentucky owners
Kentucky law works in your favor on confessions of judgment: a pre-signed clause in your MCA shouldn't be enforceable here, so a funder that wants a judgment generally has to sue you and prove its case. On the rate side, Kentucky law gives business borrowers little usury protection, so your leverage is more likely to come from the reconciliation clause, documentation of your revenue and a clear plan for each funder.
If you're behind on an MCA in Kentucky
- A confession of judgment signed at closing is void in Kentucky; note it for your attorney.
- Restaurants and hospitality: see how split-funding MCAs work and our food service page.
- Medical and dental practices: see our healthcare page on matching payments to reimbursement cycles.
- Calculate the true cost. Our factor rate to APR guide shows how.
- Request reconciliation in writing if revenue has dropped. See the reconciliation clause guide.
How we help Kentucky owners
Most firms that call Kentucky 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 Kentucky, including Louisville, Lexington, Bowling Green, Owensboro and Northern Kentucky.
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.