MCA debt in Michigan
Michigan has about 983,000 small businesses employing roughly 1.9 million people, according to the SBA Office of Advocacy's 2025 profile. Health care, manufacturing, restaurants and retail lead, and auto-industry suppliers often take short-term financing to bridge long payment cycles.
Michigan MCA law: what actually protects you
No disclosure law
Michigan has not enacted a commercial financing disclosure law, so funders don't have to give you a standardized cost or APR.
Usury: entity type matters
Charging more than 25% a year is a felony under Michigan's criminal usury statute (MCL 438.41) unless a law authorizes the rate. LLCs may agree to rates only up to that limit, while corporations may agree to any rate and can't raise usury as a defense. In 2023, the Michigan Supreme Court (Soaring Pine Capital v. Park Street Group) held that a "usury savings clause" doesn't rescue an agreement whose terms otherwise require an illegal rate. Whether an MCA counts as a loan is a separate question, often decided under the New York law most contracts choose.
Confessions of judgment
Michigan allows judgment by confession without a lawsuit (MCL 600.2906), but the authority to confess must be in a separate document from the contract, and the plea must be signed by an attorney of that court.
If you're behind on an MCA in Michigan
- Note whether your business is an LLC or a corporation. It affects which rate arguments are available.
- Calculate the effective annual rate. See our factor rate to APR guide.
- Look for a separate confession-of-judgment document in your closing package.
- Manufacturers and suppliers: see our manufacturing page.
How we help Michigan owners
We are a flat-fee, independent MCA debt advisory firm based at 30 Montgomery Street in Jersey City, New Jersey, working with business owners nationwide by phone and video. We don't lend, we don't broker, and we don't take a percentage of any settlement, so our only job is to show you which path actually fits your numbers. A typical engagement starts with a free 30-minute review of your MCA contracts, your bank statements and any offers you've received, followed by a written plan comparing reconciliation, renegotiation, refinancing, settlement through a licensed provider, or attorney review.
Start with our MCA debt relief consulting overview, or see MCA debt help in other states.
We work with owners throughout Michigan, including Detroit, Grand Rapids, Lansing, Ann Arbor, Flint, Kalamazoo and Traverse City.
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.