MCA debt in New Jersey
New Jersey has about 1.1 million small businesses employing roughly 1.9 million people, nearly half of the state's private workforce, according to the SBA Office of Advocacy's 2025 profile. Health care practices, restaurants, contractors, retailers and professional firms make up much of that base, and many of them sit within an hour of the New York funders who write most MCAs.
Because we are a local firm, New Jersey owners can sit down with us at our Jersey City office (by appointment), bring their contracts and bank statements, and leave with a clear picture of what each funder is owed and what realistic options exist.
New Jersey MCA law: what actually protects you
Confessions of judgment are banned for business financing
Since April 2020, New Jersey law (P.L. 2019, c. 430, N.J.S.A. 2A:16-9.1) prohibits extending business financing, expressly including cash advances, to a New Jersey business under an agreement containing a confession of judgment. Such clauses are invalid and unenforceable, and the Attorney General can seek penalties. If a funder tries to use one against your New Jersey business, talk to an attorney right away.
Usury limits
New Jersey's criminal usury statute (N.J.S.A. 2C:21-19) caps interest at 30% a year in general and 50% a year for corporations and LLCs. Whether it applies depends on whether the MCA is a loan, and most MCA contracts choose New York law, so New York case law often governs that question even for New Jersey businesses.
Disclosure bills are pending, not law
New Jersey has not enacted a commercial financing disclosure law. Bills introduced in 2026 (S1760 and A4580) would require APR, finance charge and total-repayment disclosures on MCAs of $500,000 or less. Until something passes, the burden of calculating an MCA's true cost falls on you, which is a good reason for an independent review.
Enforcement
In January 2023 the New Jersey Attorney General settled with Yellowstone Capital for about $27.4 million, including roughly $21.75 million in forgiven balances for New Jersey merchants, over claims that included disguised loans and confessions of judgment filed against merchants who had not defaulted.
If you're behind on an MCA in New Jersey
- Check for a confession of judgment. If your agreement has one, it is very likely unenforceable against a New Jersey business. Note it before any negotiation.
- Calculate the effective annual rate using our factor rate to APR guide, since there is no state disclosure to do it for you.
- Watch for UCC liens that block new financing. See how to check for a UCC lien.
- Talk to someone local before you sign a consolidation or "reverse consolidation" offer.
How we help New Jersey 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 with each funder, 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 New Jersey, including Jersey City, Newark, Hoboken, Paterson, Elizabeth, Edison, Trenton, Toms River and Cherry Hill.
Frequently asked questions
Renaissance Capital Advisors provides strategic consulting services only. We are not licensed attorneys, CPAs, or financial advisors, and we are not a debt settlement company. Nothing on this page constitutes legal, tax, accounting, or financial advice. Consult a licensed professional before making binding decisions.