How much does MCA settlement actually cost?

Flat fee: a single agreed dollar amount, usually paid in installments tied to milestones (intake, agreement signed, settlement closed). Predictable and clean. Best when the case is straightforward.

Percentage of total debt: usually 12 to 25 percent of the original MCA balance. Easier for the firm to underwrite. Owners pay the same whether the firm settles for 50 percent or 30 percent of the balance, which can misalign incentives.

Percentage of savings: usually 20 to 35 percent of the difference between original balance and settled amount. Aligns the firm with the owner. Higher upside for both. Some firms blend this with a smaller flat retainer.

The cheapest fee quote is rarely the cheapest total resolution. A firm that charges 10 percent up front but cannot defend a UCC freeze will cost you a separate litigation retainer when the funder escalates. A firm that quotes a low headline percentage but bills hourly post-signature can run far past the initial number.

Total cost of resolution = settlement firm fees + any referred-out legal fees + any per-funder add-ons + any post-engagement fees if the situation evolves. Ask for that number in writing before signing.

Watch for verbal-only fee discussions, separate retainers required for each funder, hourly billing on what should be a fixed-fee case, and 'success fees' that activate on outcomes you did not specifically authorize.