As small-business owners have continued to struggle in an uncertain economy, a growing number have begun the dangerous practice of relying on merchant cash advances—essentially seeking financial shelter in a lion’s den. Fact is, MCAs often contain onerous (and potentially illegal or unenforceable) provisions that end up causing more trouble than they are worth. Following is some general guidance based on our experience helping business owners navigate complex issues through all types of business and economic environments.

First, some background: According to the U.S. Chamber of Commerce, small business owners’ attitudes toward the economy have worsened through the end of last year’s fourth quarter, with attitudes souring the most in the Northeast. Moreover, surveys of small business owners have shown that some 77% of small businesses suffer from cashflow challenges and a further 81% have expressed tangible negative impacts from those cashflow challenges (with delayed expansion and leadership pay cuts being chief among these negative impacts).

MCAs—What Are They? (And What Aren’t They?)