Case Study

Family Print Shop Achieves 95% Payment Reduction

A family-owned print shop generating $1.2M annually fell into financial distress after three Merchant Cash Advances began withdrawing more than $25,457/month, threatening the business’s survival. With the print industry steadily declining as customers shift to digital alternatives, the company faced shrinking margins and increasing operational strain. The owner, already carrying the emotional weight of supporting a disabled spouse, was overwhelmed and running out of options.

Before (Crisis State)

  • Print industry revenue and margins declining
  • 3 active MCAs draining $5,785.90/week
  • $25,457.96/month in MCA withdrawals
  • No UCC liens, but severe cash-flow pressure
  • Revenue decent, but margins tightening due to industry-wide digital migration
  • Owner supporting disabled spouse; business was sole household income
  • Overwhelmed, stressed, and unsure of restructuring options
  • Operational viability at risk

After (Stabilized & Protected)

  • Payments reduced by 95%
  • Total MCA balance reduced by 10%
  • 2 MCAs fully settled with negotiated lump-sum payoffs
  • Remaining MCA restructured over an 18-month timeline
  • Cash flow improved by nearly $25,000/month
  • Business stabilized and able to remain open
  • Client relieved and able to focus on rebuilding
  • Pathway created for long-term viability through renewed marketing strategies
color chart, magnifying glass, printer, printing press, color, pantone, pantonier, cmyk, printer, printer, printer, printing press, printing press, printing press, printing press, printing press, pantone, cmyk

Client Background

My Client’s print shop, a long-standing local printing business generating approximately $1.2 million in annual revenue, found itself struggling not due to poor workmanship or lack of demand, but due to broader industry-wide shifts toward digital media. As consumers and businesses increasingly adopt digital documentation, online marketing, and electronic communication, traditional print shops face shrinking order volumes, rising costs, and tighter profit margins.

For my Client, these pressures were compounded by personal circumstances: the business was the sole source of income for the owner and her disabled husband. With limited financial cushion and increasing operational burdens, even modest declines in cash flow had dramatic consequences.

The Crisis

Attempting to navigate declining revenue and rising costs, the business took on three Merchant Cash Advances (MCAs). Daily withdrawals added up to $5,785.90 per week, or $25,457.96 per month, rapidly draining liquidity. Although no UCC liens or lawsuits had been filed, the accelerated payment structure pushed the print shop to the brink of closure. The owner was overwhelmed, fearful, and unsure how to regain control.

Understanding the Financial Reality

Douglass Advisory reconstructed the business’s true cash-flow picture and identified
several critical issues:

Overestimating MCA Payoff Speed

We clarified the true repayment dynamics, showing how daily withdrawals, stacked positions, and fees impact the timeline — and what a realistic, sustainable payoff path actually looks like.

Industry Decline Compressing Margins

Through industry benchmarking, we demonstrated how structural shifts in the print industry were reducing profitability, helping the owner understand that margin compression wasn’t a personal failure but a market reality.

Stable Revenue, Weak Cash Flow

We broke down the disconnect between topline revenue and real cash availability, revealing timing gaps, rising costs, and MCA withdrawals that were masking the underlying cash-flow deterioration.

Marketing Gaps Hurting Sales

Our analysis showed that inconsistent lead generation and outdated marketing efforts were accelerating the downturn, highlighting where targeted improvements could restore healthier revenue streams.

Restructuring Strategy

The structure we designed was highly personalized due to the client’s limited liquidity and emotional stress:

Family-Assisted Lump-Sum Strategy

The client secured $60,000 from relatives, creating the leverage needed to negotiate
meaningful payoffs.

2. Two MCAs Settled in Full

We negotiated substantial balance reductions for two MCAs and closed them out with lump-sum payments.

3. Third MCA Restructured Over 18 Months

A $10,000 lump-sum was applied, and the remaining balance was spread across 18 months, reducing the weekly obligation to $312.50.

4. Cash-Flow Modeling to Support Negotiation

A clear financial model demonstrated the business’s limitations, shifting negotiations toward more sustainable terms.

Negotiation Process

Funders were slow to respond initially but became increasingly cooperative once the financial narrative was clarified.

We emphasized:
– Realistic repayment capacity

– The client’s personal hardship

– The long-term viability of the business if payments were reduced

Close-up of a business handshake symbolizing agreement and partnership indoors.

Outcome

The final workout achieved powerful results:

95% reduction in weekly MCA payments

10% reduction in total balance

2 MCAs settled completely; 1 MCA restructured

Roughly $25,000/month increase in usable cash flow

Business stabilized within 8 weeks

Vibrant sunrays pierce through a cloudy sky, creating a dramatic and dreamy cloudscape.
Client Transformation

How They're Doing Today

The business is now stable, the owner is relieved, and the family’s financial foundation has been preserved. The client can operate without the daily fear of closure and is preparing to modernize marketing efforts to compete in a digital-first landscape.

Scroll to Top