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Can a merchant cash advance company sue me personally?
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Yes — if you signed a personal guarantee, which most merchant cash advance agreements require. The personal guarantee makes you individually responsible for the debt even though the advance was made to your business, so the funder can name you personally in the lawsuit and pursue your personal assets after a judgment. If you did not sign a personal guarantee, the funder is generally limited to pursuing the business.
How to check your agreement
Look for a section titled "Personal Guarantee" or "Guaranty of Performance." Many merchants are surprised to learn they signed one — it's often a separate signature line or a clause near the end. Whether it's enforceable as written can depend on the state and the facts, which is worth reviewing with a licensed attorney if you've been sued.
Why it matters for settlement
A personal guarantee raises the stakes, which is exactly why settling before judgment matters. Resolving the balance on a negotiated plan protects your personal assets from a post-judgment levy and ends the personal exposure the guarantee created.