Fresno MCA Defense Lawyers Offer Business Debt Relief

If you run a small business in Fresno and have merchant cash advance (MCA) debt, you may be struggling under the weight of high payments and fees. MCA loans often have predatory terms that can sink a small business. Fortunately, there are Fresno MCA defense lawyers who can help provide debt relief.

How MCA Loans Work

Merchant cash advances provide quick capital in exchange for a percentage of future credit card sales. The loans have high interest rates and daily repayments that deduct straight from a business’s merchant account.While fast funding seems appealing, MCA loans frequently spiral out of control:

• High rates – MCAs often charge 70-400% APRs in fees
• Daily payments – Loans deduct 5-20% of daily credit card sales until repaid in full
• No limits – There are often no limits on how much can be taken from merchant accounts

Within months, businesses struggle to stay afloat as most of their sales go toward MCA payments. Delinquency triggers default rates of 100% or more.

How Fresno MCA Defense Lawyers Can Help

Facing crushing MCA debt, many business owners simply close up shop. However, there are defense strategies that can eliminate or reduce balances and payments. Fresno MCA defense lawyers have experience negotiating and litigating these complex loans.An MCA defense lawyer can help in multiple ways:

• Negotiating settlements – Lawyers can often negotiate discounted payoffs or restructured payment plans
• Litigating violations – If an MCA contains illegal terms or deceptive language, those provisions can be invalidated
• Contesting defaults – Default charges may be unenforceable if issued unfairly or prematurely
• Defending lawsuits – MCA lenders routinely sue for breach of contract. A defense lawyer can file counterclaims alleging predatory lending.

The right legal strategy depends on the specifics of each MCA agreement and the laws governing it. By analyzing the loan terms and building a targeted case, Fresno MCA defense lawyers aim to relieve financial pressure on small businesses.

Common MCA Agreement Violations

Many MCA loans contain provisions that violate California lending laws and consumer protection statutes. Fresno MCA defense lawyers look for issues such as:

Unlicensed Lending

• In California, making commercial loans over $5,000 without a finance lenders license is illegal
• Unlicensed lending voids loan obligations and means no payments are owed

Usury Rate Violations

• California caps interest rates on commercial loans under $2,500 at between 12-45%, depending on the type of lender
• Higher rates may be deemed usurious under California law

Unconscionable Terms

• Under California commercial code, unfair contract clauses that “shock the conscience” are unenforceable
• MCA non-compete clauses, endless payment periods, and unreasonable default rates may qualify

Deceptive Marketing

• Predatory MCA marketing practices may violate federal and California truth-in-lending laws
• Bait-and-switch rates, misrepresenting terms, and pressuring distressed borrowers could nullify loan obligations

Beware MCA Debt Consolidation Scams

When struggling with MCA debt, desperate business owners often encounter consolidation offers that promise relief through refinancing. However, many consolidation loans simply roll multiple MCA balances into a new predatory loan.Warning signs of MCA consolidation scams:

• Still requires selling future credit card receivables
• Doesn’t discharge old MCA debts
• Has high fees and interest rates
• Uses same abusive collection tactics

Reputable Fresno MCA defense lawyers can determine if consolidation offers truly provide debt relief or merely set up businesses for another cycle of crushing payments.

Delancey Street Offers Business Debt Relief Nationwide

Delancey Street helps small business owners negotiate, restructure, and settle accounts receivable financing loans nationwide. While based in New York, the Delancey Street legal team assists clients across the country.What sets Delancey Street apart is a dedication to finding real, lasting financial solutions, not quick fixes that temporarily ease cash flow at the cost of long-term stability. By taking an empathetic, personalized approach, Delancey Street aims to:

• Permanently lower, restructure or eliminate burdensome debt
• Develop sustainable budgets that support solvency
• Improve credit to access fair financing options
• Advise on accounting and growth strategies

At Delancey Street, each client works with an individual debt specialist to map out a customized path to financial freedom. Through diligent negotiations and targeted legal strategies, the team has achieved an 85% success rate settling or restructuring small business loans.

Contact Delancey Street for a Free Consultation

To learn more about Delancey Street’s business debt relief services, call 212-210-1851 for a free consultation. Specialists are available 24/7 to discuss your unique situation and options. Or visit DelanceyStreet.com for more information and client testimonials.The Delancey Street team understands the immense stress of unmanageable debt and works passionately to lift that burden. By leveraging decades of combined experience, they aim to secure terms that empower businesses to not merely survive, but thrive.

Frequently Asked Questions

Still have questions about working with Fresno MCA defense lawyers? Here are answers to some common queries:

Are MCA loans legal in California?

Yes, merchant cash advances are legal forms of financing in California. However, many individual MCA agreements contain prohibited terms or stem from unlawful lending practices. Fresno MCA defense lawyers determine if specific contracts violate state regulations.

Can I discharge MCA debt through bankruptcy?

It is very difficult to discharge MCA loans in bankruptcy. Since repayment comes from a percentage of future sales, courts treat the cash as “income” not debt. However, defense lawyers may be able to get balances reduced or restructured to affordable levels outside bankruptcy.

How long do MCA lawsuits take?

MCA lender lawsuits move quickly, often culminating in judgements within 3-6 months. Timeframes vary by county and specific circumstances. Having an experienced defense lawyer from the start helps build the strongest case possible preemptively instead of reacting down the road.

Are MCA lender threats enforceable?

Not necessarily. High-pressure collection tactics like threats to seize assets or report merchants to credit agencies often prove hollow. However, MCA contracts do allow lenders significant account access. Working with defense lawyers helps determine actual risks and enforcement options.

Can I negotiate an MCA settlement myself?

Attempting to negotiate complex MCA payoffs without legal guidance rarely succeeds, especially once accounts become delinquent. Lenders design contracts specifically to be indecipherable to business owners. Experienced lawyers understand industry terminology and standards to secure optimal settlements.

Get MCA Debt Relief from Delancey Street

If crushing MCA loan payments are draining your Fresno small business, the expert team at Delancey Street can help. Call 212-210-1851 now to discuss your situation with a caring debt specialist. Customized solutions could finally provide the relief you need to get your finances back on track.