Kentucky MCA Defense Lawyers Provide Expert Business Debt Relief

Merchant cash advance (MCA) companies provide businesses with quick access to capital through a financing agreement, but the terms are often predatory and can leave businesses saddled with crippling debt. Kentucky MCA defense lawyers have experience helping businesses fight back against abusive MCA companies and negotiate debt relief.

How MCA Companies Trap Businesses in Debt

MCA companies market themselves as a fast and easy way for businesses to access capital, but the reality is much more ominous. Here’s how they work:

• An MCA company provides a business with a lump sum of capital upfront. In exchange, the business agrees to pay back the advance through daily payments taken automatically as a percentage of credit card sales.
• The payments are taken through a process called “factoring” where all credit card sales for the business go directly to the MCA company first. The MCA company takes out the daily payment, then forwards the remainder of the sales to the business.

This may sound like an easy financing option, but MCA contracts contain hidden traps designed to keep businesses stuck in debt:

• Exorbitantly high effective interest rates often over 100% APR
• No clear payoff date – businesses pay until the full amount is repaid no matter how long it takes
• Personal guarantees making the business owner liable even if the business fails
• Confusing contract language that hides the true cost

As a result of these tactics, many businesses end up paying far more than they ever imagined for an MCA and still owe money years later.

Kentucky MCA Defense Lawyers Fight Back

Fortunately, options exist in Kentucky for businesses to fight back against predatory MCA companies and negotiate debt relief. Business lawyers with experience in MCA defense utilize various strategies, such as:

• Litigation – Filing lawsuits against MCA companies for violations of state laws regarding deceptive trade practices, usury caps on interest rates, etc.
• Contract reviews – Identifying unenforceable or illegal provisions in MCA contracts that may invalidate part or all of the agreement.
• Settlement negotiations – Leveraging litigation risks and contract issues to negotiate discounted payoff amounts with MCA companies.

The key is finding a Kentucky business lawyer with specific experience fighting MCA companies. Not all attorneys understand the intricacies of these complex financing agreements. MCA defense requires a nuanced legal strategy.

Kentucky Laws and Legal Precedent Favor Businesses

Business owners in Kentucky hold certain legal advantages when attempting to invalidate or settle MCA debts. Relevant laws and case precedent include:

• Usury rate caps – Kentucky caps interest rates on loans at no more than 19% APR under KRS 360.010. MCA rates often far exceed this, providing grounds to challenge the agreement.
• Deceptive trade practices – Kentucky statute KRS 367.170 prohibits unfair, false, misleading or deceptive acts or practices in business. Hidden fees and confusing language in MCA contracts may qualify.
• Unconscionability – Case law precedent enables courts to void contracts deemed overly oppressive or unfair, preventing enforcement of abusive MCA provisions.
• Personal guarantees – Guarantees require careful legal review, as lenders must fulfill certain conditions for them to be validly enforced in Kentucky.

Leveraging these protections provides opportunities to fight back against MCA companies and achieve favorable outcomes for businesses. An experienced Kentucky MCA defense lawyer knows how to craft the optimal strategy.

Beware MCA Debt Relief Scams

Unfortunately, as MCA issues gain more publicity, bad actors have emerged offering “debt relief” services to desperate business owners. They promise legal help fighting MCA debts but fail to deliver.How to spot an MCA debt relief scam:

• Charges large upfront fees before providing any actual services
• Vague promises to make MCA debts “go away” without detailed explanation
• Refuses to provide specifics on intended negotiation strategy
• Lack of transparency around who owns or operates the company

Reputable Kentucky MCA defense lawyers do NOT operate this way. They offer free consultations, clearly explain intended legal strategies, provide transparency on fees and outcomes, and leverage their professional expertise to achieve optimal results.

The Delancey Street Approach to MCA Debt Relief

At Delancey Street, our Kentucky business lawyers provide ethical, effective legal help to escape crushing MCA debts. Our approach includes:1. Free Consultation

• In-depth review of your MCA agreement, business finances, and full debt obligations
• Clear advice if litigation, contract disputes, or settlement negotiations will offer the best path forward

2. Reasonable Flat Rates

• No surprise fees – just affordable flat rates for each stage of legal help
• Payment plans available upon request

3. MCA Defense Specialization

• Our lead attorneys Andrew Delancey and Jessica Street have over 20 years combined experience specifically defending business clients against MCA companies.

4. Hands-On Representation

• We directly handle negotiations, lawsuits, and contract disputes instead of referring you to an outside law firm
• Our personal attention provides the best results

5. Settlement Without Court If Possible

• Our first priority is always reaching an out-of-court settlement if fair and reasonable terms can be secured
• We prepare thoroughly for litigation in case it proves necessary

If you have questions or would like to explore debt relief options for your business, contact our office today to schedule a free consultation. There is hope for moving beyond MCA debt – the first step is seeking experienced legal advice tailored to your situation.