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MCA Defense Lawyers Provide Expert Assistance With Merchant Cash Advance Debt

Merchant cash advances (MCAs) can provide quick access to capital for small businesses. However, the terms of MCA agreements are often predatory, with exorbitant interest rates and aggressive collection tactics. If your business is struggling with MCA debt, specialized legal assistance can help protect your assets and negotiate reasonable repayment terms.

How MCAs Work and Why They Can Be Problematic

A merchant cash advance provides a business with a lump sum of capital in exchange for a percentage of future credit card sales. It is not technically considered a loan, so MCA companies can bypass state laws capping interest rates.

  • High factor rates of 1.2 to 2 mean businesses repay 120-200% of the original advance
  • Daily repayments fluctuate based on credit card receipts, creating cash flow uncertainty
  • MCAs may include confession of judgment clauses, allowing the MCA company to seize assets without notice

While MCAs provide fast access to capital, the extremely high costs and risky terms often trap businesses in debt. Legal assistance from attorneys familiar with MCA agreements can help.

Specialized MCA Defense Strategies

MCA contract terms are complex by design. Standard legal defenses that work for other debts may not apply. **Attorneys who focus specifically on MCA debt have developed targeted strategies to contest these agreements.**Some potential defenses include:

  • Unconscionability – Argue one-sided contract terms are unfair and unenforceable
  • Breach of good faith – The MCA company made misleading statements or did not fully disclose fees
  • Usury violations – Interest rates and fees exceed state laws
  • Confession of judgment issues – Challenge improper asset seizures or contract breaches
See also  Arkansas MCA Defense Lawyers Business Debt Relief

Negotiating Lower Repayments and Settlements

Beyond contract defenses, MCA lawyers can negotiate with funding companies to reduce remaining balances or create affordable long-term repayment plans. This may involve:

  • Requesting lower daily repayment rates based on actual credit card receipts
  • Settling total balances for a discounted lump sum
  • Extending the repayment term to lower daily payments
  • Waiving contract breaches to restore the original agreement

Through detailed financial analysis and savvy negotiation tactics, skilled MCA attorneys can often achieve resolutions that business owners struggling alone cannot.

What Sets Delancey Street’s MCA Defense Practice Apart

Delancey Street helps small business owners find clarity and solutions for MCA debt through a client-focused approach centered around education and negotiation.

We Start by Listening

  • Initial consultations are always free
  • We take time to understand your business and specific situation
  • Our advice stems from a place of empathy, not judgment

We Educate At Every Step

  • We explain MCA agreements in simple terms
  • You understand all options – and potential risks
  • We prep you to make fully informed decisions

We Negotiate as a Team

  • We function as an extension of your team
  • Leveraging legal knowledge to achieve business goals
  • Getting you the best possible terms for success

If you are feeling overwhelmed and unsure of your rights and options for resolving MCA debt, our lawyers can provide expert guidance tailored to your needs.

What Our Clients Say About Working With Us

“I did not understand everything in my merchant cash advance agreement. Delancey Street broke down the key terms and helped me see how predatory the contract really was. They got my payments reduced by almost 20% so I can keep my business afloat.” – Sara D., Boston MA

“Communication was clear and compassionate. We explored multiple strategies focused on both legal protections and reducing financial burden.” – Frank T., Denver CO

“After one of the most stressful periods in my professional life, working with Delancey Street gave me hope again. I will be forever grateful for their strategic advice and support.” – Theresa S., Portland OR

If you relate to these business owners’ struggles with overwhelming MCA debt, know there are solutions. Contact Delancey Street today to schedule a free consultation with our legal team.

See also  Alaska MCA Defense Lawyers Business Debt Relief

What Should Business Owners Do Next?

Managing MCA debt is complex, but the right legal guidance can help put your business back on steadier footing.

Learn More With a Free Consultation

  • Examine your MCA agreement terms
  • Review options to contest the agreement
  • Discuss affordable repayment strategies

Get Strategic Business & Legal Advice

  • Analyze cash flow to create sustainable budgets
  • Negotiate discounted payoff amounts
  • Restore credit and position for future capital

Breathe Easier Knowing Experts Are on Your Team

  • No more feeling alone against aggressive collectors
  • Make progress toward financial stability
  • Renew focus and energy on business growth

Delancey Street has over 15 years of experience advising small business clients on how to resolve MCA debt. Contact us today to schedule your free initial consultation. Our lawyers are ready to help you gain clarity on your rights, defenses, and options.

Common Legal Defenses Against Merchant Cash Advance Companies

While merchant cash advance (MCA) agreements contain risky terms, there may be defenses business owners can use to contest or void these contracts. MCA lawyers rely on their extensive knowledge of case law precedents and debt statutes to build strong legal arguments on clients’ behalf.

Unconscionability Defense Against Unfair Contracts

If an agreement is deemed by a court to be unconscionable due to unjustly one-sided or overly harsh terms that take advantage of a weaker party, it may be considered unenforceable.

  • Argue unrealistic repayment terms are designed to trap businesses in perpetual debt cycles
  • Challenge confession of judgment clauses allowing immediate asset seizure without notice
  • Dispute personal guarantee stipulations holding owners liable for business obligations

Usury Violations When Rates Exceed Legal Limits

Though MCAs skirt state lending laws through technical structure, their effective annualized interest rates often far exceed statutory maximums.

  • New York caps rates at 16% – a $50,000 MCA repaid at 1.5x would equal an APR of 94%
  • California laws prohibit rates over 10% – a 2x payback doubles effective interest
  • Violations of usury statutes can nullify loan obligations
See also  Albuquerque MCA Defense Lawyers Business Debt Relief


Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
$350,000 MCA Restructured Over 2 Years

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