Chat with us, powered by LiveChat



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 defense may be needed.

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 a loan, so MCA companies can bypass state laws capping interest rates. However, when the fees and payback terms are calculated, the equivalent annual percentage rate is usually well over 100%.While MCAs provide fast money with minimal eligibility requirements, they come at an extremely high long-term cost compared to traditional small business loans. Their complex terms also make them difficult to pay off, especially for businesses with fluctuating cash flow. Thousands of small business owners have found themselves trapped in expensive and never-ending MCA debt cycles.

Legal Tactics Used By MCA Companies

Merchant cash advance companies utilize aggressive tactics to collect payments under MCA agreements. Two legal tools commonly used against small business owners are confessions of judgment and UCC filings.

  • Confessions of judgment are signed documents admitting liability and allowing the MCA company to obtain a judgment without notice or a hearing. This immediately places them first in line to seize assets or bank accounts.
  • UCC filings give MCA companies a security interest in business assets. This can also allow them to freeze bank accounts.

While these measures are legally valid, MCA companies exploit them in unethical ways. They may file blanket UCC claims over all assets, leave confessions of judgment undated for later use, or rush to file as soon as a single payment is late.

Unique Legal Challenges Of MCA Debt

The predatory nature of merchant cash advances creates unique legal challenges when attempting to contest or reduce associated debts. Some key issues include:

  • Lack of Usury Protections – Since MCAs are not classified as loans, usury laws capping interest rates generally do not apply. This allows for exorbitant equivalent APRs.
  • Aggressive Collections – The signed confession of judgment and UCC give MCA companies powerful collections tools to immediately seize assets.
  • Oppressive Terms – The terms of MCA agreements often contain language perceived as oppressive, unjust, or overreaching when reviewed by a court.
See also  Atlanta MCA Defense Lawyers Business Debt Relief

Given the landscape, defending against an MCA company’s collection efforts or legal action requires an experienced attorney. Coping with MCA debt while continuing to run your business is extremely difficult without proper legal guidance.

Why Specialized MCA Defense Attorneys Are Critical

Very few attorneys fully grasp the intricacies of MCA financing agreements. Merchant cash advance documents contain specialized terminology and clauses that general practice lawyers are not familiar with.MCA defense requires an attorney well-versed in areas like:

  • Contract law – Identifying oppressive terms and arguing against contract enforcement
  • UCC law – Challenging blanket UCC filings and security interests
  • Debt collection laws – Halting unlawful collections practices
  • Bankruptcy law – Using Chapter 11 and Chapter 7 to discharge debts

Our legal team includes lawyers dedicated specifically to defending clients against MCA companies. We thoroughly understand their agreements, collections tactics, and interactions with courts – and how to fight back effectively.

An Empathetic Approach to Protecting Client Interests

Dealing with aggressive MCA collectors while struggling financially puts extreme emotional strain on small business owners. On top of fighting legal battles, our clientele also carries feelings of anger and frustration. They rightfully feel taken advantage of and trapped in a predatory system.We make a point of acknowledging these real human impacts instead of treating cases as strictly financial and legal matters. Our lawyers approach every client with empathy, compassion, and a commitment to advocating strongly in support of their best interests. Emotional and moral support is provided in tandem with expert legal counsel.

Services Offered by Our MCA Defense Firm

We assist small business owners with all aspects of navigating, defending against, and finding relief from MCA debt collection. Services include:

Negotiating with MCA Companies

  • Reviewing and disputing unjust contract terms
  • Renegotiating payoff amounts and payment plans
  • Freezing collections during disputes
  • Avoiding litigation with structured settlements

Defending Against MCA Lawsuits

  • Responding to lawsuits and opposing requests
  • Challenging court filings like confessions of judgment
  • Defending against seizures of accounts and assets
  • Disputing debts with strong legal arguments
See also  10 Questions to Ask Business Debt Settlement Companies

Structuring Formal Debt Relief

  • Arranging structured settlements
  • Filing Chapter 11 reorganization bankruptcy
  • Filing Chapter 7 liquidation bankruptcy
  • Shielding personal assets from business liability

We recognize no two clients have identical situations. Our attorneys personalize solutions and legal strategies to suit your unique business needs. This includes taking an aggressive or cooperative posture with MCA companies depending on circumstances.

Why Delancey Street Lawyers Are Uniquely Qualified for MCA Defense

We have a proven track record of delivering results for small business clients battling MCA debt using our comprehensive legal services.

  • We have defended dozens of business clients against 4 separate MCA companies over our firm’s history. Our lawyers have extensive firsthand experience disputing their contracts, opposing their lawsuits, and even discharging their debts in bankruptcy court.
  • Our firm includes attorneys certified as specialists in key legal practice areas relevant to MCA debt cases. We have specialists in creditors’ rights law, bankruptcy law, UCC law, contract law, and business litigation – all crucial to mounting a strong MCA defense.
  • We operate on a contingency fee structure for many MCA defense cases, only collecting if money is saved or debts discharged. This incentivizes maximum effort on our clients’ behalf to produce satisfactory outcomes.
  • Our client reviews show numerous small business owners grateful for our work resolving or eliminating their MCA debts through settlements or bankruptcy discharge. We have many long-term relationships with clients needing ongoing guidance handling MCA companies.

If you own a California business struggling with seemingly inescapable MCA debt, Delancey Street Lawyers has the specialized legal experience to protect your interests. Our combination of comprehensive legal services, relevant expertise, and client-focused approach provides a dependable path to relief.

How the Initial Consultation Process Works

We begin assisting new clients by conducting a free initial consultation. This serves to:

  • Gather key background details on your business finances and MCA agreement history
  • Assess the full scope of debts currently owed to MCA companies
  • Identify the most urgent legal priorities based on your situation
  • Provide guidance on next steps for beginning our formal engagement

We realize asking for help with MCA debts is difficult. Our intake process makes starting the conversation simple and pressure-free. Schedule a free consultation today to explore customized solutions for your business:<a href=””></a>

Defending Clients Against the Most Notorious MCA Companies

Over years helping small business owners cope with MCA agreements gone wrong, several companies in particular stand out for especially predatory and aggressive behavior. We have extensive experience opposing the following notorious firms in court and negotiating with their executives directly.

See also  Alabama MCA Defense Lawyers Business Debt Relief

Yellowstone Capital – “The Loan Sharks of the Merchant Cash Advance Industry”

Yellowstone Capital tops industry lists for predatory lending practices and collections complaints year after year. They present eager business owners with enticingly simple MCA applications but bury pages of complex terms exploited later. Once payments fall behind, they rush to exercise confessed judgments and UCC filings without notice.We have repeatedly proven Yellowstone’s agreements contain grossly unjust terms that are ultimately unenforceable. Their confessed judgments also fail to meet proper procedural standards. Outright discharging their debts in bankruptcy is another common outcome for our clients.

Pearl Delta Funding – “Deceptive Practices Hiding Behind Legal Technicalities”

Pearl Delta Funding entices customers by advertising “no hidden fees.” However, their MCA agreements contain manipulated APR calculations downplaying astronomical interest charges. Like Yellowstone, they also utilize pre-signed confessions of judgment and file blanket UCC claims over all business assets.Working on behalf of client business owners, our lawyers have consistently defeated Pearl Delta’s legal filings due to procedural flaws and unethical business practices. We leverage their deception and contractual overreach to argue against enforcement. Their debts also qualify for discharge in many bankruptcy cases we have filed.

Advance Business Capital – “Ruthless Debt Collectors Disguised As Lenders”

Advance Business Capital stands out even among other MCA firms for overly aggressive collections tactics. Despite marketing themselves as “flexible funding partners,” at the first sign of late payment they barrage business owners with threats rather than attempting to work cooperatively.In several cases, our lawyers have proven Advance Business Capital made unlawful misrepresentations to clients about repayment terms and interest calculations. Their actual contracts bear little resemblance to advertised offers. We have also halted their abusive collections practices through formal complaints.These companies exemplify why struggling with MCA debt often necessitates legal help from specialists experienced handling their specific tactics. Our firm has that extensive experience. We know their playbooks inside and out – and how to beat them at their own game.




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

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
Connecticut Debt Relief Lawyers

Dealing with overwhelming debt can be a daunting and stressful…

Connecticut Timeshare debt relief lawyers

In today’s fast-paced world, timeshare ownership has become a popular…

Connecticut Medical Debt relief Lawyers

Medical debt is a growing concern for many Americans, and…

Connecticut Student Debt Relief Lawyers

Student debt has become a significant burden for many individuals…

Connecticut Debt Consolidation

Debt can be a heavy burden to bear, especially when…

Delancey Street simply gets it. You're talking to experts.
Steven Norris
Get Help Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Schedule Consultation