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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 an upfront lump sum to a business in exchange for a percentage of future credit card sales over a defined period of time. This differs from a traditional small business loan in several key ways:

  • There is no set repayment schedule. The amount due fluctuates based on sales volume.
  • Rates and fees are very high, often exceeding 100% APR when calculated as interest.
  • MCA agreements allow the funder to access business bank accounts directly to withdraw payments.

While fast funding makes MCAs enticing, their flexible structure means costs can quickly spiral out of control. Vague contract language also leaves room for abuse from predatory funders.Aggressive collections through daily bank withdrawals, freezing accounts, or lawsuits are common. Businesses can suddenly face severe cash flow issues or even bankruptcy.

Specialized Legal Defenses Against Abusive MCA Tactics

Fighting back against MCA creditor harassment and excessive debt requires a strategic legal approach. Our team of business finance attorneys has extensive experience defending clients against MCA lenders in court.We utilize targeted defenses to protect our clients, such as:

  • Challenging breach of contract claims – Many MCA agreements contain unenforceable or illegal provisions we can invalidate.
  • Contesting interest rates as usurious – Interest exceeding 25% APR is illegal in many states and can nullify an entire agreement.
  • Arguing for unconsicionability – Predatory or misleading contract terms may be ruled unenforceable.
  • Filing lender liability claims – Creditors utilizing deceptive or abusive lending practices can be sued for damages.
See also  Alabama MCA Defense Lawyers Business Debt Relief

Negotiating Reasonable MCA Settlements

Litigation is always a last resort. Our lawyers first work to negotiate fair MCA settlements through mediation.Potential strategies include:

  • Instituting affordable payment plans based on ability to repay.
  • Settling debt for pennies on the dollar.
  • Structuring installment agreements to pay off balances over time.
  • Securing formal release of future liability once repaid.

Outcomes are tailored to each client’s financial situation. The goal is reducing or eliminating burdensome debt so businesses can recover.

What Sets Us Apart as MCA Defense Attorneys

As both legal and finance experts, our lawyers comprehend the intricacies of MCA agreements. We utilize this specialized knowledge to best protect our clients.Our firm offers significant advantages compared to general practice attorneys:

  • Industry experience – We’ve handled hundreds of MCA cases with proven strategies. Local lawyers rarely grasp the complexity these agreements or relevant defenses.
  • Business sensibility – We understand cash flow, profit margins, and other critical financial drivers. Our solutions account for operational realities to avoid added hardship.
  • Fixed-fee services – By specializing in MCA debt cases, we offer flat-rate pricing models that are cost effective for struggling businesses.
  • Personalized guidance – Each case receives customized counsel and negotiation based on the client’s unique situation.

What to Expect During the MCA Debt Relief Process

Here is an overview of what typically occurs when partnering with our MCA defense firm:

1. Initial Consultation

The process starts with an in-depth review of your:

  • MCA agreement terms
  • Interactions with the funder
  • Payment history and withdrawals
  • Overall financial health of your business
See also  Arizona MCA Defense Lawyers Business Debt Relief

This allows us to provide specific advice tailored to your unique situation.

2. Document Review and Defense Strategy

Next we thoroughly examine the MCA contract and related paperwork to identify potential violations and build a targeted legal defense.

3. Negotiation and Settlement

Leveraging our defenses and expertise, we first seek to negotiate reasonable MCA settlement terms favoring the client.

4. Litigation if Necessary

If the funder refuses to cooperate, we have the experience to defeat their claims in court to invalidate the debt contract.Throughout the process we provide updates and easily understandable explanations. Our lawyers take care of the details so you can focus on operating your business.

Make the Smart Choice for Business Debt Relief

If an MCA has your finances tied up in knots, our dedicated legal team can help cut you loose. We offer affordable, fixed-rate services and a track record of success against even the most aggressive funders.Set up a free consultation to discuss your situation in depth. Our lawyers utilize a common sense, business-minded approach to ease cash flow pressures while protecting your assets. With customized strategies built around your needs, we can overcome abusive MCA agreements and get your company back on steady footing.

Frequently Asked Questions

Still have some questions? Here are answers to some of the common issues that come up regarding MCA debt relief.

Should I just file for bankruptcy?

Bankruptcy can stop collections and discharge debt, but also comes with significant downsides for a business. There are less drastic options we typically recommend first, like negotiated settlements. Bankruptcy can always be a last resort if needed.

See also  Atlanta MCA Defense Lawyers Business Debt Relief

What if I can’t afford a lawyer right now?

We understand money is already tight, so offer fixed-fee services and reasonable payment plans. Investing in the right legal protections now can save far more financial pain down the road.

How long will this process take?

Each case is different, but most settlements or litigation take 2-3 months to conclude. Simple agreements may resolve faster, while complex contracts can take longer. We strive to secure relief ASAP while being thorough.

What can I do if the MCA won’t negotiate?

As experienced litigators, we don’t hesitate to take non-cooperative funders to court to invalidate contracts and stop collections. We have the expertise and defenses to win judgments favoring clients.

Are there strategies to discharge MCA debt in bankruptcy?

Yes, bankruptcy can eliminate MCA obligations depending on contract specifics. Our finance background helps identify dischargeable vs non-dischargeable debt. We can advise if bankruptcy is a viable option.

The Bottom Line

Fighting back against MCA harassment and crushing debt is essential to protect your business. Our legal team has the specialized experience and strategic approach to go toe-to-toe with predatory funders.We offer practical solutions tailored to your unique situation. Contact us for a free consultation and start reclaiming control of your company’s finances.



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.

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