IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.
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Utah MCA Defense Lawyers Business Debt Relief
Small business owners in Utah facing legal issues with merchant cash advances (MCAs) have options. Our financial and legal experts at Delancey Street can provide customized debt relief plans to help settle, restructure or defend against predatory MCA loans.
Understanding Merchant Cash Advances
A merchant cash advance (MCA) provides quick financing based on a business’s expected future credit card sales. MCA providers give a lump sum payment upfront in exchange for taking a percentage of daily credit card sales over a set period of time.
- Fast Approval – MCAs market quick and easy financing since they don’t require a credit check or collateral
- Expensive Financing – Interest rates often exceed 50% APR and have unlimited upside
- Opaque Terms – Actual costs are often unclear with hidden fees and gotcha clauses
While MCAs provide fast financing, the terms are often predatory targeting desperate small business owners. Our financial experts can help Utah business owners understand their MCA contracts and explore alternative financing options.
Challenging Abusive MCA Tactics
Some MCA providers use deceptive and abusive tactics that cross legal lines:
- Misrepresenting Financing Costs – Failing to properly disclose interest rates and fees
- Strong-arm Collections – Illegally accessing bank accounts or making physical threats
- Faulty Contract Terms – Using confusing language and undefined variables that maximize lender profits
If an MCA provider used illegal or deceptive tactics, our network of attorneys can help business owners explore their legal options to fight back.
MCA Legal Defense Options
Utah small business owners have a number of potential legal claims if they were victims of MCA fraud or abuse:
Usury Defenses
- Claim: Interest rates exceed state usury caps
- Reality: Utah has no interest rate caps for commercial loans
While usury claims won’t work in Utah, high interest rates can demonstrate MCA providers knowingly targeting desperate small businesses.
Unconscionability
- Claim: MCA contract terms are unfairly one-sided
- Reality: Difficult argument that requires showing significant bargaining power imbalance
Arguing the entire MCA contract is invalid is an uphill battle. But individual contract clauses may be unconscionable.
Fraudulent Inducement
- Claim: MCA provider misled the borrower on key terms
- Reality: Requires showing intentional deception about costs or obligations
Fraud claims require clear evidence the MCA provider knowingly lied or obscured key financing terms.
RICO Violations
- Claim: MCA business model constitutes racketeering
- Reality: Tough to prove coordinated criminal enterprise across industry
While rising, RICO claims face a heavy legal burden. But they put pressure on shady MCA tactics.
Customized Debt Relief
Every small business faces unique challenges, so Delancey Street provides customized debt relief plans. Our experts take a three step approach:
- Review Finances – We thoroughly analyze a business’s assets, debts and cash flow.
- Assess Options – We consider different strategies including negotiating, restructuring and legal action.
- Execute Plan – We quarterback implementing the tailored debt relief plan.
Throughout the process business owners are assigned a dedicated specialist to answer questions and provide support.Delancey Street works on clients’ behalf to get financing terms that work for their business. We have experience finding solutions for small businesses facing legal issues with merchant cash advances and other commercial financing loans.
About Delancey Street Partners
Delancey Street LogoDelancey Street is a financial advisory firm specializing in helping small business owners achieve financial freedom. We take a personalized approach in supporting clients facing issues with business debt.
- We are NOT a law firm, but work closely with a nationwide network of lawyers
- Phone: (212) 210-1851
- Location: New York NY
Our mission is to equip entrepreneurs with the tools and guidance needed to build businesses aligned with their personal values. We believe focusing on financial fundamentals empowers business leaders to make smart decisions that benefit their companies, employees and communities.
Final Thoughts
Navigating legal issues around merchant cash advances and other small business loans can be overwhelming. The attorneys and financial experts at Delancey Street develop personalized debt relief plans that make sense for each client’s unique situation.We understand the challenges Utah small business owners face and have experience defending against abusive MCA tactics. If an MCA provider has acted illegally or taken advantage of confusing contract terms, we can help explore options to fight back.No business owner should feel alone when dealing with predatory lenders. Let our team of advisors take the stress out of your debt situation so you can get back to growth. Reach out anytime to get started with a free consultation.
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IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.
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