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MCA Defense Lawyers Can Help With Business Debt Relief

As a business owner struggling with debt, you may feel overwhelmed and unsure where to turn. Merchant cash advance (MCA) loans can offer quick money but also come with high fees and aggressive collection tactics that exacerbate financial issues. The good news is that experienced attorneys can help business owners in these situations by providing defense against MCA lenders and guiding them through the debt relief process.

How MCA Loans Work And Why They Can Be Problematic

Merchant cash advance loans provide businesses with quick access to capital based on a percentage of future credit card and debit card sales. Rather than a traditional loan, the MCA company purchases a share of the business’s future receivables at a discount. This means they will collect daily or weekly payments until the balance has been repaid – often within just a few months.While fast and easy to obtain, MCA loans charge very high effective interest rates ranging from 40% up to 350% APR. They also use aggressive collection tactics that can severely impact cash flow if payments fall behind. Many business owners report harassment, threats of violence, lawsuits and even illegal debt collection practices when struggling to keep up with payments.

Common MCA Lender Abuses And How A Defense Attorney Can Help

Unfortunately, predatory behavior and outright illegal practices are common among MCA lenders. An experienced attorney can help protect business owners by:

• Identifying abusive loan terms – MCA contracts often contain hidden fees, deceptively high rates, and other predatory terms that violate state laws. Your lawyer can review the agreement and fight to have unfair or unlawful provisions invalidated.
• Forcing adherence to debt collection laws – MCA lenders frequently ignore consumer protection laws regarding harassment, threats, calling times/frequencies and other abuses. Your attorney can put an immediate stop to this illegal behavior.
• Challenging improper loan stacking – A predatory tactic where multiple MCA loans are stacked on top of each other, burying the business owner in debt they have no hope of paying off. Your lawyer can fight stacking and have loans invalidated.
• Freezing interest and payments – Courts have power to freeze interest and payments on predatory MCA loans to provide struggling businesses temporary relief. Your attorney can request this protection while disputing the debt.
• Filing counterclaims for damages – Businesses can sue MCA lenders over illegal lending and collection practices. Your lawyer can file countersuits and demand monetary judgements against the MCA company.
• Negotiating settlements – Experienced lawyers know how to bring pressure to force predatory lenders to the negotiating table. They can often negotiate deals that relieve much of the burden of MCA debt.

How A Business Debt Relief Lawyer Can Help Resolve Financial Issues

Beyond defending against MCA lender harassment and attacks, a skilled business debt relief attorney can provide critical advice and support to resolve overall financial issues. This includes:

Reviewing All Business Debts

• Meet with attorney to create full accounting of money owed – not just MCA loans but lines of credit, equipment leases, payroll taxes, personal guarantees, etc.
• Attorney helps develop comprehensive view of business finances and debt obligations.
• With attorney overview can identify most urgent issues and realistic paths towards stability.

Evaluating Bankruptcy Protection

• Attorney explores if Chapter 7 or Chapter 11 bankruptcy is appropriate.
• Chapter 7 liquidation stops collections and wipes eligible debt slates clean.
• Chapter 11 reorganization allows repayment plans customized to business.
• Protects critical assets and helps avoid complete business failure.

Securing Temporary Protections

• Attorney seeks emergency court orders granting temporary halt to all collections.
• Buys business owner critical time to get finances in order.
• Prevents asset seizure, penalties, loan defaults while developing long-term resolutions.

Negotiating With Creditors

• Attorney leverages legal tools to bring creditors to negotiation table.
• Debt reduction, waived fees/penalties, extended repayment terms, interest rate reductions.
• Settles debts in manageable way, helps business return to profitability.

Restructuring Finances For Future Stability

• Attorney advises best practices on accounting, cash flow, profitability going forward.
• Helps restructure agreements with vendors, suppliers, contractors.
• Position business for sustainable success after debt crisis passes.

With the harassment from MCA lenders making matters worse for your struggling business, the situation may feel hopeless. But an experienced attorney can provide critical defenses along with the advice and support needed to resolve debts and regain financial stability. Don’t wait – contact our office today for a free consultation, and we’ll start protecting your business immediately.

Frequently Asked Questions

Still have questions about MCA loans and business debt relief? Here are answers to some of the most common queries we receive.

How soon after I contact your law office can you start helping protect my business?

We understand that time is of the essence when MCA lenders are aggressively pursuing debts. That’s why we strive to take immediate action for clients who engage our services. In most cases we can send cease and desist orders to stop harassment within one business day. We can also promptly serve notice we now officially represent you in debt disputes, which requires them to direct all further communications through our office.

What kind of success have you had negotiating MCA debt settlements for struggling small businesses?

Every case has unique circumstances, but we have extensive experience bringing MCA lenders to the table and negotiating reduced payoffs. For example, we recently settled $97,000 in MCA debt for a client by having 75% of interest and fees waived, a longer repayment term, and principal reduction to $27,000. That translated to over $70,000 in savings for our client.

My business is struggling not just with MCA loans but other debts as well. How can you help resolve all my financial issues?

Our attorneys take a comprehensive approach in these situations, reviewing your complete debt load and contracts to identify the optimal strategies across the board. This includes coordinating resolutions across multiple creditors, protecting your most valued assets, securing temporary legal reliefs, and exploring the costs/benefits of bankruptcy if warranted. We become your central resource for navigating the financial crisis and emerging with the best outcome.

I took some questionable actions trying to get an MCA lender off my back. Could that hurt my ability to get legal help?

Not at all. Desperate business owners in your situation sometimes make questionable decisions due to the incredible stress and harassment. The predatory lenders are still fully culpable for their own abusive and illegal tactics. Be upfront with your attorney about your actions and thought process. We can deal with any resulting complications while keeping the focus on the lender misconduct driving this matter.Still not sure if our services are right for your situation? Contact our office today to schedule a free, no obligation consultation. We will evaluate your situation, answer any lingering questions, and let you know the best options for protecting your business.

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