IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.

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MCA Defense Lawyers Provide Expert Guidance on Business Debt Relief

Getting behind on business debts can feel overwhelming and scary. Between merchant cash advances (MCAs), loans, lines of credit, and other financial obligations, it’s easy for companies to accumulate more debt than they can reasonably manage. If you’re struggling with business debt, know that you have options – and the expert MCA defense lawyers at Delancey Street are here to help.

Understanding the Complex Web of Business Debt

For many companies, debt is simply a necessary part of doing business. Very few organizations can launch and scale without utilizing some form of financing, whether that’s business loans, merchant cash advances, investor money, or even credit cards. However, debt can quickly spiral out of control if not managed properly.Some of the most common sources of business debt include:

• Merchant Cash Advances (MCAs) – MCAs provide businesses with quick access to capital in exchange for a percentage of future sales. While fast and convenient, MCAs typically charge very high effective interest rates.
• Business Loans – Traditional term loans and lines of credit from banks also come with interest, fees, and strict repayment schedules.
• Credit Cards – Putting business expenses on credit cards seems harmless at first but can lead to high interest charges down the road.
• Outstanding Invoices – If clients and customers don’t pay their invoices on time, you may struggle to cover expenses for inventory, payroll, rent, etc.
• Penalties & Fees – Late payments often trigger fees and penalties that add insult to injury.

Juggling all these debts while trying to operate a profitable business is extremely difficult. For many companies, it eventually leads to insolvency, bankruptcy, or closing down entirely.

How MCA Defense Lawyers Can Help

If your business is facing mounting debts that feel impossible to repay, the expert MCA defense lawyers at Delancey Street can help. We have decades of combined experience representing business owners from all industries and guiding them through the complex process of debt relief.Some of the ways we can help with business debt include:

1. Reviewing All Debts Owed

First, we’ll conduct an in-depth review of your business finances to gain clarity on the full scope of debts owed. This allows us to provide specific advice tailored to your unique situation.

2. Negotiating with Creditors

Next, we’ll open negotiations with your creditors – whether that’s banks, MCA funders, credit card companies, vendors, or other lenders. Our goal is to reduce balances owed, lower interest rates, waive fees, and create debt relief solutions that work for both you and the creditor.

3. Defending Against Lawsuits

If any creditors have already filed lawsuits or intend to sue your business for breach of contract, we can provide legal defense. Our top defense lawyers know how to contest questionable loan agreements and predatory MCA deals.

4. Exploring Debt Consolidation Options

In some cases, consolidating multiple debts into one single payment each month can provide relief. This involves taking out a new consolidation loan to pay off existing balances. We can advise if this path makes sense and help secure favorable loan terms.

5. Navigating Bankruptcy if Necessary

While always a last resort, declaring business bankruptcy can eliminate debt burdens entirely and allow you to start fresh. Our legal team helps businesses file for Chapter 7 or Chapter 11 bankruptcy while protecting your remaining assets as much as possible.The key is exploring all options across this spectrum of debt relief solutions to find the approach that best serves your company’s financial situation. Every business is unique, which is why our advice is tailored specifically to you.

What Makes MCAs Particularly Risky?

One especially tricky form of business financing that often leads companies into distress are merchant cash advances (MCAs). While MCAs provide quick access to capital in a pinch, they come with some severe downsides that business owners must understand upfront:

Deceptively High Cost

• MCA providers charge very high effective interest rates – often between 60-200% APR when calculated accurately.
• These excessive rates are rarely disclosed upfront.
• Companies don’t realize how much the MCA will actually cost over time.

Daily Repayment Requirement

• MCAs deduct a fixed percentage of daily credit card and debit card sales from your bank account every day.
• There is NO fixed monthly payment, grace periods, or flexibility.
• This structure leaves you vulnerable to repayment issues if sales drop.

Vague Contract Terms

• MCA agreements use confusing terminology and rarely explain key terms.
• You may not realize certain fees, penalties, rate hikes, or other “gotchas” buried in the fine print.

Potential Lawsuits

• Failure to meet the daily repayment requirement often triggers swift legal action.
• MCA providers sue for breach of contract even when there is no legitimate basis.
• Defending against lawsuits takes time, money, and legal expertise.

Our expert MCA defense lawyers thoroughly understand these risks and use our knowledge to protect business owners.

MCA Defense: Contesting Frivolous Lawsuits

A major component of MCA debt relief is defending against lawsuits for breach of contract. Unfortunately, many MCA providers file lawsuits even when there is no legitimate basis – simply as a bullying tactic to get paid faster.Our top MCA defense lawyers leverage our deep expertise to contest questionable lawsuits and expose unethical behavior. We also utilize the following key legal defenses:

Unconscionability

• If an MCA agreement contains unfair, deceptive, or grossly one-sided terms, we can argue it is an “unconscionable contract” that should not be enforced.

Breach of Covenant of Good Faith

• All contracts require parties to deal honestly and ethically with each other in “good faith.” However, many MCA providers clearly violate this covenant through predatory behavior.

Fraud & Misrepresentation

• When MCA companies intentionally mislead businesses about costs, consequences of default, or other key terms, we can counter-sue for fraud.

Statute of Limitations Expired

• Debt collection lawsuits must be filed within a certain number of years as defined by Arizona law. If that statute of limitations has expired, we can get the lawsuit dismissed immediately.

The bottom line is that you have rights as a business owner – even when facing extreme financial hardship. Our top MCA defense lawyers uphold those rights and fight predatory behavior at every turn.

What Should You Do If Facing Business Debt?

If you relate to the business debt challenges described in this article, please know that Delancey Street can help. Our entire purpose is guiding companies toward financial stability and continued operations – no matter how bleak the current circumstances may seem.As a first step, schedule a free consultation with our experts to discuss your specific situation. We’ll provide an honest assessment and outline potential paths forward to resolve debts.In addition to debt relief guidance, we may uncover other ways to strengthen your finances over time – such as improving cash flow, renegotiating leases, or cutting unnecessary costs. Our comprehensive approach leaves no stone unturned when it comes to stabilizing small businesses.You deserve to operate your company without the constant stress of unmanageable debt hanging over your head each day. By leveraging our services, you can resolve financial burdens systematically so you can get back to growth. Reach out today to start the conversation.

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IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.

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