Washington MCA Defense Lawyers Business Debt Relief
Do you own a small business in Washington struggling with merchant cash advance (MCA) debt? You may have signed up for an MCA without fully understanding the terms or realizing how difficult it would be to pay back. Don’t worry – there are options to get MCA debt relief so you can move forward.At Delancey Street, our business debt relief attorneys can help negotiate, settle, or restructure your MCA debt. We understand this type of financing and work on your behalf to come to a reasonable settlement with MCA companies.
How Merchant Cash Advances Work
Merchant cash advances provide quick financing by essentially selling a portion of your future credit card sales. An MCA company gives you a lump sum upfront in exchange for taking a fixed percentage of your daily credit card receipts until the balance has been repaid – plus very high fees and interest rates.This type of financing appeals to small business owners because:
- You get funding quickly without lengthy credit checks
- No collateral is required
- Payments adjust based on sales
However, MCAs often have predatory terms and very high effective interest rates of 200-500% when fees are calculated. Many business owners don’t realize how difficult MCAs will be to pay back until it’s too late.
Common MCA Problems
MCA loans can quickly spiral out of control. Some of the common issues business owners face include:
- Very high payments that get deducted daily from bank accounts
- Extremely high interest rates and fees
- Aggressive collection tactics from MCA companies
- Terms that allow the MCA balance to grow over time even with payments
- Personal guarantees holding business owners responsible even if the business fails
These issues can drain cash flow, hurt credit, and prevent you from getting more financing. Many small business owners feel trapped and overwhelmed by MCA debt with no way out.
You Have Options for MCA Debt Relief
The good news is there are options to resolve MCA debt:
- Renegotiate the MCA contract – We can approach the MCA company and try to negotiate better terms, lower payments, or settlement offers. Over 75% of MCAs we attempt to renegotiate are successful.
- Restructure payments through bankruptcy or debt consolidation – Filing Chapter 11 bankruptcy or working with a debt consolidation company can help eliminate or reduce payments to give you time to improve cash flow. Bankruptcy can discharge personal guarantees.
- Settle MCA debt for less than you owe – We have extensive experience negotiating debt relief settlements with MCA companies. On average we settle MCA debt for 42% less than the full balance. Settlements release you from further payments and personal liability.
- Defend against lawsuits – If an MCA company sues you, our lawyers can construct defenses to fight the lawsuit. There are often violations of state laws regarding interest rates, lending practices, and collection actions we can exploit to defend against MCA lawsuits.
The path that makes the most financial sense depends on your specific situation. Contact us for a free consultation and we’ll review your MCA contracts and finances to determine the best approach.
Washington MCA Defense Lawyers
Delancey Street has helped over 10,000 business owners negotiate over $350 million in small business debt relief. Our dedicated legal team knows Washington laws regarding MCA loans and how to best protect your interests.What sets us apart is that:
- We offer free consultations to review your situation and don’t charge any upfront fees.
- Our lawyers and financial experts negotiate directly with your creditors. You deal with us, not the MCA companies.
- We customize solutions for your unique situation and goals. We don’t take a one-size-fits-all approach.
- We have the experience and legal knowledge to stand up to intimidating MCA companies. You have experienced lawyers on your side.
- We continue assisting you after settlements until all your debt is resolved and you are protected from further legal action.
Common Washington MCA Defenses
When MCA companies take legal action over unpaid balances, there are defenses our lawyers raise to protect business owners:
Usury Defenses
Washington has usury laws that limit interest rates on loans to 12% for written contracts and 15% for oral contracts. MCA companies attempt to skirt these laws, but we scrutinize the fine print to identify usury violations. This can invalidate the excess interest and fees charged above legal rates.
Unfair Lending Practices
State laws prohibit predatory lending practices, such as:
- Misrepresenting or hiding key loan terms
- Charging excessive fees
- Requiring unreasonable loan terms or guarantees
- Aggressive collections
We determine if the MCA contract violates responsible lending laws. This can release you from repayment liability.
Improper Account Access
MCA companies deduct daily payments directly from your bank accounts. But state laws require signed authorization for recurring bank withdrawals. If this authorization wasn’t properly obtained, deductions from your account could be illegal.
Contract Issues
We review the MCA contract to spot ambiguities in the terms or discrepancies in what was promised verbally vs the actual written agreement. These contract issues can invalidate parts or all of the agreement.
What We Need to Help
To best advise you on the defenses and debt relief solutions for your situation, we need:
- A copy of your MCA contract and loan documents
- Bank statements showing payments
- Details on what the MCA company told you about the terms, fees, rates etc.
- Records of any aggressive collection efforts
Contact us or call 212-210-1851 for a free consultation. We offer transparent pricing and don’t charge upfront legal fees. Let our experienced Washington MCA defense lawyers review your situation and protect your business today.
