Boston MCA Defense Lawyers Business Debt Relief
If you run a small business in Boston, chances are you’ve taken out a merchant cash advance (MCA) or some other form of alternative business financing to help cover costs. But if your business has struggled to pay back the advance as expected, you may now be facing aggressive collection tactics from the MCA provider. Don‘t panic – there are options available to protect your business.
How We Can Help
Our firm helps business owners fight back against predatory MCA lenders. We have extensive experience dealing with MCA agreements and representing clients in MCA-related disputes. We can help you:
- Negotiate a settlement or restructuring of the debt
- Assert defenses to avoid paying some or all of the debt
- Sue the MCA provider for violations of lending laws
- File bankruptcy to eliminate the MCA debt entirely
If you have received aggressive calls or threats of legal action from an MCA provider, contact our office immediately to discuss your options. We offer free consultations, so there‘s no risk in reaching out.
Common MCA Abuses We See
Merchant cash advance loans seem straightforward at first – you receive an upfront lump sum of cash in exchange for agreeing to pay back a percentage of your future credit card sales. But many MCA agreements contain abusive terms that make them almost impossible to repay, like:
- Exorbitantly high effective interest rates over 100% APR
- Overestimates of future credit card sales used to calculate payback amounts
- Very short payback periods of under one year
- Daily repayments that drain cash flow
- Confessions of judgement that allow the lender to seize assets without notice
These terms may violate state lending laws regarding allowable interest rates and repayment terms. Our attorneys can analyze your MCA contract to identify potential violations.
Legal and Settlement Options
If you have fallen behind on MCA payments, the provider will likely use aggressive tactics like harassing calls, lawsuits, and threats to collect. But there are a number of legal options that could eliminate some or all of the debt:
Breach of Contract Claim
If the MCA provider has violated any portion of the agreement, you may be able to sue for breach of contract. Common violations include failure to provide the agreed upon lump sum or attempts to collect more than the allowed percentage of sales.
Usury Defense
If the effective interest rate on the MCA exceeds your state’s legal limit, you may be able to assert a usury defense to avoid paying interest fees above the cap.
Unfair and Deceptive Practices Lawsuit
If the MCA provider used any false or misleading information when marketing or administering the agreement, you could potentially sue under state consumer protection laws.
Settlement
We can negotiate with the MCA lender to reduce the amount owed or restructure repayment terms. Many providers would rather take a smaller lump sum payment upfront than engage in a lengthy legal battle.
Bankruptcy
Filing for Chapter 7 or Chapter 11 bankruptcy may allow you to discharge part or all of the MCA debt. Bankruptcy also halts all collection activity against your business.
Why Work With Us
Navigating MCA litigation and debt relief options is complex. Our attorneys have the specific experience needed to effectively fight back against predatory lenders. We custom-tailor a defense strategy to the unique circumstances of your case. And we work on a contingency fee basis, meaning no upfront costs – we only get paid if you win or settle your case.
Contact our Boston office today to schedule a free consultation with an attorney. Get the leverage you need against aggressive MCA collectors.
Frequently Asked Questions
*What types of alternative business financing are considered MCAs?*MCA stands for “merchant cash advance.” Other common names for similar products include business cash advances (BCAs), business loans, invoice factoring, and revenue-based financing. They all operate on the same basic model of providing a lump sum upfront in exchange for a share of future sales.
What laws typically govern MCA agreements?
MCAs fall into a gray area between traditional bank loans and purchase transactions. Key laws that provide protections include:
- Usury laws capping maximum allowable interest rates
- State lending and consumer protection statutes
- Federal Truth in Lending Act requirements
- Uniform Commercial Code provisions regarding sales of future receivables
About Our Firm
Our firm‘s mission is to level the playing field between small businesses and financial institutions. We handle complex business litigation and negotiations all over New England. Our attorneys have recovered millions of dollars for clients by fighting back against banks, creditors, and lenders.In addition to MCA defense, we can assist with:
- Breach of contract claims
- Commercial lease disputes
- Business torts
- Credit reporting errors
- Debt collection harassment
We have offices located in Boston, Providence, Hartford, and Portland. Wherever you are located, our attorneys are ready to help protect your business interests. Contact us today to schedule a free case review.
