MCA Defense Lawyers Can Help With Business Debt Relief

As a business owner struggling with merchant cash advance (MCA) debt, you may feel overwhelmed and unsure where to turn. MCA loans can quickly spiral out of control, leaving you facing aggressive collection calls, threats of litigation, and even potential bankruptcy.The good news is that experienced attorneys specialize in defending businesses from predatory MCA lenders. With the right legal defense strategy, many companies have successfully invalidated or settled their MCA debts for a fraction of what they owed.

How MCA Loans Work

Merchant cash advances provide businesses with quick access to capital based on a percentage of future credit card sales. The catch is that these loans come with extremely high effective interest rates, often exceeding 100% APR when all fees are calculated.MCA lenders entice borrowers with fast approvals and no credit checks. But the fine print contains provisions that make these loans almost impossible to pay back. For example:

• Daily or weekly repayment that withdraws a fixed percentage of credit card receipts
• No fixed end date – loans continue until the full amount plus fees is repaid
• Harsh default clauses allowing the lender to demand full repayment immediately

Within months, many businesses end up owing two or three times what they originally borrowed yet still face daily payments draining their accounts.

Legal Defenses Against MCA Lenders

If you signed an MCA contract, all hope is not lost. Advances against future credit card sales are a relatively new and untested lending product. Experienced attorneys are successfully fighting back using arguments like:

• Usury violations – MCA loans often violate state laws against excessively high interest rates.
• Unconscionable terms – Courts can void grossly unfair contract provisions that take advantage of borrowers.
• Deceptive marketing – Lenders often misrepresent or omit key loan terms in their rush to sign borrowers.
• Unlicensed lending – Most states require lenders to have licenses that MCA companies lack.

Turn To Experienced Attorneys For Debt Relief

Don’t face predatory MCA lenders on your own. The attorneys at Delancey Street specialize in defending small businesses from all forms of creditor harassment and excessive debts. With an individualized legal strategy, we can help you:

• Stop aggressive collections and harassment from MCA lenders
• Reduce or even invalidate existing MCA loan balances
• Prevent business assets from being seized or bank accounts frozen
• Avoid business bankruptcy and keep operating

We offer a free consultation to review your situation and provide expert advice tailored to your business. There are options to find relief – contact us today to explore what we can do for you.