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Small business owners in Texas facing legal issues with merchant cash advances (MCAs) have options. Our financial and legal experts at Delancey Street can provide customized debt relief plans to help settle, restructure or defend against predatory MCA loans.

Understanding Merchant Cash Advances

A merchant cash advance (MCA) provides a business with an upfront sum of money in exchange for a percentage of future credit card and debit card sales. It is not technically a loan, but rather the purchase of future receivables at a discount.

• Fast access to capital – MCAs provide funding faster than traditional bank loans
• No collateral required – MCAs rely on credit card receivables rather than assets
• Easy qualification – MCA funders emphasize sales over credit scores

However, MCAs also come with major downsides for small businesses:

• Expensive financing – MCA rates often exceed 100% APR when accounting for fees
• Daily repayments – MCA payments deduct daily percentages of credit card sales
• Vague contract terms – Key terms like payback amounts and durations are often unclear

This combination of easy money upfront and opaque long-term costs trips up many small business owners in Texas. Aggressive collections by MCA funders can also become a legal and financial nightmare.

Texas MCA Defense Lawyers

If your Texas business is struggling with an overwhelming MCA agreement, contacting qualified legal counsel is critical. Here are key reasons Texas small business owners need an attorney on their side:

• Assessing the MCA Agreement – Experienced lawyers can analyze the MCA contract to identify unenforceable or illegal provisions under Texas law. This includes excess rates, improper daily payments deductions, and other lender overreach.

• Negotiating Settlements – In many cases, an attorney can negotiate a settlement with the MCA lender to reduce the amount owed. This depends on the lender, the business’ situation, and the leverage your lawyer can create.

• Defending Against Lawsuits – When MCA lenders file lawsuits against borrowers in default, a strong legal defense is essential. Your lawyer understands Texas contract law and can build a case to invalidate all or part of the agreement.
• Avoiding Bankruptcy – As a last resort when facing multiple debts, an experienced Texas bankruptcy lawyer can help you file Chapter 11 or Chapter 7 to eliminate qualifying MCA debt and protect your business.

Skilled Texas attorneys from firms like Avvo with extensive MCA and commercial litigation experience are best equipped to defend your small business. Contact our team at Delancey Street for a free consultation with a recommended lawyer.

Delancey Street’s Texas Business Debt Relief Process

Delancey Street provides customized legal and financial solutions for small business owners overwhelmed by merchant cash advances and other debts. Our unique process includes:

1. Free Consultation

Schedule a free, no-obligation consultation with one of our small business debt experts. We’ll discuss your Texas business, debts owed, cash flow, goals and options. There‘s no risk or commitment to get expert insights on achieving financial freedom.

2. Customized Debt Relief Plan

After assessing your business‘ financials and legal situation, we’ll craft a tailored debt relief plan. This can involve negotiating lower payoffs, consolidating debts, defending against lawsuits, or restructuring payments. If bankruptcy is recommended, we have strong relationships with top Texas bankruptcy lawyers.

3. Dedicated Specialist Oversight

Once a Texas debt relief plan is in place, an expert at Delancey Street will remain involved every step of the way. We negotiate settlements, interface with lawyers, and ensure the plan achieves your business goals. This oversight continues until all debts are resolved.

4. Healthy Financial Habits

We also provide Texas business owners the tools and training for long-term financial stability. This includes optimizing cash flow, establishing savings, gaining transparency into financing options, and changing habits that lead to excessive debt.Our team has over 20 years combined experience helping Texas small business owners escape debilitating merchant cash advances and other commercial debts. We have strong legal connections in Dallas, Houston, Austin and nationwide.

Common Texas MCA Defense Strategies

Texas lawyers utilize a range of strategies to invalidate all or parts of predatory merchant cash advance agreements. Which defenses apply depend on the specifics of your case, but common options include:

• Usury – MCA contracts violating Texas usury laws capping maximum allowable interest rates may be entirely void. Usury claims require analyzing the effective APR.
• Unconscionability – If an MCA agreement is deemed unjust, overly harsh or one-sided under Texas law, courts can refuse to enforce it.
• Breach of Contract – When MCA lenders violate even minor parts of the agreement, this breach can release the borrower from repayment obligations.
• Fraudulent Inducement – Evidence that an MCA provider misled the business during contract negotiations may invalidate consent.

• Texas Deceptive Trade Practices Act – The DTPA provides additional small business protections against predatory lending tactics. Violations allow debt cancellation.

Skilled Texas MCA defense lawyers like those recommended by LawInfo and FindLaw can assess which defenses give your business the strongest case. Our team at Delancey Street helps connect you with the right attorney for your situation.

Our Texas Team Can Help Your Business Today

Has your small business become overwhelmed by a merchant cash advance agreement? Are confusing repayments decimating your bank account? Is the funder aggressively pursuing legal action?The experienced team at Delancey Street provides hope for Texas small business owners facing financial and legal crises. Over the past two decades, we’ve helped countless entrepreneurs escape this predicament and regain control of their companies.We offer a free consultation with no commitments to discuss your situation and options. There are always alternatives to bankruptcy or shutting down your Texas small business forever. Contact Delancey Street now and one of our caring experts will contact you shortly. We’re here to help.