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Merchant Cash Advance Lawyers
- Is a Merchant Cash Advance (MCA) ruining your business cash flow?
- Were you denied when you tried to consolidate or refinance?
- Are you stacked with multiple funders?
- Are you looking for alternative repayment options?
- Are you getting hounded by collection calls?
- Have you been sued?
- Are your bank accounts or receivables frozen?
If you’ve answered “YES” to any of these questions, our Merchant Cash Advance Attorneys can help!
Our Lawyers can make your advance more affordable!
We Can Help:
Reconcile Your Payments
Lower the Factored Amount (Contractual Purchased Amount)
Pause Your Payments
Lower the Daily or Weekly Drafts
Change Draft Frequencies (Daily to Weekly / Weekly to Monthly)
Extend Your Purchase Agreement Repayment Period
Remedy Default & Breached Contracts
Protect You & Your Business From Default
Deal with Collectors, Lawsuits, Judgments, & Frozen Bank Accounts
Release Receivables Frozen From UCC Lien Enforcement Efforts
Save Time and Avoid Costly Mistakes
Save Money or Don’t Pay Our Contingency Fee!
MCA Relief Lawyers Will Help You Regain Control of Your Cash Flow!
Our business attorneys and arbitrators have successfully worked with many struggling business owners like yourself, that were caught in high-cost Merchant Cash Advance traps.
We can offer experienced advice and can help you to protect your cash flow and your assets thereby alleviating the worrying and stressing over frozen accounts or receivables.
In addition to freeing up your cash flow, retaining our Law Firm to deal with your predator funders will save you time as we relieve you of the harassing and embarrassing collection calls by sending notice of limited power of attorney to your MCA Purchaser, their collectors, attorneys, and even the Marshall or Sheriff if they are trying to enforce your purchasing agreement.
View Results from Our Merchant Cash Advance Relief Services
All Default & Breached Contract Cures are represented as a percentage of the Total Cure Amount Paid Back.
For example, 40% means that 40% of the Breached Amount was Paid Back and 60% Forgiven.
Options for Dealing with Merchant Cash Advances
The below options each have their own benefits and drawbacks so be sure to call for your free consultation so one of our experienced counselors can explain each option thoroughly.
Restructure Draft Amounts
Default & Breach Cures
We can negotiate lower factored rates, thereby discounting the “purchased amount” to recuperate your future pledged receivables.
We can defend you if sued, we can remove Confessions of Judgment, and we can even stop UCC lien enforcement efforts if your receivables are frozen!
Sue Your MCA Company
An MCA is NOT a loan, if your agreement wasn’t worded properly, we’ll sue to void your contract! We can also sue brokers that lied to you!!!
MCAs are dischargeable in bankruptcy. We file personal & corporate cases, but can usually avoid bankruptcy thanks to our many alternative options.
The Difference Between a Loan and Merchant Cash Advance
With both Loans and MCAs, money is given and paid back. The key to understanding the difference lies in how each is paid back.
With a Loan or Line of Credit (LOC), funds are lent to you, and you pay back the money lent plus interest. You repay the funds according to set terms and conditions and for the most part, *the payments are determined by the amount lent to you, the interest rate, and the defined time period of the Loan or LOC. Payments for Loans and LOCs need to be made regardless of revenues coming into your business.
Merchant Cash Advance (MCA) is a nickname for a ‘Future Receivables Sale and Purchase Agreement’. With an MCA, you are not lent money, but instead, you (the ‘Merchant‘) made an agreement with your Funder in which they would pay you an agreed upon amount of ‘Cash‘ in ‘Advance‘ to purchase the rights to your company’s future revenue that you will receive! The MCA Funder pays a discounted lump sum amount upfront, known as the ‘Purchase Price’, and you agree to pay a specified percentage of each dollar of revenue that you bring in, until the full agreed-upon amount known as the ‘Purchased Amount’, has been paid back to the Funder. Since the MCA is paid back a percentage of each dollar of your future revenue as it actually comes into your business, neither the payments or time period are defined. An MCA Funder takes the risk that your business might not have future revenue, and therefore, they may not get paid back.
MCA Contracts are Written to Favor Your Funders
To Protect THEM if You Can’t Pay.
We Know MCA Contracts and We Know The Law
To Protect YOU if You Can’t Pay!
- We can force your funder to Pause their account debits.
- We can force your funder to lower their daily or weekly debit amounts.
- We can even force your funder to refund money you have already paid if it exceeds the amount you should have paid, based on the percentage of your actual revenue they were entitled to.
*Payments will actually vary depending on whether the Loan or LOC is amortizing or interest-only, as well as whether the interest is fixed-rate or variable.
Did You Use a Broker to Obtain Your Funding?
Funders Set You Up to Struggle – Brokers Set You Up to Fail.
MCA Funders make an enormous profit over a short period of time, when you pay back your obligation, therefore, MCA Funders will not typically set you up to fail since they want you to pay them back. Funders will set you up to struggle as they will typically give you just as much as you can handle so your payments will cause you to constantly struggle to keep your head above water. By causing you to struggle consistently, it creates the need for repeat funding over and over again, which means even more profit for your funders over the long haul.
Brokers work on commission and are not using their own money to fund you – so they do not care if you pay your Funder back all the money or not! Brokers will typically fund your business with many different funders as possible to earn multiple commission checks! Often times, Brokers will arrange for multiple sources of funding at the same time, thereby stacking your business with more advances (and payments) than you can handle setting you up to fail. If you don’t pay back your Funder – or if your business fails – THE BROKERS DO NOT CARE if they already received their commission check! Brokers are known to coach business into giving specific answers on recorded funding calls and are known to lie about almost anything – just to close their deal! The most common lie we hear from our clients is that a broker told them:
“the Merchant Advance is only temporary. Once you pay for a month and establish good payment history, we’ll be able to put you into a traditional loan.”
The traditional loan of course never comes and the MCA payments will have been so much to bear that you are not out of funds and the broker will instead just try to get you a different MCA to either replace the existing one, or will another one to add to it to “help make the payments on the existing advance”. Either way, your payments are going to be more than you can handle! We hold brokers accountable for their misrepresentations and can defend and even initiate our own lawsuits against your Brokers and/or Funders to make them pay for their actions!
We have years of experience dealing with Merchant Cash Advance Funders. Don’t use trial and error trying to figure this out on your own with thousands of your dollars at stake when errors can be costly! Let our Attorneys and Arbitrators defend you or negotiate on your behalf to save you as much time and money as possible – the right way!
UCC Liens & Frozen Receivables
If you took out a Merchant Cash Advance, Business Loan, or Line of Credit (LOC), then you have likely given the right to your lender to file a Uniform Commercial Code (UCC) Lien against you. A UCC lien allows your funder to freeze your receivables.
At the time of underwriting or any time since then, if you have provided your funder with:
- a customer list;
- trade references;
- bank statements; or
- access to your bank account,
you can assume that within a few days of your breach or default, UCC liens will be filed against you and your funders will send a copy of the UCC lien to anyone they know of that pays you! If you use a merchant processor (credit card terminal, Square, PayPal, Shopify, etc.) or if you have customers that your funders know about – your incoming funds may be at risk of UCC Lien enforcement efforts.
Any UCC Lien recipient, will be instructed not to pay you, but to pay your funder instead – including your customers. Not only is that extremely embarrassing, but without any money coming in, how will you continue to run your business? Many of your customers that receive notice of the UCC Lien may see that as a sign of weakness and may look to do business elsewhere so it can cause problems in more ways than one. UCC liens are by far the most frequent issue we hear about from those first contacting our Law Firm for help after having defaulted on their payment obligations.
While your funders can use judgments to try to freeze your receivables, ever since Confessions of Judgment (COJ) were banned in NY against out of state business owners, unless your business is located in NY or your funder made you sign a COJ under the jurisdiction of a different state, your now has to sue you and win their lawsuit in order to obtain a judgment against you. The lawsuit process takes much more time to enter judgment than did filing a COJ, therefore, funders now use UCC liens as the fastest way to freeze your money.
We have seen and dealt with virtually every possible frozen funds situation. We’ve helped countless business owners unfreeze their bank accounts and receivables. If your business has receivables that your funders can freeze, the best strategy is to be proactive and get our help before you default so we can help free up your cash flow and either pause or lower your drafts to help avoid defaulting in the first place. If we get your funders to agree you’ll never have to worry about your receivables ever being frozen. If your receivables are already frozen, the sooner you put us to work, the better your results are likely to be.
We Help With Confessions of Judgment and Lawsuits
The laws regarding the filing of Confession of Judgments (COJ) in New York have recently changed. If you are an out of state business owner, a confession of judgment can no longer be filed against you in the state of NY. The changes to the NY law are a major win for business owners outside of NY, however, the law does not affect those living in NY as, COJ’s can still be filed against NY residents. It is important to take note that the COJ laws have not changed in any other states – only in NY – so COJs can still be filed against you in states outside of New York as most funders have turned to the following states that still allow COJs:
- New Hampshire
WE CAN HELP EVEN IF YOUR FUNDERS MADE YOU SIGN A CONFESSION OF JUDGMENT!
Additionally, there have been an increased number of lawsuits filed in New York and elsewhere since the COJ ban has gone into place which is a great thing, as we can defend lawsuits, and buy you time to work out a payment arrangement or cure the lawsuit for less than the alleged balance. By defending the lawsuit, we can help prevent judgment entry against your business and you personally.
*CONSIDER YOURSELF WARNED*
IN ALL YOUR SEARCHING FOR HELP IF THERE
WAS ONE THING THAT YOU SHOULD REALLY READ
IT WOULD BE THIS ENTIRE SECTION
Most others in the relief industry typically do not discuss any downsides of their services, but instead, will harp mainly on how much you stand to save. Just like the MCA Brokers, they will basically tell you anything you want to hear just to close a deal and earn their commission check. Be especially warned of any company that tells you to make one payment into a ‘trust‘ or ‘escrow‘ account that makes their relief seem like it’s going to be a walk in the park. These companies are known for misrepresenting their tremendous upfront fees and telling you, “Don’t worry about the fees because they’re all included in the trust payments“. They typically over promise and under deliver by giving estimates based on cherry picked scenarios of best possible results, not typical results.
Many business owners are struggling so badly that they will believe any promises of help. They do not even stop to think these promises are coming from telemarketers, that are only calling since they know of the financial struggles, and these ambulance chasers prey on stressed out business owners that are under duress in hopes of convincing them to make an irrational quick decision. More business owners than you would ever imagine hire these telemarketers to fix their problems without ever checking these companies’ reputations! DO NOT LET THIS HAPPEN TO YOU or before you know it your incoming receivables and bank accounts are frozen and you’ll have no funds to operate. When you call these other providers to find out why your accounts and receivables have been frozen, you’ll quickly find out that no progress has been made because even though you were told all the fees would be included, you were not told that the fees are paid upfront leaving no available money to pay your funders! In disbelief, you go read the agreement you signed and you’ll realize how you were duped and not only are all the fees paid upfront, but THEIR FEES ARE NON-REFUNDABLE, AND PAID AS A PERCENTAGE OF THE AMOUNT YOU OWE LEAVING NO INCENTIVE FOR THEM TO DO A GREAT JOB, ONLY INCENTIVE TO CONVINCE YOU TO HIRE THEM in the first place! Only then do you do your research on the company and you’ll find out they’ve done the same thing to many other business owners. Even worse once you fire them, your business will be far worse off than it was originally not only because you wasted money paying a company that did nothing for you, but your funders have since added a ton of extra fees as per their agreements. Funder fees are typically in the ballpark of:
- insufficient fund fees (typically $35 per occurrence)
- stop payment fees (typically $500 – $5,000)
- fees for changing bank & merchant accounts (typically $100 &