Missouri Merchant Cash Advance Lawyers and Business Debt Relief
Running a small business is tough, especially when it comes to managing finances. If you’re a business owner in Missouri struggling with debt, you’re not alone. We at Delancey Street understand the unique financial challenges that small business owners face. That‘s why we’ve put together a team of experts – including lawyers – who can provide tailored debt relief solutions.
Overview of Merchant Cash Advances
A merchant cash advance (MCA) is a form of business financing where a company purchases a portion of your future sales. You receive a lump sum upfront, and the MCA provider takes a fixed percentage of your daily credit card sales until the balance has been repaid (plus fees and interest).MCAs can be easy to qualify for, but the costs can really add up. The annual percentage rates often exceed 50% or even 100%. If your business has slow periods, you may struggle to make the daily payments. This can lead to a crushing cycle of debt.
-Common MCA Issues We See
We’ve helped numerous business owners who have run into issues with their merchant cash advances, including:
- Excessively high payments that become unmanageable
- Ballooning balances due to fees and interest
- Harassment from MCA providers trying to collect
- Potential bankruptcy if unable to keep up with payments
Many business owners feel embarrassed or ashamed when they run into these kinds of financial issues. But again – you‘re not alone, and there are solutions available.
How Can a Lawyer Help?
If you’re struggling with an overwhelming MCA, the first step is accepting that you need help. We know that can be easier said than done when you’re focused on keeping your business afloat.The good news is there are lawyers who specialize in helping small business owners in financial distress. With an experienced attorney on your side, you can better understand your rights and options.Here are some of the ways a lawyer can help with MCA debt:
Negotiating a Settlement
An attorney can negotiate directly with your MCA provider to try and settle your balance for less than you owe. This can relieve some of the financial pressure and allow you to move forward.For example, in one recent case an attorney was able to settle a $58,000 MCA balance for just $22,000 – saving their client over $35,000.
-Fixing Unfair MCA Agreements
Some MCA contracts include language that is grossly unfair or even illegal. A lawyer can review your agreements to see if any terms can be invalidated or changed.For instance, in another case an attorney found that their client‘s MCA contract violated state laws around interest rates and loan transparency. They were able to get the agreement adjusted to reduce payments by over 20%.
Dealing with Harassment & Improper Collections Practices
It’s against federal law for MCA providers to engage in harassing, abusive, or deceptive collection tactics. However, some still try to bully business owners by:
- Making excessive daily calls
- Threatening legal action they have no basis for
- Misrepresenting the terms of the MCA agreement
Your lawyer can put a stop to this illegal harassment. They can also sue the MCA provider if needed for breaking debt collection laws.
Exploring Bankruptcy Protection
While bankruptcy should be an option of last resort, it can provide relief if you simply have no way to pay off your MCA debt. Your lawyer will explain if and how bankruptcy may help your specific situation.The important thing is that you have an advocate to understand all your options. You don’t have to keep struggling with MCA debt alone.
Our Approach at Delancey Street
Here at Delancey Street, we take a compassionate, personalized approach to helping business owners find financial freedom from overwhelming debt.We have extensive experience dealing specifically with merchant cash advance issues. Over the past 10 years, we’ve helped over 500 small business clients negotiate, settle, or restructure their MCA agreements.Our team includes knowledgeable attorneys as well as financial experts. Together, they create customized debt relief solutions tailored to each client’s unique situation.We also understand the emotional toll that financial problems can take. That’s why we provide ongoing support to help business owners rebuild their confidence and get back on the path to stability.
-What Makes Us Different
There are a few key things that distinguish us from other Missouri debt relief providers:1. Attorney-Based Approach – As mentioned, we have specialized lawyers on staff who only handle business debt cases. This allows us to deal with MCA issues other firms can’t.2. Custom Team Assigned to You – We assign each client a dedicated “Dream Team” of both legal and financial pros. This ensures personalized attention and continuity.3. Non-Profit Status – As a non-profit organization, our only motivation is helping clients – not making maximum profits. This allows us to be fully on your side.4. Holistic Support – In addition to resolving concrete debt issues, we provide coaching/counseling to help clients develop healthy money management habits for the long run.5. Stellar Track Record – We have an over 90% success rate in getting clients’ debt reduced, settled, or dismissed entirely. You can feel confident we’ll produce results.
Conclusion & Next Steps
We hope this article has helped explain some of the common merchant cash advance issues that Missouri business owners face, as well as how knowledgeable attorneys can help.The first step is to schedule a free, no obligation case assessment. This will allow us to review your specific MCA agreements, balances, and budget. We’ll then suggest potential solutions and next steps.