Utah Merchant Cash Advance Lawyers Provide Options for Struggling Business Owners
Running a small business can be tough, especially when cash flow gets tight. If you’ve taken out a merchant cash advance (MCA) to keep things afloat, you may now be struggling under the weight of high payments and fees. Don’t panic – there are options, and a Utah merchant cash advance lawyer can help.
What is a Merchant Cash Advance?
A merchant cash advance isn’t a regular business loan. Instead, an MCA provider gives you an upfront lump sum in exchange for a percentage of your future credit card and debit card sales over a set period of time (usually less than 18 months).The catch is that MCAs typically charge very high effective interest rates – we’ve seen rates as high as 400% APR! And if your revenue drops for any reason, your daily or weekly payments don’t adjust down automatically. You’re on the hook to pay back the full advance plus fees no matter what.This structure can put massive strain on small businesses. If you fall behind on payments, the consequences can be dire:
-- Harassing calls from collectors
- Lawsuits and judgments
- Garnished bank accounts
- UCC liens placed on your assets
Yikes! Who wants to deal with all that? If you’re struggling with MCA debt, don’t go it alone. A Utah MCA lawyer can help.
Utah MCA Attorney Services
The attorneys at Delancey Street provide comprehensive legal services to business owners caught in the MCA debt trap. We can help with:
- Getting payments and terms modified to affordable levels
- Settling MCA debt for less than you owe
- Defending against lawsuits
- Releasing garnishments and liens
- Protecting your assets
- All the way up to bankruptcy if necessary
Our Utah business debt relief lawyers have years of experience negotiating, settling, and litigating MCA contracts. We dig into the nitty gritty details to find ways to reduce what you owe and protect your business.And we provide compassionate support throughout the process. Dealing with oppressive MCA debt takes a toll mentally and emotionally. Know that you have caring advocates in your corner.
New Utah MCA Laws Offer Some Protections
Historically there have been few regulations on merchant cash advances in Utah. But in 2023, the state enacted the Commercial Financing Registration and Disclosure Act (CFRDA).This law requires MCA providers operating in Utah to register with the Department of Financial Institutions. It also mandates key disclosures about financing terms and costs.While the CFRDA is a start, MCAs largely operate outside other Utah lending laws. Interest rate caps and other consumer protections don’t apply. Business owners are still very vulnerable.That’s why working with an experienced Utah MCA lawyer is so important if you run into trouble with your advance. We know all the ins and outs of these complex contracts and how to find ways to relieve the burden.
-Our Utah MCA Attorneys Can Answer Your Questions
Wondering if our legal services are right for your situation? We offer free case reviews and consultations, no strings attached.Some of the common questions we hear include:
- Are my business and personal assets at risk if I fall behind on payments? Yes, MCA providers can place liens on your property and garnish funds. An attorney can help shield assets.
- What are my options for lowering payments or settling debt? We negotiate reduced balances, longer repayment terms, lower payments all the time. There are always options.
- Can I discharge MCA debt in bankruptcy? Maybe. It depends on the specifics of your contract. We’ll analyze your agreement to see if bankruptcy is possible.
- What will legal representation cost? Our fees are based on success and savings. No recovery, no fee.
Have more questions? Reach out anytime for answers tailored to your unique situation. Our consultations are always 100% free and confidential.
You Deserve Relief From MCA Burdens
If merchant cash advance debt has you feeling trapped and overwhelmed, take heart. You have allies who can help lighten the load. The caring business debt relief lawyers at Delancey Street are here for you.