WASHINGTON MERCHANT CASH ADVANCE LAWYERS & BUSINESS DEBT RELIEF
We are DelanceyStreet.com – a top tier business debt relief company based out of NYC, that helps clients nationwide.
ARE YOU IN TROUBLE WITH A MERCHANT CASH ADVANCE IN WASHINGTON?
A business that was overwhelmed by daily MCA payments can face serious consequences. If you fail to make your payments, you risk immediate lawsuits, ucc liens, and potential judgements against you personally and the business. Lawsuits that are filed by lenders can lead to wage garnishments or the freezing of your business accounts, which can make it even harder to operate. Some lenders will use UCC liens, in order to avoid having to go to court, and immediately getting your assets.
From the lender’s point of view, they want to recover their money as fast as possible. From your point of view, you want to avoid going out of business. When you have a merchant cash advance, you might feel trapped by fees and daily payment schedules. Regardless – we can help you. Our team has settled 10’s of millions in business debt, and we’re not done yet. We want to help you too.
CRIMINAL PENALTIES AND LEGAL RISKS
In most cases, a merchant cash advance default is not a crime by itself. But fraud or misrepresentation that was committed when you applied for the MCA can lead to criminal charges. If you take money, and default 3 days later, merchant cash advance lenders might allege you intended to commit fraud. If the lender accuses you of providing false statements, the penalties can include fines or potential jail time in extreme situations. In Washington, a person who was convicted of fraud may face serious punishments, such as large fines or even imprisonment(highly unlikely). This can destroy your personal and professional future.
If you need more information about fraud and its consequences, you can read the Federal Trade Commission’s guidelines at https://www.ftc.gov. The FTC explains what does deceptive business practices mean, which can help you understand how certain MCA applications might become risky if they include inaccurate information.
STRATEGIES WE USE TO DEFEND YOU
We know that every case is unique, and we look at your specific contract and situation to develop a defense. Our team focuses on:
- Negotiating new terms for your MCA
An MCA lender that is open to negotiation may agree to reduce your overall balance if we show that you cannot afford the original payment structure. MCA’s are given based on future receivables; if your receivables go down – they have no choice but to lower their daily and weekly payments. This can help you avoid court action and improve your cash flow. - Examining lender conduct
A merchant cash advance company that was using predatory tactics could be violating Washington state laws. We investigate their compliance with regulations, including guidance from the Washington State Department of Financial Institutions (https://dfi.wa.gov/). If the lender acted unfairly, we use that to defend you. If the lender is acting like a gangster, sending people to your place of business or your home, this can be used to file a complaint against them. - Arguing contract violations
Contracts that were poorly written or that have hidden fees can be challenged – and have been challenged in the past. If the MCA agreement is ambiguous or if the fees violate local laws, the court may reduce or dismiss parts of what you owe. This can give you immediate relief.
WHY MCA DEFAULT PENALTIES CAN BE SERIOUS
An MCA default that was allowed to go out of control can ruin your business and personal credit because lenders do not hesitate to take legal action. If the lender secures a judgement, you might see your assets seized, because lenders get a court order – and this can force you into bankruptcy. In some cases, the lender could file criminal complaints if they believe there was intentional deception, because they are able to prove you didn’t intend on repaying the money back. This can result in permanent records of wrongdoing that might prevent you from running another company in the future.
HOW WASHINGTON VIEWS MERCHANT CASH ADVANCES
In Washington, some merchants stack multiple MCAs, which can lead to a toxic cycle of debt. Washington authorities that are alerted to fraudulent activity might investigate your business, which can trigger fines, legal actions, or even closure. If you want to learn more about state regulations that impact your MCA default, you can check with the Washington State Attorney General’s Office at https://www.atg.wa.gov/. They explain consumer protection policies that sometimes cover small businesses, and they discuss what lenders must do to stay compliant.
ADDITIONAL MCA DEBT RELIEF OPTIONS
Some companies that are struggling with debt can explore other solutions:
- Debt consolidation loans: These loans can replace multiple MCA debts with one lower interest payment. According to the Small Business Administration (SBA), a business that was approved for certain SBA loans may enjoy better rates and can consolidate their MCA debt.
- Invoice factoring: If you have unpaid invoices, factoring can give you a lump sum amount of money in order to address urgent expenses. This can reduce immediate financial stress.
- Self-negotiation: Reaching out to your creditor directly can sometimes bring results. If you have proof that your financial difficulties are severe, the creditor may be willing to restructure.
OUR PHILOSOPHY
We believe open communication can save businesses. DelanceyStreet.com keeps your lender informed about your financial challenges so they know you are acting in good faith. Often, lenders who are kept in the dark become more aggressive. By explaining your situation upfront, you show that you want a fair solution. This can lead to a friendlier settlement and fewer penalties.
FAQS
- “Is it illegal to fail to repay a merchant cash advance?”
Failing to pay an MCA is a civil matter, which can result in lawsuits or judgements against you and the business. For example, a ucc lien can be used to get your funds, or a COJ can be used to seize your assets. But if the lender proves intentional fraud, it can become a criminal case. For example, you said 3 days ago you could repay the loan, but then default. - “What if I get sued?”
A lawsuit which was filed against you can lead to garnished wages, damaged credit, or frozen accounts. We defend you by challenging the contract and by arguing for better terms. Your D&B credit rating can suffer, for example. - “What if I didn’t know the MCA had such high fees?”
Some MCA providers that were not transparent about costs can be in violation of consumer protection laws.