CORPORATE TURNAROUND FOR MCA DEBT
Are you worried about merchant cash advances that were taken out to help your business? That fear can grow when daily or weekly payments keep destroying your cash flow. We are DelanceyStreet.com, a top tier business debt relief company based out of NYC, that helps clients nationwide, and we 100% get how MCA debt can feel overwhelming.
What Is Corporate Turnaround For MCA Debt
Corporate turnaround is a process that was designed to help businesses regain their financial footing. The term Corporate Turnaround literally means – turning your business around.. This process can involve strategies like debt restructuring, negotiations with lenders, or even finding new financing to replace existing predatory loans you have. A strong turnaround plan that is in place can protect you from lawsuits and penalties that lenders love pushing, because it increases their total return on investment. If you ignore your debt, your business might face collection actions which most certainly can damage your credit and reputation.
Potential Penalties, Crimes, And Punishments
Some business owners are worried about criminal consequences for MCA debt. Criminal cases usually happen when there is fraud involved, like providing false documents to lenders. Fraud which was committed can lead to federal charges if it violates certain laws. The Federal Trade Commission (https://www.ftc.gov), for example, can investigate unfair or deceptive practices. When lenders believe you lied or misled them, they might contact law enforcement. Inversely, if you suspect a lender of committing fraud, there are recourses available to you as well to pursue that.
If any fraud is discovered, the Department of Justice (https://www.justice.gov) may get involved. Charges that are filed can lead to serious punishment, including fines and possibly prison time. That consequence can ruin your life.
Even if you did not commit fraud, failing to pay back MCA debt can lead to lawsuits or judgments. A judgment can allow lenders to seize your assets. This result can cause your company to lose equipment, inventory, or more. If your business is struggling though – you have options available to you. For example, if you have taken MCA debt, but your business is suffering, or you went out of business – there is no “receivables,” for the MCA lender to take.
How We Might Defend You
We are DelanceyStreet.com, and we believe there is always a way to protect our clients. Evidence that was gathered by lenders might be challenged if it was obtained improperly. When improperly collected evidence is thrown out, lenders can lose the ability to prove their claim. This could reduce the total amount you might owe, and that reduction can keep your business alive.
Our strategies often include:
- Negotiation: We speak with lenders to lower your total debt or stretch out your repayment period. When your debt payments are lowered, your business can start to rebuild its cash reserves.
- Legal Defense: We examine any documents that were signed. If you were pressured or misled, your rights might have been violated. When your rights are violated, you can potentially avoid part of the debt.
- Compliance Review: We make sure your business follows all local and federal rules. If your MCA lender broke certain laws, the Consumer Financial Protection Bureau (https://www.consumerfinance.gov) or other agencies might get involved, and that investigation can lead to a better settlement for you.
What Lenders Might Think
Lenders who provided merchant cash advances want to be paid back. They might view unpaid debt as a breach of trust. That viewpoint can lead them to file lawsuits or freeze your accounts. We also know lenders might agree to a settlement if they see you cannot make the original payments. They would rather accept something than lose everything in a bankruptcy. MCA lenders are in the business of charging 100-200% APR. So if they can get 50 cents on the dollar back from you, they’re likely to multiply it by lending it back out.
Turning Your Business Around
When you create a corporate turnaround plan, you should expect to:
- Review All Debts: You find out the exact amounts owed. If any debt was incorrectly calculated, you challenge it. This can reduce your total obligations, and that reduction saves you money.
- Cut Costs: You look at your budget for areas to trim. Spending that was not necessary must be limited. This improves cash flow, and that improvement lets you pay down debt faster.
- Negotiate Repayments: You work with your MCA lenders to request new terms of the MCA debt. These new terms can lower your payment or interest rate. That benefit leads to a more manageable monthly debt load.
- Obtain Support: You hire professionals or advisors like DelanceyStreet.com. Our support helps you navigate legal and financial complexities. That guidance frees you to focus on running your business.
Multiple Points Of View
From a borrower’s standpoint, you want relief and time to pay back the debt – you’re not trying to screw the lender, you just need space. You might feel stressed if your credit score falls. From the lender’s point of view, they just want to protect their investment. They might use aggressive collection tactics if they believe you are hiding assets. Meanwhile, the government just want to see fairness and transparency. If they spot any signs of fraud, they can intervene and impose heavy penalties on the lender. As a borrower – you have rights.
How DelanceyStreet.com Can Help
We are a business debt relief company that was founded on the belief that every business deserves a chance to recover. Once you call us:
- We fight. We protect your rights.
- We protect. We keep lenders from pushing you into unfair deals.
- We help. We negotiate and aim to reduce your obligations.
Frequently Asked Questions
1. Will I face jail time if I can’t pay my MCA debt?
You generally do not face jail time for failing to pay a debt, but fraud that was committed can be a separate crime. If you used false details to get the funds, the consequences can be severe. If your business is going down, or you’re out of business, that’s not fraud – you won’t go to jail for that. Many lenders will try to scare you, but that doesn’t mean they’re accurate.
2. How do I know if my MCA agreement is fair?
You can check the terms and compare them with federal guidelines from the Federal Trade Commission (https://www.ftc.gov). If the factor rate or fees seem too high, we can review the documents and explain your options.
3. Can DelanceyStreet.com stop a lawsuit that was started by the lender?
We often attempt to pause legal actions through negotiations or court filings. When legal action is paused, your business has time to reorganize and resolve debt without constant pressure. If a lawsuit is filed against you, our team of lawyers and network of attorney can step in. We can help you get through the MCA corporate turnaround process smoothly.