Struggling with debt?

Are you feeling overwhelmed by your merchant cash advance? Are you afraid of what might happen if you fall behind on your MCA payments? We get it. At Delancey Street, we know how scary it can be when your revenue is crushed and you see no way out.

AS SEEN NATIONWIDE – Delancey Street is a top tier business debt relief company based out of NYC, but we help clients all over the country. We’re dedicated to defending you from aggressive lenders. We speak to lenders, we negotiate, and we stand by you until your business is back on track. We know all of the lenders, their personalities, and how they operate. Every lender is different – and you need to work with an MCA company that has a relationship with them.

What Is a Merchant Cash Advance (MCA)?

A merchant cash advance is money that was given to you upfront, in exchange for a portion of your future sales. The lender, who was counting on your daily or weekly card transactions, wants repayment. Guess what? If your business slows down and you can’t meet that daily deduction, you might be in trouble. MCA lenders are required to reduce their daily/weekly, based on your revenue – but some of them refuse to do that, and will actually say you’re in default.

Why You Might Need to Restructure

Think about a situation where you have several MCAs stacked on top of each other. That means multiple daily or weekly payments, which can eat away at your cash. There could be penalties that are added if you miss a payment or default. In some worst-case scenarios, lawsuits that are filed by lenders can lead to judgments against you. A judgment can result in wage garnishments and property liens. This can be devastating. Many lenders will use UCC liens, in order to choke you from your revenue.

Here’s the bottom line: When you try to deal with multiple merchant cash advances, your cash flow suffers. If you reach out to Delancey Street, our team can negotiate new terms for your MCA debt. This means lower payments and longer repayment periods. A restructured MCA might allow you to stay in business, instead of having to shut your doors. Many lenders will be opposed to offering you this directly; but when you work with Delancey Street you’re getting a full legal and financial team helping you.

Are There Penalties or Even Crimes for Not Paying?

People often ask if not paying an MCA is a crime. Usually, a merchant cash advance is a civil matter, meaning it’s about money owed and not criminal charges. However, if there was any fraud that was committed—like lying on the application or forging documents—the lender might claim criminal intent was in your mind. That’s rare, but it’s serious. A lender who was lied to could report you to legal authorities for fraud, which can lead to criminal charges. If you’re found guilty, that means probation or even jail time, depending on state and federal laws.

Check out the Federal Trade Commission website (FTC) for more info on deceptive or unfair financial practices.

How We Defend You if a MCA Lender Accuses You Of Fraud Or Defaulting

1. We Investigate
   We look for any contracts that were unfairly written or enforced. A contract that was signed under duress might be challenged in court. If evidence that was tampered with is being used against you, we’ll raise objections about its legality. Evidence that was illegally obtained may be excluded, which means the lender’s case might weaken. If the case weakens, the lender might be forced to settle or drop it.

2. We Negotiate
   Our team at Delancey Street will reach out to the lender, who was expecting full payment, and explain your hardship. Often, lenders don’t want you to go out of business. They want you to keep paying—just in a way you can manage. If they refuse, there could be lawsuits, and that might trigger extra expenses for them, so many lenders will agree to a restructuring plan.

3. We Explore Alternative Financing
   Sometimes, we help you find a business debt consolidation loan. That new loan, which might have better terms, can pay off the MCA. Then you’re left with just one monthly payment that was structured to fit your budget. If your debt is reduced, you can focus on growing your company again.

Crimes and Punishment: A Lender’s Perspective

Lenders, who were trying to protect their money, have their own viewpoints. From their angle, if they suspect fraud, they can file a complaint with the feds/authorities. Fraud that was discovered in your contract or application can lead to a criminal investigation. If prosecutors prove intent to deceive, the punishment might include restitution to the lender, fines, and a criminal record.

Here’s the consequence: A criminal record, even for a financial offense, can hurt your ability to get new financing or run certain businesses. It could also prevent you from getting licenses, in the future, to operate.. It can also bring shame and stress to you and your family.

RESTRUCTURE NOW – AVOID BIGGER PROBLEMS

• Lower Your Payment: By restructuring, you might get a longer repayment term that is geared towards giving your business enough breathing room.
• Avoid Lawsuits: Lawsuits can lead to judgments against the company, or even you personally, which then lead to wage garnishments and property liens, which drain your resources.
• Keep Your Business Alive: If your revenue is constantly being taken up by daily payments, you are unable to invest in growth. Restructuring helps you stay in business, so you can serve your customers.
• Relax Your Stress: The stress of having lenders call you non-stop can disrupt everything. Many lenders will even call your family members, or vendors, or even clients. If you restructure, those calls might finally stop.

Regardless of Your Situation

Regardless of the Amount You Owe

Regardless of the Lender’s Demands

We can help you. Delancey Street has a team that was built around business debt relief, and we’re not afraid to go head-to-head with lenders.

Legal Information and Citations

1. Contract Enforcement: Each state has unique contract laws. You can learn more about your state’s legal system by visiting the official government site of your state. For instance, USA.gov has a directory of local state websites.
2. Consumer Financial Protection: Check the Consumer Financial Protection Bureau (CFPB) to understand your legal rights and see if a lender’s practices are abusive. For example if a lender is harassing you personally, at your home, that could be a violation.
3. Small Business Administration: The SBA website offers helpful advice on small business loans and potential resources for relief or counseling.

Strategies That Work

• Monthly Payment Plans: We negotiate extended terms, and monthly payments which help you make progress without destroying your capital.
• Debt Consolidation: We can find a lender that is willing to offer a single new loan, so you don’t juggle multiple MCAs.
• Settlement: Sometimes we push for a debt settlement approach, which is a final lump sum payment that’s less than what was originally owed. The result is you end up paying less than the total amount, but you have to manage a lump sum payment.
• Legal Defense: If a lawsuit is filed, we help by preparing a strong defense strategy, engaging in negotiations, and ultimately re-organizing your business debt We challenge any unfair contract terms, and if the lender doesn’t follow proper collection rules, that might lead to claims against them.

What Should You Do If You Feel Trapped?

Call us. Contact Delancey Street immediately, so we can review your agreements. We’ll see if any interest rates or fees that were tacked on are unlawful or predatory. We understand that you need time and space to breathe.

Here’s the consequence if you delay: A lender can accelerate the debt repayment schedule, demand full payment of the MCA debt, and drag you to court. Once there’s a judgment, your personal and business assets might be at risk. If you have a COJ, you need legal help in order to make sure no negative consequences arise.