Kansas City Merchant Cash Advance Legal Help
Merchant cash advances have become a popular way for small businesses to access quick financing. However, some merchants have found themselves struggling to repay their advances due to high repayment rates and fees. If you’re a Kansas City business owner who took out a merchant cash advance and is now facing legal issues, there are attorneys who can help.
One of the first things an attorney can do is review your merchant cash advance agreement and the fees and rates you were charged. There have been cases of predatory lending practices involving advances, where businesses were misled about the true costs of repayment.
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If an attorney finds that unfair or deceptive practices were used in your case, they may be able to negotiate a settlement or file a lawsuit against the lender. Possible legal claims could include fraud, breach of contract, or violations of lending laws.
Attorneys can also help if your business is facing debt collection lawsuits or threats over a merchant cash advance. They can review the lawsuit and raise defenses on your behalf to fight back against aggressive collections tactics.
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Some possible defenses in merchant cash advance lawsuits include:
- Invalid or missing contracts
- Unconscionable contract clauses
- Failure to properly verify income/revenue
- Breach of good faith and fair dealing
If facing threats from debt collectors over a merchant cash advance, an attorney can also send cease and desist letters on your behalf. They will tell the collectors to stop the harassing calls and letters, which violates fair debt collection laws.
-Besides legal defenses and negotiations, attorneys can explore other debt relief options for struggling small businesses:
- Debt consolidation loans
- Debt management plans
- Debt settlement
- Bankruptcy
While bankruptcy may seem like a “last resort” option, an attorney can advise if it is the most practical solution given your assets, debts, and income. They will explain the pros and cons so you can make an informed decision.
-When searching for legal help with merchant cash advances in Kansas City, here are a few tips:
- Look for attorneys familiar with small business lending laws
- Find someone experienced fighting cash advance collection lawsuits
- Ask if they handle debt settlement negotiations
- See if they explore all debt relief options, including bankruptcy
Rather than handle it alone, partner with an attorney invested in the best outcome for your business. With the right legal guidance, you can resolve merchant cash advance debts and move your company back towards financial stability.
