Struggling with debt?

YOU MISSED A MERCHANT CASH ADVANCE PAYMENT

It’s a big problem, and it’s okay to admit you’re worried. There are options you have though.
We get it. Missing a single MCA payment can spiral quickly. REGARDLESS of how it happened, Delancey Street—a top tier business debt relief company—is here to help. We offer a MONEY BACK GUARANTEE for debt relief services, which shows our commitment to doing everything possible to resolve your MCA challenges.

AS SEEN ON AmericanExpress.com, Entrepreneur.com, and Forbes.com
We specialize in guiding business owners through the meltdown of merchant cash advance debt, and can defend you if things get serious. We have a network of attorneys who are available, nationwide, to give you legal help.

Delancey Street saves a business owner over $400,000!
That’s a single-line headline worth repeating. It’s our mission to protect you from predatory MCA lenders. Keep reading, because we’ll share unique insights you won’t find easily on Google. Our job is to help educate  you, and hopefully earn your business!

STEP ONE: Understand the Immediate Penalties When You Default On an MCA
Missing your merchant cash advance payment can result in:

• Daily Fees: Many MCA agreements include penalty fees, which can accumulate rapidly.
• COJ (Confession of Judgment): Some MCA providers slip in a confession of judgment clause, which might let them freeze your assets overnight. See the FTC’s stance on unfair or deceptive acts here. These COJ’s are only valid in certain states.
• Accelerated Balance: The lender might demand the entire remaining amount owed, immediately.
• Personal Guarantee Action: Lenders can come after your personal assets if you provided a personal guarantee. They love using this P.G., in order to make you worried.

STEP TWO: Check Your Agreement (Even the Fine Print)
Before you panic, look carefully at everything you signed, including daily repayment clauses and default provisions. We recommend pulling the original MCA contract from your email or DocuSign. Normally when you sign an agreement, it appears in your email.

• If the factor rate is disguised as interest, your MCA could be viewed differently under certain state laws, which may trigger usury regulations.
• The Consumer Financial Protection Bureau (website) occasionally examines small business financing practices, so if your MCA is borderline predatory, it could face scrutiny.

REGARDLESS of the situation, we can help. We really can. We have immense experience handling MCA defaults nationwide.

STEP THREE: Communicate with the Lender
Yes, it’s intimidating. But ignoring calls invites more trouble. Lenders will call your vendors, your employees, anyone they can – in order to get their money back. Often, this can create awkward and confusing situations.

You should:

1. Call the MCA provider immediately.
2. Explain your cash flow issues and propose a partial or delayed payment plan.
3. Document every conversation in writing (email recaps are crucial).

Surprisingly, many lenders prefer to work something out rather than chase a costly lawsuit. Remember, lenders want you to keep paying, not file bankruptcy. They would rather have assurances you’ll pay the money back.

STEP FOUR: Secure Professional Advice
This is the moment to get serious.

• Talk to Delancey Street: We’re a top tier business debt relief company, which has a team that understands MCA laws, confessions of judgment, and how to dismantle a predatory agreement.
• Consult Our Attorneys: Our sister law firm can jump in if things escalate to court. We know exactly how to exploit weaknesses in MCA contracts.

We fight. We negotiate. We defend.

STEP FIVE: Prepare a Defense Strategy
Wondering how we’d defend you if the situation goes nuclear? Here’s our stream of consciousness on how we might dismantle an MCA lawsuit:

1. Is it truly a purchase of receivables or a disguised loan?

   • If the MCA resembles a high-interest loan, it might violate usury statutes in certain states. Check your local Attorney General’s resources here.

2. Examine the Confession of Judgment

   • We investigate whether the COJ was legally binding, properly signed, and filed in the correct jurisdiction. We’ve seen COJs tossed if they were executed incorrectly.

3. Question the Lender’s Licensing

   • Some MCA companies operate without proper licensing or do business in states where they’re not registered. This can invalidate their enforcement actions.

4. Assert Possible FDCPA Violations

   • If the MCA provider uses overly aggressive tactics, they might violate the Fair Debt Collection Practices Act (official info here). We’ll use that to your advantage.

5. Present Hardship Evidence

   • We highlight your business’s current finances to show the lender it’s better to settle or renegotiate, rather than push you into bankruptcy (where they might recover even less).

The meltdown scenario
Guess what? The meltdown scenario is when multiple lenders simultaneously come after you, stacking new MCAs onto old ones. If you have multiple MCAs, they can start “stacking.” This can result in:

• 5 or more daily ACH withdrawals.
• Negative daily balances.
• Vendors going unpaid.

HOW DELANCEY STREET PROTECTS YOU

1. Immediate Negotiation
   • We talk to each lender, gathering what they need, and assessing how much we can realistically pay.
2. Legal Leverage
   • Our sister law firm steps in if lawsuits get filed. We can motion to vacate judgments or fight aggressive lenders.
3. Debt Consolidation
   • We explore cheap forms of financing—like invoice factoring, lines of credit, or term loans—to help restructure your debt.
4. Constant Communication
   • We keep you updated every step of the way. This is your business, and we respect that.
5. MONEY BACK GUARANTEE
   • If you’re not satisfied with our debt relief program, we have a money back guarantee. It’s that simple.

FINANCIAL FACT
Regardless of whether your MCA default is brand-new or you’ve been missing payments for weeks, the sooner you act, the more leverage you have. Lenders often accept reduced sums or payment plans if approached early.

POTENTIAL LEGAL IMPLICATIONS

• Lawsuits: The MCA lender could file a breach of contract lawsuit if you’re in default.
• Judgments & Liens: A judgment allows them to attach liens or garnish bank accounts.
• Credit Reporting: Some MCA companies might report to business credit bureaus, damaging your profile.
• Personal Asset Risk: If you signed a personal guarantee, your home, car, or bank account can be at stake.

For detailed reference, see the Small Business Administration (SBA site) for guidelines on managing business debt and possible solutions.

BOTTOM LINE
Missing a merchant cash advance payment isn’t the end of your business, unless you ignore it. Delancey Street can help you figure out the next move, whether it’s settlement, consolidation, or outright defense in court. We’re experienced, dedicated, and we’ll fight for you.

We’ve Been Featured In AmericanExpress.com, Entrepreneur.com, Forbes.com, and More.
We can help you. We can protect you. We can give you a second chance.

CONTACT US NOW
Regain control and speak with our team about your MCA situation. The earlier we jump in, the easier it is to minimize the damage. We’re here 24/7—just a phone call or email away.