Struggling with debt?

Struggling with mounting MCA debt? You aren’t the only one. According to the Federal Trade Commission and other agencies, many small businesses feel trapped by daily or weekly deductions that never seem to end — so many entrepreneurs are looking for answers.

HERE’S THE BOTTOM LINE
A Merchant Cash Advance (MCA) isn’t your everyday business loan. Instead, it’s an upfront amount of money, given to you in exchange for a cut of your future credit card or sales receivables. On the lender’s side, they want to ensure they get paid back fast. On your side, you might see your cash flow drained by these relentless repayments.

WHY IS THIS A BIG DEAL?
Because if you miss payments, or your business can’t keep up, the MCA provider might file a confession of judgement (COJ) or take other legal steps. In some cases, they can freeze your accounts, seize funds, or even target your personal assets. That’s scary stuff.

DEBT PENALTIES AND LEGAL IMPLICATIONS
When you signed your MCA agreement, you might have noticed (or maybe didn’t notice!) clauses about default penalties, collection costs, or personal guarantees.

• Under a COJ, the lender may not need to go through a lengthy court battle to get a judgment against you.
• Some states require extra disclosures for MCA agreements. Check local laws or the Consumer Financial Protection Bureau for basic protections.
• Defaulting on an MCA can lead to serious legal trouble, including lawsuits, bank levies, and damaged credit.

From the MCA Lender’s Perspective
They invested in your future credit card sales. If those sales decline, they worry about never recouping their investment. They rely on strict contracts, high factor rates, and daily ACH sweeps to minimize risk. In many cases, lenders feel entitled to immediate repayment, even if your business is underwater.

WHAT CAN YOU DO IF YOU’RE OVERWHELMED?
That’s where we come in. We’re DelanceyStreet.com, a premier, and award winning, business debt relief company based in NYC. We focus on all types of unsecured business debt — including MCAs.

AS SEEN ON
Our team has been mentioned in various major media outlets for our approach to debt settlement, negotiation, and all-around problem-solving for entrepreneurs.

REGARDLESS OF YOUR SITUATION
Regardless of whether you’re just starting to miss payments, or you’ve already been served legal papers, we can help you figure out a strategy to handle MCA debt.

OUR DEFENSE STRATEGY
We believe in a proactive approach, starting with in-depth communication and a thorough review of your agreements. Here are some of our core strategies:

1. Pre-Litigation Negotiation

   • We contact the MCA provider to discuss options like extending the repayment term or lowering the total owed.
   • Lenders want to get paid, and they’re often open to adjustments if it means avoiding expensive legal battles.

2. Challenging Confession of Judgement

   • If a lender tries to use a COJ, we analyze whether it’s enforceable.
   • In some states, confessions of judgment face new regulatory hurdles; we leverage any errors or oversights to protect you.

3. Debt Consolidation or Settlement

   • If you have multiple MCAs, we can explore rolling them into one, more affordable payment.
   • Our team negotiates on your behalf to reduce interest rates, waive extra fees, and settle your debt at a fraction of what’s owed.

4. Legal Defense

   • If you’ve already been sued, our sister law firm can stand by your side.
   • We’ll look for legal missteps by the lender: Did they follow state laws? Did they misrepresent the MCA as a loan? Did they tack on illegal fees?

IN MANY CASES
In many cases, taking action fast can save your business. In many other cases, the best way forward is to bring all your documents, let us review, and figure out a game plan that stops the bleeding. Our experience tells us that MCA debt can be dismantled if we identify contractual flaws or show the lender it’s in their best interest to negotiate.

DON’T PANIC
Yes, Merchant Cash Advances can be intimidating. But laws exist to protect you — see the Small Business Administration for an overview of standard lending protections and guidance. While MCAs aren’t exactly standard loans, certain consumer protection principles may still apply in some situations.

CUTTING THROUGH THE NOISE
Some businesses try to handle everything themselves. They call the MCA provider and hope for mercy. Sometimes that works, but other times, the MCA company won’t budge unless they see a strong defense strategy.

STRATEGIES OF HOW WE’D DEFEND YOU
We take a step-by-step process:

1. Assess Your MCA Agreement
   We look for hidden or confusing clauses. If anything violates local or federal guidelines, that’s immediate leverage.

2. Proactively Explain Your Hardship
   We speak to your MCA lender or their attorneys, showing them actual revenue statements, explaining why your business is in distress, and why a settlement beats a total default.

3. Propose a New Payment Structure
   Maybe you need smaller daily/weekly draws or a lower principal. We negotiate to reduce the factor rate or get rid of stacked penalties.

4. Legal Back-Up
   If the lender tries to freeze accounts, we can challenge them in court, especially if they used a COJ in a state that no longer allows them without proper warnings.

EXTRA TIPS YOU SHOULD KNOW

• Keep detailed financial records. It’s crucial if you end up in court.
• Avoid stacking more MCAs. One Merchant Cash Advance is tough enough; multiple MCAs can sink your business.
• Know your rights. Visit your state’s attorney general’s website or the USA.gov portal for legal resources.

COMMON MCA QUESTIONS
Q: Are Merchant Cash Advances illegal?
No, they aren’t illegal, but they are heavily scrutinized. Many states have updated consumer protection laws to handle them.

Q: Can I negotiate my own MCA debt relief?
Sometimes, yes. But it can be very stressful if the lender is aggressive. Many business owners feel safer hiring a team like ours, which has experience negotiating huge MCA balances.

Q: What if the MCA provider already got a judgment against me?
We can still help. Even after a judgment, there might be ways to restructure or appeal if there were errors.

AT DELANCEYSTREET.COM, WE CAN HELP YOU
We pride ourselves on having professional expertise and a proven track record. We’ve helped 100’s of businesses find a realistic path to freedom from MCA debt.

WE PROTECT. WE NEGOTIATE. WE WIN.
That’s our team’s motto. We’re always available to speak with you, wherever you are in the nation. Our NYC-based operation handles clients coast to coast.

FINAL THOUGHT
If you feel like these daily deductions are crushing your cash flow, or if you’re worried about potential lawsuits, reach out now. The sooner you act, the faster we can stop the spiral.