Mesa Merchant Cash Advance Legal Help – Attorneys, Debt Settlement
Merchant cash advances can seem like easy money at first. You get a lump sum of cash quickly with no credit check. But those high fees and daily repayment rates can sink a small business fast. If you took out a merchant cash advance in Mesa, Arizona and are struggling with high payments, know your options. This guide covers the legal help available for Mesa business owners with merchant cash advance debt.
How Merchant Cash Advances Work
Merchant cash advances provide capital based on a business’s expected future credit card sales. Instead of getting a loan, companies receive an upfront sum of money. In exchange, they agree to pay back a fixed percentage of their daily credit card receipts until the balance is repaid (plus fees).Unlike a term loan, there’s no set repayment schedule. The faster your credit card sales come in, the quicker you pay back the advance. While this flexibility seems attractive for cash-strapped businesses, it can create problems down the road. With no cap on total payments, companies can end up paying back 2-10 times what they originally received.
-Common Legal Issues with Merchant Cash Advances
The unregulated nature of the merchant cash advance industry leads many providers to engage in predatory tactics. Some common legal problems faced by recipients include:Deceptive marketing – Companies are misled about the costs, failing to grasp how much they’ll repay overall.
Breach of contract – Providers change terms mid-agreement, hiking rates or freezing repayments.
Fraud – Brokers falsify application info to match businesses with unsuitable products.
Harassment – Aggressive collection tactics like calling customers to demand repayment.While the industry remains largely unregulated at the federal level, merchants do have legal rights. Depending on your situation, potential claims could include breach of contract, fraud, harassment, or deceptive business practices.
Using Mesa Merchant Cash Advance Attorneys
If you feel trapped in a predatory agreement, a Mesa business attorney can review your case for free. They’ll examine your contract to uncover unlawful terms or deceptive marketing. From there, they may recommend legal action to contest the agreement’s validity or lower what you owe.Common lawsuits include:
Breach of Contract
If a provider changes the terms mid-agreement, that constitutes breach of contract. An attorney can fight to get the deal ruled unenforceable or to recover related losses.
Harassment
If collectors cross the line with aggressive repayment demands, you may have a harassment case. This can lead to damages plus getting the provider to back off.
-Unfair Lending Practices
Attorneys also look for violations of state laws around unfair lending practices. If they find issues, that could invalidate the agreement.
Strategies for Settling Merchant Cash Advance Debt
Even without grounds for a lawsuit, you may negotiate a settlement. This involves agreeing to pay back less than you owe in exchange for closing the account. Settlements typically save you 25-50% off the balance.An experienced Mesa debt relief attorney can handle negotiations on your behalf. They work directly with the provider to secure the best possible terms. Their legal expertise comes in handy crafting convincing arguments to reduce the repayment amount.
Alternatives to Lawsuits and Settlements
If neither of the above options fit your situation, alternative approaches like debt consolidation loans or bankruptcy may help. Your attorney can walk through the pros and cons of each to find the right solution. The key is acting quickly before even higher fees and interest charges accrue.
Connect with a Mesa Merchant Cash Advance Attorney
If you took out a business cash advance in Mesa and regret it, legal help is available. An attorney can review your agreement, uncover violations, negotiate settlements, and discuss alternatives. Take control of your situation now by scheduling a free case review. The sooner you act, the more options you’ll have.
Frequently Asked Questions
Should I just stop making payments on a predatory merchant cash advance?
No, you should avoid defaulting if possible. That allows the provider to access your merchant account directly to collect repayments. Work with an attorney first to determine if grounds exist to legally halt payments.
-What violations typically make a merchant cash advance unenforceable?
Common reasons agreements get ruled invalid include deceptive marketing of terms, altering contracted rates/fees midway through, or signing merchants up for unsuitable products. Breach of contract and fraud are grounds for unenforceability.
What settlement percentage is realistic for merchant cash advances?
Most companies save 25-50% off their balance when settling, depending on negotiation leverage. Factors like contract violations, collector harassment complaints, and risk of bankruptcy impact outcomes. Experience attorneys maximize savings.
Can I file bankruptcy on merchant cash advance debt?
Yes, it is possible to discharge a merchant cash advance in bankruptcy. Chapter 7 liquidation or Chapter 13 reorganization plans can eliminate these debts. Talk to a bankruptcy lawyer about the pros, cons, and qualification requirements.
-What alternatives exist beyond legal action for struggling businesses?
If lawsuits or settlements don’t fit your situation, debt consolidation loans, credit counseling, and business restructuring can provide relief. Your attorney helps weigh the merits of each option. Acting before the balance balloons is key.
Get Legal Help with Your Mesa Merchant Cash Advance
Predatory merchant cash advances sink thousands of small businesses each year. If you’re struggling to repay one in Mesa, AZ legal help is available. Connect with an attorney to fully understand your rights and options around contesting the agreement’s validity, negotiating a favorable settlement, or pursuing alternatives like bankruptcy. Schedule your free case review today – the sooner you act, the more leverage you’ll have.