Merchant Cash Advance Attorney Protects Your Business

A merchant cash advance attorney can be a lifesaver for your business if you're struggling with a problematic cash advance. They can help you navigate the complex laws surrounding these agreements.

A merchant cash advance attorney can review your contract to identify any potential issues or clauses that may be detrimental to your business. This can be especially important if you're not sure what you're signing or if you're feeling pressured by the lender.

A merchant cash advance can be a loan or an advance on future credit card sales, and the terms can vary widely. Some agreements may include high fees, interest rates, or other unfavorable conditions.

A good merchant cash advance attorney can help you understand the terms of your agreement and protect your business from potential pitfalls.

Merchant cash advances can provide quick capital, but they come with significant risks that businesses should carefully consider. One primary concern is the lack of federal regulation, which can lead to less transparent terms and potential exploitation.

High overall costs are a major risk associated with merchant cash advances. MCAs often come with high fees and interest rates, making them more expensive than traditional loans. The daily repayment model can strain a business's cash flow, particularly during slow sales periods. Failing to meet repayment terms can result in severe penalties and legal action.

Businesses have the right to protections under state laws. In California, for example, MCA companies must disclose the annual percentage rate (APR) equivalent, amount being advanced, total repayment amount, term length, and more. Failure to do so may invalidate the agreement.

Here are some key protections under California law:

Merchant cash advances (MCAs) can provide quick capital, but they come with significant risks that businesses should carefully consider. One primary concern is the lack of federal regulation, which can lead to less transparent terms and potential exploitation.

High overall costs are a major concern, as MCAs often come with high fees and interest rates, making them more expensive than traditional loans. This can be a major strain on a business's finances.

Cash flow issues are another risk associated with MCAs. The daily repayment model can strain a business's cash flow, particularly during slow sales periods.

Risk of default is also a concern, as failing to meet repayment terms can result in severe penalties and legal action. This can be a major blow to a business's financial stability.

The lack of standardization in MCA agreements can make it difficult to fully understand all terms and conditions. This can lead to confusion and potential misunderstandings.

Here are some of the key risks associated with MCAs:

If you're struggling to repay a merchant cash advance in California, you need to know your rights under state law. California law provides several key protections for consumers.

MCA companies must disclose the annual percentage rate (APR) equivalent, amount being advanced, total repayment amount, term length, and more. Failure to do so may invalidate the agreement.

Interest rates above 10% are illegal under California's usury law. This law applies to MCA companies, even if they claim their advances are purchases rather than loans.

MCA companies making advances over $2,500 must obtain a California Finance Lenders License. Operating without a license is a misdemeanor and can invalidate the contract.

Under California consumer protection laws, you may be able to sue MCA companies engaging in unlawful, deceptive, or unfair business practices like misrepresenting rates or making illegal threats.

You have the right to cancel certain MCA contracts within two weeks and obtain a full refund under California's seller assisted marketing plan law.

Here are some key protections you have under California law:

If you suspect that your MCA agreement violates California law, it's crucial to have an experienced attorney review it. This can provide leverage to negotiate a settlement or even get the contract invalidated.

Merchant cash advance contracts can be lengthy and complex, making it difficult to understand the terms and fees involved. Origination fees, for instance, can range from 5%-15% of the total loan amount, with some lenders adding administration or default fees on top.

Be cautious of these fees, as they can add up quickly and make the loan more expensive than a traditional bank loan. Even the interest rates on merchant cash advances can be considered usurious and predatory lending in some jurisdictions.

The lack of federal regulation in the MCA industry can lead to less transparent terms and potential exploitation. In New York, however, regulations have been implemented to provide more transparency and protection for businesses seeking MCAs.

Some common risks associated with merchant cash advances include high overall costs, cash flow issues, risk of default, and confusing terms. To help you better understand these risks and navigate your MCA contract, consider the following:

Origination and junk fees can be a significant burden when taking out a merchant advance consolidation loan. Origination fees alone can range from 5%-15% of the total loan amount.

Be prepared to see administration or default fees added to the loan as well, which can add to the overall cost.

These fees can be substantial, so it's essential to carefully review the fine print in any proposed promissory note or security agreement.

Navigating MCA Contracts and Fees can be a daunting task, but understanding the basics is key. A thorough review of your merchant cash advance contract is essential to protect your business from potential pitfalls.

Our team reviews the fine print language, rate structures, and terms of your MCA agreements, as well as any associated lien filings. This in-depth review helps identify potential deficiencies and legal exposures.

We look for issues such as violations of state usury statutes, failure to comply with lender registration requirements, lack of requisite disclosures, and overly aggressive unlawful collection practices. These are common problems that can be costly for your business.

Here are some potential issues we look for in MCA contracts:

It's worth noting that in some cases, MCA contracts can be voided in full. This can happen if there are serious deficiencies in the contract, such as violations of state laws capping loan APRs under usury statutes.

Communicating with your lender can be a daunting task, especially if you're already struggling with the terms of your merchant cash advance contract.

A merchant cash advance attorney can take over all future communications with your lender, giving you the time and space to focus on your business.

This means you won't have to deal with phone calls, emails, or letters from your lender, which can be a huge weight off your shoulders.

Your attorney will handle all communication, ensuring that you're protected from potential judgments if you've defaulted on your loan.

If a lawsuit is filed against you, your attorney will defend it, working to prevent a judgment that could harm your business.

You should consider hiring a merchant cash advance attorney if you're struggling to make daily payments or have received threats of a lawsuit from the MCA company.

A seasoned attorney can help you navigate the complexities of MCA debt cases and counter deceptive tactics employed by predatory lenders. They can also review your agreement for violations of California law, which can uncover leverage to invalidate the contract or reduce what you owe.

To find the right attorney, ask questions like how much experience they have with merchant cash advance cases and what strategies they use to defend against MCA lawsuits.

A qualified attorney can assist you in several important ways, including reviewing your agreement, negotiating reduced payments or partial debt forgiveness, defending against lawsuits, halting illegal collection activities, suing MCA companies for violations, helping you file bankruptcy, and offering tax debt relief strategies.

Here are some key questions to ask a prospective merchant cash advance attorney during your initial consultation:

By asking these questions and considering your options, you can find an experienced attorney who can help you protect your business assets and free up cash flow.

Settling your MCA debt can actually begin to improve your credit position, not harm it. By removing liens and closing out obligations held by creditors, you can start to rebuild your financial stability.

This process is different from bankruptcy, which does not accomplish the same thing. In fact, settling your debt can be a more effective way to protect your business and personal credit.

Here's how it works: by invoking certain consumer rights, we can put a stay on collections activity, tying up potential legal actions against your business and allowing us to pursue a settlement. This can help you maintain continuity of operations while we work to resolve your debt.

Settling your debt can actually improve your credit and business operations, not harm them. Settling debt through a negotiation process can remove liens and close out obligations held by creditors, which can be a big relief.

By invoking certain consumer rights, you can put a stay on collections activity, protecting your business from potential legal actions. This allows you to tie up loose ends and pursue a settlement without worrying about interruptions to your operations.

Settling debt can also begin to improve your credit position, which is a major advantage. Unlike bankruptcy, settling debt allows you to partially forgive debts and remove liens, giving you a fresh start.

You can breathe a sigh of relief knowing that settling debt has no further negative impact on your business or personal credit.

Settling MCA debt can be a game-changer for small business owners who feel trapped by predatory loans. Usher Law Group has secured 60-80% discounts off original balances owed to predatory lenders for many of their clients, resulting in eliminating $100K+ obligations for $40K or less in payoff through strategic settlements.

The amount of settlement savings can vary due to different contract terms and creditors, but Usher Law Group only proposes settlements that represent significant and material savings compared to what's owed. No discount is ever guaranteed, but they work tirelessly to get the best possible result from every situation.

In fact, the worse the agreement is, the more leverage they typically have to negotiate incredible discounts. This is because they have extensive experience in MCA litigation and know how to highlight legal exposures to achieve maximum savings.

Here are some examples of realistic settlement savings:

These numbers are based on Usher Law Group's experience and may vary depending on individual circumstances. However, they demonstrate the potential for significant savings through strategic settlements.