Merchant Cash Advance Defense Attorney In New York, NY

Shielding Businesses from Predatory Financing

Contact J. Singer Law Group, PLLC to schedule a consultation with a lawyer today. (917) 905-8280

Are You Struggling with a Merchant Cash Advance Loan?

Merchant Cash Advance (MCA) Loan Defense

At J. Singer Law Group, PLLC, we understand the complexities and challenges of managing MCA obligations. Our experienced team is dedicated to providing strategic legal solutions to businesses entangled in unfavorable MCA terms. Whether you're facing aggressive collection tactics, a breach of contract, or simply overwhelmed by the debt, we're here to help.

When merchants experience business struggles, MCAs become a huge financial burden. Defending or re-negotiating your MCA terms is an effective strategy for alleviating this obligation and getting your business back on track.

Some of the MCA Defense services we can provide:

• Assume all communications with the MCA company, debt collectors or attorneys
• Help restructure your merchant cash advance with favorable terms
• Settle your MCA obligations
• Defend the merchant and / or principal(s) in a lawsuit
• Move to vacate judgments against you or your company
• Pursue a countersuit or claim against an unscrupulous MCA
• File for bankruptcy, if necessary,
• Resolve UCC issues

Comprehensive Legal Services For MCA Challenges

Our firm offers a range of services tailored to address the unique challenges presented by Merchant Cash Advances, including:

MCA Contract Review: We meticulously analyze your MCA agreements to identify any unfair practices or clauses that could be deemed unlawful, offering you a clear understanding of your legal standing.

Debt Restructuring Negotiations: Our team leverages its vast experience to negotiate more favorable repayment terms, aiming to reduce your financial burden and facilitate a path towards stability.

Defense Against Litigation: If you're facing a lawsuit from an MCA provider, we offer robust legal defense, aiming to protect your interests and contest any unjust claims.

Resolution Strategies: We explore every legal avenue to resolve your MCA issues, from settlement negotiations to filing for bankruptcy protection, if necessary, to shield you from predatory lenders.

Why Choose J. Singer Law Group?

At J. Singer Law Group, PLLC, we specialize in providing comprehensive legal support to businesses struggling under the weight of Merchant Cash Advance loans. Our dedicated team of legal experts is well-versed in the intricacies of commercial finance law, offering a beacon of hope to businesses caught in the mire of MCA debt. We're committed to delivering personalized legal strategies designed to protect and preserve your business’s future.

Experience: Our attorneys have years of experience in financial litigation and MCA defense, equipping us with the insights and strategies needed to tackle your case effectively.

Personalized Attention: We understand that every business's situation is unique. We provide tailored advice and strategies designed to address your specific challenges and objectives.

Commitment to Clients: Our firm is committed to advocating for small and medium-sized businesses. We strive to turn your struggles with MCA debt into a manageable situation, allowing you to focus on what you do best—running your business.

Transparent Communication: We believe in keeping our clients informed every step of the way, ensuring you understand your options and the potential outcomes of your case.

Take the First Step Towards Relief

Don't let MCA debt dictate the future of your business. Contact J. Singer Law Group, PLLC, today for a free consultation. Our team is ready to assess your situation, offer legal insights, and outline a strategy to defend your business against predatory lending practices. Together, we can work towards a solution that puts your business back on the path to financial health and growth.

Navigating Merchant Cash Advances: Key Terms For Informed Decision-Making

Understanding the intricacies of a Merchant Cash Advance (MCA) is crucial to safeguard your business from potential pitfalls. Contrary to loans, MCAs involve selling a portion of future receivables for a lump sum. Familiarize yourself with essential terms in MCA contracts:

• Confession of Judgment (COJ): Grants the MCA provider the right to obtain legal judgment without notice if the agreement is breached, limiting your defense options in court. Some states, like New York, may prohibit COJs.
• Advance Amount: This is the lump sum payment that the business receives from the MCA provider. It's the principal amount that the merchant agrees to repay based on future credit card sales or revenues.
• Factor Rate: Unlike traditional loans with annual percentage rates (APR), MCAs use a factor rate to determine the total repayment amount. The factor rate typically ranges from 1.1 to 1.5 and is multiplied by the advance amount to calculate the total amount the business owes.
• Holdback Percentage: This term refers to the percentage of daily or weekly credit card sales that the MCA provider automatically deducts from the business's account as repayment. The holdback percentage varies based on the provider, the amount advanced, and the repayment period, usually ranging between 10% and 20% of daily credit card receipts.
• Repayment Period: The repayment period for an MCA is not fixed and can vary significantly depending on the business's sales volume. The period may last from a few months to over a year, with faster repayment expected in times of higher sales.
• ACH Withdrawals: For businesses without significant credit card sales, some MCA agreements allow for repayment through Automated Clearing House (ACH) withdrawals, where payments are deducted directly from the business's bank account based on projected revenues.
• Daily or Weekly Payment: This is the schedule of repayments that a business must make towards their MCA. Depending on the agreement, payments are made either daily or weekly, which can significantly impact the business's cash flow.
• Default Terms: These terms outline the conditions under which a borrower is considered to have defaulted on the MCA. Defaulting can lead to immediate repayment of the full outstanding amount and potentially other penalties.
• Reconciliation Clause: Some MCA contracts include a reconciliation clause that allows businesses to adjust their repayment terms if their sales significantly decrease. This clause can help prevent businesses from being overwhelmed by repayments during slower periods.
• Personal Guarantee: While MCAs are often marketed as unsecured advances, many providers require a personal guarantee from the business owner. This means that if the business fails to repay the advance, the provider can pursue the owner personally for repayment.
• UCC-1 Blanket Lien: Some MCA agreements may include a provision that allows the provider to file a UCC-1 financing statement, effectively placing a lien on the business's assets. This lien gives the MCA provider a legal right to seize assets if the business defaults on the advance.

Understanding these terms is crucial for any business owner considering a Merchant Cash Advance. It's essential to carefully review and comprehend all aspects of an MCA agreement to ensure it aligns with your business's financial health and goals.