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Maryland MCA Defense Lawyers Business Debt Relief

If you run a small business in Maryland and are struggling with merchant cash advance (MCA) debt, know there are options and people who can help. Our team at Delancey Street has extensive experience helping business owners find solutions for MCA debt through settlement and restructuring programs.

How We Can Help With MCA Debt

As a business debt relief company, Delancey Street partners with business owners to tackle MCA debt and create healthier financial futures. We have an easy process to help you:

• Get out of expensive MCA agreements
• Settle outstanding balances for less than you owe
• Restructure remaining debt into more manageable payment plans

Throughout the process, every client works with a dedicated expert to ensure your business gets the customized debt relief it needs.

Why MCA Loans Can Be Problematic

Merchant cash advances seem enticing at first because they provide quick access to capital without requiring strong credit or collateral. However, the ultra-high interest rates and aggressive collection tactics can sink businesses.

• Interest rates often 200-500% APR
• Daily repayments that drain cash flow
• Personal guarantees put owners’ assets at risk
• Abusive collection practices like merchant account holds

This toxic combination leaves many business owners feeling trapped and overwhelmed. But defending your rights through settlement or restructuring can help you break free.

Maryland MCA Defense Lawyers Can Challenge Unfair Lending

If you feel an MCA company took advantage of you with deceptive terms or abusive collection actions, Maryland lawyers can analyze your case for defenses. Violations of state laws around lending and debt collection may provide leverage to:

• Get cases dismissed
• Reduce balances
• Halt collections

For example, some protections in Maryland include:

• Usury laws capping maximum interest rates
• Banning confessions of judgement
• Requiring licensing for certain lending activities

An attorney can review your MCA agreements and the company’s practices to uncover any violations of Maryland statutes. Finding defects can put you in a position to invalidate contracts, discharge debt, or negotiate better settlements.

Four Main Defenses Against Unfair MCA Loans

Lawyers have had success challenging MCA loans and related collection efforts on these common grounds:

1. Deceptive or Misleading Conduct

If an MCA provider misrepresented terms, failed to disclose key details, or engaged in high-pressure tactics, that may constitute predatory lending or fraud in Maryland. Possible deception claims include:

• Hiding true cost of capital
• Obscuring repayment amounts or timing
• Misstating ability to change payment processing

2. Breach of Covenant of Good Faith

All contracts carry an implied covenant of good faith, requiring parties to deal honestly and fairly. But many MCA companies violate this duty through actions like:

• Making unauthorized debits
• Holding merchant accounts hostage
• Threatening owners’ personal assets

Proving they breached good faith can invalidate the agreement.

3. Unlicensed Lending

Maryland regulates certain lending activities like extending credit or collecting interest. If an MCA provider lacked proper licensing for its business, that may nullify contracts and repayment obligations.

4. Unconscionability

If loan terms are unduly one-sided or oppressive, courts may deem contracts unconscionable. Possible factors are:

• Deception in the signing process
• Grossly inflated rates or fees
• Harsh default clauses

If judged unconscionable, courts can refuse to enforce agreements.

Restructuring and Settlement Options

Beyond legal defenses, practical solutions like restructuring debt or negotiating settlements can also provide relief from MCA loans.

Debt Restructuring

Working with lenders to modify agreements in the borrower’s favor is often the simplest route. Potential changes include:

• Lower interest rates
• Smaller payments
• Longer repayment term

Restructuring removes default risk while making payments more affordable.

Settlements

If modifying the debt itself seems impossible, settling outstanding balances for less than owed may be an option. MCA companies often accept discounted lump sums to resolve debts they view as risky, in exchange for borrowers releasing all future liability.

• Settlement amounts often 20-50% of balance
• Requires lump-sum payment
• Settles debt completely

Settlements provide clean breaks from debt through compromise.

Partnering With Experts For Debt Relief

Trying to navigate MCA debt relief on your own can be intimidating and frustrating. But you don’t have to tackle it alone.At Delancey Street, our team of experts makes the process smooth from start to finish. We evaluate your situation, identify viable solutions, then handle talks with lenders so you can focus on running your Maryland business.With customized programs and relentless advocacy on your behalf, we empower business owners to:

• Escape abusive loan contracts
• Reduce or eliminate huge balances
• Preserve assets and credit standing
• Regain financial stability and growth

Don’t keep struggling under predatory MCA debt. Contact us today to start building a healthier financial future for your business. Our dedicated advisors are ready to help you move forward