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MCA Defense Lawyers: Protecting Your Business Interests

As a business owner, you may have considered merchant cash advances (MCAs) as a financing option. MCAs provide fast access to capital by allowing you to sell a portion of your future sales revenue in exchange for an upfront lump sum. However, some MCA companies engage in predatory practices that can put business owners in difficult legal situations.If you find yourself facing legal action from an MCA company, it’s important to seek experienced legal representation right away. MCA defense lawyers can help protect your interests and fight back against unfair collection attempts.

Understanding Merchant Cash Advances

A merchant cash advance provides funding to businesses in exchange for a percentage of future credit card and debit card sales. It is not technically a loan, so MCA companies can bypass state usury laws and charge very high effective interest rates.Here’s a quick rundown of how merchant cash advances work:

• You receive an upfront lump sum payment, usually between $5,000 and $500,000
• The MCA company takes a fixed percentage of your daily credit/debit card sales until the advance is repaid
• There is no set repayment schedule – you repay as a percentage of sales
• The actual cost of capital can range from 60% APR to well over 300%

This flexibility and quick funding makes MCAs appealing for many cash-strapped businesses. However, the extremely high rates mean you can end up paying exorbitant sums over an extended period.

Predatory MCA Practices

While MCAs provide legitimate financing to many businesses, some companies engage in aggressive and even illegal collection tactics:

• Misrepresenting terms – MCA companies may verbally promise better rates/terms than what is in the final contract

• Data harvesting – Accessing bank accounts and credit card processors to take more money than legally allowed

• Harassment – Constant calls demanding immediate payment, threats to contact customers about debts
• Confessions of judgement – Requiring business owners to sign documents admitting fault for defaulting before funding is even provided

These practices trap owners in expensive contracts they didn’t fully understand and allow MCA companies to aggressively pursue repayment. But options exist to defend yourself.

Why You Need an MCA Defense Lawyer

Fighting an MCA company without legal guidance is extremely difficult, as their contracts and tactics are designed to provide them maximum leverage. An experienced attorney levels the playing field.

Navigating Complex Contracts

MCA contracts contain complicated legal language that the average business owner may struggle to fully grasp. Your lawyer can interpret opaque clauses and identify potential loopholes.

Challenging Abusive Tactics

If an MCA company has engaged in illegal collection attempts like data harvesting or misrepresenting terms, your lawyer can put together a strong case to invalidate the agreement.

Negotiating Settlements

Even if the MCA company’s position is legally sound, your attorney can still negotiate a settlement for significantly less than the amount owed. We leverage our expertise to make them prefer closing a deal over a prolonged legal fight.

Defending Against Lawsuits

Should an MCA company file a lawsuit against your business, competent legal counsel is absolutely vital. We handle filing motions, navigating court procedures, cross-examining witnesses, and putting forward the best possible defense.With an experienced commercial litigation attorney guiding you, it becomes much less daunting to stand up to aggressive MCA companies. We level the playing field and fight to protect your interests.

Our MCA Defense Team

At Delancey Street, we have successfully represented numerous business owners in disputes with MCA companies. From navigating byzantine contracts to defending against lawsuits, our seasoned lawyers have the skills to tackle these complex cases.

Decades of Relevant Experience

Our legal team has over 20 years combined experience dealing specifically with MCA agreements and related commercial litigation. We‘ve seen practically every trick these companies use and know how to respond effectively.

In-Depth Contract Analysis

We carefully dissect MCA contracts to find weaknesses that support invalidating or altering the terms. Even air-tight agreements often have flaws when examined by experts.

Relentless Negotiators

We tenaciously negotiate with MCA companies to secure reduced settlements, improved repayment terms, or complete release from contractual obligations. Our thorough preparation puts us in a position of strength during talks.

Courtroom Mastery

Should a lawsuit arise, we adeptly handle filings, discovery, depositions, motions, and trial advocacy. Our comfort operating in the courtroom provides clients invaluable peace of mind.We also maintain positive working relationships with expert witnesses across various commercial fields. Their testimony and reports can make or break these cases.

Our Step-by-Step Legal Strategy

Here is an overview of how our MCA defense team strategically tackles these cases from start to finish:

1. Comprehensive Case Evaluation

• Thorough client interviews to understand circumstances
• Review all relevant documents – MCA contract, communications, lawsuits if applicable
• Research background of MCA company and adherence to regulations
• Identify initial strengths/weaknesses of client’s position

2. Build Negotiation Leverage

• Further investigate any abusive or illegal tactics by MCA company
• Have forensic accountants review reports of diverted funds
• Explore bad faith arguments to invalidate contract
• Gather testimonials from other victims of same MCA company

3. Attempt Settlement Negotiations

• Use accumulated leverage to negotiate reduced payoff amount
• Get improved repayment terms or partial debt forgiveness
• Secure written commitment not to pursue further collection efforts
• If talks fail, proceed with litigation

4. Litigation and Trial

• File motions questioning validity of contract
• Depose MCA company executives about tactics
• Present expert witness testimony on standards
• Attempt to get case dismissed or reach settlement
• Take case to trial if necessary and continue settlement talks

This strategic approach allows us to build and apply maximum pressure throughout the process. Most cases resolve well before trial, saving significant time, money, and stress.