Omaha Merchant Cash Advance Defense Lawyers
Merchant Cash Advance Defense Lawyers
Understanding Merchant Cash Advances
A merchant cash advance (MCA) provides a business with immediate funds. In exchange, the business agrees to give the MCA provider a portion of its future credit card sales. This quick cash can seem appealing. But MCAs pose serious risks that can result in legal issues.
MCA providers do not have to follow the same rules as banks and other lenders. They might give you a bad deal that hurts your business finances. And puts you in legal jeopardy.
The Risks of Merchant Cash Advances
Many businesses get stuck in MCA debt cycles. Slow sales mean it takes longer to repay the advance. But extra fees keep piling up. To stay afloat, you take out more MCAs. Soon you are overwhelmed by debt.
Most MCA contracts have a “confession of judgment”. This says the provider can take your assets if you miss even one payment. They do not have to go to court first. Your business could face bankruptcy before you know what happened.
Defending Your Rights
In general, courts see MCAs as binding contracts. But in some cases, you have legal options:
- The provider used dishonest or deceitful tactics
- The provider charged interest rates that are illegal in your state
- The provider failed to honor their end of the agreement
Any of these might give you grounds to fight the MCA in court.
An unfairly obtained confession of judgment can also be challenged. If your business is in serious financial trouble, Chapter 11 bankruptcy could help. It may allow you to reorganize your MCA debts.
The Importance of an MCA Defense Attorney
MCA law is complex. You need a lawyer who focuses on this specific area. A skilled MCA defense attorney knows this world inside and out. They understand the nuances of MCA contracts. The relevant laws and legal precedents. And the most effective strategies to resolve MCA problems.
Your attorney will scrutinize your MCA agreements. They will look for legal violations and create a personalized plan to:
- Address defaults
- Negotiate with MCA providers
- Safeguard your assets
- Explore bankruptcy options if needed
Your Next Steps
If you are drowning in MCA debt, do not ignore it. The situation will only get worse. First, collect all your MCA contracts and financial documents. Then set up a meeting with an MCA defense lawyer.
At the consultation, the lawyer will review your case. And walk you through your options. MCA troubles are stressful. But remember, you have rights. There are ways to find a resolution. Getting expert legal advice quickly gives you the best chance to:
- Minimize losses
- Protect your business
- Get back on a positive path