The Brutal Truth About Merchant Cash Advances
You’re here, because you need help – with a merchant cash advance gone wrong. It’s a confusing, high-stakes situation: you took out an MCA to grow your business, but now – the debt is crushing you.Don’t worry, we’ve got your back. Our elite Boston lawyers specialize in MCA cases – and we’re not afraid to fight the sharks.
What is a Merchant Cash Advance?
An MCA is a type of loan, where companies “purchase” a portion of your future revenues. Sounds harmless, right? Think again. These deals are structured as a sale, not a loan – meaning they bypass usury laws that cap interest rates.The result? Outrageous annual percentage rates, often over 100%. You could be paying triple-digit interest, without realizing it.
The MCA Trap
Here’s how it works: the funder provides upfront cash, say $100,000. In exchange, you‘re on the hook for $150,000 – paid through daily or weekly “purchases” of your debit/credit card sales.Seems manageable at first. But if sales dip, you’re still on the hook for those fixed payments. It’s a vicious, unforgiving cycle – and before you know it, you‘re drowning in debt.
It gets worse. Many MCA contracts have deadly “confession of judgment” clauses, allowing the funder to obtain a court judgment against you – without you even knowing! Your assets could be seized, just like that.
You Need a Warrior on Your Side
So, what do you do, if you get hit – with one of these things? Hire a fighter who knows the MCA game inside-out.Our Boston lawyers have spent decades battling funders. We understand their ruthless tactics – and we know how to dismantle their so-called “bullet-proof” contracts.It could be that you simply did not see the bus. The MCA agreement was filled with legalese, designed to confuse. We‘ll scrutinize every word, every clause – and if there are violations, we’ll pounce.Maybe the funder made oral promises they didn’t keep. We have ways to prove that. Or perhaps they engaged in deceptive practices, like “loan stacking” – piling on multiple MCAs until you’re crushed.Our attorneys leave no stone unturned. We analyze your specific situation from every angle, crafting a custom-built defense. No cookie-cutter strategies here.If the funder tries to seize assets or garnish wages, we move for emergency injunctions. We fight fire with fire, using every tool and strategy to protect you.
When to Hire an MCA Lawyer
The sooner you hire us, the better we can shield you. But it’s never too late – we’ve helped clients reverse default judgments and undo asset seizures after the fact.If any of these apply, call us immediately:
- You’re struggling to make MCA payments
- You’ve been threatened with a confession of judgment
- A judgment has been entered against you
- Your assets were seized or wages garnished
- You’ve received a summons or lawsuit from the funder
Don’t try negotiating alone. MCA companies are notoriously aggressive – one wrong move could sink you deeper. We’ll handle all communications, so you’re protected.
Our Battle-Tested Strategies
Over the years, we’ve developed a full arsenal of MCA defenses. A few of our go-to tactics:
Violations of State Lending Laws
Many MCAs are really disguised loans, subject to usury and licensing laws. We argue aggressively for these protections.
Fraud and Misrepresentation Claims
If the funder lied or omitted key facts, we sue them for fraud. MCA companies have to play by the rules too.
Unconscionability Arguments
Some MCA terms are so harsh and one-sided, courts will deem them unconscionable and unenforceable. We identify and attack those provisions.
Bankruptcy Options
For some clients, bankruptcy provides a fresh start – discharging or restructuring burdensome MCA debt. We guide you through this complex process.
Litigation and Arbitration
When necessary, we take the battle to court or arbitration. Our aggressive litigators have won millions for MCA victims.No matter your situation, we have strategies to fight back. Even if you‘ve defaulted or had assets seized, you still have options.