The Brutal Truth About Merchant Cash Advances

You’re here because your business is drowning, in the deep end of the merchant cash advance pool. Struggling to keep your head above water, as those daily ACH withdrawals, drain you – relentlessly. But, take a deep breath. We’re throwing you a lifeline.

The Vicious Debt Cycle

It starts innocently enough. Your business needs capital, fast. You explore options – a bank loan seems impossible, with its reams of paperwork, and scrutiny over credit scores. So, you get lured, by the siren song of “fast cash” – that merchant cash advance, promising money today, in exchange for a slice of tomorrow’s sales.But those “tomorrow’s” keep stacking up. And suddenly, you’re gasping, as 20% – 30% of your hard-earned revenue, gets siphoned away daily, in that vicious, never-ending cycle of debt.

When The Sharks Circle

Then, the threats start. Missed a few payments? Well, now you’re in default. The phone rings constantly, with aggressive collectors demanding payment. They’ve filed liens against your accounts receivable. They’re contacting your customers directly, claiming those outstanding invoices as their collateral.And then, the lawsuit drops. You’re being sued for breach of contract. The lender’s legal sharks are circling, aiming to bleed you dry through litigation.So, what do you do, when you’re being circled – by remorseless merchant cash advance predators?

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You Get a Lawyer. A Damn Good One.

Look, no one wants to be in this situation. But, you are. And the reality is – you need a fighter in your corner. Someone who can disentangle you from this debt quagmire. An attorney who breathes the nuances of merchant cash advance law.Not just any lawyer will do. You need a specialist. A merchant cash advance defense expert, who can dismantle those draconian contracts – line by line. Who can identify every violation, every deceptive practice, every instance of lender overreach.You need someone to go toe-to-toe with those corporate Goliaths. Someone to counter their endless resources, with relentless advocacy on your behalf.

Strap In, This Is War

Because make no mistake, this is a war. The merchant cash advance industry has operated in the shadows for too long. They’ve preyed on small businesses, with impunity. They’ve burdened entrepreneurs with usurious rates masquerading as “factor fees.”But the tide is turning. Regulators are finally catching up. Courts are scrutinizing these predatory lending practices. And elite merchant cash advance defense firms, are leading the charge – fighting for businesses like yours.So if you’ve been burned by a merchant cash advance, don’t go it alone. Bring in the heavy artillery. Hire a real MCA defense specialist to fight this battle by your side.Because when it comes to disentangling your business from this debt trap? Half-measures won’t cut it. You need to go full force.

The Latest Merchant Cash Advance Battlefield: Litigation

In the rapidly evolving world of merchant cash advances, the battlefield has shifted – to the courtroom. Businesses are fighting back, armed with elite legal representation. And the merchant cash advance industry is feeling the shockwaves.Just last month, a federal judge in New York dealt a massive blow. Ruling that certain merchant cash advance agreements were “unconscionable” under state law. The lender’s contract was so “outrageously usurious,” the judge deemed it unenforceable.In plain English? The court recognized these MCA companies for what they are – legally sanctioned loan sharks, preying on desperate small businesses.But this is just one salvo in an escalating legal war. As the merchant cash advance industry has boomed, so too have the court cases challenging these predatory lending practices.

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Lawsuit: The New Norm

Every week, it seems, brings new litigation. Just last month, the Federal Trade Commission announced a major crackdown on two merchant cash advance providers. Accusing them of employing “deception to bully small businesses into unfair loans.”The details are grisly. Inflated fees. Distorted annual percentage rates. Unauthorized withdrawals from businesses’ bank accounts. All the hallmarks of the merchant cash advance playbook.And in a first-of-its-kind ruling, a New York court agreed – these weren’t purchases of future receivables, as the lenders claimed. They were loans, pure and simple. Meaning they violated usury laws, truth-in-lending requirements, and a host of other statutes.The precedent was set. The merchant cash advance industry’s house of cards is teetering. And businesses, aided by tenacious legal advocates, are the wrecking ball.So if you’ve been trapped in an unconscionable merchant cash advance agreement? Don’t suffer in silence. Take your fight to the courts. Hire legal representation that specializes in these cases.Because the rules of engagement have changed. The merchant cash advance battleground has shifted to litigation. And you don’t want to be outgunned.

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
Leo
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
Jason
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
Mary
$350,000 MCA Restructured Over 2 Years

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