You’re a Tennessee business owner, and you took out a merchant cash advance (MCA) to cover expenses. But now, those daily ACH withdrawals are crippling your cash flow. You feel trapped, with no way out. We‘ve seen it before – and we know how to fight back.
What is an MCA, Exactly?
An MCA is not a loan, it’s a lump sum payment in exchange for a percentage of your future receivables. Sounds simple enough, right? But these deals are stacked against you from the start:
- Outrageous factor rates that equate to triple-digit APRs
- Short repayment periods of just months, not years
- Personal guarantees that put your assets at risk
- Confessions of judgment that let them freeze your accounts
It’s a raw deal, designed to keep you on the hamster wheel, taking new MCAs to pay off the old ones. We call it the “Merchant Cash Advance Trap” – and it’s entirely legal in Tennessee.
You Defaulted – Now What?
So, your business hit a rough patch, and you couldn‘t make those daily payments. What’s next? Well, the MCA company has several options:
- File that personal confession of judgment against you
- Freeze your bank accounts and merchant accounts
- Send letters to your customers demanding they pay them instead
- Take you to court for breach of contract
Any of those sound appealing? We didn‘t think so. But you have options too.
The MCA Lawsuit Playbook
If you get sued for MCA default, don‘t panic – you can fight back with the right strategy:
- Question whether the MCA contract is even valid under Tennessee law
- Argue that the outrageous factor rates constitute criminal usury
- Claim deceptive practices and violation of consumer protection laws
- Countersue for harassment, if they’ve crossed lines with collections
We’ve won cases on all these grounds, and more. An experienced MCA defense attorney knows all the angles.
“I was drowning in MCA debt, getting sued left and right. Grant Phillips Law fought for me – and won. They saved my business.” – Former Client
Restructuring & Settlements
Sometimes, you just need a fresh start. We can negotiate to restructure or settle your MCA debts for a fraction of what you owe. Key steps:
- Immediately stop ACH payments to the MCA companies
- Centralize and prioritize your debts with our help
- Let us negotiate affordable settlements while you rebuild
It’s not easy, but it works. We’ve helped businesses across Tennessee cut their MCA burdens by millions.
The MCA Minefield
Why are MCAs such a problem? Let’s look at a real example:You take a $100,000 advance with a 1.4 factor rate. That means you‘ll repay $140,000 – not terrible, right?But then they tell you it’s on a 6-month repayment term. Suddenly, that $40,000 premium is the equivalent of an 80% APR! And those are just the basic numbers.What if:
- You took another MCA to pay that one (stacking)
- They hit you with double-dipping fees
- Your factor rate was really 1.5 or higher
- You signed a personal guarantee
It’s a minefield, designed to extract the maximum from struggling businesses. We’ve seen it all – and we know how to disarm those traps.
Bankruptcy: A Scorched Earth Option
For some businesses, MCA debt is simply too much to overcome through negotiation. In those cases, bankruptcy may be the only path – if done correctly.
- Chapter 11 can eliminate MCA debts while letting you restructure
- Chapter 7 provides a full reset, but you’ll likely lose the business
- We pursue exemptions to protect your personal assets
It’s a last resort, but we pursue it aggressively when needed to get MCA companies off your back.
The MCA Survival Guide
Dealing with MCA debt in Tennessee is an uphill battle. But you’re not alone – and you have rights. Some key tips:✔️ Never ignore letters or calls – that strengthens their case
✔️ Consult experts before paying settlements you can’t afford
✔️ Scrutinize every contract for illegal clauses and deceptions
✔️ Protect your personal assets by following proper procedures
✔️ Stay strong – with the right team, you can beat thisWe’re that team. Merchant cash advance debt relief is all we do. Let‘s fight this battle together.
The MCA Litigation Machine
MCA companies are legal loan sharks, with armies of attorneys ready to pounce on defaulted deals. They know all the tricks:
- Suing in creditor-friendly jurisdictions
- Seeking excessive fees and damages
- Pushing debtors into quick, unfair settlements
- Threatening personal asset seizures
Don’t try to go it alone against this litigation machine. Having a veteran MCA defense lawyer levels the playing field.