Mississippi MCA Defense Lawyers Business Debt Relief

MCA Defense Lawyers Business Debt Settlement

Businesses can accumulate significant debt for a variety of reasons – economic downturns, cash flow issues, expansion costs, and more. When debts become unmanageable, business owners may turn to merchant cash advance (MCA) companies for quick financing without realizing the full implications. MCA loans typically have very high interest rates and aggressive collection practices. If your business struggles with MCA debt, specialized legal defense services can be invaluable.

Understanding Merchant Cash Advances

Merchant cash advances provide businesses with lump sum payments in exchange for a percentage of future sales. MCA companies market these as purchases of future receivables, not loans, so they bypass state usury laws on interest rates. However, the Federal Trade Commission considers MCAs to be extremely expensive financing options that are difficult to pay off.Key characteristics of merchant cash advances:

  • Fast approval and funding, often within days
  • No credit check required
  • Daily or weekly repayment through percentage of credit card sales
  • Costly – equivalent to 60-350% APR interest
  • Harsh collection practices like remotely seizing funds or forcing bankruptcy

While MCAs may seem like an easy lifeline for struggling businesses, they often create deeper financial issues. The FTC urges business owners to explore all financing options and clearly understand MCA terms before signing any contract.

MCA Collection Harassment

Merchant cash advance lenders utilize aggressive tactics to secure repayment, viewing themselves more as collectors than lenders. If a business falls behind on payments, MCA companies may:

  • Make threats of lawsuits, asset seizures, or criminal charges
  • Initiate daily debiting of the full contracted percentage, wiping out any profits
  • Freeze bank accounts or force account closures
  • Send associates to pose as customers to demand payment
  • Make humiliating public comments to the owner’s friends and family
  • Force involuntary bankruptcy declaration to seize assets

These collection harassment strategies lead desperate business owners to commit illegal acts like hiding company assets. However, as the FTC notes, deceiving an MCA company only creates more legal troubles. Seeking knowledgeable legal defense is the best path forward.

MCA Defense Lawyers

If your business faces legal action from an MCA company, specialized corporate attorneys can defend your case. Key services MCA lawyers provide include:

  • Negotiating Settlements – An experienced lawyer can often negotiate a reasonable settlement or payment plan. They understand what terms are realistic for struggling businesses.
  • Contesting Harassment – Attorneys can legally contest underhanded collection practices like forced closures or seizures.
  • Navigating Bankruptcy – They advise on whether bankruptcy declaration could discharge debts and develop protective strategies.
  • Disputing Predatory Lending – Lawyers build arguments contesting violation of state laws, bringing MCA interest rates within legal limits.
  • Avoiding Criminal Charges – They defend against potential criminal accusations like fraud or larceny related to hiding assets.
  • Lawsuits and Appeals – Attorneys can fully represent a business in legal proceedings, including appeals of unfavorable rulings.

When facing MCA legal troubles, business owners need an advocate on their side. Defense lawyers intimately understand MCA contracts and use their expertise to protect client interests. They also provide emotional support during an incredibly stressful time.

Selecting an MCA Defense Lawyer

Not all attorneys possess in-depth knowledge of the MCA industry’s predatory practices. When researching defense lawyers, prioritize these credentials:

  • Corporate finance law expertise – Deep understanding of business lending and contracts shows they grasp the nuances of MCA deals.
  • Debt collection experience – A history of cases defending against aggressive collectors demonstrates useful skills.
  • Local connections and reputation – Judges familiar with the lawyer may perceive them as more credible and influential.
  • Record of favorable settlements – Check reviews and case studies for examples of positive outcomes in MCA disputes.
  • Compassion for small business struggles – The lawyer should express genuine concern for your company’s situation.

Also pay attention to logistics – where their office is located, communication responsiveness, legal fees, etc. Compare multiple lawyers before committing.

Overcoming MCA Debt Burdens

Here are proactive tips to alleviate MCA debt pressures on your business:

  • Open new revenue streams – Any new income sources will help cover daily payments to MCA companies. Brainstorm creative ideas or offer new products/services.
  • Seek alternate financing – Compare MCA terms against options like business loans, factoring, or government programs. The SBA offers debt relief guidance.
  • Attempt refinancing – You may qualify for lower interest debt consolidation loans to pay off the MCA balance. This eliminates ongoing payment percentages.
  • Change banking providers – Switch to a small business-friendly bank that won’t freeze your accounts if MCA payments fall behind.
  • Consult professionals – Talk to business advisors, lawyers, accountants, and financial experts for guidance on improving cash flow.
  • Consider bankruptcy – As an absolute last resort, formal bankruptcy may discharge all or part of the MCA debts. Meet with a lawyer to discuss pros and cons.

While MCA loans offer quick funds, they are typically predatory and destructive for vulnerable businesses. Seek help from legal professionals if your company faces harassment or legal threats. With persistence and support, it is possible to regain solid financial footing beyond the MCA crisis.

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