Virginia Business Debt Settlement and Merchant Cash Advance Lawyers



Virginia Business Debt Settlement and Merchant Cash Advance Lawyers

Running a small business is tough. You have to worry about so many things – inventory, employees, marketing, regulations, and of course, cash flow.

If your Virginia business has fallen behind on payments or taken on too much debt, it can feel totally overwhelming. But you’re not alone. Tons of business owners end up in debt for all kinds of reasons. The good news is, there are options available to help you get your finances back on track.One route many Virginia business owners take is working with a debt settlement company like ours at Delancey Street. We have attorneys on staff who can negotiate with your creditors to reduce what you owe. This can save you thousands of dollars and help you avoid bankruptcy.Another option gaining popularity is merchant cash advances. This is where a company gives you an upfront lump sum of cash in exchange for a percentage of your future credit card sales. There are pros and cons to this approach, which we’ll dig into below.No matter what path you take, having an experienced business debt lawyer on your side makes a huge difference. Let’s take a closer look at how attorneys can help Virginia companies get out of debt.

How Can a Virginia Business Debt Lawyer Help?

When you‘re overwhelmed with business debt, it’s tempting to stick your head in the sand. But ignoring the problem usually makes things worse.A business debt lawyer can help you face the music and start mapping out a plan. Attorneys have a lot of different strategies they can use to help, including:

  • Negotiating with creditors for reduced balances or better terms
  • Helping restructure your debt so it’s more manageable
  • Advising on whether bankruptcy makes sense for your situation
  • Defending you if creditors file lawsuits against your business
  • Reviewing cash advance and merchant loan agreements to protect your interests

The attorneys working with Delancey Street leverage decades of combined experience helping business owners just like youWhen you have a lawyer on your team, creditors know you mean business. This makes them more likely to offer reasonable settlements.

“Having a lawyer with specialized expertise made ALL the difference. I was able to settle my business debts for pennies on the dollar and avoid bankruptcy.” – Virginia Business Owner

Beware Merchant Cash Advance Companies in Virginia

Over the last decade, merchant cash advance (MCA) companies have proliferated across Virginia. Sometimes called business cash advances or merchant loans, these arrangements can be tempting if you need money quickly. But they often do more harm than good for small businesses.Here’s how merchant cash advances work:

  • An MCA company gives you an upfront lump sum of cash
  • In exchange, you agree to pay back an amount that varies based on your credit card revenue
  • The MCA company takes a fixed percentage of your daily credit card sales until you satisfy the balance
  • There are usually no fixed payments or payment schedules

This flexibility is what makes merchant cash advances enticing. If business is slow, you pay less. When things pick up, you repay faster.But this flexibility comes at a steep price. Annualized interest rates often exceed 50% or even 100%. And if your revenue drops too low, the MCA company can freeze your account or take legal action.Before signing a merchant cash advance agreement in Virginia, it’s wise to have an attorney review it. They can help you understand:

  • The true annualized interest rate when fees get factored in
  • Whether the personal guarantee and confessions of judgement are enforceable
  • Options for negotiating better terms that protect your business
  • Steps you can take if the MCA company engages in predatory behavior

Legal Protections for Virginia Small Businesses

When it comes to business debt and financing, Virginia has some notable laws on the books. Understanding your rights can help you advocate more effectively for your interests.For example, Virginia has statutes of limitations on debt collection. For verbal or written credit agreements, creditors typically have three years to file a lawsuit to recover amounts owed. In some cases it’s five years or longer, but after that debts are no longer legally enforceable.Virginia also has laws exempting certain assets from collections. Your primary residence up to $5,000, a vehicle up to $6,000, and retirement accounts may be protected. An attorney can advise on what rules apply to your specific situation.When it comes to merchant cash advances, Virginia regulates these as commercial loans under the Virginia Consumer Finance Act. This means MCA companies must be licensed and disclose annual percentage rates. Violations can potentially be used to void or alter repayment terms.

Partnering With the Right Virginia Business Debt Lawyer

If your Virginia business is struggling with overwhelming debt, take a deep breath. You have more options than you realize. The skilled attorneys at Delancey Street offer complimentary consultations to review your situation.We’ll take the time to understand your specific business, debt balances, cash flow, and objectives. Then we’ll explain what debt relief solutions may be available so you can make an informed decision. This includes outlining the pros and cons of strategies like:

  • Negotiating with creditors for reduced payoffs
  • Restructuring payments to improve cash flow
  • Consolidating multiple debts into one manageable payment
  • Securing new financing on better terms
  • Selling assets or ownership interests
  • Filing for bankruptcy if appropriate

With customized guidance from our attorneys, you can take back control of your Virginia business financesContact Delancey Street today at 212-210-1851 to schedule your free consultation. Our team is compassionate and non-judgemental. We promise to treat you with the respect and dignity you deserve while protecting your legal rights.Let us help you gain the peace of mind that comes from having an achievable plan to resolve your business debt. The sooner you reach out for help, the more options will be available. We’re here to listen and provide tailored solutions for your Virginia business.

What do you think?

What to read next