A merchant cash advance (MCA) is quite different from a traditional loan. Instead of fixed repayment terms, an MCA is repaid as a percentage of your business’s future credit card sales deposited into your merchant account. If sales slow down or dip, payments should decrease accordingly, meaning there isn’t a fixed monthly amount you must pay.
These advances provide quick funding based on expected sales and are often used by small businesses needing immediate cash flow. At Poltielov Law Firm P.C. our Queens MCA defense attorneys understand these arrangements and how to protect your business rights.
MCA agreements often contain confusing and sometimes aggressive provisions that can cause problems for New York business owners, including:
If an MCA lender sues your business, you don’t have to face it alone. There are several strong ways to defend yourself that can protect your business and minimize financial damage:
Our experienced Queens MCA defense lawyers will create legal strategies specific to your situation and fight aggressively to protect your business and personal interests.
When confronted with collection efforts related to merchant cash advances, protecting your business’s assets becomes our priority. Our firm will conduct a review of your agreements to exclude any provisions that may expose your business or personal assets to unnecessary risks.
At Poltielov Law Firm P.C. our attorneys will help develop debt restructuring plans that create manageable payment options, while focusing on keeping your business afloat. Should litigation arise, we are prepared to defend you and your business against improper collection practices and liens, including those filed under UCC provisions.
If your merchant cash advance debt feels overwhelming, negotiating a settlement can offer real relief. Settling with your lender can lower the total amount you owe, reduce or eliminate extra fees, and help create a payment plan that fits your business’s cash flow. This means fewer worries about constant collection calls, more predictable monthly expenses, and more breathing room to focus on running your business. With experienced attorneys guiding the process, you can feel confident that your interests are protected and that you’re moving toward a fresh start.
At Poltielov Law Firm P.C. we understand that dealing with merchant cash advance debt and related legal issues can feel overwhelming. Our experienced Queens attorneys are here to provide straightforward advice and strong defense tailored to your business’s unique situation. You can count on us to fight for the best possible outcome and to stand by your side throughout the process.
Facing MCA debt or legal action? Don’t wait until it’s too late. Contact Poltielov Law Firm P.C. today for a free, confidential consultation with a Queens merchant cash advance defense attorney. Let us help you protect your business, assets, and future.
An MCA is a funding arrangement where a business sells a future percentage of its credit card sales to an MCA provider in exchange for an upfront lump sum. Unlike a traditional loan, repayment varies with your sales volume and is typically deducted automatically from your merchant account daily or weekly.
No. MCAs are structured as a purchase of future receivables, not loans. There is no interest rate; instead, a factor rate determines the total amount owed. This means MCAs can be significantly more expensive and have different legal protections than loans.
Repayments are usually a percentage holdback of your daily or weekly credit card sales—commonly between 10% and 20%. If sales decrease, so do payments. Some MCAs use ACH withdrawals from your bank account, which pose higher risk if business revenue drops.
The factor rate is a multiplier (e.g., 1.2 or 1.5) applied to the advance amount to calculate how much you must repay. For example, a $50,000 advance at 1.3 factor rate means you owe $65,000. This makes MCAs more expensive than traditional financing, often with effective APRs over 100%.
Yes. MCA providers often include aggressive terms like confession of judgment to pursue fast legal action if you fall behind. Lawsuits for full repayment, asset seizures via liens, or freezing of business accounts can occur, making legal defense critical.
Common defenses include challenging the validity or enforceability of the contract, disputing payments or accounting, contesting excessive fees, negotiating settlements, or filing to vacate improper judgments. Legal help is vital to navigate these options.
Often yes. Many MCAs require personal guarantees, meaning the provider can pursue your personal assets if your business cannot repay. Understanding and challenging these guarantees can protect personal property.
Don’t ignore the problem. Contact an experienced attorney who can review your contract, negotiate with lenders, restructure debt, or defend your business legally. Early action can prevent costly lawsuits, judgments, or loss of business assets.
