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Trapped in a Predatory Merchant Cash Advance? Here’s How to Break Free

You scrambled for capital to grow your business. But now, those merchant cash advance agreements are bleeding you dry – repaying a mountain of debt, with outrageous interest rates. You feel helpless, confused, perhaps even deceived by the lenders’ shady tactics.

Well, you should know – there’s light at the end of this tunnel. You don’t have to suffer in silence, letting these wolves in sheep’s clothing devour your profits any longer.

Misled by Brokers, Agreements You Didn’t Fully Understand

It’s the perfect storm – brokers lure you in with promises of “easy, unsecured funding.” They hide the ball on exactly what type of product you’re signing for – making complex merchant cash advance contracts seem simple.

Then, the lenders swoop in: enthusiastically offering “cash in your account right away!” But these aren’t traditional loans – they’re purchases of your future receivables…at insane interest rates, often 40% APR or higher.

You ask reasonable questions, but they dismiss your concerns: “Don’t worry about it, this is how it works, it’s totally routine for your industry!”

So, what do you do – if you get hit, with one of these things?

Seek Immediate Legal Counsel from Experienced MCA Attorneys

The elite debt relief experts at Delancey Street have seen every dirty trick in the book from these predatory lenders. We know how to scrutinize your merchant cash advance agreements, line-by-line, to uncover any potential:

  • Fraudulent misrepresentations by brokers or underwriters
  • Violations of federal truth-in-lending laws
  • Legally defective contracts with potential grounds to invalidate the agreements

Our attorneys specialize in complex MCA workouts, settlements, and litigation to get you maximum debt relief. We don’t just “make it go away” – our experts custom-tailor aggressive legal strategies for your situation.

So, What Options Are on the Table?

Don’t go this alone – each path has pros, cons, and potential legal landmines. You need world-class guidance from seasoned merchant cash advance litigation counsel.

Workout or Settlement Negotiation

A negotiated workout or settlement is often ideal: you escape the MCA debt trap through a lump-sum payoff at a reduced amount. This avoids bankruptcy and preserves your credit – if negotiated properly with skilled legal advocates.

But beware: lenders often reject reasonable settlement offers if they smell weakness or fear. Our attorneys project maximum leverage from Day 1, with credible threats of litigation or bankruptcy to compel realistic settlements.

State or Federal Litigation

In some cases, the lender’s conduct may open them up to state usury claims, RICO violations, or other statutory causes of action. We’re not afraid to bring scorched earth litigation to win judgments voiding the MCA agreements completely.

Of course, litigation is a grind – protracted legal battles can still strain cash flows for years. Our litigators employ aggressive crisis management strategies like emergency injunctive relief to cut off draconian collections immediately.

Bankruptcy: The “Nuclear” Debt Relief Option

For some businesses, declaring bankruptcy is the best path to fully erase predatory merchant cash advance debt, and make a fresh start. Our bankruptcy gurus work closely with our MCA team to navigate this high-stakes process.

But bankruptcy has massive consequences – you’ll potentially be forced to liquidate assets, your credit will be destroyed, and you may even have to shutter operations. Bankruptcy is an absolute last resort – but always an option for maximum relief.

What If I’ve Already Paid Back What I Borrowed…and More?

It’s enraging: even after you’ve paid back 100% of the merchant cash advance principal, the lender still demands you repay interest at usurious rates. In essence, you’re paying double or triple what you borrowed – it’s immoral, and potentially illegal!

You have legal recourse: our MCA litigation team pursues aggressive “debt invalidation” actions against lenders that let you:

  • Recoup past excess interest payments
  • Block future collections & get remaining debt voided
  • Seek statutory damages and penalties under state usury or lending laws

So don’t keep enriching these predators – fight for accountability in court.

Maybe I Could Just Refinance to Cheaper Debt?

In a perfect world, yes – you could refinance problematic merchant cash advance debt for a new, lower-cost loan product. But it’s not that simple:

Many MCA agreements have draconian lockbox requirements that legally prevent you from redirecting cash flows elsewhere. Want to refinance? The lender invokes those lockbox covenants, putting you in instant default.

And even if you do refinance, the original MCA lender often refuses to terminate the initial agreement – you end up stuck paying off two debts! Don’t get scammed twice.

Our guidance: scrutinize refinancing options with immense care. Get expert attorneys to poke holes and red-flag any sketchy provisions by unscrupulous lenders.

Ready to Fight Back? We’re Battle-Tested & Ready

Delancey Street knows how devastating it is to toil for years, building something meaningful – only to fall prey to predatory lending. We take this personally.

Our MCA litigators have donned war paint and battled the biggest, baddest merchant cash advance lenders in court. We implement exhaustive due diligence and scorched earth litigation tactics – because you deserve World War-level advocacy and maximum debt relief.

You have options, you have rights. Stop letting these wolves circle your business while you slowly die on the vine. We’ll rip their throats out, protect what you’ve built, and forge a sustainable path forward.

Schedule a Consultation Today – Your Fight Starts Now

The gloves are off. It’s time to push back against unscrupulous lenders with overwhelming legal force. Our elite merchant cash advance attorneys are ready to hear your story.

Reach out now and get a free consultation. We’ll explore all potential escape routes to liberate your business from debt prison. After our first meeting, you’ll know exactly how to proceed with maximum confidence.

The path ahead is clear: take the power back.

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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