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The Merchant Cash Advance Trap: Escaping Unfair UCC Liens

You took out a merchant cash advance (MCA) to help your business, only to find yourself, ensnared – in a web of predatory lending practices. The lender filed a UCC lien against you, and now, you’re drowning in debt. But don’t worry, we’re here to throw you a lifeline.

What is a UCC Lien, Exactly?

A UCC (Uniform Commercial Code) lien is a legal claim, that a lender places on your business assets. It’s their way of saying, “If you don’t pay up, we can seize your stuff.” And when we say “stuff,” we mean everything: equipment, inventory, even future receivables.So, what do you do, if you get hit – with one of these things?

The Lender’s Dirty Tricks

MCA lenders are notorious for their shady tactics. They’ll often file a “blanket lien,” which gives them dibs on all your assets – present and future. It’s like they’ve got a giant vacuum cleaner, ready to suck up everything you own.And get this, some lenders will file the lien before you even default! Talk about preemptive strikes. It’s like they’re already planning for you to fail.But wait, it gets worse. Even if you pay off the advance, the lender might “forget” to remove the lien. Oops, silly them! Now your credit is shot, and you can’t get new financing. It’s a vicious cycle, designed to keep you trapped.

Fighting Back: Your Rights

Here’s the thing, you have rights. And we’re not talking about the “right to remain silent” kind. We mean the right to dispute unfair UCC liens.First, demand that the lender file a UCC-3 termination statement. This officially removes the lien from your record. If they refuse, you can file the termination yourself – but you’ll need to visit the secretary of state’s office and swear an oath. It’s a hassle, but it’s better than letting the lien linger.If the lender still doesn’t play ball, it’s time to bring out the big guns: a UCC-5 information statement. This bad boy lets you dispute the lien’s validity, and it goes on the public record. It’s like putting the lender on blast, for all to see.And if that doesn’t work? Well, my friend, you may need to lawyer up. A skilled attorney can fight for you in court, and make sure the lender faces consequences for their shady behavior.

See also  Colorado Business Debt Settlement Lawyers

The Bottom Line

Look, we get it. You took out an MCA because you needed cash, fast. But that doesn’t mean you should be a victim of predatory lending. UCC liens are a serious matter, and they can cripple your business if left unchecked.So, don’t just sit there and take it. Fight back, assert your rights, and break free from the MCA trap. Your business, your future, is worth it.Still feeling lost? No problem. Reach out to us, and we’ll guide you through the process, step-by-step. We’re not just lawyers, we’re your advocates – and we won’t rest until justice is served.

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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
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$250,000 SBA Loan Offer in Compromise
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$350,000 MCA Restructured Over 2 Years

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