Miami, FL Merchant Cash Advance Defense Lawyers
Are you a small business owner in Miami struggling with a merchant cash advance (MCA)? You‘re not alone. Many entrepreneurs find themselves trapped in a cycle of debt after taking out these high-cost loans. But there’s hope – our experienced MCA defense attorneys at DelanceyStreet can help you fight back and regain control of your business finances.
The MCA Trap: How Miami Businesses Get Caught
Merchant cash advances may seem like a quick fix when your business needs cash, but they often lead to financial disaster. Here‘s how the trap is typically set:
- A broker approaches you offering fast, easy money with no credit check
- You’re pressured to sign confusing paperwork full of fine print
- Daily or weekly payments start eating away at your cash flow
- You fall behind and get hit with huge fees and interest
- Before you know it, you’re drowning in debt with no way out
We’ve seen countless Miami business owners fall victim to predatory MCA lenders. One client came to us $500,000 in debt across 5 different MCAs, with daily payments of over $5,000 draining his accounts. His business was on the verge of collapse.But it doesn’t have to end that way. With the right legal strategy, you CAN break free from crushing MCA debt and save your business.
How Our Miami MCA Defense Lawyers Can Help
At DelanceyStreet, we have years of experience battling aggressive MCA funders and winning. Our attorneys know all the tricks these lenders use – and how to beat them at their own game.Here are some of the ways we fight for our Miami MCA clients:
- Challenging the validity of the MCA contract – Many MCAs use deceptive practices or violate Florida lending laws. We scrutinize every detail to find grounds to invalidate the agreement.
- Negotiating reduced payoffs – We’ve successfully negotiated settlements for as low as 10-20% of the claimed balance in some cases.
- Stopping ACH withdrawals and levies – We can get court orders to freeze automatic payments that are draining your accounts.
- Defending against lawsuits – If you’re sued by an MCA funder, we mount an aggressive defense to protect your assets.
- Exploring bankruptcy options – In some cases, Chapter 11 bankruptcy can be used strategically to restructure MCA debt.
The key is acting quickly before the situation spirals out of control. The sooner you get experienced legal help, the more options you’ll have.
MCA Laws and Regulations in Florida
Florida does not have specific laws regulating merchant cash advances. However, there are still legal avenues to challenge predatory MCAs:
- Usury laws – While MCAs claim to be “purchases” of future receivables, not loans, courts have found some to be de facto loans subject to usury limits. In Florida, the maximum legal interest rate is 18% for loans under $500,000 (Fla. Stat. § 687.02).
- Unfair and deceptive practices – The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) prohibits unfair or deceptive acts in commerce. Many MCA tactics may violate this law.
- Unconscionability – Courts can void contracts deemed unconscionable. The one-sided nature of many MCA agreements may meet this standard.
- Fraud and misrepresentation – If the MCA was obtained through deception or false promises, it may be voidable.
Our attorneys stay up-to-date on the latest MCA case law in Florida and across the country. We use every legal tool available to fight for our clients.
Recent Florida MCA Cases
Several recent court cases in Florida have addressed merchant cash advances:
- In Fleetwood Services, LLC v. Complete Business Solutions Group, Inc. (S.D. Fla. 2020), the court found that an MCA agreement was actually a loan subject to Florida’s usury laws, due to its fixed daily payments and reconciliation provision.
- EBF Partners, LLC v. Burris Logistics, Inc. (M.D. Fla. 2019) held that the “true nature” of an MCA should be examined to determine if it’s a loan, regardless of how it’s labeled.
- The Florida Supreme Court in CFBG v. Craton (2021) ruled that MCA funders must be licensed as lenders if their agreements function as loans rather than true purchases of receivables.
These cases show Florida courts are increasingly willing to look beyond MCA labels and scrutinize the substance of these agreements. This opens up more avenues for challenging predatory MCAs.
MCA Defense Strategies for Miami Businesses
When a Miami business owner comes to us struggling with MCA debt, we take a comprehensive approach:
- Thorough contract review – We meticulously examine all MCA agreements for legal flaws or violations.
- Financial analysis – We review your business finances to understand the full impact of the MCAs and ability to pay.
- Communication management – We take over all communication with MCA funders to stop harassing calls and threats.
- Strategic negotiations – We reach out to MCA companies to explore settlement options, often achieving significant reductions.
- Litigation defense – If sued, we mount an aggressive defense, challenging the MCA’s claims and seeking dismissal where possible.
- Bankruptcy evaluation – In some cases, we may recommend Chapter 11 reorganization to restructure debts and save the business.
Every case is unique, so we tailor our approach to your specific situation. Our goal is always to find the most effective path to financial relief and business recovery.
The True Cost of Merchant Cash Advances
Many business owners don’t realize just how expensive MCAs can be until it’s too late. Let’s break down a typical MCA scenario:
| MCA Terms | Amount |
|---|---|
| Advance Amount | $100,000 |
| Payback Amount | $149,000 |
| Factor Rate | 1.49 |
| Daily Payment | $1,490 |
| Term | 100 business days |
This may not seem too bad at first glance. But let‘s calculate the actual APR:
- Daily interest rate: ($149,000 – $100,000) / $100,000 / 100 days = 0.49%
- Annual interest rate: 0.49% * 365 days = 178.85%
That’s an APR of nearly 179%! And remember, this is taken directly from your daily sales, leaving you with even less cash flow to operate your business.It’s no wonder so many Miami businesses find themselves in a death spiral after taking out MCAs. But there IS a way out – with the right legal help.
Why Choose DelanceyStreet for Your MCA Defense
When your business is on the line, you need an experienced legal team that knows how to win against aggressive MCA funders. Here’s why Miami business owners trust DelanceyStreet:
- Proven track record – We’ve helped numerous clients reduce or eliminate MCA debt, saving their businesses in the process.
- In-depth MCA knowledge – Our attorneys understand the ins and outs of the MCA industry and stay current on the latest legal developments.
- Aggressive advocacy – We don’t back down from a fight. We’ll use every legal tool available to protect your interests.
- Personalized attention – You’re not just a case number to us. We take the time to understand your unique situation and goals.
- Transparent communication – We keep you informed every step of the way, explaining your options in clear, straightforward terms.
Don’t wait until it’s too late. The sooner you get experienced legal help, the more options you’ll have to resolve your MCA issues and save your business.