Utah Merchant Cash Advance Defense Lawyers
Introduction
Struggling with a Merchant Cash Advance (MCA) in Utah? You’re not alone. Many business owners find themselves in a tight spot after securing an MCA. These advances can seem like a lifeline when traditional loans aren’t an option, but they often come with strings attached that can choke your business’s cash flow. At Delancey Street, we understand the complexities and challenges associated with MCAs. We’re here to help you navigate these troubled waters and defend your business against aggressive MCA funders.
Understanding Merchant Cash Advances
Merchant Cash Advances are a form of financing where a business sells a portion of its future receivables in exchange for immediate cash. Unlike traditional loans, MCAs are repaid through a percentage of daily credit card sales, making them attractive to businesses with fluctuating revenues. However, the high fees and interest rates associated with MCAs can quickly become overwhelming.
Did you know? The effective APR on an MCA can be exorbitantly high, often exceeding 100%. This is why it’s crucial to understand the terms before committing to an MCA.
Common Issues with MCAs
Many business owners in Utah encounter several common issues with MCAs:
- High Fees and Interest Rates: These can quickly escalate, making it difficult to keep up with payments.
- Confessions of Judgment: This clause allows the lender to obtain a judgment against you without a trial if you default on the advance.
- UCC Liens: MCA funders may file liens against your business assets, restricting your ability to secure other financing.
- Aggressive Collection Practices: Some MCA funders resort to harassing phone calls and legal threats to collect payments.
Legal Protections and Regulations in Utah
Utah has enacted specific regulations to protect businesses from predatory MCA practices. The Commercial Financing Registration and Disclosure Act (CFRDA), effective January 1, 2023, requires MCA providers to register with the Utah Department of Financial Institutions and disclose key terms to borrowers. These disclosures include:
- Total amount of funds provided
- Total amount to be paid
- Total dollar cost
- Payment amounts and frequency
- Prepayment penalties
If an MCA provider fails to comply with these regulations, they may face penalties, and you may have grounds to challenge the terms of your advance.
How We Can Help
At Delancey Street, our experienced Utah Merchant Cash Advance Defense Lawyers are well-versed in the intricacies of MCA agreements and the legal landscape in Utah. Here’s how we can assist you:
1. Negotiating Settlements: We can negotiate with MCA funders to reduce the principal balance and restructure your payments to make them more manageable.
2. Challenging Confessions of Judgment: If you signed a confession of judgment, we can help you file a motion to vacate the judgment, especially if it was obtained through fraudulent or coercive means.
3. Defending Against Lawsuits: If you’re facing a lawsuit from an MCA funder, our attorneys can represent you in court and work to protect your business assets.
4. Advising on Legal and Financial Implications: We’ll help you understand the legal jargon and financial implications of your MCA agreement, ensuring you’re fully informed of your rights and obligations.
Case Study: Saving a Local Business
Consider the case of a local Utah business owner who found themselves drowning in MCA debt. They had multiple advances with daily payments that were crippling their cash flow. After contacting us, we reviewed their agreements and discovered several non-compliant disclosures. We successfully negotiated a settlement that significantly reduced their debt and restructured the payments to a sustainable level.
Why Choose Delancey Street?
Experience and Expertise: With years of experience dealing with MCA funders, we know the tactics they use and how to counter them effectively.
Personalized Service: We treat each case with the individual attention it deserves, tailoring our strategies to meet your specific needs.
Proven Results: Our track record speaks for itself. We’ve helped countless business owners in Utah regain control of their finances and protect their businesses from predatory lenders.
Conclusion
Don’t let a Merchant Cash Advance ruin your business. Reach out to us at Delancey Street for a free consultation. Our Utah Merchant Cash Advance Defense Lawyers are ready to fight for you and help you find a path to financial stability. Contact us today and take the first step towards reclaiming your business’s future. Call to Action: Have questions or need immediate assistance? Contact us now for a free consultation with one of our experienced MCA defense attorneys. Your business deserves the best defense, and we’re here to provide it.