Wyoming Merchant Cash Advance Defense Lawyers: How We Can Help
Are you a small business owner in Wyoming who is struggling to keep up with the DAILY or WEEKLY payments on a merchant cash advance? Did you take out what seemed like a quick and easy cash advance for your business, but now the payments are EATING AWAY at your revenues? If you’re facing a LAWSUIT or DEFAULT because of a merchant cash advance, Delancey Street can HELP.With our experienced team of Wyoming merchant cash advance defense lawyers, we’ve helped HUNDREDS of small businesses just like yours find relief from the CRUSHING burden of MCAs. We know the stress and sleepless nights these advances can cause. Let us help you get your business back on track.
What is a Merchant Cash Advance?
First, let’s clarify what a merchant cash advance actually is. An MCA is a lump sum of cash provided to a business in exchange for a percentage of the business’s future credit and debit card sales. It’s NOT a loan. Technically, the MCA company is purchasing a portion of your future sales.Here’s how it typically works:
- You receive a lump sum payment from the MCA provider
- You agree to pay back the advance via daily or weekly payments, which are automatically deducted from your credit card sales
- The repayment amount is determined as a percentage of your card sales – usually between 5% to 20% – until the advance is paid off in full
- There is NO set repayment term. The higher your sales, the faster you repay the advance
Sounds simple enough, right? But here’s the CATCH. Because MCAs are not considered loans, the companies that provide them can SKIRT state usury laws that cap interest rates. As a result, the fees and interest on a merchant cash advance can equate to an annual percentage rate (APR) in the TRIPLE DIGITS.In Wyoming, there are currently NO specific laws regulating MCAs. While some states like New York and California have enacted legislation around MCAs, Wyoming has yet to follow suit. This lack of oversight leaves YOU, the merchant, vulnerable to PREDATORY lending practices.
The Dangers of Defaulting on an MCA
So what happens if you CAN’T keep up with the daily or weekly payments and default on your merchant cash advance? The consequences can be SEVERE:
- The MCA company can file a CONFESSION OF JUDGMENT against you, allowing them to seize your assets without notice or a hearing
- They may place a UCC LIEN on your business assets, making it difficult to get other financing
- They can FREEZE your bank accounts, leaving you unable to pay bills or employees
- They may file a LAWSUIT against you personally, as most MCAs require a personal guarantee
- Your credit score will take a major HIT, affecting your ability to borrow in the future
Facing even one of these actions can be DEVASTATING for a small business. But you DON’T have to face this alone. Delancey Street’s Wyoming MCA defense attorneys are here to help.
How Delancey Street Can Defend You
Our skilled legal team has YEARS of experience negotiating and litigating merchant cash advance cases. We know the ins and outs of these agreements and the tactics MCA companies use. Here are some ways we can assist you:
Negotiating a Settlement
In many cases, it’s possible to negotiate a settlement with the MCA company for LESS than the full outstanding balance. We can review your advance agreement, ASSESS your situation, and negotiate with the funder on your behalf to reach a settlement you can manage.Some potential settlement terms may include:
- Waiving some or all of the fees and interest
- Allowing you to pay a REDUCED lump sum to resolve the debt
- Establishing a new payment plan with a longer term and lower payments
Defending Against Lawsuits
If the MCA company has already filed a lawsuit against you, DO NOT IGNORE IT. Failure to respond will likely result in a default judgment against you. Let our EXPERIENCED trial attorneys defend you in court.We may be able to challenge the lawsuit based on:
- Lack of standing to sue
- Violations of state usury laws
- Unconscionability of the MCA agreement
- Improper service of process
- Lack of personal jurisdiction
In one recent case, Merchant Funding Services, LLC v. Volunteer Pharmacy Inc., 55 Misc. 3d 316 (N.Y. Sup. Ct. 2016), a New York court dismissed a lawsuit by an MCA company, finding that the advance agreement was actually a USURIOUS loan in violation of state law. The court examined the agreement and found that despite being labeled an MCA, it had all the characteristics of a loan.
Removing UCC Liens
If the MCA funder has placed a UCC lien on your business assets, it can HINDER your ability to get other financing or even sell your business. We can help you REMOVE that lien.Grounds for removing a UCC lien may include:
- The lien was filed in BAD FAITH
- The lien is FACTUALLY INACCURATE
- The underlying debt has been SATISFIED
- The statute of limitations to enforce the lien has EXPIRED
In the case of In re Cornerstone Tower Services, Inc., 2019 WL 6345348 (Bankr. D. Neb. 2019), a bankruptcy court VOIDED a UCC lien filed by an MCA company, finding that the funder had engaged in FRAUDULENT conduct and acted in bad faith.
Unfreezing Bank Accounts
An MCA funder may try to FREEZE your bank accounts if you default, leaving you unable to operate your business. We can FILE an emergency motion with the court to get your accounts released.To unfreeze your accounts, we would need to show:
- The MCA company did not properly SERVE you with notice
- They do not have proper COURT AUTHORITY to seize your funds
- The seizure will cause UNDUE HARDSHIP to you and your business
In CBSG v. Sushma, 2019 N.Y. Misc. LEXIS 6067 (N.Y. Sup. Ct. 2019), a New York court VACATED a restraining notice served on a merchant’s bank, finding that the MCA funder had not shown a likelihood of success on the merits of its claim.
Choose Delancey Street for Your MCA Defense Needs
If you’re facing legal action or default because of a merchant cash advance, TIME IS OF THE ESSENCE. The longer you wait, the FEWER options you may have. CONTACT Delancey Street today for a consultation with one of our Wyoming MCA defense attorneys.With our EXTENSIVE experience and AGGRESSIVE approach, we’ve SUCCESSFULLY resolved hundreds of MCA cases for our clients. We know the STRESS and ANXIETY these situations cause. Let us help you PROTECT your business and move forward.Some reasons why small business owners in Wyoming choose us:
- We have a PROVEN TRACK RECORD of success in negotiating MCA settlements and defending lawsuits
- Our attorneys have IN-DEPTH knowledge of the MCA industry and the laws that govern it
- We offer PERSONALIZED service and DIRECT attorney contact throughout your case
- We’re AGGRESSIVE advocates for our clients and aren’t afraid to take ON big MCA companies
- We offer FLEXIBLE payment plans and COMPETITIVE rates
Don’t let a merchant cash advance RUIN your business. FIGHT BACK with Delancey Street. Call us today at 1-800-555-5555 or fill out our online contact form to schedule your consultation. Let us help you RESOLVE your MCA troubles and get back to running your business.
