Merchant cash advances (MCAs) are a double-edged sword for small business owners. They offer quick cash but come with a catch: they aren’t considered business loans and face far less regulation. This lack of oversight can lead to aggressive collection tactics that leave you feeling cornered and put your business under threat. But don’t back down. You have rights — know them and use them.
Right to dispute inaccuracies
First off, you have the right to dispute any inaccuracies in the amount you owe or other details. If something doesn’t add up, challenge it. Demand a detailed breakdown of how they calculated what you supposedly owe. Don’t let them bully you into paying more than you should.
Right to dispute the debt
Question the debt itself. You have the right to dispute whether the debt even exists if you don’t recognize it or you know it belongs to another party. If you believe the MCA company is coming after you without a valid reason, make them prove it. This isn’t a time for complacency; it’s a time to fight back.
Right to request details
You’re entitled to request full details about the debt from the MCA provider. This includes the original contract, payment history, and any communications they claim to have had with you. Don’t settle for vague answers. Insist on transparency.
Right to defend yourself in court
If the MCA company takes you to court, don’t panic. You have the right to defend yourself. However, facing this battle alone can be daunting. Your best shot at a fair outcome is to team up with a lawyer who knows the ins and outs of MCA law. They’ll be your bulldog in the courtroom, ensuring your rights are front and center.