Merchant cash advance (MCA) companies can use harsh collection tactics to recover unpaid amounts from small business owners. These tactics by lenders can be stressful for business owners who are already struggling to make ends meet.
When facing MCA collection demands, knowing your response options as a business owner can be crucial. What steps can you take to address these aggressive collection practices?
Reply in writing
You can respond in writing by sending a formal letter or email to the lender to acknowledge receipt of the demand and state your position. This can help prevent further collection activities and provide a paper trail. Doing this can also clarify any misunderstandings and reduce the risk of miscommunication.
Communicate effectively
You can also respond to the lender’s calls or text messages by communicating effectively with them. This involves responding to all communication in a timely and professional manner to help reduce tension. Also, it is essential to keep a record of all your communication with the lender.
Negotiate a payment plan
In addition, you can reach out to the lender by negotiating a payment plan. You can discuss possible payment options with them or propose a payment plan that is realistic and manageable for your business.
Dispute the claim
Finally, you can also dispute the lender’s claim. It is vital to review your contract and payment history to identify any potential errors or discrepancies. If you believe the claim is invalid, you should notify the lender in writing. The lender must then provide evidence to support their claim.
Seeking fair treatment and a just outcome
Your lender’s harsh collection demands can be overwhelming. Although knowing your response options can help, navigating the process of dealing with the MCA company can still be daunting and challenging. By seeking legal advice, you may better protect yourself and your business as you seek fair treatment and a just and outcome.