Merchant cash advance (MCA) defense litigation can be a daunting process for small business owners. Thus, they must know their rights and options when facing a lawsuit.
Expert witnesses can play a role in MCA defense litigation, but what exactly do they do? Also, how can they help a business owner defend against their lender?
Essential tasks of expert witnesses
Expert witnesses can be essential in MCA defense litigation by providing testimony that can make or break a case. Qualified experts such as financial analysts, economists and accountants can do the following:
- Lender noncompliance: They can confirm the lender’s failure to comply with laws and regulations.
- Predatory lending and collection practices: They can analyze financial data and confirm if the MCA was predatory. They can also determine whether the lender’s collection methods were aggressive or abusive.
- Evidence gathering: They can also gather evidence to support their opinions and testimony. They can review documents, conduct site visits and interview key individuals.
- Calculating damages: They can calculate the losses resulting from the MCA as well as potential damages. These can include any excessive fees, interest or other costs that the lender improperly charged.
The use of expert witnesses can boost the defense of a business owner by providing evidence that can help counter the lender’s claims. By providing objective testimony, expert witnesses can help establish the facts of the case and provide a comprehensive understanding of the situation.
Advocating for a business owner’s rights
Knowing the role of expert witnesses can greatly help a business owner facing an MCA defense litigation. Since going through the litigation process can be difficult, seeking legal counsel may help a business owner build a solid defense. Also, having legal guidance may help them advocate for their rights as they navigate the complexities of their case.