Small business owners struggling to make ends meet due to a merchant cash advance (MCA) agreement know how stressful it can be. MCA lenders can engage in predatory collection practices that can quickly spiral out of control. Are you tired of feeling helpless against your MCA lender’s collection efforts and seeking a way to fight back?
Common predatory collection practices
MCA lenders can engage in various predatory collection practices. These tactics can include making false or misleading threats to seize assets, making excessive and harassing phone calls to business owners and their employees or attempting to collect debts that are not actually owed.
Negotiation with the MCA lender
One way to address predatory collection practices is to negotiate with your MCA lender. This can involve renegotiating the terms of the MCA agreement, such as the payment amount or frequency, to make it more manageable for your business.
Seeking relief through alternative dispute resolution
In addition, you can seek relief through alternative dispute resolution (ADR) methods, such as mediation or arbitration. ADR can provide a faster and more cost-effective way to resolve disputes, as you can avoid the expenses and uncertainties of litigation and work toward a mutually beneficial resolution.
Litigation as a last resort
In some cases, litigation may be necessary to stop the collection activities of your MCA lender and hold them accountable for their actions. This can involve filing a lawsuit to challenge the MCA agreement or to seek damages for any harm caused by your lender’s collection practices.
Fighting back against unfair collection practices
The struggle against your predatory MCA lender can be a daunting task. By knowing the options available and seeking the help of a legal advocate, you may fight back against unfair collection practices and protect your business. Having legal counsel may also help you make informed decisions as you aim to take control of your financial future.