The merchant cash advance (MCA) industry has grown rapidly in recent years. However, there are small business owners across the country who have found themselves struggling with MCA debt, with aggressive lenders using every trick in the book to collect. If you are facing a lawsuit from an MCA lender, you need to take action to protect yourself and your business.
Exposing deceptive contract terms
An MCA lender can rely on a contract that is designed to confuse a borrower. For example, the lender may have failed to properly disclose the terms of the MCA or made false promises about the terms. By exposing these deceptive contract terms, you can build a strong defense against the lawsuit.
Uncovering hidden fees and charges
Additionally, an MCA lender can hide fees and charges in the fine print of the contract. These fees can add up quickly, and they can be a key part of your defense. By identifying hidden fees and charges, you can potentially reduce the amount you owe.
Challenging the UCC lien
A UCC lien against your business assets must be properly perfected in order to be enforceable. If the lender failed to follow the proper procedures, you may be able to challenge it and even have the lien removed.
Disputing the lender’s calculations
Further, an MCA lender can use complex formulas to calculate the amount you owe. But these calculations can have discrepancies that inflate the amount. By disputing the lender’s calculations, you may be able to reduce the amount you owe or even have the lawsuit dismissed.
Finding a way forward
The stress and anxiety of dealing with an MCA lawsuit can be overwhelming and intimidating. Therefore, it is crucial to stand up for yourself and your business. With legal support and guidance, you may take control of your situation and find a way forward.