If your business took a merchant cash advance in Brooklyn and the terms feel unfair, you are not powerless. Many small and medium-sized businesses find themselves facing high fees, daily deductions or confusing repayment schedules. Knowing your rights and the practical steps to challenge these terms can save you time, money and stress.
Understand your agreement and your rights
The first step is to carefully review your merchant cash advance contract. Look for any clauses that seem unusually harsh or unclear.
Under New York law, you may have protections if the terms are deceptive or unconscionable. For example, New York General Business Law § 349 prohibits deceptive acts or practices in business transactions and may apply if your merchant cash advance included misleading terms.
Understanding exactly what you agreed to helps you identify what can be disputed.
Take practical steps to dispute unfair terms
You can take specific actions to protect your business and potentially reduce the burden of an unfair advance. Start with these steps:
- Gathering all documents related to your merchant cash advance, including contracts, emails and repayment statements.
- Reviewing the agreement for high fees, daily deductions that strain cash flow or any clauses that seem misleading.
- Contacting the provider in writing to raise concerns and request clarification or adjustments.
- Keeping a record of all communications with the provider for reference in case of escalation.
- Considering filing a complaint with the New York Department of Financial Services if the provider is uncooperative.
Following these steps does not guarantee that the provider will change the terms, but it gives you a clear path to protect your rights and document your dispute.
Regain control of your business finances
Challenging unfair merchant cash advance terms can feel intimidating, but taking informed steps helps you regain control of your finances. By reviewing your agreement, communicating clearly and involving regulatory authorities when necessary, you can minimize the negative impact on your business and plan for a healthier financial future. Seeking legal advice from an attorney who handles merchant cash advance debt matters is a good first step.