MCA Merchant Cash Advances Law Firm

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MCA Merchant Cash Advances Law Firm
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An Intelligent, Assertive MCA Lawyer Serving Businesses Throughout The Nation

Merchant Cash Advance Attorney Serving Alabama

Last updated on December 17, 2024

For Alabama small business owners, merchant cash advances (MCAs) can seem like a quick and easy solution to cash flow problems. However, these financial arrangements often end up leading businesses into deeper financial distress. MCA companies use underhanded tactics like lack of transparency to ensnare unsuspecting business owners. Hidden in the MCA terms, there are often exorbitantly high interest rates, aggressive repayment schedules and other predatory terms.

If your business has fallen prey to an MCA and is now in jeopardy, turn to Merchant Cash Advance Law Firm P.C. The firm is here to assist you in challenging the MCA and fighting to regain stability and control of your business.

The firm represents small to mid-sized businesses throughout Alabama, including Birmingham, Montgomery, Huntsville and Mobile. Dominick Dale, the firm’s founder, is an experienced MCA lawyer for businesses nationwide. He takes an aggressive approach to defending small businesses against predatory MCA lenders and collection companies. His deep understanding of MCA agreements and their impact positions him well to effectively safeguard your business interests. With nearly two decades of experience as both a proven negotiator and trial lawyer, attorney Dale will take prompt, effective action to protect your business.

How MCAs Can Sink Alabama Small-Business Owners

Alabama merchant cash advances might seem appealing because they are more accessible than traditional loans. They are a financial arrangement where the lender provides immediate cash funding in exchange for a significant percentage of future business proceeds. However, they come with numerous disadvantages that are often buried deep in the terms of the Alabama MCA agreement, such as:

  • Extremely aggressive repayment terms that jeopardize the stability and growth of the business
  • Daily or weekly repayments withdrawn directly from your business’s bank accounts
  • Factor rates, or total repayment amounts, that calculate out to be exorbitantly high interest rates, often exceeding 40 percent
  • Placement of a Uniform Commercial Code (UCC) lien against your business assets

Many businesses enter into these agreements with little or no understanding of what they’re getting into. They are shackled by UCC liens, which act as a severe restraint on their business’s growth and operational capacity, limiting their financial flexibility. If this describes your business, rest assured that you are not the only one, and legal help is available.

How MCAs Are Different Than Traditional Business Loans

MCAs are largely unregulated because they are considered commercial transactions rather than loans. This technicality allows them to take advantage of many legal loopholes. MCAs are not subject to financial laws like the federal Truth in Lending Act (TILA), which requires lenders to disclose the terms of a loan, including the annual percentage rate (APR), before any agreement is signed. MCAs, by contrast, are notorious for their lack of transparency.

Alabama has usury laws that cap interest rates at a certain amount. MCAs get around these caps in multiple ways. Instead of disclosing APRs, they use “factor rates” to determine the repayment amounts. These rates are a multiplier applied to the original amount advanced. They are not directly comparable to APRs, making it difficult for business owners to truly understand the cost of borrowing. This practice skirts the usual requirements and constraints placed on traditional lenders by state and federal laws.

What’s more, while traditional loans are typically paid back with monthly installments based on a fixed or variable interest rate, MCAs require daily or weekly withdrawals from a business’s bank account based on a percentage of the business’s sales. This can lead to unpredictable payment amounts that depend heavily on the business’s revenue, potentially causing significant financial strain during periods of lower sales.

The collection practices for MCAs can also be more aggressive. MCA providers often move swiftly to seize business assets if the advance is not repaid in a timely manner. They can do so by foreclosing on UCC liens placed on business assets, which give MCA providers a legal claim to a business’s property before other creditors.

This lack of regulation and transparency, combined with aggressive repayment and collection practices, can create a precarious financial situation for business owners who might be misled by the initial ease of obtaining funds through an MCA. For Alabama businesses that have gotten sucked into an MCA nightmare, help is available.

How To Fight Back Against MCA Debt As An Alabama Business

If MCA debt is threatening your business operations, seeking legal help as soon as possible is well worth it. Putting off the problem could lead to more severe consequences like insolvency, collections efforts, a judgment against your business and personal assets, and irreparable harm to your business’s reputation. Early legal intervention can help prevent these issues from escalating into major downfalls.

Merchant Cash Advance Law Firm P.C. offers tailored strategies to counteract MCA debt. Attorney Dale draws on extensive experience and employs various techniques to combat unfair MCA terms, including:

  • Negotiation: Attorney Dale can negotiate directly with the MCA company to restructure your MCA terms, aiming for a sustainable payment plan that does not compromise your business operations.
  • Litigation: If negotiations fail, attorney Dale is prepared to challenge the MCA company in court. His extensive background in complex financial litigation positions him well to make a strong case on your behalf.
  • Defense against collections: Collections can be intimidating and disruptive. Attorney Dale will defend your business against aggressive collection tactics and protect your rights, including taking the collector to court if needed.
  • UCC lien removal: MCAs often involve UCC liens placed on your business assets as security. Attorney Dale knows how to get those liens removed, which can free up your assets for normal operations and future financial needs.

If a default judgment has already been entered against your business due to a Birmingham MCA loan or other MCA agreement, attorney Dale can work to vacate or overturn it. This will give you a new opportunity to challenge the MCA debt.

Representing Alabama Business In Diverse Industries Statewide

Merchant Cash Advance Law Firm P.C. defends a wide array of small businesses across diverse industries in Alabama, including:

  • Trucking companies
  • Retail businesses
  • Restaurants, bars and other hospitality businesses
  • Professional practices in health care and other sectors
  • Construction businesses
  • Insurance brokers
  • Contractors
  • Manufacturing companies
  • Agricultural businesses

These are just a few examples of the many types of businesses that attorney Dale represents in MCA debt defense.

Start Fighting Back Today

If your business is struggling under the heavy burden of debt under an Alabama MCA agreement, get help today. Merchant Cash Advance Law Firm P.C. offers a free 30-minute consultation, available 24 hours a day, to discuss your case and explore potential solutions. Take the first step towards regaining control of your financial destiny by reaching out online or calling 347-588-5590.