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 Colorado

Last updated on December 17, 2024

Are you a Colorado small business owner grappling with the burden of debt from merchant cash advances (MCAs)? You’re not alone, and there are legal solutions that could help stabilize your business’s financial situation.

Merchant Cash Advance Law Firm P.C. provides targeted legal assistance to businesses like yours across Colorado, including Denver, Colorado Springs, Aurora and Fort Collins. The firm handles complex merchant cash advance issues with precision and dedication.

The attorney behind the firm, Dominick Dale, brings an aggressive yet strategic approach to advocating for small- to mid-sized businesses and professional practices. He is known as an “MCA bulldog” for his assertive, effective approach. With a valuable background in financial litigation, Mr. Dale’s skills in the courtroom and at the negotiation table are just what businesses like yours need when confronting merchant cash advance lenders. Attorney Dale stands ready to protect your business interests from the first consultation.

What Colorado Businesses Should Know About Merchant Cash Advances

A merchant cash advance is a financial arrangement where a lender gives a lump sum to a business in exchange for a percentage of its future earnings. MCAs might be attractive because they provide quick funding. Approval for an MCA often isn’t tied to credit history. This makes them more accessible than traditional loans for newer businesses and those with less-than-perfect credit. Additionally, MCAs typically don’t require collateral, which makes them even more tempting for floundering businesses.

However, MCAs come with significant downsides. The terms and conditions of these advances differ significantly from traditional loans. Although MCAs offer quick access to capital, the trade-offs include very high interest rates and harsh penalties for noncompliance, including the possibility of a UCC lien on your profits. These terms can quickly sink a successful business.

The Legal Landscape Of MCAs In Colorado

Colorado doesn’t have specific legislation governing MCAs. General state laws – like contract laws and business statutes – may impact these agreements. However, unlike traditional loans, MCAs are structured as commercial transactions. This means they sidestep many of the state and federal laws regulating loans. Because regulatory protections don’t apply, businesses that use MCAs end up facing less transparency, higher costs and greater financial risks.

Traditional business loans – such as bank loans or federal Small Business Administration (SBA) loans – are subject to federal laws like the Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA). These laws require transparency and prevent discrimination in lending. They ensure that borrowers are well-informed about loan terms and are treated fairly, regardless of personal characteristics. They provide a framework for more fair and reasonable loan terms. These laws, unfortunately, do not apply to MCAs.

At the state level, Colorado usury laws protect borrowers from excessively high interest rates in traditional loans. Yet, because MCAs are structured as commercial transactions, not loans, those usury laws also do not apply to them.

Challenges Faced By Colorado Businesses With MCAs

MCAs may be a seemingly quick-and-easy solution for funding, but they come with their own set of challenges that Colorado business owners should be aware of. Here are some common challenges:

  •  High interest rates and aggressive repayment terms: Business owners often don’t understand the terms of their MCA agreement. Key conditions include the factor rate, which calculates the total amount you owe based on the cash advanced, and the retrieval rate, which dictates the percentage of daily credit sales allocated to repay the advance. MCAs often carry high factor rates, resulting in steep effective interest rates. This can lead to aggressive repayment schedules that may strain your business’s cash flow and jeopardize its financial stability.
  • Transparency and disclosure issues: A common concern with MCAs is their lack of transparency. Businesses might face hidden fees and unclear terms in the agreement, which makes it difficult to understand the full cost and specific terms of the advance.
  • Legal battles: Disputes frequently occur when businesses are unable to meet the demanding repayment schedules of MCAs, particularly when the terms were not fully transparent at the outset. Such disputes may escalate into legal battles, threatening the operation and even the survival of the business.

Unfortunately, many business owners don’t recognize these risks until it’s too late. However, it’s never too late to seek legal help.  

The Role Of A Colorado Merchant Cash Advance Attorney

As a business owner, you might find yourself underwater when you are unable to meet the demanding repayment terms of your Colorado merchant cash advance. Your Denver MCA loan might even have gone into collections. This situation can feel overwhelming, especially when faced with the aggressive collection tactics often employed by MCA lenders.

Attorney Dale focuses solely on defending businesses like yours against the harsh and punitive repayment measures that can accompany Colorado MCA agreements. He can find the right angles for protecting and stabilizing your business.

Here are specific ways Dominick Dale can assist you if your business is dealing with an MCA:

  • Negotiating with creditors: Attorney Dale can negotiate directly with the MCA provider to seek more favorable repayment terms that reduce the financial burden on your business. He knows how to use the legal ambiguities and complexities often found in MCA agreements to your advantage. He can leverage the lack of regulatory oversight on MCAs to challenge unfair terms and highlight potential legal risks for the lender, pressuring them toward a more favorable settlement. He is adept at identifying other weaknesses in the creditor’s position that can be used to negotiate reductions in repayment amounts or extensions in repayment periods, ultimately easing the pressure on your business’s cash flow.
  • Litigation support: If negotiations do not resolve the issue, attorney Dale is prepared to fight for you in court. His extensive background in financial litigation equips him to challenge unfair practices and fight for your rights.
  • Restructuring debt: Attorney Dale can help restructure the existing debt to better fit your business’s current financial situation, which might involve adjusting payment schedules or reducing the total debt load.

Attorney Dale will work tirelessly to not only alleviate the immediate financial pressures but also establish a more secure future for your business, free from the shackles of MCA debt.

Take Action Today To Protect Your Colorado Small Business

If you’re facing complications from a merchant cash advance, get help sooner rather than later. Contact Merchant Cash Advance Law Firm P.C. at 855-339-6593 for a free 30-minute consultation, available 24 hours. Let lawyer Dominick Dale help you regain control of your business’s financial future. He will take swift and decisive action to uphold your rights and challenge the MCA lender.