MCA Merchant Cash Advances Law Firm

Toll-Free: 855-339-6593
Free 30 Minute Consultation – Attorney on Call 24 hours

MCA Merchant Cash Advances Law Firm
Email

855-339-6593

An Intelligent, Assertive MCA Lawyer Serving Businesses Throughout The Nation

Merchant Cash Advance Attorney Serving Virginia

Last updated on December 17, 2024

Far too many Virginia small business owners find themselves grappling with the burden of merchant cash advances (MCAs). They turn to MCAs during financial crunches, only to find themselves in a deeper hole due to harsh repayment terms and high interest rates.

Merchant Cash Advance Law Firm P.C. is dedicated to helping small- to midsized business owners escape the oppressive clutches of MCA debt. Under the leadership of attorney Dominick Dale, the firm exclusively represents business owners entangled in MCA debt. With nearly two decades of experience and a deep understanding of Virginia merchant cash advances, attorney Dale stands as a powerful advocate for the underdogs in these cases. He leverages tools such as negotiation, litigation and collections defense to stand up against unfair MCA terms. Drawing on a strong background in financial litigation, attorney Dale is ideally positioned to advocate for business owners who fall victim to these predatory financial products.

Breaking Down Merchant Cash Advances: What Every Virginia Business Owner Should Know

MCAs offer immediate capital in exchange for a percentage of future business revenues. They are often readily available to those who may not be eligible for traditional business loans due to lack of sufficient collateral or poor credit. The quick influx of cash can seem tremendously appealing. However, MCAs often include aggressive repayment terms that are often not transparent, trapping many business owners who do not fully grasp the conditions they are agreeing to.

Common MCA Terms And Conditions

MCAs are considered commercial transactions and not loans, which means that the typical laws governing business loans do not apply to them. This lack of regulation leaves business owners unprotected from predatory terms and conditions often found in MCA agreements.

Here’s a breakdown of the terms associated with Virginia MCA agreements:

  • Advance amount: The initial sum received, which is usually tied to projected future sales
  • Factor rate: Determines the total repayment amount, typically ranging from 1.1 to 1.5 times the amount advanced
  • Payback amount: The total amount owed, including the factor rate and fees, which end up being much higher than the interest rates for traditional loans
  • Holdback: A portion of the business proceeds allocated to repay the MCA on a daily or weekly basis, usually ranging from 10% to 20%
  • Term of advance: The duration of repayment, which is typically based on sales volumes rather than a fixed time period

The high factor rates and daily or weekly repayment structures can significantly disrupt a business’s cash flow, quickly leading to financial distress if not managed carefully. Unfortunately, far too many business owners end up stuck with unfavorable MCA terms without even realizing it.

Why So Many Virginia Small Businesses End Up Trapped In A Cycle Of MCA Debt

Many small business owners in Virginia turn to MCAs in desperate times. While MCAs may initially seem like a quick fix, they can quickly sink your business, especially if you don’t take swift legal action to stop the debt from escalating.

MCAs come with steep repayment terms that can put your business’s financial health and survival in jeopardy. Far too often, harsh MCA terms lead to a cycle of debt. Businesses with MCAs may take out more debt to cover the high repayments of an existing MCA, which sets them back even further.

In addition to harsh repayment terms, MCA agreements also usually empower MCA providers to obtain Uniform Commercial Code (UCC) liens against businesses. This type of lien gives an MCA provider legal rights over your business assets until the debt is completely settled. UCC liens pose several challenges. They can prevent you from obtaining further financing and make it hard to sell business assets. Furthermore, the existence of a UCC lien can adversely affect your business’s credit score.

When To Consult A Lawyer For Guidance On Your MCA Debt

It’s never too soon to seek legal advice about your MCA debt. It’s especially important to reach out to a lawyer if you’re experiencing business challenges such as:

  • Difficulty in covering your operational expenses
  • Resorting to taking out additional MCAs to cover your existing debt
  • Receiving notice that your debt has been transferred to collections
  • Getting sued for MCA debt
  • Struggling with impaired cash flow due to burdensome repayment terms
  • Dealing with the foreclosure of a UCC lien

Seeking legal help as soon as possible can prevent the situation from getting worse. The sooner you get help, the more options you are likely to have.

How Merchant Cash Advance Law Firm P.C. Can Help Your Business Get Out From Under Oppressive MCA Debt

If your business has been burdened by the unsustainable weight of MCA debt, Merchant Cash Advance Law Firm P.C. offers several ways to assist. Attorney Dale can help by:

  • Negotiating a favorable settlement: He can negotiate directly with the lender to achieve a settlement with more reasonable terms that preserves your business’s financial stability.
  • Litigating the debt in court: If warranted, attorney Dale can file a lawsuit to hold the MCA provider accountable in court.
  • Overturning a default judgment: If a court has already entered a default judgment against your business, attorney Dale can work to overturn it and provide a fresh start.
  • Defending against collections efforts: Attorney Dale can represent your interests in any collections proceedings. He can also shield you from illegal debt collection measures. He can hold the company accountable through legal action under the federal Fair Debt Collection Practices Act (FDCPA) and applicable Tennessee statutes.
  • Removing UCC liens on your business assets: If you have a UCC lien on your business due to an MCA, attorney Dale may be able to get it lifted.

Attorney Dale is committed to working swiftly and diligently to free your business from the shackles of MCA debt. He will handle the legal complexities, allowing you to focus on sustaining and growing your business during these difficult times.

Representation For A Broad Range Of Virginia Small And Midsized Businesses

Merchant Cash Advance Law Firm P.C. proudly serves a diverse array of businesses throughout Virginia Beach, Chesapeake, Norfolk, Richmond and all of Virginia, including:

  • Retail establishments
  • Transportation services
  • Construction firms
  • IT companies
  • Bars and restaurants
  • Health care businesses
  • Professional practices
  • Insurance agencies
  • Auto repair shops
  • Beauty salons
  • Contractors

Attorney Dale, a business owner himself, understands what’s at stake. His experience fuels his commitment to guiding other business owners through the complexities of MCA debt.

Call Or Contact The Firm Online For A Free Consultation

You have worked hard to build your business. Don’t let it all go to ruin because of unscrupulous MCA lenders. Contact Merchant Cash Advance Law Firm P.C. to learn how you can take your power back and challenge your Virginia Beach MCA loan.

Reach out online or call 347-588-5590 anytime, 24 hours a day, to get started. The firm offers free 30-minute consultations.