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Arlington Merchant Cash Advance Lawyers Can Help With Business Debt Relief

Running a small business is tough. As an Arlington business owner, you face constant financial pressure to keep things running smoothly. But when cash flow gets tight and debts start piling up, it can feel totally overwhelming. What do you do when unpaid invoices or seasonal slowdowns leave you strapped for cash? Where can you turn for help negotiating debt relief so your business doesn’t go under?The good news is, you don’t have to face this alone. Arlington merchant cash advance lawyers can provide the expert legal help and financial advice you need to settle your business debts and regain stable footing. Keep reading to learn more about how business debt relief works and why seeking help from a legal professional could be a smart move during this challenging time.

How Merchant Cash Advances Work

Before we dive into how Arlington lawyers can help, let’s quickly review what a merchant cash advance (MCA) is.An MCA provides business owners with fast access to capital by essentially selling a percentage of their future sales. So rather than getting a lump sum loan payment, companies receive smaller daily payments over a period of weeks or months as they generate sales revenue. The amount due back is automatically withdrawn from credit card transactions or bank accounts at a fixed percentage rate.Merchant cash advances appeal to small businesses because:

  • Approval is quick and funding can be fast, often within days
  • No collateral is required like with traditional bank loans
  • Payments adjust based on sales volume

However, the costs of an MCA are extremely high compared to other financing options. Factoring rates typically range from 1.10 to 1.50, meaning for every $1,000 received, $1,100 to $1,500 will be owed back. That translates to an annualized percentage rate of 60% or more in many cases.If your business takes an unexpected dip or simply can’t keep up with payments, you can end up owing far more than the original advance amount. And aggressive collection efforts from MCA providers can sink already struggling companies.

How Arlington Business Debt Relief Lawyers Can Help

Facing aggressive collections from an MCA provider can be scary and stressful. But Arlington merchant cash advance lawyers have experience helping business owners negotiate debt relief in these situations. Here are some of the ways an attorney can assist:

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Negotiating Settlements

The first priority is contacting the MCA provider directly to try and work out a settlement. Experienced business debt relief lawyers have negotiated these types of agreements before and know what terms may be realistic. They’ll advocate strongly on your behalf to have payments and interest rates reduced to affordable levels. If a settlement can’t be reached initially, your lawyer may be able to get collections put on hold while negotiations continue.

Exploring Bankruptcy Protection

Filing business bankruptcy stops collections and wipes out or restructures debts you can’t afford to pay. Chapter 7 bankruptcy liquidates company assets to pay creditors, while Chapter 11 allows you to reorganize debts under court supervision and keep operating. An Arlington merchant cash advance lawyer can advise if bankruptcy makes sense and walk you through the complex filing process if so. They’ll also represent you in court throughout the proceedings.

Defending Against Lawsuits

When out-of-court negotiations fail, MCA providers often file lawsuits against small business owners to recoup their investment. Your lawyer will put up strong legal defenses if you face litigation, arguing the excessively high MCA interest rates are unfair or that mandatory arbitration clauses in the original contract are invalid. In many cases, they can get lawsuits dismissed or delays that allow more time for settlement talks.

Recovering Unfair Payments

If an MCA provider already extracted excessive payments that pushed your business to the financial brink, an attorney may be able to help recover some funds. By gathering evidence proving the transactions violated state laws or licensing requirements, you may have grounds to claw back payments or file countersuits to offset losses.

Partnering With the Right Arlington Business Debt Relief Lawyer

As you can see, working with an experienced merchant cash advance attorney makes a huge difference in dealing with MCA debts. They have the legal knowledge plus negotiating leverage to settle agreements with providers, defend your business in court, and possibly even recoup unfair payments already made.We may not be a traditional law firm, but Delancey Street has qualified business debt relief lawyers available to become your trusted partner and advisor during this difficult period. When you choose to work with us, here’s what you can expect:

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A Customized Approach

Rather than taking a one-size-fits-all approach, our lawyers will get to know your unique situation and tailor debt relief strategies accordingly. We’ll dig into the specifics of your MCA agreement, business finances, and future goals before determining the best options.

A Single Point of Contact

Navigating business debt relief is complicated, but you won’t have to go it alone. We assign each client a dedicated merchant cash advance lawyer to call anytime questions or concerns come up. They’ll be by your side providing clear legal counsel each step of the way.

Affordable Assistance

Money is already tight, so why pay more than you have to for legal help? Our business debt relief services cost significantly less than large traditional law firms. We can even structure payments to align with the settlement itself.If you’re an Arlington small business owner losing hope that crippling MCA debts will ever get resolved, let us help.Our experienced team knows exactly how to approach these complex situations to protect your company and your finances.

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Frequently Asked Questions About MCA Debt Relief

Still have some questions about the business debt relief process and how an Arlington merchant cash advance lawyer can help? Here are answers to a few common queries:

Are settlement agreements binding?

Yes, any negotiated settlement your lawyer reaches with the MCA provider becomes a legally binding contract when signed. That means if you agree to settle a $100,000 debt for $65,000, the $65,000 payment plan locks in place.

Can I file bankruptcy without a lawyer?

You can technically file business bankruptcy yourself without legal help, but it’s extremely difficult to navigate the complex process successfully. Having an experienced bankruptcy attorney handle everything greatly improves your chances of getting debts discharged under court protection.

How long do MCA lawsuits usually last?

It varies case by case, but small business MCA lawsuits often wrap up within 3 to 6 months. The timeline stretches out longer if you defend against the litigation rather than settle immediately. Lawsuits get resolved fastest when an attorney negotiates a settlement before or early into legal proceedings.

What defenses can beat an MCA collections lawsuit?

Some of the most common defenses lawyers use against MCA providers include arguing the interest rates violate state laws against predatory lending, mandatory arbitration clauses are unenforceable, or the plaintiff lacks standing to bring the suit at all. There are often good legal arguments to get collections lawsuits dismissed.

Key Takeaways About MCA Debt Relief

Dealing with aggressive MCA collections can feel overwhelming for small business owners already struggling to stay afloat. But partnering with an Arlington merchant cash advance lawyer levels the playing field. With expert legal guidance, you can negotiate affordable settlement agreements, defend against lawsuits, or wipe debts out completely through bankruptcy if needed.Here are a few key tips to remember:

  • Move quickly – Don’t wait until you receive a lawsuit summons or collections have drained your bank account. The sooner you involve a legal professional in debt relief talks, the more leverage you’ll have.
  • Prioritize settlements – Even if an MCA provider seems unwilling to negotiate at first, keep pushing for a settlement. Lawsuits end up costing everyone more in legal fees and wasted time.
  • Explore all options – While bankruptcy with court protection from creditors is certainly an option, your lawyer may have better alternatives to first try based on your situation. Go into talks with an open mind.

At Delancey Street, our business debt relief lawyers have all the expertise needed to protect Arlington small business owners from predatory MCA lenders. We know how to negotiate, how to defend, and how to counsel you in making the smartest financial decisions during this challenging season. Reach out for a free consultation today. Our team is standing by ready to help.

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Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

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$500,000 MCA Restructured Over 3 Years
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$250,000 SBA Loan Offer in Compromise
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$350,000 MCA Restructured Over 2 Years

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