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Austin Merchant Cash Advance Lawyers Can Provide Debt Relief

Running a small business is tough. Between managing employees, keeping customers happy, and trying to turn a profit, things can get overwhelming fast. Many business owners in Austin end up turning to merchant cash advances to help ease some of their financial burdens. But sometimes, these quick cash loans create even bigger problems down the road. If you took out a merchant cash advance and are now facing crushing debt, don’t panic. Austin merchant cash advance lawyers can help you find debt relief solutions so you can get your business back on track.

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How Merchant Cash Advances Work

First, let’s break down exactly what a merchant cash advance (MCA) is. An MCA isn’t technically a loan – it’s the sale of a business’s future credit card sales and receivables to a lender at a discounted rate. So for example, if a business is expecting $100,000 in credit card payments over the next few months, they might sell that future income to an MCA company for $80,000 upfront.The business then pays back the MCA company through small daily payments which are taken automatically as a percentage of daily credit card sales. These payments can range anywhere from 10-50% of each credit card transaction.

The Downsides of Merchant Cash Advances

While a merchant cash advance might seem like quick relief for a struggling small business, there are some major downsides business owners should be aware of:

  • Extremely high interest rates – Because MCAs technically aren’t loans, lenders can charge outrageously high interest rates in the form of those daily payments. Some MCA companies charge the equivalent of over 250% APR!
  • Variable payments – There’s no way to predict how much those daily payments will be since they fluctuate based on credit card sales volume. This makes it extremely difficult for business owners to budget.
  • Aggressive collections – If a business starts missing payments, MCA companies can be ruthless in their collection efforts, garnishing bank accounts and placing liens on the business.

As you can see, while MCAs provide quick access to capital, they often create more headaches for business owners down the road. If you’re facing mounting MCA debt, don’t wait – contact an Austin merchant cash advance lawyer today to discuss your debt relief options.

How Austin MCA Lawyers Can Help

So how exactly can an Austin MCA lawyer help you escape crippling merchant cash advance debt? Here are some of the most common ways we assist business owners:

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Negotiating Settlements

One of the first things we’ll do is reach out to your MCA lender and try to negotiate a settlement. This involves working out a lump-sum discounted payoff amount that allows you to close out the MCA agreement. Through leveraging various consumer protection laws and highlighting flaws in the original MCA contract, we’ve been able to secure settlements equaling 20-50% of many of our clients’ balances.

Unwinding or Rescinding Agreements

If the original MCA agreement violated certain lending laws or contained hidden fees and penalties that weren’t adequately disclosed, we may be able to legally rescind the contract. This can essentially make the agreement null and void.

Recovering Unfair Payments

Even if the original MCA agreement holds up in court, certain aspects of it may be considered unlawful. For example, interest rates over a certain threshold may be deemed usurious. In cases like this, we can potentially help clients recover all excess payments collected on the agreement.

Forcing Lenders Into Bankruptcy Proceedings

One lesser-known strategy for escaping MCA debt involves tipping the scales and actually forcing the lender into bankruptcy instead of the business owner. The result mirrors what happens when an individual consumer files bankruptcy – the debt is eliminated.As you can see, an experienced Austin MCA lawyer has multiple different tools in their toolbox to tackle these notoriously predatory cash advances. Don’t wait until missing payments, liens, and lawsuits start piling up. Act now by scheduling a free consultation with one of our qualified business attorneys today.

Beware of MCA Debt Relief Scams

As merchant cash advance debt continues to be an issue plaguing small business owners nationwide, a number of so-called “MCA debt relief companies” have popped up claiming to easily eliminate this type of debt. However, many of these companies overpromise and underdeliver without providing any real legal debt relief strategies.We recommend being wary of any MCA debt relief company that:

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  • Charges large upfront fees before rendering any services
  • Promises to “erase” or “vanish” MCA debt within weeks
  • Doesn’t employ licensed attorneys to handle negotiations
  • Has no physical business address or location

While some legitimate firms may charge small initial consultation fees, you’ll want to avoid any company demanding four-figure upfront payments. The reality is escaping lawful MCA debt requires strategic legal maneuvering – there are no quick fixes or shortcuts. Make sure any firm you work with explains exactly how they plan to tackle your unique situation based on the specifics of your original agreement.Don’t get duped by MCA debt relief scammers – let a qualified Austin merchant cash advance lawyer review your situation instead. We provide honest assessments and realistic solutions tailored to your business’s needs.

Finding the Right Austin MCA Lawyer for You

If you’re searching for legal help with merchant cash advance debt, finding the right Austin MCA lawyer for your case is crucial. Here are some important things to look for as you vet attorneys:

  • Specialization – Not all business lawyers fully grasp the intricacies of MCA agreements. Look for ones who specifically tout MCA debt relief experience.
  • Track Record – Ask about case studies and past client successes. An impressive track record speaks volumes.
  • Free Consultations – Beware of any lawyer unwilling to provide a free, no-strings-attached consultation. This shows they care more about money than clients.
  • Clear Fee Structure – Make sure you understand precisely what you’ll be paying and when. Established attorneys should explain fees upfront.
  • Licensed & Accredited – Verify licenses through the [State Bar of Texas]
    1

     and check accreditations like the [Better Business Bureau].

Finding the right legal partner can make all the difference when it comes to effectively combatting merchant cash advance debt. Don’t settle for less than you deserve – contact our qualified Austin MCA lawyers today to discuss your situation at no charge.

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Other Business Debt Relief Options

Merchant cash advance debt isn’t the only financial hurdle small business owners face. If you have outstanding debts like commercial loans, lines of credit, or past-due taxes, know that you still have debt relief options. Here is a quick overview of some alternative debt solutions we can provide legal guidance around.

Small Business Bankruptcy

Declaring Chapter 7 or Chapter 11 bankruptcy stops collections and wipes out eligible business debts entirely through liquidation or reorganization. An Austin business bankruptcy lawyer can help you navigate this complex process.

Tax Settlements

If back taxes are burdening your business, a tax relief attorney can negotiate settlements with the IRS and state tax authorities for considerably less than you owe. In some cases tax debt can even be forgiven.

Commercial Debt Settlement

Similar to tax settlements, lawyers can negotiate discounted lump-sum payoffs with banks and other commercial lenders. In exchange the remaining account balance is forgiven.As you can see, various forms of legal business debt relief exist. The key is partnering with an experienced Austin small business lawyer to leverage these strategies effectively. Don’t keep letting debt weigh down your company – take control of your financial future with help from a legal expert.

Let Us Help You Get Your Business Back on Track

As a small business owner in Austin, you have enough to worry about without merchant cash advance debt or other financial obligations dragging you down. But you don’t have to keep struggling under the weight of crushing MCA payments and aggressive collections. Our experienced Austin MCA lawyers know exactly how to deal with notoriously predatory cash advance lenders. We’ll explore every avenue to help secure you the maximum debt relief.

 

 

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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.

"Super fast, and super courteous, Delancey Street is amazing"
Leo
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
Jason
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
Mary
$350,000 MCA Restructured Over 2 Years

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