Colorado Merchant Cash Advance Legal Help – Attorneys, Debt Settlement

COLORADO MERCHANT CASH ADVANCE LAWYERS

MONEY BACK GUARANTEE FOR DEBT RELIEF SERVICES

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AS SEEN IN major media outlets, Delancey Street is a top tier business debt relief company offering a money back guarantee for our debt relief services. Regardless of your situation with a merchant cash advance, we can help you.

UNDERSTANDING COLORADO MERCHANT CASH ADVANCES

Merchant cash advances (MCAs) are NOT loans. Instead, MCA lenders provide a lump sum of money in exchange for a percentage of your future credit card receivables (or other daily business revenue). This setup, often used when traditional SBA loans or lines of credit are unavailable, can quickly become deadly for your business if the daily (or weekly) deductions are unsustainable.

WHY COLORADO LAW MATTERS
Colorado’s legal landscape for small businesses is shaped by many laws, including the Colorado Uniform Consumer Credit Code (UCCC). While many MCA agreements try to position themselves outside traditional state usury regulations (often referencing that they’re “commercial” and not personal debts), Colorado courts have examined whether certain MCAs are actually loans in disguise. If an MCA is considered a loan, it may be subject to Colorado’s interest rate caps or other obligations.

For more details on Colorado’s credit and lending regulations, see the Colorado Attorney General’s website or the Colorado Secretary of State’s business portal.

PENALTIES AND LEGAL IMPLICATIONS

• Excessive Interest Charges
  If an MCA is reclassified as a loan, it could be subject to Colorado’s usury laws. Penalties can include, but are not limited to, potential refunds of interest or fees, financial fines, and possible civil trouble.

• Notice of Default and COJs
  Many MCAs use a Confession of Judgment (COJ) clause. In Colorado, a COJ might not always be enforceable without proper court oversight—but if it is enforced, lenders can move swiftly to seize assets. Virtually overnight, your assets are taken, bank accounts are seized.

• Personal Guarantees
  Some MCA lenders demand you sign a personal guarantee, meaning your personal assets could be on the line if the business has gone down and defaults on payments.

• Lease Obligations and Liens
  Certain MCA lenders attach liens to your business property or, in extreme cases, personal property. Failing to follow the terms could result in a notice of default, and the MCA lender might try to seize assets.

IMPLICATIONS IN EVERY SITUATION

Regardless of the type of business debt you have—credit card debt, merchant cash advances, or other unsecured business debt—the stakes are high if you fail. If you fail to keep up with payments, you risk default fees, lawsuits, or even closure of the business. It’s crucial to understand that no lender wants you to file bankruptcy, but that doesn’t stop them from taking aggressive steps to get their money back.

1. Persistent Late Payments: Chronic late payments can lead to reduced creditworthiness, higher fees, and an overwhelming number of notices from creditors.
2. Cash Flow Crunch: The daily withdrawal structure can quickly crush your cash flow, leaving you unable to handle normal operating expenses. Many businesses are exhausted by the end of the week because the MCA doesn’t get lower – when your revenue is lower.
3. Legal Trouble: If an MCA lender decides to sue, you could face wage garnishments (if you’re structured as a sole proprietor), bank account freezes, or asset seizures. Lenders are NOT afraid of instantly filing UCC liens against you, and choking your business off of the revenue it desperately needs.

DEFENSE STRATEGIES

We understand the anxiety. We can help you. Often, there are things you can do to push back:

1. Disputing the Nature of the MCA

   • If the agreement looks like a hidden loan, challenge it under the Colorado Uniform Consumer Credit Code.
   • Argue that excessive fees or interest rates violate state usury laws. This is something which is the crux of most MCA defenses. MCA’s are not loans, and they charge excessively.

2. Negotiating a Payment Plan

   • Reaching out to the lender can yield a reduced daily payment amount, extension of repayment terms, or forgiveness of a portion of the principal or a portion of the interest charged by the lender.
   • It’s crucial to open lines of communication—often, lenders prefer to adjust terms rather than see you default. No one wants to see you default – they’d rather you just repay the MCA you took.

3. Examining COJ Clauses

   • Challenge the validity of confession of judgment provisions. In some cases, Colorado courts may require judicial review before enforcement.
   • Ensure you had legal counsel when signing the COJ—lack of counsel might help a defense.

4. Asserting Contract Defenses

   • Did you sign under duress? Were terms misrepresented? Was the agreement very unfair? These arguments might shift leverage in your favor.

5. Seeking a Business Debt Consolidation

   • Rather than continuing to stack MCAs, consider a debt consolidation loan. You eliminate multiple daily drafts and replace them with one monthly payment.
   • Visit SBA.gov for alternative forms of financing.

HOW IT COULD ALL GET DISMANTLED: A STREAM OF CONSCIOUSNESS

Imagine the original MCA documents are picked apart by a sharp legal mind. Paragraph by paragraph, they analyze the factor rates, the confessions of judgment, the personal guarantees—and spot multiple red flags. They file motions. They cite Colorado statutes. They bring in experts to testify about real interest rates, showing the effective APR might be 90% or more, which is above any permissible threshold. They argue the contract is a hidden loan.

Suddenly, the MCA lender’s entire collection process is in serious trouble. The judge questions the validity of the COJ. Notices of default are stayed. The daily deductions freeze. This might not be enough to stop every possible collection action, but it’s probable the MCA lender will have to come to the negotiating table. Ultimately, the so-called “advance” contract is dismantled, piece by piece, leaving you in a position to create new terms or settle on favorable terms.

STRATEGIES OF HOW WE’D DEFEND YOU

We are Delancey Street. We can help you. We don’t just talk about solutions—we implement them for you nationwide:

• Immediate Communication: We contact the MCA lender promptly to prevent further penalties or lawsuits.
• Data-Driven Negotiation: Using your up-to-date balance sheets, P/L statements, and any relevant documentation, we start a strategic conversation about your ability to pay. We use the data to prove our point and make sure lenders realize – they cannot extract blood from a rock.
• Legal Muscle: Our team, owned by an attorney, has the advantage of working hand-in-hand with our sister law firm to fend off lawsuits and default judgments – regardless of where you are in the country.
• Money Back Guarantee: We offer a money back guarantee for our debt relief services, giving you peace of mind that we stand behind our work. We are one of the few to offer this.
• Customized Payment Plan: Whenever possible, we work to create monthly payment plans you can manage, sometimes getting you an additional 1-3 years added to the term.
• Potential Balance Reductions: In many cases, we successfully negotiate a lower overall balance, saving you thousands in interest, penalties, and fees. Our goal is to save your business; and we do a wonderful job doing it.