CONNECTICUT MERCHANT CASH ADVANCE LAWYERS
DELANCEY STREET OFFERS A MONEY BACK GUARANTEE FOR DEBT RELIEF SERVICES
We Get It
You might be facing a stack of toxic merchant cash advance agreements, and your business is overwhelmed. Regardless of your situation, regardless of how deep the debt is, regardless of who the MCA lenders are—we can help you. We’re DelanceyStreet.com – a top tier business debt relief company.
AS SEEN ON major media outlets, we take pride in offering a money back guarantee for our debt relief services.
Why Connecticut Business Owners Might Struggle with MCA Debt
Connecticut’s economy is lively, but that vibrancy sometimes means complicated financing solutions. Merchant cash advance lenders can step in when your business is strapped for cash and can’t get a normal business credit card or SBA loan. But daily or weekly deductions from your credit card sales can quickly become toxic when profits dip.
REGARDLESS – WE CAN HELP YOU
MCA agreements in Connecticut can be subject to close review by the Connecticut Department of Banking (see portal.ct.gov/dob) when they resemble “loans” rather than sales of receivables. Moreover, if a lender violates state usury or licensing laws, there can be hefty penalties, or even a possible voiding of the agreement.
Connecticut General Statutes Title 36a often govern financial institutions and their practices, including interest and unfair lending. If an MCA arrangement crosses the line into a traditional loan, the interest rates might trigger questions of usury.
Penalties and Laws
Penalties for violations vary, but can include:
- Civil Fines: Lenders who charge excessive fees can face significant monetary fines.
- License Suspension or Revocation: If the MCA lender was required to be licensed but wasn’t, the state can issue an immediate cease-and-desist.
- Lawsuit: Affected business owners can sue or be sued if a default occurs. In some cases, the court might find the agreement unenforceable if it violates Connecticut law.
Often, there are many tell tale signs that demonstrate you’re a candidate for business debt relief. If daily withdrawals from your merchant cash advance arrangement cause persistent cash flow issues, chronic late payments, or notices of default, you might be facing potential lawsuit.
The “Call-Out”
WE DEFEND CONNECTICUT BUSINESSES.
Implications in Various Scenarios
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Failing to Meet Daily Repayments
You risk breach of contract, the MCA lender might file a lawsuit or attempt to enforce a confession of judgment. While Connecticut courts generally disfavor “confessions of judgment,” some lenders still include them in the fine print. -
Lender Classifying Your MCA as a Loan
If the MCA is structured more like a disguised loan, it might violate Connecticut’s usury laws. That could lead to a potential claim against the MCA lender for unlawful interest. -
Stacking
Taking multiple MCA deals can create a debt spiral. If you default on one and face claims from another, you might get hammered with multiple lawsuits, liens, and daily calls from collectors. -
Licensing Questions
If your MCA lender was required to hold a particular license but didn’t, or if they misrepresented their status, you could raise that as a defense in court.
Defense Strategy: How We Can Help
We focus on all types of unsecured business debt. When you enroll in a business debt settlement program, like the one offered by Delancey Street – you’re creating a way to avoid going out of business. We not only settle merchant cash advances; we also work to negotiate new repayment terms that protect your business.
STEP ONE: ASSESS THE AGREEMENT
Our team of attorneys reviews the MCA contract line by line. We look for:
- Usurious terms
- Confession of judgment clauses (COJs)
- Unfair collection practices
- Lack of required state notices
STEP TWO: BUILD A NEGOTIATION PLAN
We contact your MCA lenders on your behalf. We highlight your financial hardships, the risk of default, and potential legal weak spots in their contract. Lenders WANT to get paid, so they often prefer a settlement or restructured payment plan.
STEP THREE: DEFEND AND SETTLE
If the MCA lender files suit, our sister law firm can raise defenses such as:
- Alleged usury if the factor rate is disguised interest
- Illegal or unlicensed lending under Connecticut Department of Banking rules
- Breach of implied good faith
In the end, every lender wants to get paid back. No lender wants you to file bankruptcy. That’s why we fight to reduce your overall balance and help you find a workable monthly payment plan.
STREAM OF CONSCIOUSNESS: HOW IT COULD GET DISMANTLED
Imagine a scenario: The MCA lender claims you owe $150,000, factoring in very high fees and interest. You’re drowning in debt. We look closer. We find multiple issues: The lender wasn’t licensed in Connecticut, the factor rate is suspiciously close to a 90% APR, and there’s a vague COJ provision. We question the entire nature of the contract.
We contact the lender’s legal team. They threaten to freeze your accounts, they threaten to garnish your receivables. We keep pushing. We point out the potential regulatory violations. We highlight the risk of a judge declaring the entire deal void if it’s found to violate Connecticut’s usury laws. Pretty soon, the lender realizes a settlement might be wiser. The entire arrangement starts coming apart.
That’s how it can get dismantled.
STRATEGIES TO PROTECT YOU
- NEGOTIATE A REDUCTION: We aim to cut your total debt by showcasing the flaws in the MCA contract.
- STRETCH OUT TERMS: Extend your repayment window so your cash flow improves.
- CONSOLIDATION: If it makes sense, we might recommend a merchant cash advance consolidation loan. This merges multiple MCAs into one easier payment.
- COMMUNICATION: We engage your creditors early, letting them know your struggles, so they’re more open to new terms.
ALTERNATIVE AVENUES
- Invoice Factoring: If you have outstanding invoices, you can get cash now to pay down existing MCA debt.
- SBA Loans: Potentially cheaper financing, though more strict eligibility rules.
- Business Lines of Credit: Flexible borrowing with only interest on the drawn amount.
We can help you. Our team focuses on all types of unsecured business debt.
