Columbus Merchant Cash Advance Legal Help – Attorneys Can Provide Debt Settlement Assistance
Merchant cash advances have become an increasingly popular way for small businesses to access quick capital. Unlike traditional bank loans, merchant cash advances don’t require a high credit score or collateral. Instead, the advances are repaid through a percentage of future credit card sales over a set period of time. This can be an attractive option for business owners who need fast cash to cover expenses.However, some merchant cash advance companies engage in predatory lending practices that take advantage of small business owners. Exorbitant interest rates, misleading terms, and aggressive collection tactics are common complaints. If you signed a merchant cash advance agreement that you now regret, contacting a Columbus small business attorney may help you find legal solutions.
Common Problems with Merchant Cash Advances
While merchant cash advances serve a purpose, the terms are often unfavorable for the borrower:
-- Sky-high interest rates – Some companies charge over 100% APR when fees are factored in. This is much higher than even the worst credit cards.
- Deceptive terms – Important details about repayment may be hidden in fine print or obscured through confusing language.
- Excessive payments – Lenders can withdraw 30-40% or more from daily credit card sales until the balance is repaid. This can cripple cash flow for small businesses.
- Aggressive collections – Some lenders will freeze bank accounts or sue business owners who fall behind on payments.
If you didn’t fully understand the repayment terms when you signed the agreement, or feel the lender misled you, a Columbus small business attorney can review your case for free. They can also negotiate with the lender on your behalf to help settle the debt under more reasonable terms.
Legal Defenses Against Predatory Merchant Cash Advances
Depending on the specifics of your situation, a Columbus small business lawyer may be able to construct legal arguments to invalidate the agreement or reduce what you owe:
- Unconscionability – If the terms are excessively one-sided or unfair, the contract may be ruled unenforceable.
- Fraudulent misrepresentation – If the lender intentionally deceived you about repayment terms or fees, the agreement can be void.
- Usury laws – In some cases, excessively high interest rates over state limits may invalidate the contract.
- FDCPA violations – Federal law prohibits abusive collection practices like harassment or false threats.
By asserting these defenses, your attorney can put pressure on the lender to settle for a reduced payoff amount that lets you move forward. Though results aren’t guaranteed, <u>it’s worth exploring your legal options</u>. Many predatory lenders count on business owners lacking the time or resources to fight back.
What a Columbus Small Business Attorney Can Do To Help
If you want to get out of a merchant cash advance agreement signed under questionable circumstances, a skilled lawyer can assist in several ways:
-- Contract review – Identify objectionable clauses or violations of law.
- Settlement negotiations – Use legal arguments as leverage to negotiate a discount on the remaining balance.
- FDCPA lawsuits – Sue the lender for illegal collection practices like harassment.
- Debt consolidation – Structure a single monthly payment to multiple creditors through legal proceedings.
The right attorney understands both contract law and the common schemes predatory lenders use against small business owners. This expertise allows them to build the strongest case possible on your behalf during settlement talks.Though each situation has unique details, these are the general steps a lawyer may take:
- Consultation – Review your case and discuss options during an initial meeting.
- Demand letter – Send a letter to the lender asserting legal defenses and requesting settlement.
- Negotiations – Use legal arguments as leverage to negotiate discounted repayment terms.
- Litigation – If talks fail, file a lawsuit to invalidate the agreement in court.
With an aggressive approach combining negotiations and litigation, many attorneys can resolve these situations through settlement without needing to go to trial.
What Settlement Could Look Like
Outcomes vary, but your attorney may be able to negotiate one of these general resolutions:
- Balance reduction – Only repay a percentage of what you still owe (e.g. 50 cents on the dollar).
- Favorable repayment terms – Extend the payment period and/or lower the weekly/monthly payment.
- Lump sum settlement – Agree to one discounted final payoff amount as satisfaction in full.
Settlement discussions are fluid, and your lawyer may get creative in proposing compromises that limit further payments while allowing you to move on. The goal is finding an agreement that eliminates lawsuit threats from the lender.
Don’t Face Predatory Lenders Alone – Consult a Small Business Attorney
Columbus has no shortage of business lawyers ready to help small business owners escape unfair merchant cash advance agreements. The right attorney can review your situation, advise you on options, take over negotiations, and provide legal counsel every step of the way. Before signing any settlement, they will make sure the terms are clear and favorable towards letting you get out from under the debt.Rather than struggle alone with aggressive lenders, contact an experienced Columbus small business lawyer. Help is just a phone call away, and most provide free case evaluations. You may find they can resolve your situation quickly and affordably through settlement negotiations alone. Don’t assume you have no recourse against predatory merchant cash advance companies – let a skilled small business attorney review your case today.
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