Nebraska Merchant Cash Advance Legal Help – Attorneys, Debt Settlement
Merchant cash advances have become an increasingly popular way for small businesses to access quick financing. However, these advances come with high costs and strict repayment terms that can spiral out of control. If your Nebraska business is struggling with merchant cash advance debt, don’t go it alone – legal help is available.
How Merchant Cash Advances Work
A merchant cash advance provides a lump sum payment to a business in exchange for a percentage of future credit card sales. There’s no set repayment schedule – instead, the lender takes a fixed amount from each day’s credit card receipts.This flexibility seems attractive at first. But when sales drop, the fixed daily repayment remains the same, meaning a higher percentage goes to the lender. Businesses can quickly fall behind.Unlike loans, merchant cash advances aren’t subject to usury laws limiting interest rates. Some contracts extract 200-400% APRs from struggling businesses. Lenders can also access bank accounts directly to collect payments.
Falling Behind on Merchant Cash Advance Payments
When businesses can’t keep up with daily repayments, lenders turn up the heat through aggressive collection tactics:
- Harassing phone calls – Lenders barrage business owners with back-to-back phone calls demanding payment. These calls interfere with operations.
- In-person harassment – Collectors may show up at the business demanding money. They may also contact vendors and customers about the debt.
- Lawsuits – If payments remain behind, lenders sue the business and/or its owner. Many advances include “confessions of judgment” allowing lenders to obtain judgements without hearings.
- Asset seizures – With a judgement in hand, lenders can seize assets or freeze bank accounts. This leaves businesses unable to cover payroll and other expenses.
Facing such tactics, many owners feel powerless and overwhelmed. But legal defenses exist.
Legal Defenses Against Merchant Cash Advance Lenders
If your business is struggling with a predatory merchant cash advance, consult a lawyer immediately. Possible defenses include:
- Lending violations – In some states, merchant cash advances fall into gray areas lacking oversight. Experienced lawyers leverage violations of state laws to invalidate contracts.
- Unconscionability claims – If contract terms are overly harsh or unfair, courts may rule them invalid. This can cancel parts of a merchant cash advance agreement.
- Settlement negotiations – Rather than risk lawsuits, some lenders will negotiate discounted settlements. Skilled lawyers have achieved 20-50% settlements for struggling businesses.
The sooner you involve a lawyer, the more leverage you’ll have. Don’t let intimidation or feeling overwhelmed stop you from asserting your rights.
Alternatives to Defaulting on Merchant Cash Advances
Before defaulting, also consider these options:
- Request payment modifications – Ask the lender to reduce daily payments to affordable levels until business recovers. They may agree to avoid default.
- Debt consolidation loan – Banks and online lenders now offer consolidation loans helping combine merchant cash advance debt into more manageable fixed payments.
- Debt settlement – Debt settlement companies negotiate reduced payoffs with lenders. While settling debts does impact credit scores, it may be the only realistic option.
Finding the Right Legal Help in Nebraska
The merchant cash advance industry largely operates unchecked. Having an experienced lawyer levels the playing field. Look for attorneys with specific experience fighting merchant cash advance lenders. Key credentials include:
- Knowledge of state lending laws – Locate lawyers familiar with gray areas and oversight gaps cash advance lenders exploit in Nebraska.
- Track record settling predatory contracts – Search for attorneys with a proven history invalidating unfair merchant cash advance agreements.
- Settlement negotiation skills – Only work with lawyers who regularly negotiate discounted settlements with cash advance lenders.
With the right legal help, Nebraska businesses can escape predatory merchant cash advance debt. Don’t wait – meet with qualified attorneys in your area today to discuss your options. The sooner you take action, the sooner you can move your business back toward financial stability.