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Fill out our contact form. We'll reach out and conduct a thorough assessment of your situation, and how we can help you. Our goal is to understand your situation, and determine if our program is the right for you, and the type of debt you have.

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Once we determine our program is right for you, we start working on your behalf. We conduct a thorough evaluation of the type of debts you have, and put together an action plan on what a realistic, and beneficial outcome would look like for each debt.

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The final step is the most important, we restructure your debt and put you in a better position than we found you. We work with you to adhere to the new debt restructuring program, and are with you every step of the way to make sure your business is thriving.

Program Results

$450K Merchant Cash Advance

Extra 24 Months

Transformed into a monthly payment, and extended by 2 years, with a 15% reduction in balance.
$110K Merchant Cash Advance

55% Reduction

Transformed into a monthly payment, and extended by 2 years, with a 55% reduction in balance.
$100k Business LOC

50% Redution

Our client had an LOC with a MCA hybrid lender, and saw a drastic reduction in balance.

How We Help

Business debt settlement through Delancey Street involves restructuring your corporate debt, in a manner that allows you to keep your doors open, and results in an increase in cashflow.

Get a affordable plan that works for your business cash flow as a part of the debt settlement process.

Get potential resolutions with Delancey Street in a timely and effective time frame once you enter our debt relief program.

You Have a Powerhouse team of financial and legal experts on your side, advising you on how to interact with predatory creditors.

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Philadelphia Merchant Cash Advance Attorney

Philadelphia Merchant Cash Advance Attorney: Your Guide to MCA Litigation

As a small business owner in Philadelphia, you may have turned to merchant cash advances (MCAs) to help your business stay afloat during tough times. But MCA loans can quickly spiral out of control, leaving you facing mounting debt and aggressive collection tactics. If you find yourself on the receiving end of an MCA lawsuit, don’t go it alone – consult an experienced Philadelphia merchant cash advance attorney right away.

In this article, we’ll walk through everything you need to know about merchant cash advance litigation in Philadelphia, and how a knowledgeable lawyer can help protect your business.

What is a Merchant Cash Advance?

A merchant cash advance provides quick access to capital by allowing a business to borrow against its future credit card sales. The business agrees to pay back the advance, plus a fee, by allowing the MCA company to withdraw a percentage of daily credit card receipts – often 15-35% – until the balance is repaid[1].

Unlike a traditional bank loan, MCAs are not subject to usury laws limiting interest rates. As a result, the equivalent annual percentage rate (APR) on an MCA can top 400%[3]. This makes them an extremely expensive form of financing.

Why MCAs Can Lead to Lawsuits

While MCAs provide fast cash upfront, the burden of daily repayments can quickly become unsustainable. If your business experiences a slowdown, there may not be enough in your merchant account each day to cover the withdrawal – causing you to fall behind.

Once you default, the MCA company can take several aggressive actions to recoup their investment, including:

  • Filing a lawsuit against your business
  • Obtaining a confession of judgment
  • Freezing your bank accounts
  • Placing a lien on your assets

Many MCA agreements require you to waive your right to a trial and allow a confession of judgment if you default. This gives the lender a powerful collections tool, allowing them to seize your assets without even going to court.[3]

Responding to an MCA Lawsuit

If you’ve been served with a merchant cash advance lawsuit, it’s critical to retain legal counsel immediately. An experienced Philadelphia MCA attorney can review your case and build a strategic defense to protect your interests.

Here are some key steps your lawyer may take:

  • File a motion to vacate the confession of judgment – If you signed a confession of judgment clause in your MCA contract, your lawyer can argue it is invalid and ask the court to vacate it. Grounds may include it being signed under duress or executed improperly.[3]
  • Challenge contract terms – Many MCA agreements contain provisions that may not be enforceable under Philadelphia law, such as excessive fees or interest rates. Your attorney can fight to invalidate unfair or illegal terms.[3]
  • Assert affirmative defenses – Your lawyer may argue the MCA company violated lending laws, misled you about terms, or otherwise acted inappropriately. Proving such defenses can defeat their claims against you.[3]
  • File counterclaims – If the MCA company harmed your business by freezing accounts or engaging in abusive collection tactics, your lawyer can potentially sue them for damages.[3]
  • Negotiate a settlement – Often the best outcome is a negotiated settlement that reduces the amount owed and sets an affordable repayment schedule. An experienced attorney can get you the best deal.[3]

With an attorney fighting on your behalf, you have a much better chance of reaching a favorable result, avoiding asset seizure, and protecting your business.

Alternatives to Litigation

In some cases, proactive legal intervention can resolve MCA issues without needing to go to court. Your attorney may be able to:

  • Negotiate modified repayment terms
  • Work out a lump sum settlement for less than you owe
  • Get certain contracts voided altogether
  • Stop collections activities against you

Taking action early not only helps minimize legal expenses, but prevents further damage to your business.

Choosing a Qualified Merchant Cash Advance Attorney

Don’t leave your company’s fate in the hands of just any lawyer. Look for an attorney with specific experience fighting merchant cash advance lawsuits and collections. Key credentials include:

  • In-depth knowledge of MCA lending practices
  • Understanding of MCA contract loopholes
  • Record of favorable settlements and judgments
  • Litigation experience in Philadelphia courts
  • Membership in relevant legal associations

Be sure to ask about the lawyer’s track record with similar cases. You want someone who knows how to effectively dispute improper MCA tactics in Philadelphia courts.

Act Now to Protect Your Business

If you’ve been sued for defaulting on a merchant cash advance, don’t delay in seeking legal representation. A knowledgeable Philadelphia MCA attorney can often get lawsuits dismissed, debts reduced or eliminated, and save your business from financial ruin.

Don’t go it alone against aggressive MCA collectors. Call an experienced merchant cash advance litigation lawyer today to discuss your best options.

Delancey Street is here for you

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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