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Denver Merchant Cash Advance Lawyers Can Provide Debt Relief

Running a small business is tough. You have to worry about paying employees, keeping customers happy, managing inventory, and a million other things. On top of that, many business owners struggle to get funding from traditional lenders like banks. So when a merchant cash advance company promises quick and easy money, it can seem like the perfect solution.But merchant cash advances (MCAs) come with serious risks. The terms are often predatory, with sky-high interest rates and daily repayment requirements that drain a business’s accounts. Before you know it, the MCA has sunk its teeth in and won’t let go.Luckily, Denver has no shortage of attorneys who specialize in helping business owners escape the merchant cash advance debt trap. Keep reading to learn how they can help you regain your financial freedom.

How Merchant Cash Advances Work

A merchant cash advance isn’t really a loan, although they’re marketed that way. Instead, an MCA company purchases a portion of your future credit card sales in exchange for a lump sum upfront.So for example, if you get a $50,000 advance with a 10% fee, the total repayment would be $55,000. The catch is that you have to pay back a fixed percentage of your daily credit card sales – usually 10-20% – until you reach that $55,000. There’s also typically no fixed repayment schedule.In other words, MCAs can swallow all of your profits for months or even years. And if business slows down, you still owe the same daily fixed percentage regardless.

The Trouble With Merchant Cash Advance Contracts

Merchant cash advance agreements are filled with pitfalls for small business owners. Here are some of the most common issues:Deceptively High Interest Rates – While MCAs technically aren’t loans, you can calculate an annualized interest rate based on the total fees. This often exceeds 100% or more.Harsh Default Terms – Miss a few daily payments and you’ll likely default. At that point the MCA company can raid your bank accounts directly and even put a lien on your assets.Forced Arbitration – Most contracts include a forced arbitration clause. This takes away your right to sue the MCA company in court. The arbitration process overwhelmingly favors the MCA companies.Auto-Renewal – Many merchants get trapped in a cycle of taking a new advance to pay off the old one, racking up huge fees each time.Aggressive Collections – MCA companies are quick to sic aggressive debt collectors on you. They’ll blow up your phone and harass your customers if you fall behind.Because of these issues, it’s easy to see why so many Denver business owners end up feeling trapped, overwhelmed, and in need of help from a merchant cash advance lawyer.

Fighting Back With a Denver MCA Attorney

The good news is that lawyers nationwide have been successfully challenging predatory merchant cash advance tactics, as reported by CNBC. Denver attorneys have had many victories as well.There are a few main ways a knowledgeable lawyer can help you escape crippling MCA debt:Negotiating Settlements – An experienced attorney familiar with the MCA industry can often negotiate much lower payoff amounts. This usually involves getting defaults removed and stopping collections activity as part of the deal.Court Intervention – If settlement talks fail, suing the MCA company is an option. Courts across the country have been siding with merchants lately. Tactics include challenging forced arbitration and high fees.Bankruptcy – Filing for Chapter 7 or Chapter 11 bankruptcy may eliminate some or all of the payoff balance. This also halts collections activity.Unwinding Transactions – Attorneys can explore arguments that the entire MCA agreement is invalid and should be voided. This is still an emerging area, but merchants have won cases with this approach.The key is finding a Denver attorney who deeply understands the MCA industry’s questionable practices. They need experience negotiating settlements and winning in court when necessary.

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Questions a Denver Merchant Cash Advance Lawyer Can Answer

If you’re struggling with merchant cash advance debt, a qualified Denver lawyer can help in a variety of ways. Here are some of the common questions they can answer:

  • Is my agreement enforceable?
  • What are my options for reducing the payoff amount?
  • Should I stop making daily payments?
  • Can I sue my MCA company?
  • How long will the legal process take?
  • Can bankruptcy eliminate my MCA debt?
  • Will legal action hurt my credit score?
  • What legal defenses could help my case?

Having an expert by your side makes navigating the complex MCA legal landscape much easier. They’ll fully explain your options and the pros and cons of each.

Finding the Right Denver MCA Attorney

As you search for legal help with your merchant cash advance debt, keep the following tips in mind:Look for MCA-Specific Experience – Not all business lawyers fully grasp the intricacies of these complex agreements. Seek out attorneys with extensive MCA knowledge.Ask About Strategy – A qualified lawyer should explain their approach to challenging your agreement and getting to a resolution.Review Settlement Records – Don’t hesitate to ask an attorney for examples of favorable MCA settlements they’ve negotiated in the past.Compare Multiple Firms – Meet with a few lawyers before deciding who to hire. Compare their track records and how confident you feel in their skills.Understand Fees – Attorneys usually work on a contingency basis for MCA cases, taking a percentage of savings earned. Get fee details in writing upfront.With a bit of research, you should be able to find a qualified Denver MCA attorney who routinely helps business owners escape these toxic agreements. They can put a stop to the daily payments that are bleeding your accounts dry.

There Are Legal Options for Merchant Cash Advance Relief

Dealing with predatory merchant cash advance debt feels hopeless at times. But in reality, Denver attorneys may have multiple strategies for reducing your burden. In many cases, legal action can resolve balances for pennies on the dollar or eliminate them entirely.If your business is struggling under the weight of crushing MCA payments, consult with a qualified lawyer. They can review your agreement for flaws, guide negotiations with the funder, and take the matter to court if needed. With an experienced legal expert on your team, you can take back control of your finances.Don’t let merchant cash advance companies keep draining your hard-earned revenue. Fight back with help from a Denver MCA attorney. You’ll sleep better when you have a clear path to ending those daily payments for good.


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