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Indiana Merchant Cash Advance Lawyers and Business Debt Relief

Indiana lawyer with cashRunning a small business can be tough, especially when cash flow gets tight. If you’re an Indiana business owner struggling with debt, working with an experienced Indiana merchant cash advance lawyer can help you find relief. This article will cover everything you need to know.

Overview of Merchant Cash Advances

A merchant cash advance (MCA) provides business owners with quick access to capital in exchange for a percentage of future credit card and debit card sales. It’s not technically a loan, but it functions similarly.Here’s a quick rundown of how merchant cash advances work:

• You get a lump sum payment upfront, usually between $5,000-$500,000
• The MCA company takes a fixed percentage of your daily credit/debit card sales until the balance is repaid (typically 4-20% of gross sales)
• There’s no fixed repayment schedule – the balance goes down as a percentage of your sales
• Costs are very high compared to traditional business loans – the equivalent APR is typically 40-80%

This option appeals to business owners who can’t qualify for bank loans or need fast cash. But the high costs can trap owners in debt cycles if sales drop.

Common MCA Issues Facing Indiana Small Businesses

Merchant cash advances seem straightforward at first. But several issues can leave Indiana business owners facing spiraling debt:Deceptive TacticsSome MCA providers use deceptive marketing and contracts. Key terms may be buried or misrepresented. If you feel misled, an attorney can evaluate if the agreement is legally enforceable.Declining SalesRepayment is tied to a percentage of credit card/debit card sales. When business declines, the fixed daily repayment doesn’t. This dynamic can result in repaying far more than the amount advanced.Excessively High RatesWhile MCAs aren’t technically loans, some providers exploit legal loopholes to charge equivalent rates exceeding 100-200% APR or more. State laws aimed at abusive lending may provide recourse.Aggressive CollectionsSome MCA providers use overly aggressive tactics like harassing calls, threats of lawsuits, or freezing bank accounts to collect repayment – even when owners can’t afford it.If you face any of these issues with a merchant cash advance, consulting an attorney can help you understand your rights and options.

Indiana Merchant Cash Advance Laws

Indiana has laws regarding lending and debt collection practices that may apply to merchant cash advances:Indiana Small Loans Act – IC 24-4.5Sets caps on interest rates for loans under $550. MCA agreements over $550 may still be subject to rate caps under broader state lending laws.Indiana Deceptive Consumer Sales Act – IC 24-5Prohibits deceptive or abusive lending and collections tactics. Could provide recourse if an MCA provider used predatory marketing/contracts or harassing collections methods.Indiana Crime Victims Relief Act – IC 34-24Allows victims of certain offenses (like fraud or deception) to recover damages. Potential avenue if an MCA provider egregiously misled you during the sign-up process.An attorney can help you determine if any of these laws might apply to your situation.

Strategies for Seeking Relief from MCA Debt

If you’re overwhelmed by merchant cash advance debt, here are some strategies an attorney can help with:

Renegotiating the AgreementIf the agreement terms are unclear or deceptive, an attorney can negotiate a settlement or restructured payment plan that reduces the balance.

Contesting Legally Questionable TacticsIf the MCA provider used predatory marketing/contracts or harassing collections methods, legal action could invalidate the agreement or recover damages.

Exploring Bankruptcy OptionsFor severe small business debt, options like Chapter 7 or Chapter 11 bankruptcy may eliminate or restructure payments. An attorney can advise if bankruptcy could help your situation.

Evaluating Alternative FinancingAttorneys often have networks of ethical alternative lenders. Refinancing with better rates and terms can help break cycles of predatory debt.

Disputing Errors or FraudIf you find errors or fraud related to an MCA agreement, attorneys can dispute inaccurate reporting with credit agencies or investigate legal options.The bottom line? Speaking with an attorney familiar with merchant cash advances is a smart first step to understand your rights and map out a game plan tailored to your situation. With the right help, you can find options for relief from small business debt.Indiana lawyer and client discussing options

Finding the Right Indiana Merchant Cash Advance Lawyer

If you need legal help related to a merchant cash advance agreement, here are some tips for finding the right attorney:

Search state bar association directories – The Indiana State Bar Association and Indianapolis Bar Association have searchable member directories.

Look for lawyers familiar with small business finance – Seek out attorneys with specific experience in areas like commercial litigation, banking, and alternative finance.

Ask about experience negotiating MCA issues – Have they successfully renegotiated or contested merchant cash advance agreements for other clients?

Inquire about alternative lending partners – Good attorneys often have networks of ethical alternative lenders to consider refinancing with.

Compare experience and engagement – The right lawyer-client fit is crucial. Make sure to ask questions and understand what to expect at each step.With an experienced Indiana MCA lawyer guiding you, getting relief from predatory agreements is possible. Don’t struggle alone – help is out there!

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