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Delancey Street Helps Business Owners Regain Control

Each year 10's of thousands of business owners struggle.

Join The Program

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.

We Work With You

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.

We Get Results

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.

5 Star Google Rating trusted by 100's of people who are struggling with business debt.

Los Angeles Merchant Cash Advance Legal Help – Attorneys, Debt Settlement

Los Angeles Merchant Cash Advance Legal Help – Attorneys, Debt Settlement

Merchant cash advances can provide much-needed capital for small businesses, but they also come with risks. If your business has fallen behind on payments or gotten into legal trouble over a merchant cash advance agreement in Los Angeles, you may need legal help.LA business legal help

Understanding Merchant Cash Advances

A merchant cash advance isn’t technically a loan. Instead of borrowing money that you repay with interest, you sell a portion of your future sales revenue to an MCA company in exchange for a lump sum.The MCA company then takes a fixed percentage of your daily credit card sales until the full amount is repaid. There’s no set repayment schedule – the faster your business generates sales revenue, the faster you pay back the advance.

Common Legal Issues with Merchant Cash Advances

While merchant cash advances provide easy access to capital, they also come with risks:

High Costs

The fee charged by an MCA company essentially works out to an annualized interest rate over 100% in many cases. The actual cost may not be clear initially.

Daily Repayments

Having a percentage of each day’s sales automatically drafted can strain cash flow, especially on slow business days.

Aggressive Collections

If an MCA company feels repayments have slowed too much, they may attempt aggressive collections efforts like debiting bank accounts without notice.

Legal Action

Some MCA companies sue businesses that fall behind on payments. Even small payment delays can trigger default notices and threats of legal action.

Getting Legal Help with Merchant Cash Advances

If you’re facing any of the above issues with an MCA company, getting legal help from a business attorney experienced in this area is crucial to protect your rights.

Responding to Demand Letters

If you receive a default notice or demand letter from an MCA company, don’t ignore it. Failure to respond can allow the company to seek a default judgment against your business. An attorney can help craft an appropriate response.

Negotiating Settlements

If you can no longer afford payments or the MCA agreement no longer makes financial sense, an attorney may be able to negotiate a settlement for less than the full amount owed.

Defending Against Lawsuits

Should the MCA company file suit, a legal defense is necessary to avoid a damaging judgment. In some cases, the agreement terms may be legally unenforceable.

Seeking Damages

If the MCA company has taken illegal actions like unauthorized bank account withdrawals, your business may be entitled to monetary damages through a counterclaim or separate lawsuit.

Finding the Right Legal Help in Los Angeles

Seeking assistance from lawyers with specific experience fighting merchant cash advance lawsuits and negotiating MCA agreements is key. Be sure to ask about:

  • Track record – How many similar cases have they handled and what were the outcomes? Do they have experience negotiating MCA settlements?
  • Payment plans – What payment arrangements are available if legal fees are currently unaffordable for your business?
  • Personal attention – Will you work directly with the lead attorney or be passed off to less experienced associates?

Also research lawyers carefully via sites like Avvo and look for client reviews that give insight into their reputation and results.

Options for Legal Help Defending MCA Claims

Depending on your specific situation, different legal help options may make sense.

Hiring a Private Lawyer

Retaining an experienced business litigation lawyer to defend, settle, or sue over an MCA contract will provide one-on-one guidance but can be expensive. Be sure to understand what’s included and any additional costs that may arise depending on how the case progresses.

Legal Insurance

If you have business owner’s legal insurance as part of your existing business insurance policy, this may cover some or all of the costs of an attorney depending on the type of claim. Check your specific policy details.

Legal Aid Organizations

If your financial situation makes hiring a private attorney difficult, contact public legal aid organizations to see if you qualify for free or low-cost legal help based on your income. Resources are limited so cases are prioritized by need.

What Laws Apply to Merchant Cash Advances?

Most merchant cash advance agreements specify that New York law will apply in any legal dispute since that state has established precedents governing these transactions. Key laws include:

However California law may also protect small businesses from unfair contract terms or aggressive collections by MCA companies. Key laws include:

An attorney can advise which laws offer the best protections and claims given your specific situation. Don’t hesitate to contact experienced legal help regarding any issues with a merchant cash advance agreement. Protecting your business is vital.

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

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
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