Maryland Merchant Cash Advance Legal Help
Merchant cash advances can provide quick funding for small businesses, but they also come with risks. If you’re a Maryland business owner struggling with merchant cash advance debt, there are legal options that may help. This guide covers Maryland laws related to merchant cash advances and connects you with legal resources to understand your rights.
How Merchant Cash Advances Work
A merchant cash advance provides a business with a lump sum of capital in exchange for a percentage of future credit card sales. It works differently than a small business loan – the amount borrowed isn’t paid back with fixed monthly payments over time. Instead, the merchant cash advance company takes a set percentage of daily credit card sales until the full amount plus fees is repaid.The advantage is quick access to capital without strict credit requirements. The downside? The equivalent annual percentage rates are often extraordinarily high – some over 200% APR! And if sales drop, repayment can drag on for months or years.
-Maryland Merchant Cash Advance Laws
Merchant cash advance regulation varies widely by state. In Maryland, providers aren’t directly regulated under lending or usury laws. However, unfair collection practices may still violate Maryland consumer protection laws.The Maryland Consumer Debt Collection Act defines debt collection broadly. Debt includes obligations like merchant cash advances owed to third parties. So while caps on interest rates don’t apply, collectors can’t harass or abuse business owners during repayment.
Seeking Legal Help for Merchant Cash Advance Issues
If you feel trapped in a predatory merchant cash advance agreement, consult with a business attorney licensed in Maryland as soon as possible. They can review your contract terms and advise if protections like usury laws or the Maryland Consumer Debt Collection Act may apply.Depending on the specifics of your case, a lawyer may recommend:
- Negotiating a settlement for less than the full balance
- Challenging unfair contract terms
- Defending against abusive collection practices
Reputable attorneys can also connect you with financial counselors to improve business cash flow issues contributing to repayment problems.
Finding the Right Maryland Business Attorney
With the right legal guidance, you don’t have to tackle merchant cash advance debt alone. Where do you start? Leading attorney directories like Avvo and LawInfo offer free searches for licensed lawyers in Maryland based on specialty, fees, and client reviews.Look for a business attorney experienced with commercial financing contracts and debt disputes. Meet with a few options to discuss your situation at no charge before deciding who to hire. Pay attention to their communication style – a caring, empathetic lawyer will make you feel heard and empowered.
-Alternative Small Business Financing Options
If legal help isn’t feasible or fails to resolve your merchant cash advance debts, know there are ethical small business lenders ready to help Maryland companies move forward.
SBA Lending Programs
The Small Business Administration supports several lending programs for U.S. small business owners who struggle to qualify for bank financing. In addition to low fixed rates, SBA-backed loans through local lenders come with longer repayment terms – often 10+ years for real estate and equipment.
Online Business Loans
Rather than selling future credit card receipts, online small business loans provide fixed-rate financing based on company revenue and other financial data. While they depend on a healthy credit profile, interest rates are generally far below merchant cash advance equivalent APRs.
Alternative Financing Options
Beyond traditional and online small business loans, some companies offer more flexible “revenue-based financing.” Similar to merchant cash advances, you receive an upfront sum and repay a fixed percentage of monthly sales. But the rates are vastly lower – think 8-12% rather than 200%+!One newer option open to Maryland businesses is Clearbanc. I’ve worked with them personally in the past and appreciate their fair, founder-friendly revenue share model. It provides growth capital without the typical red tape or credit requirements.
Don’t Struggle with Merchant Cash Advance Debt Alone
Unmanageable debts to predatory merchant cash advance companies can feel scary and hopeless. But here in Maryland, legal help and ethical alternative financing is out there!If you see signs of abusive collection tactics or deceptive contracts, consult with a licensed Maryland business attorney right away. They have tools to negotiate settlements or defend your rights under state consumer protection laws.And when you’re ready to move forward, ethical lenders like Clearbanc offer business financing that aligns with your company’s financial future. No business owner deserves to feel trapped and powerless. Support is available – you just need to take the first step!
-Still Have Questions? Legal Help Is a Call Away
This guide covers the basics of Maryland merchant cash advance regulations and finding legal support. But every business faces unique challenges. If you have more questions or need personalized legal advice for your situation, help is a quick call away.Leading attorney directories like Avvo and LawInfo include hundreds of knowledgeable Maryland lawyers ready to offer tailored guidance at affordable rates or even free consultations.Don’t stay silent and struggle alone. You have rights as a Maryland merchant cash advance customer – an attorney can explain protections, file disputes on your behalf, and connect you with ethical future financing. Make the call today! Relief from predatory contracts is possible when experienced legal counsel has your back.