Nashville Merchant Cash Advance Legal Help
Merchant cash advances can provide quick funding for small businesses, but they also come with high fees and strict repayment terms. If your Nashville business is struggling with merchant cash advance debt, you may need legal help to negotiate a settlement or file bankruptcy.
-How Merchant Cash Advances Work
Merchant cash advance companies provide a lump sum payment to a business in exchange for a percentage of future credit card sales. There are usually no fixed monthly payments – the business repays the advance as a percentage of daily credit card receipts.
This flexible repayment structure appeals to many small businesses, but the fees and rates are often exorbitant, with an effective APR frequently over 50%. Businesses can quickly fall behind if sales drop.
Common Merchant Cash Advance Problems
-Some common issues Nashville small businesses face with merchant cash advances include:
- Repayment percentages that consume too much of daily credit card sales
- Balloon payments or payoff amounts higher than expected
- Harassment from cash advance companies trying to collect payments
- Lawsuits and threats to seize assets or bank accounts
If you are facing any of these problems, a business attorney in Nashville can advise you on your options.
Settling Merchant Cash Advance Debt
Most merchant cash advance contracts do not allow prepayment or early settlement. However, experienced lawyers may be able to negotiate a discounted payoff amount with the lender.
An attorney can review your agreement to find potential violations by the lender or identify leverage to force a settlement. Having legal counsel greatly improves your chances of settling merchant cash advance debt on affordable terms.
-Common Settlement Strategies
Attorneys may employ strategies like:
- Disputing the validity of excessive fees or interest rates
- Arguing violations of state lending laws
- Threatening bankruptcy or litigation
- Negotiating to buy out personal guaranties
An experienced lawyer negotiates from experience and legal precedent. They use their expertise to pressure lenders into an affordable settlement.
-Using Bankruptcy to Eliminate Cash Advance Debt
If negotiations fail, bankruptcy may be your best option to eliminate unaffordable merchant cash advance debt. A Chapter 7 or Chapter 11 bankruptcy discharges personal and business debts to give you a fresh start.
Bankruptcy stops collections activity and lawsuits while permanently wiping out balances owed. However, it can only provide relief if you stop making payments and let the account fall behind first.
How Bankruptcy Lawyers Can Help
Nashville bankruptcy attorneys help with tasks like:
- Evaluating if bankruptcy makes sense for your situation
- Advising when to stop making payments
- Drafting and filing bankruptcy paperwork
- Representing you in court against creditors
- Getting collection calls and lawsuits paused
This protects you while eliminating debts and providing tax relief. Bankruptcy lawyers know how to maximize protections and limit consequences for business owners.
Explore Your Nashville Merchant Cash Advance Legal Options
If your Nashville business is overwhelmed by merchant cash advance debt, meet with an attorney to discuss settlement or bankruptcy. The legal system provides protections if you have an experienced lawyer guiding you.
Get a free consultation with a top-rated Nashville business attorney to review your merchant cash advance agreement. They can explain your options and legal rights in plain English. Don’t struggle alone – skilled legal counsel can eliminate cash advance debt so you can regain financial stability.