Merchant cash advances can seem like easy money at first. But when it comes time to pay them back, many Jacksonville business owners realize they’ve gotten themselves into trouble. If you took out a merchant cash advance and are now facing legal action, don’t panic. There are experienced attorneys who can help.
How Merchant Cash Advances Work
A merchant cash advance isn’t really a loan. Instead, you’re selling a portion of your future credit card sales to a lender in exchange for an upfront lump sum payment. This type of financing appeals to business owners because:
-- There’s no lengthy credit check – the lender bases approval on your credit card sales history
- You get funding quickly – often within a few days
- There’s no set repayment schedule – you pay back a fixed percentage of daily credit card sales until the balance is repaid
Calculator and moneyBut there’s a catch. Since there are no fixed monthly payments, repayment periods can drag on much longer than expected if sales decline. And if you fall behind, extremely high interest rates and fees can pile up fast.Before long, you could end up owing double or even triple your original advance amount. And if the lender sues, things get even messier.
Common Legal Issues Facing Jacksonville Business Owners
Some of the most common legal predicaments faced by Jacksonville business owners who’ve taken merchant cash advances include:
Debt Collection Lawsuits
When you default on repayment, the first thing your lender will probably do is hire a debt collection agency. You’ll likely receive increasingly aggressive letters and calls demanding payment.If you still don’t pay, the lender can file a lawsuit to recover the debt plus interest, fees, and legal costs. And they usually win, resulting in a judgment against your business.
Judgments
A judgment gives the lender broad collection powers, like garnishing your bank accounts or placing liens on your commercial property and equipment. Left unpaid, judgments also trash your credit score and stay on your record for many years in Florida.
Bank Levies
If the lender knows where you bank, they can obtain a court order to seize the funds in your accounts to satisfy the judgment. Unfortunately, this often happens without warning, cleaning out accounts and leaving you unable to cover payroll and other immediate expenses.
Commercial Lien Foreclosures
Liens placed on your business property act as a cloud on your title, limiting your ability to sell or refinance until they’re paid off. And if you still don’t pay, the lender can foreclose on the property to recoup their investment.person with head in hands
Jacksonville Merchant Cash Advance Attorneys Can Help
If you’re facing legal action over a business cash advance gone bad, don’t wait to seek help from an attorney. An experienced lawyer can review your agreement, assess your options, and fight to protect your interests in court if necessary.Potential defenses can include:
- Unconscionability – Argue the agreement’s terms were unjustly one-sided or the interest/fees excessive.
- Breach of contract – Claim the lender didn’t uphold their end of the bargain.
- Improper conduct – Allege deceptive sales tactics or lending violations.
While every situation is different, a skilled attorney may be able to negotiate a settlement, reduce the amount owed, or even get the case dismissed.They can also help shield your assets, defend against bank levies and property liens, and take other steps to limit further damage while disputing the debt.
Finding the Right Lawyer
Sorting through Jacksonville merchant cash advance attorneys can feel overwhelming when your business is on the line. As you research options, look for these key traits:person looking at files
Specialized Experience
Seek out lawyers with extensive backgrounds fighting merchant cash advance cases specifically. Understanding the intricacies of these complex agreements is crucial.
Passion
Look for sincere passion in wanting to help business owners in your shoes. You need someone who will fight tirelessly in your corner.
Strong Negotiation Skills
Since most cases settle out of court, it’s vital your attorney can negotiate firmly and strategically with lenders.
Reasonable Fees
Attorney fees shouldn’t break the bank. Shop around for fair rates and flexible payment options.
Finding the Right Help Brings Hope
Dealing with a merchant cash advance gone wrong can be scary and emotionally taxing. But you don’t have to handle it alone. Connect with a dedicated lawyer to start mapping out your defense today. With an experienced legal guide on your team, you can move forward with confidence instead of fear.