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Delancey Street Helps Business Owners Regain Control

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

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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.

South Dakota Merchant Cash Advance Legal Help – Attorneys, Debt Settlement

South Dakota Merchant Cash Advance Legal Help – Attorneys, Debt Settlement

Merchant cash advances have become a popular alternative financing option for small businesses in recent years. Unlike traditional bank loans, merchant cash advances provide quick access to capital based on a business’s expected future credit card sales.

How Merchant Cash Advances Work

A merchant cash advance provider essentially purchases a portion of a business’s future credit card receivables at a discount. So if a business is approved for a $100,000 merchant cash advance, the provider may pay out $80,000 upfront in exchange for collecting $100,000 back from the business’s credit card transactions over an agreed period of time.The payback amount is deducted automatically as a fixed percentage from daily credit card sales – typically 10-20%. There is no fixed repayment schedule; the payback fluctuates based on transaction volume. Providers earn their profit on the difference between the amount advanced and the total amount repaid.

Benefits of Merchant Cash Advances

Merchant cash advances can be extremely helpful for businesses that need quick capital and may not qualify for traditional financing. Benefits include:

  • Fast funding – Businesses can often receive funds in as little as 24-48 hours
  • Flexible payback terms tied to credit card sales
  • Approval based more on credit card volume vs. personal credit scores
  • Funds can be used for any business purpose – inventory, marketing, payroll, etc.

However, merchant cash advances also come with some major drawbacks business owners should consider.

Risks and Downsides of Merchant Cash Advances

While merchant cash advances provide easy access to capital, they often come at an extremely high cost:

  • Expensive – Advance rates and fees typically equate to 60-200%+ APR
  • Daily repayments – Fixed percentage deductions every day creates cash flow pressure
  • No payment limits – Providers collect until the full payback amount is reached
  • Personal guarantees – Business owners are often required to sign a personal guarantee, putting personal assets at risk in case of default

As a result of these issues, many businesses struggle under the weight of their merchant cash advance debts. Let’s explore some legal options businesses have in South Dakota when facing merchant cash advance distress.

South Dakota Merchant Cash Advance Collection Laws

Merchant cash advance providers in South Dakota have wide latitude when it comes to collections thanks to lender-friendly state laws. Some key provisions include:

  • No interest rate caps on cash advances
  • Allows collection via ACH debits from business bank accounts
  • No limits on fees or payback multiples beyond principal
  • Confessions of judgement often required in contract

With little regulation around merchant cash lending, providers have a lot of leeway when structuring deals and pursuing collections. This makes it all the more important for South Dakota businesses to understand the legal implications before signing a merchant cash advance contract.

Defenses Against Merchant Cash Advance Collections

If a South Dakota business falls behind on merchant cash advance payments, the provider will likely start applying penalties and fees while aggressively attempting to debit the remaining balance. What recourse does the business have?There are a few potential defenses business owners can raise:

  • Improper contract terms – Argue the contract violates state or federal lending laws. For example, the Truth in Lending Act requires certain disclosures.
  • Unconscionability – Claim the contract terms are unjust, overly one-sided or oppressive. Interest rates over 90% may qualify.
  • Fraud or misrepresentation – Allege the provider misled you about costs, terms, etc.
  • Breach of contract – Argue the provider did not honor all contract stipulations.
  • Inability to repay – File bankruptcy or make case for debt hardship programs.

However, legal defenses can be hard to prove without proper documentation and legal support. This is why it’s highly advisable for struggling businesses to consult with knowledgeable legal counsel as early in the process as possible.

Working with a South Dakota Business Attorney

South Dakota business attorneys experienced with merchant cash advances can help in several important ways, such as:

  • Reviewing contracts upfront to spot risky or noncompliant terms
  • Sending cease and desist letters to halt collections
  • Negotiating settlements for reduced payoff amounts
  • Defending lawsuits by raising viable legal arguments
  • Advising on debt relief options like bankruptcy or debt settlement

Reputable merchant cash advance attorneys can also help business owners better understand and protect their rights under South Dakota laws. Key questions to ask prospective lawyers include:

  • How much experience do you have fighting merchant cash advance collections?
  • What strategies and defenses have you used successfully?
  • What are possible settlement outcomes we can aim for?
  • How can we best position for negotiations or litigation?
  • What are my options if I simply can’t afford the payments?

Having an experienced legal advocate on your side levels the playing field against seasoned merchant cash advance providers. Partnering with counsel early on can help South Dakota small business owners gain control of collections and make progress toward financial freedom. Don’t hesitate to pick up the phone and schedule your initial case review today!

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.

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$500,000 MCA Restructured Over 3 Years
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$250,000 SBA Loan Offer in Compromise
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