When You Need a Merchant Cash Advance Attorney in Alabama and Alaska
Merchant cash advances can seem like easy money at first. You get a lump sum of cash quickly to help your business. But those high fees and daily repayments can soon spiral out of control. Before you know it, the merchant cash advance company is taking most or all of your daily credit card sales.If you feel trapped and overwhelmed by merchant cash advance debt in Alabama or Alaska, you need an experienced attorney on your side. Keep reading to learn more about merchant cash advances, your rights, and when to call a lawyer.
What Is a Merchant Cash Advance?
A merchant cash advance (MCA) isn’t really a loan. Instead, an MCA company purchases a portion of your future credit card sales for a lump sum of cash upfront.You’ll pay back the advance through daily payments, which the MCA company automatically withdraws from your bank account. Those payments are usually a fixed percentage of your daily credit card sales.For example:
-- You get a $50,000 merchant cash advance
- The MCA company takes 15% of your daily credit card sales
- If you have $1,000 in credit card sales one day, the MCA takes $150
Because MCAs aren’t technically loans, the companies can charge very high fees. Rates often exceed 100% APR when calculated like interest.
The Problems With Merchant Cash Advances
Merchant cash advances seem great when you need fast cash for your Alabama or Alaska business. But several problems often emerge down the road:
1. Spiraling Debt
When your business takes a dip, your daily MCA payments don’t drop with your sales. You still owe that fixed percentage every day. For example, if your sales drop 50%, your payments only drop 50%. But now those payments take a huge bite out of slow sales.This creates a debt spiral. You struggle to pay the MCA company and keep your business afloat. So you take another cash advance, sinking further into debt.
2. Excessively High Rates
Since MCAs aren’t regulated like loans, companies can charge outrageous fees. Rates often exceed 100% APR when calculated like loan interest. And those fees keep mounting daily.
-3. Aggressive Collections
When you fall behind on payments, MCA companies can get aggressive fast. They may try to freeze your bank accounts, sue your business, or attack your personal assets. Some even contact customers to try and hurt your reputation.Their aggressive tactics often push struggling businesses over the edge.
When to Call an Alabama or Alaska MCA Attorney
With predatory rates and aggressive collections, it’s easy for merchant cash advances to spiral out of control. An experienced attorney can help you take back control. Consider calling for help if:
- You’re trapped in the MCA debt cycle, taking new advances to pay old ones
- The MCA company froze your bank account or is attacking your assets
- You can’t afford the daily payments anymore as they eat up too much revenue
- The MCA company contacts your customers or vendors
- You get sued over unpaid balances
The sooner you call for help, the more options you have. A lawyer can sometimes get MCA lawsuits dismissed or dramatically lowered balances through settlements. Don’t wait until it’s too late.
What Can an Alabama or Alaska MCA Attorney Do to Help?
When you work with an attorney experienced in merchant cash advance cases, you gain an aggressive advocate on your side. An MCA lawyer can:
- Negotiate Settlements: Attorneys often negotiate discounted lump-sum settlements so you can move on. Settlements may wipe out 70% or more of your balance.
- Defend Lawsuits: If sued, your lawyer can fight back against the MCA company. They may get cases dismissed or leverage them for better settlements.
- Send Cease and Desist Letters: Attorneys can send aggressive letters demanding MCA companies stop harassing or abusive collection tactics. This may get them to back down.
- Explore Bankruptcy: Bankruptcy won’t wipe out MCA debts. But it may help stop collections and give you time to reorganize finances.
- Review Contracts for Violations: Shady MCA companies often include illegal provisions in their contracts. Lawyers can leverage violations to invalidate debts.
Don’t struggle against predatory merchant cash advance companies alone. The right attorney levels the playing field.
-Finding the Best Merchant Cash Advance Attorney in Alabama or Alaska
All attorneys are not equal when it comes to battling merchant cash advance companies. When searching for legal help, look for lawyers with specific experience fighting MCA cases.
- Ask About Their MCA Case Record: How many cases have they handled? What were the results? Experience matters.
- Seek Industry Connections: Well-connected attorneys can better negotiate settlements with major MCA companies.
- Read Online Reviews: Check sites like Google, Avvo, and Yelp to see input from past clients. This helps identify the most aggressive advocates.
- Compare Service Offerings: Some firms just want to settle cases fast. Look for lawyers who promise to fight relentlessly for the best possible outcome.
- Seek Free Consultations: Most attorneys offer free case evaluations. This lets you judge their knowledge and commitment firsthand.
With the right legal firepower, you can escape the merchant cash advance debt trap and move your Alabama or Alaska business ahead. Don’t wait – relief starts with one phone call. Reach out for a free consultation today.