Merchant Cash Advance Debt Relief Attorneys
Is your business struggling to keep up with merchant cash advance (MCA) payments? Daily or weekly withdrawals can cripple your cash flow and leave you trapped in a cycle of debt. At Wilkie Puchi LLP, our attorneys specialize in defending businesses against aggressive MCA providers and creating paths toward MCA debt relief, settlement, and lawsuit defense.
Understanding Merchant Cash Advances:
How Wilkie Puchi LLP Can Help
Merchant cash advances are not traditional loans—they are contracts that allow funders to withdraw a percentage of your future sales, often at astronomical rates. While advertised as “quick financing,” MCAs often come with:
Effective APRs over 200–400%
Confession of Judgment (COJ) clauses that let funders freeze bank accounts without trial
Daily or weekly automatic withdrawals that choke cash flow
Hidden fees and deceptive contract terms
These practices may violate usury laws, state lending statutes, and contract defenses. Our attorneys have the knowledge and courtroom experience to challenge MCA contracts and defend your business from lawsuits.
Our Three-Step Approach to MCA Debt Relief
Step 1 – Contract Review & Strategy
We analyze your MCA agreement, looking for:
Excessive interest rates disguised as “fees”
Confession of Judgment clauses
Breach of state lending and contract laws
Potential usury violations
Step 2 – Negotiation & Debt Settlement
Many MCA disputes can be resolved without trial. We pursue:
Reconciliation (adjusting payments based on revenue)
Debt reduction or settlement agreements
Restructured repayment plans
Aggressive negotiation with funders
Step 3 – Lawsuit Defense & Litigation
If your MCA provider sues or enforces a judgment, we defend your business by:
Moving to vacate confession of judgment orders
Challenging the MCA contract as an unlawful loan
Filing counterclaims for deceptive practices
Protecting your assets and bank accounts
Why the Importance!
What is MCA debt and why does it pose such a risk? MCA debt refers to the outstanding balance owed on a Merchant Cash Advance, including the initial advance amount and factor related charges. The repayment structure, typically consisting of daily or weekly deductions from sales, can quickly create a cycle of MCA debt that is hard to escape. The impacts of MCA debt are the financial strain that comes from these relentless daily or weekly payments eating into your cash flow, which often leave little for operational expenses like payroll or inventory.
The danger of MCA debt lies in the structure of the financing. MCA repayments can deduct 10–20% of a business’s daily credit card sales, significantly impacting cash flow. Surveys of small business owners frequently highlight cash flow as a critical challenge, with many reporting difficulties managing daily expenses alongside MCA repayments. For many, this leads to a vicious cycle: taking out additional MCAs to cover the first, piling on more MCA debt and higher payments. Thousands of businesses have faced failure due to this stranglehold on their finances, driving the need for MCA debt relief and resolution. Some might turn to an MCA debt settlement company for assistance, but recognizing the signs of this trap early and seeking MCA relief through professional legal help can often be a more effective game-changer.
