Are you struggling with a merchant cash advance that was weighing your business down? Are you searching for a business debt relief company that can guide you through complicated negotiations? At DelanceyStreet.com, we’re a top tier business debt relief company based out of NYC, and we help clients nationwide. Our goal is to show you how an MCA settlement may help your business avoid going out of business.

WHAT IS A MERCHANT CASH ADVANCE (MCA)?
A merchant cash advance (MCA) is a form of financing that was created to give small business owners a quick lump sum of cash in exchange for a percentage of their future credit card sales. Imagine your business that was already facing financial strain, and then suddenly you have to make daily or weekly payments which might be crushing your cash flow. If you cannot keep up, you might find yourself buried in additional fees, higher interest, and potential default notices. This is where Delancey Street steps in to help you negotiate and potentially settle your MCA debt for less than you owe.

WHY CONSIDER AN MCA SETTLEMENT?
A business owner who was approved for an MCA might discover later that the daily payments are not sustainable. When your payment structure is too demanding, you might miss payments, which can result in steep penalties. Those penalties might increase your total balance, which can lead to more fees and possible legal actions by the MCA provider. This can be devastating, which can quickly lead to a downward spiral of debt and stress.

UNDERSTANDING THE BASICS OF MCA SETTLEMENT
An MCA settlement is a negotiation process that was designed to reduce the total amount you owe. During a settlement, our Delancey Street team, which has extensive experience with MCA providers, works to lower your balance, stretch out your repayment term, or revise your repayment schedule so your business can breathe. While every settlement is different, the bottom line is that we aim to protect your business from lawsuits, default judgments, and other aggressive collection tactics.

Here is what typically happens in MCA settlement:

• Review of Your Debt: We look at your MCA agreements, bank statements, and other records. We identify the total amount you owe and how long you’ve been behind on your payments.
• Negotiation with Creditors: We contact the MCA provider on your behalf. Then, we propose a settlement plan that takes your real cash flow into account.
• Settlement Agreement: Once the MCA provider accepts, you may end up paying a lump sum or following a new payment plan that was more manageable for your finances.
• Legal Protection: If you’re already dealing with default notices, or if the lender has threatened to sue, we can help you address these matters and protect your assets.

PENALTIES, CRIMES, AND PUNISHMENT—WHAT TO KNOW
An MCA is not usually a “crime,” but some situations can lead to accusations of fraud or misrepresentation, which can be serious. For instance, a borrower who was submitting fake bank statements or incorrect documentation may face potential fraud claims. If the lender believes you committed fraud, you might be referred to authorities for investigation. This can open the door to legal proceedings that might involve both civil and criminal penalties.

Penalties That Might Arise

• Judgments & Asset Seizures: If you default on your MCA and cannot negotiate a settlement, the creditor can obtain a judgment that was enforceable against you. That judgment can result in wage garnishments or bank levies, which could cripple your business.
• Criminal Charges: If there was evidence that was obtained by the lender and later shared with law enforcement, you could face criminal charges. If a court finds you guilty, you might deal with fines, restitution payments, probation, or even jail time.
• Credit Damage: Your business credit score and personal credit score might both be impacted if you fail to repay. Once your credit score suffers, you might find it difficult to get any financing in the future.

Statement + Consequence:

• Evidence that was illegally obtained may be inadmissible, which can weaken the lender’s case. That weakness can improve your negotiating leverage, and it can even lead to a settlement that reduces your total balance.
• If a creditor files a lawsuit that was based on incomplete proof, it might get dismissed, which can help you retain your assets.

HOW WE’D DEFEND YOU
At Delancey Street, we believe no lender wants you to file bankruptcy, so we use that simple truth as leverage. We:

1. Check Your Agreements: We review every contract that was signed by you, looking for hidden clauses or violations of state and federal laws. If there’s a confession of judgment (COJ), we examine whether it was enforced properly.
2. Gather Evidence: We obtain records that were related to your finances, so we can show the MCA provider that your business cannot pay the full amount. By demonstrating your actual cash flow problems, we may be able to push for a better settlement.
3. Challenge Improper Conduct: If an MCA provider tries to charge illegal fees or attempts to collect debt in ways that violate consumer protection rules, we raise those defenses. We can point to agencies like the Federal Trade Commission (FTC.gov) and the Consumer Financial Protection Bureau (CFPB.gov) to illustrate what is permitted and what isn’t.
4. Negotiate Aggressively: Our focus is on getting you the best possible outcome. Sometimes, a creditor who was initially demanding the full amount can be persuaded to accept less if the alternative is costly litigation or your business shutting down.

LINKING TO GOVERNMENT RESOURCES
Merchant cash advances are not strictly regulated like traditional loans, but for more information about financing, you can visit the U.S. Small Business Administration (SBA.gov). This site that was created by the government offers resources about loans, business planning, and how to manage debt. If you ever suspect unfair or abusive collection practices, you can report them to the Federal Trade Commission (FTC.gov) or check the Consumer Financial Protection Bureau (CFPB.gov).

STRATEGIES WE OFTEN USE IN MCA SETTLEMENTS

• Lump Sum Settlement: We propose that you pay a reduced amount in one payment, which can immediately free your business from MCA obligations. The consequence is you might get rid of the debt faster, but it also requires having enough cash on hand.
• Extended Payment Schedule: We help you negotiate a longer term, which can lower your daily or weekly payment. This can stabilize your cash flow and prevent missed payroll or vendor payments.
• Interest Rate Reductions: We push for lowered factor rates, which can make your total debt easier to handle. This can prevent ballooning fees and keep your business afloat.
• Immediate Communication: We reach out to the MCA provider the moment you hire us, which can lead to a pause in aggressive collection calls. This helps your stress levels go down while we work on a resolution.

COMMON CONSEQUENCES OF IGNORING YOUR MCA DEBT

1. Escalated Collection Efforts: A lender who was not receiving your payments might hire a collection agency, which can become a daily headache of phone calls and letters.
2. Legal Actions: If you ignore your MCA debt, the provider can file a lawsuit that might end in a default judgment. Once that happens, they might garnish your bank account, which can cripple your ability to continue operating.
3. Damage to Business Relationships: You might struggle to form partnerships or obtain new lines of credit because your reputation was tarnished by nonpayment.
4. Loss of Future Financing: Many lenders do not want to give loans to a company that was under siege from daily MCA payments, so ignoring the issue can close off future funding options.

IS THERE A RISK OF CRIMINAL INVESTIGATION?
Sometimes, an MCA provider who was suspicious of falsified financial statements might allege that you committed fraud. If there was evidence that shows deliberate misrepresentation, the provider can contact law enforcement. Fraud investigations can lead to serious criminal charges, which can cause big fines, restitution, or even jail time. This is why it is so important to handle your MCA issues head-on, which can prevent any suspicion of wrongdoing.

HOW YOU CAN AVOID SERIOUS TROUBLE
The best way to avoid lawsuits or worse is to act quickly. If you see your MCA debt piling up, or if you’re missing payments, contact Delancey Street immediately. We can reach out to the lender and show them that your business is not trying to run away from what you owe, but simply needs help to manage these overwhelming payment terms. Many lenders are willing to work with you if you’re honest and upfront.

HOW MCA SETTLEMENT HELPS KEEP YOUR BUSINESS GOING
Your business that was suffocated by daily MCA payments might get fresh life once we settle. Here are ways your business can benefit:

• Improved Cash Flow: By lowering payments, we give your operation more breathing room each month, which can be crucial if you’re paying rent, payroll, and vendor invoices.
• Reduced Debt Load: The total amount you owe might go down, which can help you plan for the future.
• Stronger Relationships with Creditors: When creditors see you made a real effort to resolve your obligations, they might be more willing to keep doing business with you.

REAL EXAMPLE: A CLIENT WHO WAS AT RISK
One client who was in a panic came to Delancey Street with multiple MCA agreements. Daily payments were draining his bank account, which meant he could barely pay his employees. We jumped in, contacted the creditors, and worked out a single, reduced monthly payment plan. That client who was about to file bankruptcy ended up saving his business, which is a perfect illustration of how an MCA settlement can be life-changing.

WHAT THE LAW SAYS
MCA contracts are typically governed by state contract laws. Some states have stricter rules that protect businesses from unfair lending practices. If a provider tries to collect in a manner that violates your rights, we can point to agencies like the Federal Trade Commission (FTC.gov) and consumer protection statutes which might apply to your situation.

EVIDENCE THAT WAS IMPROPERLY GATHERED
Evidence that was improperly gathered can be challenged in court, which can force the creditor to lose a vital part of their case. Without such evidence, the MCA provider might agree to a more favorable settlement. A settlement that reduces your debt can help you reallocate money to reinvest in your business.