Idaho MCA Defense Lawyers Business Debt Relief

EXPERIENCED. DEDICATED. FIGHTING FOR YOUR BUSINESS.

Are you struggling to keep up with merchant cash advance payments? Those daily and weekly payments are AWFUL – there is no way out. Do you feel like you’re drowning in business debt that’s impossible to manage? Many Idaho business owners face overwhelming financial challenges from merchant cash advances.

Delancey Street is a premier, and award winning business debt relief company that helps Idaho business owners escape predatory merchant cash advances. We understand what you’re going through because we’ve helped hundreds of businesses just like yours. We have settled 10’s of millions of business debt, ranging from MCA’s to lines of credits, SBA loans, and other forms of debt.

What is a Merchant Cash Advance?

A merchant cash advance (MCA) is NOT a loan. Instead, it’s an advance on your future sales. Here’s how it typically works:

1. A merchant cash advance provider gives you a lump sum of cash upfront.
2. In exchange, you agree to repay the advance plus, plus fees(Factor rate) by allowing the provider to take a percentage of your daily sales.
3. This continues until the full amount is repaid.

Even though MCAs can provide quick access to capital, they often come with SIGNIFICANT risks and costs which many business owners don’t fully understand. For example, MCA lenders will add a COJ – confession of judgement into the agreement, which makes it so you can get your assets taken virtually overnight.

The Legal Issues with Merchant Cash Advances in Idaho

MCAs that operate in Idaho must comply with both federal and state regulations. Businesses that feel trapped by MCAs have legal options they don’t know about.

According to the Idaho Department of Finance (https://www.finance.idaho.gov/), companies that provide MCA’s to businesses must follow specific guidelines.
Merchant cash advances that don’t follow these rules may be using illegal practices that our team can help you fight.

Potential issues we commonly see include, but are not limited to:

• Charging disguised interest rates that are effectively usurious, but under the guise of an advance
• Using confusing contract language to hide the true cost, or outright hiding fees being charged
• Implementing abusive collection practices that violate Idaho Code § 26-2229, including charging usurious rates
• Creating contracts with unfair terms that wouldn’t stand up in court, and trying to enforce them

Potential Penalties for Predatory Lenders

Lenders that violate Idaho’s lending laws face serious consequences – especially merchant cash advance lenders who have a bad reputation. The Idaho Department of Finance can impose significant penalties on companies that engage in deceptive, or illegal lending practices. According to the Idaho Financial Fraud Prevention Act (https://legislature.idaho.gov/statutesrules/idstat/Title67/T67CH26/), these financial penalties may include, but are not limited to:

• Fines of up to $10,000 per violation
• Restitution to affected businesses
• Revocation of business licenses
• Criminal charges for fraud in extreme cases

Why does this matter to you? These potential penalties give us options when negotiating with your MCA providers. Many MCA lenders would rather settle than face investigation by state authorities – or federal authorities.

Our Approach to MCA Defense in Idaho

At Delancey Street, we’ve developed strategies to help Idaho businesses escape from merchant cash advance debt. We don’t just negotiate – we build defense strategies unique to your specific situation.

Strategy #1: Contract Analysis and Vulnerability Identification

The first step is for you to contact us for a detailed review of your MCA agreements. Our legal team, analyzes every aspect of your contracts to identify violations of:

• Idaho’s usury laws
• Federal Truth in Lending Act requirements
• Federal Trade Commission regulations against unfair practices
• Idaho Consumer Protection Act provisions

We look for language that is prohibited, clauses that might be unenforceable, and areas where the lender may have overstepped legal boundaries.

Strategy #2: Structured Negotiation Based on Legal Leverage

When we find violations or vulnerabilities in your MCA agreements, we use them as leverage to negotiate directly with your creditors.

Evidence that was illegally obtained or contracts that contain deceptive terms can be completely unenforceable in Idaho courts.

Deals that were structured to disguise excessive interest rates violate usury laws, providing another strong defense angle.

Strategy #3: Debt Reduction and Restructuring

Our team focuses on developing payment plans that your business can actually manage. We work to:

• Reduce the principal amount you owe
• Eliminate excessive fees and charges
• Create affordable payment schedules
• Get your business back to financial health

Business owners who feel overwhelmed by MCA debt need to understand their options. You have more power than you might think – especially with the right team on your side.

Why Working with Delancey Street is Better than Self-Negotiation

Delancey Street prides itself on offering the best possible solution. We specialize in negotiating with creditors, and have experience – knowing many of the negotiators on a first name basis, and having established relationships.

Moreover, handling creditors can be a complicated process – when you work with Delancey Street, we save you the time of dealing with creditor calls, and paperwork. We are a dedicated company, focused on helping you run your business – we provide legal support, and know how the other team will operate. Many business debt relief companies charge high fees, or require substantial upfront payments. When you self-negotiate, you won’t pay a third party fee, so every dollar you save goes towards paying your debts – but this comes at a price. For example, if you aren’t good at negotiating – and don’t know the law, you may end up paying more than you originally owed, with default fees, etc. Often lenders will take you for a ride, if they know you don’t know the law. They’ll threaten to sue you, and scare you with lawsuits.

Understanding Idaho’s Legal Protections for Small Businesses

Idaho has specific laws that protect small businesses from predatory lending practices. According to the Idaho Small Business Development Center (https://idahosbdc.org/), businesses in distress have multiple legal options. Loans that were labeled as merchant cash advances but function like traditional loans may be subject to Idaho’s interest rate caps. This distinction is critical – and our team knows how to make this argument effectively. Many MCA lenders offer MCA’s, but in reality use laws and protections only afforded to lenders offering standard bank loans

Contracts that contain confusing or misleading terms may violate the Idaho Consumer Protection Act, which prohibits “unfair or deceptive acts or practices in the conduct of any trade or commerce.”

Alternatives to Merchant Cash Advances in Idaho

If you’re currently considering an MCA, or looking for ways to restructure your existing business debt, consider these alternatives:

• SBA Loans: The U.S. Small Business Administration offers loans with reasonable rates through partner lenders. Visit https://www.sba.gov/offices/district/id/boise for Idaho-specific information.
• Community Development Financial Institutions: Organizations like the Idaho-Nevada CDFI (https://www.incdfi.org/) provide affordable financing to small businesses.
• Business Debt Consolidation: Consolidating multiple high-interest debts into a single, manageable payment can provide significant relief.
• Invoice Factoring: Invoice factoring is a great way to help payback your debt. Factoring invoices has gained popularity as a way to finance your company – especially when it has cash flow problems due to slow paying commercial clients.

Signs You Need MCA Defense Help

You should contact our team immediately if:

• Your daily MCA payments are making it impossible to cover expenses
• You’ve taken multiple MCAs to pay for existing ones (this is called “stacking”)
• You’re facing threats of legal action from MCA providers
• Your bank accounts have been frozen or garnished
• You signed agreements containing a “confession of judgment”
• You’re considering bankruptcy because of MCA debt

Our Results

• Over 80% of our clients enter into a monthly payment plan
• Over 80% of our clients get an additional 1-3 years added to their term
• Over 80% get a reduction in their overall balance

What I Need From You

To get started, we need:

• Copy of last 6 months of business bank statements
• Copy of the contracts you signed with lenders (should be in your email, from Docusign, etc)