Delancey Street Business Debt Relief: Merchant Cash Advance Defense Lawyers

Delancey Street is an award-winning, premier business debt relief company dedicated to defending business owners against the potential pitfalls of merchant cash advance (MCA) debt. If you’re drowning in MCA debt, you need more than a financial strategy—you need aggressive legal defense.

Merchant Cash Advances: Why They’re Riskier Than You Think

A merchant cash advance (MCA) isn’t a traditional loan—it’s an advance against your future revenue. Providers give you money upfront, then collect repayment directly from your daily credit card sales. Sounds straightforward, right? Unfortunately, hidden traps lurk beneath the surface.

Why MCAs Are Dangerous:

• Sky-High Costs: With factor rates ranging from 1.1 to 1.5, you could end up repaying far more than you borrowed. For example, borrowing $100,000 at a factor rate of 1.4 means repaying $140,000—sometimes with an APR exceeding 80%.
• Daily Repayments Strain Cash Flow: Automatic daily deductions drain your cash flow, causing immediate pressure that can spiral quickly into financial disaster.
• Personal Guarantees: Your personal assets—like your home—could be at risk if the business fails to meet its repayment obligations.
• Stacking Loans: Taking multiple MCAs can quickly spiral out of control, burying you under daily repayments and compounding interest.

Criminal Penalties and Risks You Face

Merchant cash advances are regulated loosely, creating opportunities for predatory lending and deceptive practices. Common charges businesses face include:

• Fraud and Misrepresentation: Providing inaccurate financial information can lead to severe criminal penalties under New Jersey Statutes Annotated § 2C:21-4. Punishments may include fines exceeding $15,000 and imprisonment up to 5 years (New Jersey Legislature).
• Default Judgments and Confession of Judgment (COJ): If you signed a COJ, lenders can seize business or personal assets without further court action—immediately endangering your finances and personal assets.
• Fraudulent Transfer Allegations: Attempting to hide assets or deceive creditors could lead to charges of fraud under federal statutes (18 U.S.C. § 1343), punishable by decades in prison and hefty fines (Department of Justice).

Defensive Strategies: How Delancey Street Protects Your Business

When facing these challenges, defense isn’t optional—it’s critical. Our strategic approach focuses on maximum leverage points:

• Negotiation and Leverage: We aggressively negotiate to reduce your debt burden, using deep legal expertise and strong relationships with lenders to secure favorable terms. This can include significant reductions in principal and interest rates.
• Legal Defense and Representation: If you’ve been sued or threatened with legal action, our experienced attorneys aggressively represent your interests, challenging invalid claims, and preventing wrongful seizures of your assets.
• Strategic Use of Bankruptcy Threat: Many lenders would rather settle than see you file bankruptcy. We leverage this knowledge strategically to negotiate more effectively.
• Business Debt Consolidation: Our experts restructure multiple MCA debts into a single manageable loan, significantly reducing daily cash flow strain.

How the Debt Settlement Process Works

Here’s a clear, simple breakdown:

1. Free Consultation: Evaluate your business’s financial situation, risks, and leverage points.
2. Debt Analysis: In-depth review of all your financial statements and existing lender agreements.
3. Strategic Negotiation: Engage creditors directly, seeking debt reduction, lowered interest rates, or extended payment plans.
4. Implementation: Finalize the new, favorable terms to improve your cash flow and protect your business.

Why Working with Delancey Street Matters

• Proven Results: Over 80% of our clients achieve reduced balances, manageable monthly payments, and extended terms.
• Legal Expertise: Owned by attorney Steven Raiser, our team understands the law, knows how to negotiate, and aggressively defends clients from predatory practices.
• Real Leverage: We leverage detailed financial analysis (cash flow, balance sheets, P/L statements) to negotiate from a position of strength.

Alternatives to Merchant Cash Advances

• SBA Loans: Low-interest, government-backed loans with longer repayment periods.
• Invoice Factoring: Immediate cash advances based on unpaid invoices, improving cash flow without long-term debt.
• Debt Consolidation Loans: Combine multiple debts into one payment at lower interest rates.
• Balance Transfer Credit Cards: Use a new card with 0% APR to temporarily alleviate interest payments.

What We Need from You:

• Last 6 months of business bank statements
• Copies of your signed loan agreements (typically found in your email from DocuSign)

Quick Recap: Pros and Cons of Debt Settlement

Pros	Cons
Lower overall debt burden Avoid bankruptcy Improved cash flow	Potential fees Possible negative impact on credit score Risk creditors may refuse settlement

Your Next Step: Take Action Today

Debt can be crushing, but solutions exist. Reach out to Delancey Street for a free consultation. We’ll review your situation, explain your options clearly, and build a tailored strategy to get you out of debt and back on track.

Contact us now and take the first step toward financial freedom.