Are you a Tennessee business owner who is struggling with a merchant cash advance (MCA)? Guess what? You are not alone. We are DelanceyStreet.com, a top-tier business debt relief company based out of NYC that helps clients nationwide. We understand how stressful it can feel when you’re buried under MCA debt. Our goal is simple: protect your financial future and get you the best possible resolution.

What Is a Merchant Cash Advance and Why It Matters in Tennessee
A merchant cash advance is financing that was designed for small businesses that need quick cash flow. This type of advance is repaid by taking a percentage of your daily credit card revenue. Anyway, things can get complicated if you miss payments or feel like you’re about to default. We can help you explore your options, defend your rights, and negotiate with MCA companies in order to help you keep your business operating.

Penalties, Crimes, and Punishment
Businesses that are unable to repay an MCA might face lawsuits or even judgments. A lender who was trying to collect can file in court, which can lead to wage garnishments or liens on your assets. In some situations, if you provided false information in your MCA application, you could face criminal charges. Fraud that was discovered by prosecutors might carry penalties like hefty fines or even jail time.
Look, if you default and a judge finds that you violated your agreement, you might be forced to pay additional fees. This can cripple your business and can lead to personal liability if you signed a personal guarantee.

Evidence That Was Illegally Obtained
Sometimes MCA providers use aggressive tactics. Evidence that was illegally obtained can be thrown out. This means you might keep certain harmful documents or recordings from being used against you. The consequence is that the lender’s case might be weaker, and you could have a better chance of renegotiating or defending your position in court.

How We Defend You
We believe in open communication with lenders, and we focus on using data like cash flow statements and balance sheets in order to prove your financial challenges. First, we gather all relevant documents. Second, we examine the lender’s behavior to see if it was fair. Third, we negotiate a settlement or payment plan that is realistic for you. This helps you avoid extreme legal problems like lawsuits or judgments.

Strategies That Can Help
We know that every business is unique. Here’s the bottom line: we look at different approaches:

1. Business Debt Settlement:
   We aim to reduce your total debt, stretch your repayment terms, and get rid of high interest rates. This means you might pay less overall, and you can direct more cash flow toward building your business.

2. Invoice Factoring:
   We can help you use unpaid invoices in order to get quick funding. This strategy can improve your cash flow so you can handle existing debts.
   Factoring can help you avoid more expensive loans that can bury you in high interest.

3. Merchant Cash Advance Consolidation:
   One MCA often leads to another, which can crush your business. A consolidation program that was carefully arranged might let you merge multiple advances into one payment. This means you only have one bill to track every month.

4. Term Loans, Lines of Credit, and SBA Options:
   You might qualify for an SBA loan, line of credit, or traditional term loan that has lower interest rates. Lower rates can help you break free from expensive MCAs and avoid default.

Tennessee Law and Government Resources
If you want to read more about consumer protections and lender regulations, check out:

• Tennessee Department of Financial Institutions
• Federal Trade Commission (FTC)
• Consumer Financial Protection Bureau (CFPB)

Each of these agencies offers information that can help you understand your rights and protections under Tennessee and federal laws.

Crimes That Were Uncovered
If you submitted false bank statements or misled the lender, that may be considered fraud. Guess what? Fraud that was proven in court can lead to severe punishment, including prison time and large fines. Lenders also have attorneys who were specifically hired to find evidence of wrongdoing, which means you should act immediately if you suspect potential legal trouble.

Why DelanceyStreet.com Is Your Best Choice
We are owned by an attorney, Steven Raiser, and we have a sister law firm that can help you if a lawsuit happens. We can help you with your MCA negotiations, so you don’t have to deal with intimidating calls or legal paperwork alone. We specialize in business debt relief, which means we know how to use strategies like lump sum settlements or new payment plans in order to protect you from aggressive creditors.

Here’s Another Question: Should You Speak to Lenders on Your Own?
It might be tempting to negotiate with MCA companies by yourself. If you handle your own negotiations, you won’t pay a fee to a debt relief company. However, you might risk agreeing to a deal that is worse than what you deserve. MCA contracts that were poorly understood can have hidden clauses and can damage you in the long term.

Consequence of Bad Negotiation
If you sign a settlement that is rushed, you might end up paying more in penalties or interest, which can push you toward bankruptcy. If you have a confession of judgment (COJ) in your contract, a lender might seize your bank account and assets immediately. This means your business might have to shut down permanently.

Frequently Asked Questions
Q: Will I go to jail if I default on my MCA?
A default itself is not a criminal offense, so no jail time is automatically involved. But if you are investigated for fraud that was intentional, you might face criminal charges, which can lead to jail time or fines.
Q: How long does defense take?
The time varies. It depends on whether your lender sues, how much you owe, and if you have other debts.