Are you a business owner who was offered a merchant cash advance? Are you worried about facing legal challenges because of unpaid MCA debt? We are DelanceyStreet.com, a top tier business debt relief company based out of NYC, that helps clients nationwide, including Virginia. Our experienced team understands that merchant cash advances, which are also called MCAs, can cause serious problems when payments pile up. We’re here to help.

WHY MERCHANT CASH ADVANCES IN VIRGINIA MATTER
A merchant cash advance, which is a form of funding that was designed for businesses with credit card sales, often comes with high fees and tough repayment terms. This funding can feel like a lifeline. But it can also turn into a nightmare if you fail to make payments. Late payments that are neglected can lead to default and lawsuits, which could hurt your personal assets and your overall credit.

POTENTIAL CRIMES AND PUNISHMENTS
Some lenders who are upset with missed payments or questionable business conduct might accuse you of fraud. Fraud that was committed against a creditor can lead to both civil and criminal penalties, which can include large fines, property liens, and even jail time for serious offenses. If a prosecutor decides to file charges, you could face class 1 misdemeanors or felony charges in Virginia, depending on the size of the debt and the nature of the alleged deception. For a deeper look at Virginia’s criminal code, visit the Code of Virginia.

When fraud charges are involved, you could lose your business license or face a ban on operating certain types of companies. This ban that was imposed by the court would severely limit your ability to earn a living in your current industry.

UNDERSTANDING LEGAL PENALTIES
A borrower who was found guilty of providing false statements to obtain an MCA may be forced to pay restitution, which covers the money owed plus extra fees for the lender’s costs. This restitution that is awarded by the court will often be accompanied by interest, which can push you further into debt. If you violate Virginia’s usury laws, you could face strict penalties from state regulators. For more info on business lending regulations, visit the Virginia State Corporation Commission or the Federal Trade Commission.

WHAT HAPPENS IF EVIDENCE IS THROWN OUT
Evidence that was illegally obtained may be thrown out, which can weaken the case against you. When the main evidence is excluded, the prosecution might have difficulty proving wrongdoing, and you might have a better chance of dismissing or settling the lawsuit.

HOW DELANCEYSTREET.COM DEFENDS YOU
We believe that every lender wants to get paid back. But if you’re under attack from an MCA provider, we can step in and help. Here’s how:

1. CASE ASSESSMENT
   We review contracts that were signed by you, in order to see if lenders broke any rules or included unfair clauses. This step that looks at all documentation helps us find opportunities to reduce or dismiss claims.

2. NEGOTIATION WITH CREDITORS
   We talk directly to MCA providers, who are often quick to file lawsuits, and aim for better repayment terms. DelanceyStreet.com believes in open communication, and we use data from your balance sheets, P/L statements, and bank records to negotiate on your behalf.

3. FIGHTING FRAUD CHARGES
   If the MCA provider claims that you lied on your application, we’ll work to show that any mistake was unintentional. Proving that you lacked criminal intent can prevent serious penalties or prison time.

4. DEFENDING CONFESSION OF JUDGMENT (COJ)
   A COJ that was enforced against you can lead to quick judgments. We examine whether this document was legally valid, because invalid or improperly executed COJs can be disputed. If the COJ is invalid, then we may get the judgment dismissed, which stops lenders from seizing your assets.

5. HELPING YOU RESTRUCTURE DEBT
   We can arrange consolidations or payment plans that allow you to pay back less, over a longer period, which improves your cash flow and protects your business.

EXAMPLES OF EVIDENCE THAT MAY HELP
Bank statements that were accurate and business records that were well-kept can show that you tried to pay your debts. Evidence that was collected from witnesses who can verify your side of the story may weaken the lender’s claims of fraud. When you provide strong documents to our attorneys, we use them to dispute the lender’s allegations and aim for a settlement or dismissal.

STRATEGIES AND CONSEQUENCES
One major strategy that we use is to request alternative dispute resolution, such as mediation, in order to settle out of court. This strategy that reduces legal fees might convince the lender to accept a lower lump sum payment. If the lender refuses, then they risk spending more on their own litigation, which could push them to negotiate and eventually come to better terms.

FINAL REMINDER: DO NOT IGNORE MCA LAWSUITS
If you are sued or threatened with legal action, ignoring the case that was filed against you can result in a default judgment. A default judgment that is issued by the court can let the lender garnish your bank accounts or put liens on your property. To protect yourself, talk to us as soon as you realize there’s a problem.