A Merchant Cash Advance is a form of financing where a lender provides upfront capital in exchange for a percentage of your future sales. While it’s marketed as “fast and flexible funding,” MCAs often come with sky-high effective interest rates and daily or weekly repayment requirements that quickly become unmanageable.
MCA companies calculate repayment based on your revenue — not a fixed loan schedule. Daily automatic withdrawals and hidden fees can cause the total cost to double or even triple what you originally borrowed. These payments can strangle your cash flow and put your business at serious risk.
Yes. Once you retain Gray Oak Legal, we can immediately contact your MCA lender and the bank to stop unauthorized or excessive withdrawals. We may also take legal action if the lender violates your rights or uses coercive tactics.
Absolutely. Many of our clients see significant reductions in their MCA debt through negotiation or settlement. We work directly with the lenders (or their attorneys) to reach a fair, manageable resolution that allows your business to recover and move forward.
If you’ve been sued or served with a confession of judgment, time is critical. MCA lenders move quickly to freeze accounts and garnish funds. Our attorneys can defend you in court, file motions to vacate judgments, and protect your assets while pursuing a favorable outcome.
A confession of judgment is a clause that allows an MCA lender to obtain a judgment against you without notice or a hearing. Some states have outlawed COJs because they are highly abusive. We regularly challenge these provisions and can often get them vacated or limited.
No. MCA companies label their agreements as “purchases of receivables” rather than loans — a tactic to avoid lending laws and interest rate caps. However, courts increasingly recognize that many MCAs function as loans in disguise, which opens the door for legal defenses and relief.
No. MCA companies label their agreements as “purchases of receivables” rather than loans — a tactic to avoid lending laws and interest rate caps. However, courts increasingly recognize that many MCAs function as loans in disguise, which opens the door for legal defenses and relief.
Not at all. MCA lenders count on fear and confusion to pressure business owners into paying more. Having a knowledgeable attorney sends a clear message that you know your rights and won’t be bullied. Our team handles all communication so you can focus on your business.
Contact us for a free consultation. We’ll review your MCA contracts, explain your legal options, and start working immediately to stop daily withdrawals and collection actions.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.