Confession of Judgment
Defaulting on a Merchant Cash Advance
What happens when you default on a merchant cash advance? Rather than turning the business owner over to merchant cash advance collections, the MCA provider presents the confession of judgment or cognovit note to the court. The provider then gets a judgment without the debtor being aware the court proceeding took place. As a result, the defendant fails to receive the ability to present a defense.
The Dangers of a Default on a Merchant Cash Advance Agreement
Unlike with most small business loans or unsecured business loans, many merchant cash advance services providers require the business owner to sign a document that puts their personal assets at risk along with those of the business. After a MCA default, a person might find their home and personal assets disappear along with those that belonged to the business.
Help is Available
Any business owner in need of merchant cash advance relief should speak with us immediately. Our skilled merchant cash advance attorneys work to get the terms of the original agreement changed, so the business owner does not default. MCA providers, under law, must modify an agreement if asked, and the original agreement might offer other means of relief the business owner is unaware of. Our legal team works to find the best solution for the defendant’s specific situation, one that will allow them to keep the business, repay the funds, and move forward on solid financial ground. Contact us today for help. You worked too hard to build your business and shouldn’t let a difficult situation bring it down. Let us fight to protect your rights and ensure this does not happen.