Ever since the start of the recession in 2020, small businesses all over the country have struggled to stay afloat. Many businesses tried to access funds through small business loans but found it was nearly impossible to get approved. Instead, many business owners accessed necessary funds through a Merchant Cash Advance (MCA).
While this type of funding often seems like a good solution to struggling small business owners, they are actually quite dangerous. Many predatory lenders that target struggling small businesses use extreme loan terms that end up leaving small business owners struggling to repay them. Once business owners fall behind on their payments, lenders can sue them for the amount they owe on their loans. Merchant cash advance collections can be especially aggressive, and business owners may even have their assets seized without notice.
If you are seeking MCA debt relief or are facing a judgment on a small business loan, we are here to help. Our attorneys are experienced in helping small business owners lighten their debt load and fight off judgments that can quickly ruin their business.
What Happens When a Judgment is Entered Against You?
Much like personal loans, small business owners can be sued by a lender when they default on their small business loan. It is always best to respond right away, as those who ignore it risk having the court file a judgment against them without having a chance to advocate for themselves.
Judgments often layout requirements for the business to repay the loan or compensate the lender if another way. In certain circumstances, a judgment can include a lien on business assets until the terms of the judgment are met. Judgments on a small business loan can ruin a business’ credit score, making it difficult for them to obtain a loan in the future and possibly forcing them to go out of business.
What Happens When You Default on a Merchant Cash Advance?
MCA lenders often bury a confession of judgment (COJ) in the loan paperwork, which makes it easy for a business owner to miss. Business owners who sign a COJ are essentially forfeiting their right to a legal judgment process. Instead, lenders can immediately seize bank accounts and assets from the business owner, often without any warning.
It is not uncommon for business owners to struggle with merchant cash advance defaults. If you signed a CoJ when taking out an MCA loan, you don’t have to panic. Our team of qualified attorneys can help you overcome your merchant cash advance legal issues and get your business back on track. Thousands of businesses have recovered from financial distress with our merchant cash advance services.
What You Can Do
If your business has been struggling and you need help with merchant cash advance relief, we can help. We can offer you access to the top merchant cash advance attorneys in the area. When you choose a merchant cash advance lawyer through us, you can count on that attorney having extensive experience and knowledge of both MCA loans and small business loans.
We have helped thousands of business owners settle millions of dollars of debt. Our MCA restructure solutions help you avoid bankruptcy while still lowering the amount of debt the business carries. Business owners who have defaulted on their unsecured business loans can rely on us to help them navigate their business finances and avoid devastating judgments.
Final Thoughts
If you’re struggling with a merchant cash advance or small business loan and are facing judgments, you do not have to handle it alone. Our experienced attorneys can help you find debt relief quickly. Take back control of your business and call us today.
