Chesapeake MCA Defense Lawyers: Business Debt Relief

Virginia enacted its own commercial financing disclosure requirements, making it one of a growing number of states that require MCA funders to provide cost transparency. Virginia also requires registration of commercial financing providers. These provisions, while more protective than what most states offer, do not cap factor rates or prohibit daily debits. Disclosure, in Virginia as in California, is a beginning.

In Chesapeake, the industries that present follow the region’s contours. Government subcontractors whose payment cycles are governed by federal procurement timelines that the MCA funder did not consider. Restaurants on Battlefield Boulevard whose margins cannot absorb daily debits during the slow months between Labor Day and Memorial Day. Auto repair shops and medical practices whose cash flow depends on foot traffic that the MCA agreement treats as constant.

A Chesapeake contractor told me his advance was supposed to cover materials for a Navy subcontract. The contract paid in ninety days. The MCA debits began in forty-eight hours. He was financing the government at 200 percent.

MCA funders settle. In Chesapeake cases, settlements have reduced outstanding balances by forty to sixty percent. Virginia’s disclosure requirements and registration mandate provide a regulatory backdrop the funder comprehends.

The first conversation is a reading of the documents. Not a fee. A reading.