Indianapolis Merchant Cash Advance Attorney

Indianapolis Merchant Cash Advance Attorney

Merchant cash advances have become a popular alternative financing option for small businesses in Indianapolis. However, these advances come with complex legal implications that business owners may not fully understand. Working with an experienced Indianapolis merchant cash advance attorney can help you navigate this process and protect your interests.This article provides an overview of merchant cash advances in Indianapolis, key laws and regulations, pros and cons to consider, and the benefits of legal representation.

What is a Merchant Cash Advance?

A merchant cash advance (MCA) is a form of financing where a company provides a business with an upfront lump sum of cash in exchange for an agreed upon percentage of future credit card and/or debit card sales. The business then makes daily or weekly payments until the total advance amount plus fees and interest is repaid.This is done by allowing the MCA company to withdraw funds directly from the business’s bank account through debit or ACH payments.

Merchant Cash Advance Laws in Indianapolis

Indianapolis and Indiana have limited regulations in place governing merchant cash advances:

  • MCA agreements are treated as sales transactions rather than loans. This means they do not have to comply with state lending and usury laws.
  • There are no licensing requirements for MCA companies under Indiana law.
  • The state has not enacted any statutes specific to disclosure requirements or allowable fees/interest rates for MCAs.
  • MCA providers cannot require confessions of judgement or waivers of legal rights in their contracts per Indiana law.

Having an attorney review your MCA agreement is crucial since Indiana lacks oversight of this industry. Violations may still provide grounds to invalidate problematic contract provisions.

Pros and Cons of Merchant Cash Advances

Merchant cash advances offer both benefits and drawbacks for Indianapolis businesses compared to other financing options. Some key pros and cons to weigh include:Potential Pros:

  • Quick access to capital based on business revenues rather than credit score
  • Fast approval process with minimal paperwork
  • No collateral required

Potential Cons:

  • Very high effective APRs often exceeding 100%+
  • Possibility of getting locked into lengthy contracts or repayment cycles
  • Aggressive collections tactics by some MCA providers
  • Potential for account debits even when your sales are down

As this overview shows, MCAs allow quick access to financing but also come with risks and complex legal implications. Working with an attorney is key to avoiding pitfalls.

Benefits of Legal Representation for MCAs

Navigating merchant cash advances requires understanding complex legal contracts. An experienced Indianapolis MCA attorney can provide valuable services:

  • Reviewing MCA contracts to identify prohibited or unlawful terms
  • Negotiating more favorable agreement terms and lower costs
  • Advising on disclosure requirements to ensure legal compliance
  • Assessing potential risks and hidden costs of an MCA offer
  • Providing defense against aggressive collections activities
  • Disputing unlawful fees or interest rates
  • Renegotiating existing MCA contracts that have become problematic
  • Pursuing litigation if necessary to invalidate illegal contract provisions
  • Exploring alternatives if an MCA has become unaffordable

Having legal guidance can help Indianapolis small businesses avoid unfavorable MCA contracts and defend their rights if issues arise. Look for an attorney experienced specifically with merchant cash advance laws and regulations in Indiana.


Overall, MCAs involve complex legal and financial considerations that make consulting a lawyer highly advisable before signing any agreement. An experienced Indianapolis merchant cash advance attorney can help you understand your rights under the law, negotiate better terms, and provide alternatives if you are struggling to make payments. Don’t hesitate to seek legal assistance to ensure any MCA you enter into does not jeopardize the future of your business.