Detroit Merchant Cash Advance Attorney

Detroit Merchant Cash Advance Attorney – How They Can Help Your Business

Hey there! My name’s Alex and I’m an attorney practicing in Detroit, Michigan. I wanted to write this article to help explain merchant cash advances, the common legal issues businesses face with them, and how a Detroit merchant cash advance attorney like myself can assist you if you find yourself in a tough spot.

First off – what is a merchant cash advance? Essentially, it’s a form of business financing where a company provides you an upfront sum of money in exchange for a percentage of your future credit card and debit card sales. You pay back the advance through small daily payments taken automatically from your credit card receipts.

Merchant cash advances can be helpful for businesses who need quick access to capital but may not qualify for traditional loans from banks. The advantages are that they don’t require a strong credit history or collateral, and you only pay back what you make from sales. The downside is that the rates and fees can be quite high compared to other financing options.

Common Legal Issues with Merchant Cash Advances

While merchant cash advances provide a lifeline for many businesses, they also come with some major legal risks you need to be aware of. Here are some of the most common issues I see:

• Exorbitant interest rates – Some merchant cash advance companies charge interest equivalent to over 100% APR when you calculate the fees and daily repayment percentage. State usury laws often cap interest around 10-30%, so these excessive rates may be illegal.
• Deceptive sales tactics – Brokers and sales agents often misrepresent the terms of the deal or fail to disclose key info about rates/fees. This can constitute fraud.
• Aggressive collections – When businesses fall behind on payments, some merchant cash advance firms resort to harassing tactics like calling owners constantly, contacting customers, freezing bank accounts, or suing without proper notice.
• Confessions of judgement – Many companies get business owners to sign these as part of the loan agreement, allowing them to obtain a judgement without notice or a hearing. But COJs signed under duress can often be challenged in court.

As you can see, the merchant cash advance industry is largely unregulated compared to traditional lending. This has led to many predatory practices that take advantage of small business owners in need of quick capital.

How a Detroit Merchant Cash Advance Attorney Can Help

This is where a knowledgeable Detroit merchant cash advance attorney like myself can make all the difference. Here are some of the ways I can help protect your interests:

• Reviewing loan documents – I’ll analyze your merchant cash advance agreement to identify any illegal terms or deceptive clauses that could make the contract void.
• Negotiating settlements – If you fall behind on payments, I can negotiate with the lender to reduce your balance or create an affordable repayment plan.
• Defending lawsuits – Should the company sue, I have the experience to contest confessions of judgement and make sure you get proper notice and a chance to respond.
• Pursuing counterclaims – If we find the merchant cash advance firm violated state/federal laws, I can file countersuits on your behalf to recover damages.
• Shielding personal assets – My top priority is always protecting your personal assets like bank accounts, retirement funds, and property from seizure.

Having an attorney in your corner levels the playing field and forces merchant cash advance companies to play by the rules. I’m familiar with all the common tricks and traps they use, so I can keep you from getting taken advantage of.

Reach Out for a Free Consultation

If you’re dealing with legal issues related to a merchant cash advance, I encourage you to reach out to set up a free case review. I’ll evaluate your situation, answer any questions, and suggest the best legal strategies. There’s no obligation or commitment needed to get started.

You invested your life into building this business – don’t let predatory lenders take advantage and destroy all your hard work. With an experienced merchant cash advance attorney on your side, you can even the odds and protect your livelihood.

I hope this article helped explain how having a knowledgeable legal advocate can make a huge difference in these situations. Don’t go it alone – let me fight for your business success. Call today and finally get the justice you deserve!