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Hawaii Merchant Cash Advance Attorney

Hawaii Merchant Cash Advance Attorney

Aloha! As a small business owner in Hawaii, you may have looked into merchant cash advances (MCAs) as a way to get quick financing for your company. But MCAs come with big risks if you fall behind on payments. This article will explain how a Hawaii MCA attorney can help you if you’re struggling with MCA debt.Let’s start with the basics – what is a merchant cash advance? An MCA provides upfront cash to a business in exchange for a percentage of future credit card sales. It’s not technically a loan. You pay back the advance through automatic deductions from your credit card receipts over a period of months.

How MCAs Work in Hawaii

Hawaii doesn’t regulate MCA companies like traditional lenders. This leaves the door open for predatory practices. Here are some common problems in Hawaii’s MCA industry:

  • Exorbitantly high interest rates, fees, and payback amounts
  • Misleading claims about costs and terms
  • Aggressive collection tactics if you fall behind
  • Requiring personal guarantees making owners liable

Many Hawaii business owners end up owing double, triple or more what they received from the MCA company. If sales decline, repayment becomes impossible.

Getting Legal Help in Hawaii

If you’re underwater on an MCA in Hawaii, don’t go it alone. Hiring an experienced Hawaii MCA attorney can help in several ways:

  • Review the agreement for prohibited terms or violations of state laws. Certain provisions may be grounds to invalidate the MCA.
  • Negotiate a settlement for less than you owe. An attorney lends leverage in working out a deal.
  • Defend against lawsuits over breach of contract or collections. Your lawyer can fight back against unlawful practices.
  • Explore bankruptcy to discharge part or all of the debt. Your attorney can advise if this is a viable option.

Having a knowledgeable lawyer levels the playing field against unscrupulous MCA companies.

Choosing the Right Hawaii MCA Attorney

It’s crucial to pick an attorney with specific experience handling MCA cases in Hawaii. Here are good questions to ask:

  • How many years have you handled MCA cases in Hawaii? Look for 5+ years of experience.
  • Are you familiar with Hawaii laws and regulations regarding MCAs? They should know the landscape.
  • Can you review my agreement at no cost to look for violations? Avoid attorneys who charge just for review.
  • What strategies have you used to successfully challenge MCA companies in Hawaii? Find someone with proven results.
  • Can you provide references from past Hawaii MCA clients? Talking to former clients is telling.

Also verify the lawyer is licensed in Hawaii and in good standing with no disciplinary issues.

Reviewing the MCA Agreement

A top priority is having your Hawaii MCA attorney review your agreement for prohibited terms. These include:

  • Rates above Hawaii’s usury laws
  • Personal guarantees making owners personally liable
  • Waiving rights to legal notices or proceedings
  • Confessions of judgement allowing them to obtain a judgement without filing suit

If unlawful provisions are found, that may provide grounds to invalidate the entire MCA agreement. Your lawyer can then get any lawsuits dismissed.

Negotiation Strategies in Hawaii

Before pursuing litigation, your attorney will likely try to negotiate a settlement with the MCA company. Possible negotiation tactics include:

  • Offering a lump sum payment for less than the full balance
  • Proposing a reduced payoff amount as full satisfaction
  • Asking for lower daily repayment amounts based on current sales
  • Trying to convert the MCA to fixed monthly payments

Having legal counsel shows the MCA provider you’re serious. Many will make concessions to avoid a lawsuit.

Hawaii MCA Defenses

If a settlement can’t be reached, your attorney can defend against any lawsuit filed. Possible defenses include:

  • The agreement violates Hawaii’s lending laws
  • The MCA company failed to properly register with the state
  • The fees, rates, or terms are unlawful
  • Fraud, misrepresentation, or nondisclosure of key terms
  • Unconscionability due to unfair terms

Your lawyer will build the strongest defense based on issues identified in your specific MCA agreement.

Should You File Bankruptcy?

If you have multiple debts beyond just the MCA, your attorney may advise filing for bankruptcy. This can discharge part or all of your merchant cash advance balance. Chapter 7 or Chapter 13 bankruptcy are options to discuss.

Act Quickly to Protect Your Rights

If you’re behind on a merchant cash advance in Hawaii, I urge you to act now. Meet with an experienced MCA attorney right away before the problem snowballs. They can review your agreement at no cost and discuss ways to challenge improper terms and negotiate a better deal. Don’t wait until you’re facing lawsuits or other collection efforts.An attorney knowledgeable about Hawaii’s MCA industry can provide the help you need. I’m happy to answer any other questions about how a Hawaii MCA lawyer can assist you. Just shoot me an email anytime. Hang in there – solutions are available if you have the right legal guidance on your side. A hui hou!

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