Lexington MCA Defense Lawyers: Business Debt Relief
Lexington’s economy is built on the horse industry, the University of Kentucky, healthcare, and the manufacturing sector that extends along the I-75 corridor. Kentucky has no established MCA lending laws, but the 2022 ruling that reclassified an MCA as a loan when repayment was tied to time rather than sales provides a state-level argument that Lexington merchants possess.
The Horse Capital and the Race It Did Not Enter
A factor rate of 1.4 on a $90,000 advance produces $126,000 in total obligation. Daily debits over seven months. Horse farm support businesses, equine veterinary practices, restaurants on Limestone, construction firms in the Hamburg area: each generates revenue on cycles the daily debit does not accommodate.
The horse industry operates on a breeding season, a racing season, and an auction calendar. The MCA funder operates on a daily debit. The two calendars share nothing.
The Settlement
MCA funders settle. In Lexington cases, settlements have reduced outstanding balances by forty to sixty percent. The 2022 Kentucky ruling provides the state-level argument.
Kentucky’s ruling and the contract’s repayment structure are what we examine first.
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Our attorneys will review your MCA contracts and identify the vulnerabilities that create leverage for negotiation. The first conversation is a reading of the documents — not a commitment.
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Disclaimer: This content is for informational purposes only and does not constitute legal advice. Results vary based on individual circumstances. Past results do not guarantee future outcomes. If you are in legal distress, consult a licensed attorney.