Mississippi Merchant Cash Advance Attorney
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Mississippi Merchant Cash Advance Attorney
Getting a merchant cash advance can seem like a quick fix for a business struggling with cash flow problems. The cash comes fast, but the consequences come even faster. Before you know it, you’re stuck making huge daily or weekly payments with exorbitant interest rates – it can be practically impossible to get out!If this sounds familiar, you need an experienced Mississippi merchant cash advance attorney on your side. Don’t go it alone against predatory lenders – the legal experts at Grant Phillips Law have helped thousands of merchants fight back. Read on to learn how a merchant cash advance attorney can help you in Mississippi.
What is a Merchant Cash Advance?
A merchant cash advance (MCA) works differently than a regular business loan. With a loan, you receive a lump sum and pay it back with interest over time.But with an MCA, you agree to repay the advance from a percentage of your future sales. The MCA company purchases your future receivables at a discount.So instead of fixed loan payments, your repayment fluctuates based on your daily or weekly credit card sales. The more you sell, the faster you pay back the advance.This flexibility seems attractive at first, but it often leads to runaway payments that cripple cash flow. MCAs also lack the consumer protections of a business loan. That’s where a merchant cash advance attorney can help.
Why MCAs Can Be Predatory
Merchant cash advances are largely unregulated, so MCA companies can engage in predatory practices, like:
- Deceptively high interest rates – MCAs don’t have interest rates, but the equivalent can be over 100% APR.
- Misleading sales tactics – Brokers misrepresent terms or don’t disclose fees.
- Aggressive collections – MCAs can debit business accounts at will or freeze funds.
- No flexibility – The structure makes it hard to renegotiate terms if you struggle.
- Stacking – Taking multiple MCAs compounds the burden of repayment.
- Confusing contracts – Long, dense contracts filled with legalese.
These shady practices let MCA companies take advantage of merchants desperate for fast cash. But there are legal defenses available with the help of an attorney.
How a Merchant Cash Advance Attorney Can Help
A qualified Mississippi MCA attorney can provide a number of valuable services:
- Review contracts – Identify prohibited terms or violations that may invalidate the agreement.
- Negotiate settlements – Work with the MCA company to reduce your repayment burden.
- Defend lawsuits – If sued for breach of contract, assert legal defenses.
- Stop collections – Send cease and desist letters for harassment or improper collections.
- Recover damages – If you were defrauded, sue for damages, refunds, and legal fees.
- Explore bankruptcy – File bankruptcy as a last resort to discharge MCA debts.
The right attorney understands MCA contracts inside and out. They use their expertise to aggressively defend your rights as a merchant.
Questions a Merchant Cash Advance Attorney Will Ask You
During an initial consultation, your Mississippi MCA attorney will ask questions to understand your situation, such as:
- What is the total amount you were advanced?
- What are the repayment terms (daily/weekly rate, fixed payments, term)?
- Did the broker disclose all fees, rates, and terms clearly?
- Did you take out multiple advances from different companies?
- Have you missed payments or defaulted on the agreement?
- Has the MCA company taken any collection actions against you?
Be prepared to provide copies of any contracts, emails, or other records related to the advance. Your attorney will review these closely to build the strongest case on your behalf.
Beware MCA Debt Relief Scams
With growing awareness of predatory MCAs, debt relief scams have popped up promising to help merchants. Watch out for companies that:
- Guarantee they can remove 100% of your MCA debt
- Charge large upfront fees before providing any services
- Tell you to stop making payments to your MCA provider
- Refuse to provide a written contract detailing services
Avoid these obvious red flags by working with a reputable Mississippi MCA attorney instead. Debt relief scams only make a bad situation worse.
Choose an Attorney Carefully
Not all attorneys have experience fighting merchant cash advances. When selecting legal counsel, look for:
- MCA focus – They should dedicate their practice to MCA cases.
- Good track record – Check reviews and case results from past clients.
- No upfront fees – Beware firms asking for money before doing anything.
- Transparent pricing – They should clearly explain their rates and fee structure.
Grant Phillips Law checks all the boxes. Their MCA defense attorneys have an impressive record helping merchants nationwide.