Philadelphia Merchant Cash Advance Attorney

Philadelphia Merchant Cash Advance Attorney: Your Guide to MCA Litigation

As a small business owner in Philadelphia, you may have turned to merchant cash advances (MCAs) to help your business stay afloat during tough times. But MCA loans can quickly spiral out of control, leaving you facing mounting debt and aggressive collection tactics. If you find yourself on the receiving end of an MCA lawsuit, don’t go it alone – consult an experienced Philadelphia merchant cash advance attorney right away.

In this article, we’ll walk through everything you need to know about merchant cash advance litigation in Philadelphia, and how a knowledgeable lawyer can help protect your business.

What is a Merchant Cash Advance?

A merchant cash advance provides quick access to capital by allowing a business to borrow against its future credit card sales. The business agrees to pay back the advance, plus a fee, by allowing the MCA company to withdraw a percentage of daily credit card receipts – often 15-35% – until the balance is repaid^[1].

Unlike a traditional bank loan, MCAs are not subject to usury laws limiting interest rates. As a result, the equivalent annual percentage rate (APR) on an MCA can top 400%^[3]. This makes them an extremely expensive form of financing.

Why MCAs Can Lead to Lawsuits

While MCAs provide fast cash upfront, the burden of daily repayments can quickly become unsustainable. If your business experiences a slowdown, there may not be enough in your merchant account each day to cover the withdrawal – causing you to fall behind.

Once you default, the MCA company can take several aggressive actions to recoup their investment, including:

• Filing a lawsuit against your business
• Obtaining a confession of judgment
• Freezing your bank accounts
• Placing a lien on your assets

Many MCA agreements require you to waive your right to a trial and allow a confession of judgment if you default. This gives the lender a powerful collections tool, allowing them to seize your assets without even going to court.^[3]

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

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Google rating score: 4.9 of 5, based on 736 reviews

Responding to an MCA Lawsuit

If you’ve been served with a merchant cash advance lawsuit, it’s critical to retain legal counsel immediately. An experienced Philadelphia MCA attorney can review your case and build a strategic defense to protect your interests.

Here are some key steps your lawyer may take:

• File a motion to vacate the confession of judgment – If you signed a confession of judgment clause in your MCA contract, your lawyer can argue it is invalid and ask the court to vacate it. Grounds may include it being signed under duress or executed improperly.^[3]
• Challenge contract terms – Many MCA agreements contain provisions that may not be enforceable under Philadelphia law, such as excessive fees or interest rates. Your attorney can fight to invalidate unfair or illegal terms.^[3]
• Assert affirmative defenses – Your lawyer may argue the MCA company violated lending laws, misled you about terms, or otherwise acted inappropriately. Proving such defenses can defeat their claims against you.^[3]
• File counterclaims – If the MCA company harmed your business by freezing accounts or engaging in abusive collection tactics, your lawyer can potentially sue them for damages.^[3]
• Negotiate a settlement – Often the best outcome is a negotiated settlement that reduces the amount owed and sets an affordable repayment schedule. An experienced attorney can get you the best deal.^[3]

With an attorney fighting on your behalf, you have a much better chance of reaching a favorable result, avoiding asset seizure, and protecting your business.

Alternatives to Litigation

In some cases, proactive legal intervention can resolve MCA issues without needing to go to court. Your attorney may be able to:

• Negotiate modified repayment terms
• Work out a lump sum settlement for less than you owe
• Get certain contracts voided altogether
• Stop collections activities against you

Taking action early not only helps minimize legal expenses, but prevents further damage to your business.

Choosing a Qualified Merchant Cash Advance Attorney

Don’t leave your company’s fate in the hands of just any lawyer. Look for an attorney with specific experience fighting merchant cash advance lawsuits and collections. Key credentials include:

• In-depth knowledge of MCA lending practices
• Understanding of MCA contract loopholes
• Record of favorable settlements and judgments
• Litigation experience in Philadelphia courts
• Membership in relevant legal associations

Be sure to ask about the lawyer’s track record with similar cases. You want someone who knows how to effectively dispute improper MCA tactics in Philadelphia courts.

Act Now to Protect Your Business

If you’ve been sued for defaulting on a merchant cash advance, don’t delay in seeking legal representation. A knowledgeable Philadelphia MCA attorney can often get lawsuits dismissed, debts reduced or eliminated, and save your business from financial ruin.

Don’t go it alone against aggressive MCA collectors. Call an experienced merchant cash advance litigation lawyer today to discuss your best options.