Served by Apex Funding: 8 Documents to Pull Before You Respond

Served by Apex Funding? Look at the papers first, find the court response deadline. Pull the contract, guarantee, bank records, and all notices; you do need them. If you called them to talk terms, that didn’t stall the court case.

1. The summons and complaint

Look at these first; they tell you which court will handle the lawsuit. You have to file your response at that court.

In New York state court you get 20 days to respond if served in person, or 30 days after other service completes. In Federal court you get 21 days to answer. If you miss the deadline, the court could rule against you in your absence (“default judgment”).

2. The agreement and amendments

All of Apex’s case rests on the agreement, and their assertions that you violated the agreement. Compare the terms on them with the terms Apex actually followed. What did the contract say Apex had to do before they claimed you defaulted? Did they do that? What does the agreement say about notice, and does that differ from the delivery they used? Do any amendments refer to earlier documents? Find and pull them too.

There is no universal grace period on a merchant cash advance. Some MCA deals give you notice or cure time before the lender can claim default, others give you nothing. And a default notice doesn’t prove every amount they demand.

Courts applying New York law take a look at MCAs, asking three things: Was there real reconciliation? Is the term fixed? Is there recourse against business or guarantors? Those answers tell courts whether the agreement is a loan. In May 2025, one North Carolina bankruptcy court decided one specific Apex MCA was a disguised loan, about 101% interest, void under New York usury law. Every situation is different.

3. The personal guarantee

Apex says you or someone else guaranteed the merchant agreement. Look carefully at that guarantee agreement. Did you or a trusted friend or employee sign it? Whatever you find that doesn’t comply with the MCA, look again at how the guaranty imposes liability on you. Does it cover all of this deal, or does it only cover certain things? Are you named in the summons? Does the name on the suit and summons correctly match the guarantor’s name on the guarantee? A demand letter to the guarantor is still just a letter; it isn’t a judgment.

4. Any confession of judgment

Did Apex get you to sign a confession of judgment? This is a pre-signed court paper that says you already agreed to the judgment. Confession of judgment is a separate thing, allowed only where state law permits it. Some states restrict or bar them. Check whether any was actually filed. Was it filled out correctly? Was it filed at the court on time? A NY confession of judgment may only be filed within three years of being signed, and only with the county clerk where you lived, or where your business has a place of business.

5. Bank statements and payment history

Get your bank statements and payment receipts, in paper if available, preferably as far back as when you signed the contract. Look for transfers in or out. Do the transfers follow the agreement? Do the payments, activity, and balances add up to what Apex says they should? Are there any extra fees or withdrawals Apex may not have told you about? Do you already have more than one daily transfer? Are you paying off any other MCAs with this one? Go through the statements and mark any duplicate or returned debits, along with any you disputed or tried to dispute. Don’t switch banks, move assets, or block withdrawals or transfers until you talk with a lawyer.

6. Your reconciliation requests

Look for your written requests for reconciliation. What did you ask them to do, and what did they answer? Have you made any payments since asking Apex to reconcile? If Apex promised to amend the terms later, were those changes put in writing? Sending Apex a request for reconciliation doesn’t by itself stop withdrawals from your bank, or waive an alleged default. Keep a copy of the request, any response from Apex, and any additional transfer records.

7. UCC filings and notices

Pull any UCC filings and notices. Check whether Apex filed any paperwork on your business in your state or county. A financing statement is public notice of a claimed interest; it is not the creditor’s right to collect. If the business is organized in New York, you can search the NY online UCC database.

Some creditors will send their own notices directly to your customers and processors, telling them to pay the creditor instead. A few customers or processors will just sit on the money. Keep the whole notice. If you call them, just tell them what’s true.

When your money is frozen, it’s critical to know why. Is it because of a UCC filing? A notice sent to your clients or processor? A court order? Each of those needs a different response, so don’t start running around until you know which one you’re dealing with.

8. Any judgment or restraint

Look for filed orders or judgments against you. Do you have any judgments or restraints on your business now, and are any more expected? Make a list. Get a copy of any filed restraint or levy, or anything your bank sent you about them. Make a note of the court, case number, names of everyone on it, amount, and the day you got it. A restraint or levy usually means there is a judgment. You can challenge a default judgment entered by a New York court, by motion, for excusable default and reasonable excuse. The motion is due within one year of serving you with the judgment and a written notice of its entry.

Get Everything Together

Get everything together and put it into a timeline. Then take it all to an attorney well before the deadline to answer the lawsuit. Apex may ask you to sign a payment plan, a settlement agreement or a new contract. Don’t do it under pressure.

A free contract review costs nothing and takes a day or two. Call (888) 837-7053, or send the agreements to Delancey Street for a straight read on your options.