Merchant Cash Advances (MCAs): The Danger to Businesses
Merchant Cash Advances—they ruin businesses. They suffocate, they destroy, they steal the hope from entrepreneurs. I’ve seen it again and again. I’ve saved them, I’ve fought for them, I’ve won. MCA attorneys will win, and this is how. Usury laws—they hate them, they fear them, they break them. New York’s usury law, Article 5, won’t let them get away with it.
Why Attorneys Win Against MCAs
Let’s talk strategy, because winning against an MCA isn’t just possible—it’s necessary. We dig into its clauses, we dig into its depths, we dig into its deceit. Hidden fees? We spot them. Illegal terms? We uncover them. Usury is a word you’ll hear a lot. Lenders claim, “Oh, it’s an advance, so no interest caps apply!” But hold on—courts, like in Pearl Capital Rivis Ventures LLC v. RDN Construction, said otherwise. They ruled that excessive fees and interest make these contracts subject to usury laws. It’s that simple.
Partial Victories: Lifelines for Businesses
Partial wins are important. They matter to the business owner who was drowning, who couldn’t make their daily payments, who was on the edge of losing everything. A partial win is a lifeline. It keeps the doors open. Daily payments—they kill cash flow, they kill hope, they kill businesses. Every dollar saved, every day won, every victory—counts.
State Laws on MCAs: Breaking Them Down
In California, we use Business & Professions Code §17200 to fight their unfair practices. We show they’ve cheated, we show they’ve lied, we show they’ve broken the law. The law fights back, and so do we. Mediation—it’s where MCA lenders fall. They don’t want court, they don’t want exposure, they don’t want to lose. They settle. Precedent matters. Cases like Pearl Capital Rivis Ventures v. RDN Construction—they’ve shown that MCAs are loans, not advances. Usury laws apply. Courts have spoken.
Contract Law: The Key to Fighting MCAs
Breach of contract—a tool in our kit, a weapon in our hand. They promise one thing, deliver another. We prove breach, we prove failure, we prove they’ve broken the deal. Personal guarantees—they threaten to take everything. Your home, your savings, your life’s work. But if the personal guarantee isn’t airtight, we rip it apart. I’ve done it before, I’ll do it again. In Michigan, we fought a personal guarantee using MCL 487.2057. The lender hadn’t filed it properly. They thought they could take everything—guess what? They took nothing.
Winning Doesn’t Always Mean Total Victory
Partial wins are important. A partial win is a lifeline. Laws protect you—laws like Florida’s FDUTPA, laws like New York’s usury limits, laws like California’s Civil Code §1812.620. Every state has them, every state enforces them, every state gives us power to fight back.
The Power of MCA Attorneys
MCA attorneys win because they know these laws. They know how to apply them, they know how to twist them, they know how to use them. The law is our weapon, and we use it well. Good Faith and Fair Dealing—this legal rule means that lenders can’t act in bad faith. They can’t mislead, they can’t deceive, they can’t trap you in a contract that’s designed to fail. We use this to win. Contract of Adhesion—when the contract is so one-sided that it’s unfair. That’s what MCAs are. One-sided contracts that crush businesses. We argue adhesion, we prove unfairness, we win.
UCC Article 9: The Lender’s Weakness
UCC Article 9—it’s their favorite, but we use it against them. They try to slap liens on everything you own, but if they don’t follow the rules, those liens are worthless. We challenge them, we break them, we win. California Civil Code §1812.620—I used this to save a restaurant. The lender failed to disclose crucial terms, and when we showed the court? The contract was voided. Florida FDUTPA—we’ve used this to bring down lenders who thought they could get away with deception.
Precedents Matter in MCA Cases
Precedents matter—Allied Health Care Services v. McGraw-Hill showed that MCAs could be subject to usury laws. It’s another weapon we use, another case we cite, another win in our corner. Personal stories—I’ve had clients who were drowning, clients who were paying thousands in daily payments, clients who thought they’d lose everything. But after fighting, after winning? They’re still in business today. A trucking company in Ohio was suffocating under UCC liens. The lender had done everything wrong. We used UCC Article 9, and we freed their trucks. A partial win, yes, but enough to keep them rolling.
Why Business Debt Relief is Possible
Winning doesn’t mean wiping out the debt completely. Sometimes, winning means cutting it down. Sometimes, winning means extending payments. Sometimes, winning means surviving. Business debt relief is possible because the law allows it, because the law demands it, because the law protects you. With the right attorney, you can find relief. With the right strategy, you can fight back. MCA attorneys will win because we know how to fight, we know how to argue, we know how to take them down. We know the laws, we know the tactics, we know the courts. This is our battlefield, and we win.
The Fall of MCA Lenders
MCA lenders lose because they overreach, they mislead, they trap. They write contracts designed to fail, and when they fail? We strike. Every mistake they make is a tool in our hands, every loophole they leave is a way to win. Don’t give up hope. Even a partial win can save your business. Even a small victory can keep you alive. And with an MCA attorney on your side? You’ll find that win. You’ll get that victory. You’ll survive.
