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Alabama MCA Defense Lawyers Business Debt Relief

February 24, 20246 min read



Alabama MCA Defense Lawyers Business Debt Relief

Businesses in Alabama struggling with debt have options for relief. Our dedicated legal and financial experts at Delancey Street can provide customized solutions to help business owners regain financial freedom.

How We Help Alabama Businesses

We are not a law firm, but we work closely with experienced attorneys to help businesses resolve debt. Our comprehensive debt relief programs can help you:

  • Settle debts for less than you owe
  • Restructure and consolidate debts into more manageable payments
  • Stop threats, lawsuits, and wage garnishments
  • Improve cash flow and profitability
  • Get back on the path to financial stability

At Delancey Street, every client has a dedicated case manager to walk you through the process from start to finish. We have extensive experience helping all types of Alabama businesses, including:

  • Retail stores
  • Restaurants
  • Healthcare practices
  • Professional service firms
  • Manufacturers
  • Wholesalers and distributors
  • Construction companies
  • Transportation providers
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No business is too large or too small for us to help. Our debt relief programs can accommodate businesses of any size or industry.

Alabama Merchant Cash Advance (MCA) Laws

Merchant cash advances (MCAs) can provide fast access to capital for small businesses. However, predatory lenders often exploit desperate business owners with deceptive tactics and usurious rates exceeding 100% APR.In Alabama, there are currently no laws regulating merchant cash advances at the state level. The lack of guardrails has led to rampant abuse, as rogue MCA companies operate with impunity. Tactics like daily repayment requirements structured to never reduce principal have trapped many Alabama businesses in endless cycles of debt.

Challenges for Alabama Business Owners

  • No limits on rates and fees
  • Misleading statements about costs
  • Personal guarantee requirements
  • Daily repayment structures
  • Confessions of judgement
  • Threats of litigation

The combination of easy capital and lack of regulation has created a breeding ground for predatory lending in Alabama. Unethical MCA companies are flourishing by exploiting small business owners desperate for working capital loans and cash infusions.

Alabama MCA Defense Strategies

If your Alabama business is struggling under the weight of a predatory merchant cash advance, help is available. Our team can analyze your situation to identify potential defenses and claims against unscrupulous lenders.


Alabama common law provides remedies when contract terms are grossly unfair or oppressive due to unequal bargaining power. MCA agreements often contain one-sided provisions like high fees, personal guarantees, and daily repayments that may be deemed unconscionable.Unconscionability claims require assessing factors like:

  • Sophistication of parties
  • Alternative financing options
  • Misrepresentations or pressure to sign
  • Overall fairness of agreement
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If unconscionability is established, courts can refuse to enforce the agreement or limit it to reasonable terms.

Fraud and Misrepresentation

Predatory MCA companies frequently mislead borrowers on costs, repayment terms, and other key factors. Under Alabama law, fraud can provide grounds to invalidate contracts, recover damages, or receive other remedies.Common fraudulent tactics include:

  • Inflating income, assets or credit scores
  • Hiding true costs of capital
  • Falsely claiming daily payments will pay off balance
  • Forging signatures or identities

RICO Violations

The federal Racketeer Influenced and Corrupt Organizations (RICO) Act provides treble damages and attorneys fees for victims of criminal enterprises. RICO claims could apply to MCA companies that engage in systematic fraud through the mail, wires, or interstate facilities.Potential racketeering activity includes:

  • Mail/wire fraud
  • Extortion
  • Financial statement fraud
  • Forgery

Our legal team can evaluate if civil RICO violations might bolster Alabama business owners’ claims against predatory MCA companies.

Finding the Right Help

Defending against merchant cash advance lenders requires financial and legal expertise. At Delancey Street, our comprehensive debt relief programs provide both.

Why Work with Us

  • We are not a law firm, but work closely with experienced attorneys
  • Our dedicated advisors fully assess your situation and finances
  • We negotiate directly with creditors on your behalf
  • Programs can settle debts for less than you owe
  • Improved cash flow from reduced payments
  • Stop collection calls and lawsuits
  • Regain peace of mind and focus on business

If your Alabama business is sinking under predatory merchant cash advance debt, contact us today to discuss your options. Our team can customize a solution to resolve debts and get you back on track to profitability

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