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Austin MCA Defense Lawyers Business Debt Relief

February 24, 202413 min read

IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.

 

 

Austin MCA Defense Lawyers Business Debt Relief

If you run a small business in Austin and have found yourself struggling with overwhelming business debt, know that you have options and there are experienced professionals who can help. Our team at Delancey Street has extensive experience working with business owners to alleviate debt burden through strategies like debt relief and debt settlement. We take an empathetic, customized approach to serve the unique needs of each client.

How We Can Help With Austin Business Debt

As a business owner, dealing with serious debt can feel incredibly stressful and uncertain. You may feel alone in navigating complex legal and financial considerations while also trying to keep your business afloat. The attorneys and financial experts at Delancey Street are here to guide you with compassion. Some of the ways we can help:

  • Provide clarity on all your debt relief options – We’ll outline programs like debt settlement and debt consolidation and explain the pros and cons of each for your unique situation.
  • Negotiate with creditors – We have extensive experience negotiating debt settlements with creditors. We’ll work relentlessly to get your balances reduced.
  • Help protect your assets – If creditors sue, we can deploy legal strategies to help delay proceedings and protect your property.
  • Improve cash flow – By reducing or restructuring payments through debt relief programs, we can free up cash flow to reinvest in your company.
  • Develop customized debt repayment plan – Every business’s needs are different, so we’ll develop a repayment strategy aligned to your goals.
  • Offer emotional support – We understand this is an extremely stressful time. Our team offers non-judgmental support.

If you feel overwhelmed by business debt, the compassionate Austin business debt relief attorneys and financial consultants at Delancey Street are here to help lighten the burden. Call 212-210-1851 today to speak with an expert.

See also  Albuquerque MCA Defense Lawyers Business Debt Relief

An Introduction to Business Debt Relief

Debt relief refers to strategies deployed to reduce, restructure or in some cases eliminate business debt obligations. It typically involves working with creditors to negotiate reduced balances or altered repayment terms. Approaches like debt settlement, debt consolidation and bankruptcy all fall under the debt relief umbrella.

Why Do Businesses Seek Debt Relief?

There are many scenarios that might motivate a business owner to pursue professional debt relief, including:

  • General financial hardship – Events like recession, supply chain disruptions, labor shortages and more can strain cash flows. This makes meeting recurring debt payments difficult.
  • Legal and regulatory changes – New laws and regulations might negatively impact revenue streams, forcing difficult debt decisions.
  • Poor financial management – Sometimes debt piles up due to suboptimal record-keeping, planning and spending decisions made over time.
  • Unplanned expenses – Emergency costs like equipment repairs or weather damage are sometimes unavoidable and can compel businesses to take on bad debt.
  • Predatory lending practices – Some alternative lenders like merchant cash advance lenders employ predatory tactics, saddling owners with debt they don’t fully grasp. This often necessitates debt relief.

If you see your business struggling with debt for any reason, know that you don’t have to navigate it alone. The capable Austin business debt relief lawyers and financial experts at Delancey Street will fight relentlessly on your behalf to alleviate the burden.

Common Types of Business Debt Relief

There are a few common forms of business debt relief deployed to help struggling companies regain their financial footing:

Debt Settlement

Debt settlement involves negotiating directly with creditors to agree on a reduced settlement balance on what you owe. Typical settlement agreements reduce balances by 25%-75%. The process provides important cash flow relief upfront, allowing business owners to redirect funds to more productive areas.

  • Pros – Debt settlements typically deliver significant savings off total owed balances. This frees up capital for business investment. The agreements also allow you to avoid costly, long legal battles.
  • Cons – Creditors may balk at initial settlement offers, requiring extensive back-and-forth. There is also no guarantee a creditor will accept an offer. Settling debt for less than owed can also negatively impact business credit standing.

Debt Consolidation

With debt consolidation, you essentially take out a new loan to pay off multiple existing debts. This effectively combines multiple payments into a single payment you make to one lender or creditor each month.

  • Pros – Simplifies payment tracking with one monthly bill. May lower monthly payments or secure better interest rates. Can help improve cash flow issues.
  • Cons – Requires taking on additional debt via a consolidation loan. Consolidating may lower monthly bills but increase total interest paid over full repayment term. Generally doesn’t reduce amount owed.
See also  Arlington MCA Defense Lawyers Business Debt Relief

Business Bankruptcy

Declaring bankruptcy provides legal protection while forcing creditors to absorb losses from debts that simply cannot realistically be repaid. The court formally discharges some portion of what you owe.

  • Pros – Immediately stops creditor harassment/collection efforts. Legally mandates creditors to forgive portions of what is owed. Allows time to reorganize finances.
  • Cons – Considerable legal fees required. Bankruptcy filings appear permanently on business credit reports hampering future access to financing. Judges may order asset liquidations to repay debts. Does not discharge all debt types like taxes owed.

If you are an Austin small business owner anxious about mounting debts contact the adept Austin business bankruptcy lawyers at Delancey Street today at 212-210-1851 to discuss your debt relief options. Our legal and financial experts will help lighten the burden.

What Makes MCA Loans So Risky?

One particularly risky form of financing that has saddled many small business owners with oppressive debt is the merchant cash advance loan, or MCA. MCA loans provide quick access to capital by essentially allowing a lender to “purchase” a percentage of the business’s future sales.Why MCA loans can be so problematic include:

  • Deceptively High Costs – MCA loans seem attractive with easy approvals, quick funding, and no collateral required. But the high costs and rigid repayment terms often cripple cash flows. With factors like 4x repayment requirements and extremely high effective APRs over 100%, merchants often regret these loans.
  • Overreliance on Limited Data – Approval decisions rely almost exclusively on a few months of business bank/credit card statements. This fails to account for seasonal revenue swings or broader operating context.
  • Ignoring Total Debt Obligations – Lenders rarely consider other debts when approving loans, even if repayments already strain cash flow. This piles on unmanageable debt obligations.
  • Rushed Due Diligence – The application-to-funding process is completed in days, leaving little time for business owners to grasp terms or consider alternatives. This leads to regret down the road.

If an MCA loan has buried your Austin business in overwhelming debt, the capable debt relief attorneys and financial consultants at Delancey Street can help negotiate settlements or restructuring to ease the burden. Call 212-210-1851 today.

Delancey Street’s Empathetic Approach to Client Needs

What sets Delancey Street apart in guiding business owners through complex debt relief processes is our compassionate, customized approach catered to each client’s unique needs and objectives. Too often, financial firms treat clients like numbers rather than addressing real human needs.

See also  Anchorage MCA Defense Lawyers Business Debt Relief

We Listen First to Understand Your Situation

The first thing we do working with any new client is simply listen. We let you explain your current debt predicament, business history, personal financial constraints and overall goals. We ask thoughtful questions to fully understand your situation before considering options. No pre-packaged solutions.

We Empathize With Your Frustration

This can be an extremely stressful, even scary situation you wish to quickly resolve. We provide an empathetic ear, validate your feelings and reassure you there are solutions. You shouldn’t have to tackle this alone.

We Tailor Solutions to Your Goals

Every business debt scenario is unique, so we tailor solutions to your priorities whether that is preserving assets, improving cash flow to fund growth, avoiding bankruptcy or restoring credit health. No unnecessary services.

We Won’t Give Up Until You Find Relief

Even complex cases with multiple creditors can be resolved through diligent negotiation. We will exhaust every possible avenue with lenders and use available legal tools to find an acceptable resolution so you can focus on business growth.If you are an Austin small business owner struggling with oppressive commercial debt, the compassionate experts at Delancey Street are here to listen to your unique situation and craft customized solutions that serve your needs. Call 212-210-1851 or check out delanceystreet.com to learn more.

Common Legal Defenses Against Predatory MCA Lenders

Merchant cash advance loans with their hidden costs and rigid terms often cross legal lines and qualify as predatory lending. These practices violate consumer protection laws in many cases. Savvy business owners working with experienced attorneys can deploy arguments around violations of:

Usury Laws

Usury laws cap maximum allowable interest rates lenders can charge. The standard usury rate cap even for high-risk commercial loans ranges between 16-30% in most states. Yet MCA loans often carry implied APRs over 100% rendering them legally invalid.

State Deceptive Trade Practices Acts

Many states like Texas have Deceptive Trade Practices Acts that prohibit egregious lending practices like obscuring actual loan costs through tactics like factor rates. Savvy Austin business lawyers can leverage these regulations.

RICO Laws

The federal Racketeer Influenced and Corrupt Organizations Act allows prosecutors to combat organized criminal activity including complex lending fraud. Predatory MCA lenders increasingly face RICO charges.The reality is merchants seldom fully grasp MCA terms before signing and funding. Delancey Street partners with expert Austin lawyers to deploy available defenses against predatory lenders so business owners find relief. To discuss your options, call 212-210-1851 today.

 

 

IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.

 

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