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California MCA Defense Lawyers Business Debt Relief

February 24, 20247 min read


California MCA Defense Lawyers Business Debt Relief

Small business owners in California often utilize merchant cash advances (MCAs) to access working capital quickly. However, predatory MCA lending practices can sink businesses into overwhelming debt. If you signed an MCA with unfair terms or deceptive sales tactics, contact our California MCA defense lawyers for help negotiating settlements or defending lawsuits.Our firm helps business owners settle, restructure, and eliminate MCA debt through litigation, negotiations, or bankruptcy. With customized legal strategies, we can resolve MCA debt on favorable terms so you can move forward with a clean slate.

How Predatory MCA Lending Traps Small Businesses

Merchant cash advances provide fast access to capital by allowing businesses to sell a portion of their future credit card sales for an upfront lump sum. This avoids lengthy loan applications or credit checks. However, MCAs often have repayment rates exceeding 100% APR and can quickly bury businesses in crippling debt.

  • Excessively high repayment rates – MCA rates often exceed 100% APR, compared to 7-30% for bank loans
  • Overreliance on limited data – Approval decisions rely primarily on credit card sales data, ignoring total debt obligations
  • Rushed due diligence – The push for fast approvals results in limited scrutiny of business finances
  • Personal guarantees – Business owners often personally guarantee repayment, exposing personal assets
  • Daily repayments – Repayments are taken daily from credit card sales revenue, impairing cash flow
  • Confusing terminology – Deals are structured as business “purchases” not loans, obscuring true costs
  • Deceptive sales tactics – Brokers misrepresent terms or fail to disclose key repayment details
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This combination allows predatory MCA companies to ensnare businesses in debt traps. Our California MCA defense lawyers can help you understand your rights and options to settle, restructure or fight back against unfair MCA agreements.

Legal Strategies For Settling MCA Debt

If you signed an MCA with unfair terms or deceptive sales tactics, contact our California MCA defense lawyers to explore strategies for debt relief, including:

Settlement Negotiations

We negotiate directly with MCA lenders to reduce principal balances, interest rates, and repayment terms. Settlements provide immediate debt relief so you can focus on business growth.

  • Principal reductions – Negotiate a discount on the remaining balance
  • Lower rates – Reduce triple-digit interest rates to reasonable levels
  • Extended terms – Stretch repayment timeline to fit business cash flows

Settlements avoid litigation costs but require lump-sum payments. We customize proposals to your budgetary constraints.


We file lawsuits asserting violations of California lending laws regarding unconscionable termsunfair business practices, or deceptive marketing. Successful outcomes can result in:

  • Voided contracts and waived balances
  • Refunds of all payments made
  • Additional monetary damages

Litigation compels settlements on extremely favorable terms. While cases proceed through courts, we negotiate deals allowing affordable payments pending final resolutions.


Filing bankruptcy stops collections lawsuits and can discharge MCA debts. Options include:

  • Chapter 7 – Liquidates company assets to pay creditors. Remaining MCA debts are discharged.
  • Chapter 11 – Allows reorganization of company finances under court supervision. MCA debts can be restructured or discharged.
  • Chapter 13 – Individual business owners restructure personal finances through 3-5 year court-mandated plans. Remaining MCA debts are discharged.
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Bankruptcy protects companies from collections while providing time to reorganize and resume growth. We guide clients through the complex bankruptcy process start-to-finish.

California MCA Defense Lawyers

Our California MCA defense lawyers have extensive experience representing business owners sued for breach of MCA contracts. We leverage our litigation skills to negotiate favorable settlements so you can move forward.

Settlement Experts

Our background handling MCA lawsuits equips us to anticipate court outcomes and craft settlement proposals that align with judicial precedents. We extract maximum value from legal arguments to negotiate principal reductions, lower rates, and extended repayment terms.Settlements avoid risky trials and stop collections lawsuits immediately. We know which settlement levers work for each MCA lender to customize win-win deals.

Litigation Ready

When settlements stall, we promptly file lawsuits asserting violations of California lending laws regarding unconscionable terms, unfair business practices, or deceptive marketing. Our litigation track record compels favorable settlements, often with waived balances, refunded payments, and monetary damages.While cases proceed, we leverage ongoing negotiations to minimize payments pending final resolutions. We fight lopsided MCA contracts to eliminate debts totally through litigation.

Client Focused

We understand dealing with overwhelming MCA debts while running a business is stressful. Our lawyers genuinely care about client problems like preserving payroll, retaining customers, and avoiding bankruptcy.We handle all negotiations so clients can remain focused on business operations. We customize legal strategies aligned to client risk tolerances, cash flows, and long-term objectives.Our California MCA defense lawyers provide experienced representation to resolve MCA debts on favorable terms. We leverage litigation skills to compel settlements that eliminate balances, reduce payments, and stop collections lawsuits. Contact us today for help restructuring or eliminating your MCA debts.

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About Delancey Street

Delancey Street helps small business owners negotiate settlements, restructure terms, and eliminate legal debts through customized legal strategies. With extensive experience representing clients in negotiations and litigation, our lawyers level the playing field against aggressive legal debt collectors. We create customized settlements aligned with your risk tolerance, budgetary constraints, and long-term business objectives.

Contact Our California MCA Defense Lawyers

To discuss your MCA debt situation with our California lawyers specializing in merchant cash advance (MCA) defense, call 212-210-1851 or contact us online. Our consultations are free and confidential. We customize legal solutions to resolve your MCA debts so you can get back to profitability.


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