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Georgia MCA Defense Lawyers Business Debt Relief

February 24, 20248 min read


Georgia MCA Business Debt Relief

Running a small business is extremely difficult, especially when it comes to managing finances and dealing with debt. Many business owners in Georgia find themselves struggling with merchant cash advance (MCA) debt that feels impossible to repay. If this sounds familiar, know that there are options available to find relief.

The Challenge of MCA Debt

A merchant cash advance essentially functions like a business loan or line of credit, with the key difference being that the MCA provider purchases a percentage of the business‘s future sales. This means repayment happens automatically through daily or weekly withdrawals from the company‘s merchant account.While MCAs can provide quick access to capital when traditional loans are unavailable, they also come with perilously high interest rates averaging 85-150% APR. It’s very easy to get trapped repaying 2-3X the original advance amount.

Why So Many Georgia Businesses Struggle with MCA Debt

There are a few key reasons MCA debt catches many Georgia business owners by surprise:

  • Deceptive marketing – MCA providers aggressively market to small businesses as “no risk” financing, downplaying the extremely high effective interest rates.
  • Daily repayment structure – Unlike fixed loan payments, daily MCA withdrawals vary wildly depending on sales volume. Slow periods lead to spiraling balances.
  • Predatory targeting – MCA companies directly target the most desperate, cash-strapped businesses who have poor credit and limited financing options.
See also  Los Angeles Merchant Cash Advance Lawyers and Business Debt Relief

While an MCA may be a temporary lifeline for struggling companies, it often exacerbates long-term financial issues.

The Vicious Debt Spiral

Once a Georgia business owner realizes they’ve fallen into the MCA debt trap, they will likely:

  • Try unsuccessfully to negotiate repayment terms
  • Max out credit cards or take out additional financing
  • Lay off staff or cut other expenses

As cash flow dries up, it becomes impossible to repay the MCA debt fully while continuing normal operations. Owners then face overwhelming pressure and few options aside from business bankruptcy or closing down entirely.

Business Debt Relief Services Tailored for Georgia

The good news is that options exist in Georgia to help free your business from the MCA debt spiral. Leading debt relief companies like Delancey Street provide customized programs to negotiate your outstanding balances down to affordable levels over time.They take on the full burden of communicating with your MCA providers and leveraging various state and federal laws regarding business debt collection practices. Their experienced team handles everything for you, while you focus on operating your business.Delancey Street does not charge any upfront fees. You only pay a small percentage of any savings achieved through settlement negotiations. This performance-based model means you pay nothing unless they successfully reduce your debts.

How Georgia Business Debt Relief Works

The basic process with a company like Delancey Street is straightforward:

  1. Free Consultation – They will conduct an in-depth review of your business finances to gain clarity on the full scope of debts owed. This allows them to provide specific advice tailored to your unique situation.
  2. Client Agreement – Once settling on a debt relief strategy, they will formally define the terms of services in a client agreement clearly detailing the process, expectations, and fees involved.
  3. Account Management – Your dedicated Account Manager takes over communicating with creditors and negotiating reduced payoff amounts. They leverage various tactics to pressure the MCA provider – for example highlighting violations of state laws regarding usury rate caps and lending practices.
  4. New Payment Terms – Upon securing a settlement offer, they present the proposed repayment plan for your approval. This maps out new, affordable payment amounts over a fixed time period.
  5. Debt Resolution – As you make the agreed-upon payments into an escrow account, the funds are eventually released to the creditor as final settlement of your outstanding debt balance.
See also  Alabama MCA Defense Lawyers Business Debt Relief

Key Laws & Protections for Georgia Businesses

Your debt relief provider can leverage various state and federal regulations to pressure MCA companies into settling your balances. Examples for Georgia include:

  • Usury rate caps – Georgia has usury laws limiting maximum allowable interest rates on commercial loans made by state-regulated lenders. While MCA providers claim exemption from these as “cash advances”, these usury caps still apply according to some legal interpretations.
  • Licensing requirements – The Georgia Industrial Loan Act requires lenders making commercial loans to register for special licensing. Unlicensed activity can be reported to state authorities for investigation.
  • Deceptive trade practices – Georgia’s Fair Business Practices Act prohibits unfair or deceptive conduct by a business seeking to obtain services. Failure to clearly disclose repayment terms could constitute violation.
  • Harassing collection tactics – Federal FDCPA and Georgia FDPCA laws ban excessive creditor harassment tactics like calling before 8 AM or after 9 PM.

While MCA contracts require settling disputes through arbitration, Georgia still provides useful protections on paper. An experienced debt relief firm knows how to leverage these intricacies to their advantage in negotiating debt settlements.

What Makes a Good Georgia Business Debt Relief Company

If you decide to enlist help getting relief from overwhelming MCA debt as a Georgia small business owner, make sure to vet prospective companies thoroughly first.

Warning Signs to Avoid

  • Charges large upfront fees before settling any debts
  • Makes unrealistic promises to “eliminate” all your debt
  • Pressures you to stop paying creditors altogether

Positive Indicators

  • Detailed explanation of their negotiation process
  • Customized solutions based on your situation
  • Flexible engagement options

As mentioned previously, Delancey Street has an excellent reputation helping Georgia business owners find affordable solutions to seemingly hopeless MCA debt scenarios. While results cannot be guaranteed, they have a strong track record opening doors for small business clients to rebuild and recover.

See also  Arlington MCA Defense Lawyers Business Debt Relief

Georgia Business Debt Relief – In Conclusion

Unmanageable MCA debt pushes many Georgia small business owners to the breaking point every year. Instead of continuing to struggle or making the desperate move to close up shop entirely, take back control with help from a reputable debt relief service. They can negotiate reduced payoff amounts that free up cash flow, allowing you to return focus to keeping your business afloat.With the right partner taking on communications and leveraging every angle on your behalf, you can finally glimpse the light at the end of the debt tunnel. Don’t wait – start exploring options for Georgia MCA debt relief today.


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