MERCHANT CASH ADVANCE ATTORNEY ALABAMA (2024)

• Do the majority of your Alabama Business Revenues go towards daily or weekly ACH payments for your Alabama Merchant Cash Advance?
• Did you sign a Personal Guarantee in order to obtain your Alabama MCA?
• Did your Merchant Cash Advance Funder make you sign a document titled “Confession of Judgment” or “Agreed Judgment?”
• Has your Merchant Cash Advance Lender filed a lawsuit against you and the business?
• Has a UCC Lien been filed against your business assets, your account receivables or your credit card processor?
• Did your Merchant Cash Advance Funder contact your clients and damage your business name and reputation?
• Has your Alabama Merchant Cash Advance Funder or their Collection Attorneys contacted your clients directly to instruct them to send money owed to you, to them instead?
• Are you paying a fixed amount on your Merchant Cash Advance loan?
• Is your Alabama business being debited for a Merchant Cash Advance despite a change or decline in cash flow, revenues and receivables?
• Are Alabama Merchant Cash Advance Funders, their attorneys or collection agencies calling, texting, harassing or threatening you or your family?
• Does your Credit Card Terminal have a lock box?
• Do you need to Restructure your Merchant Cash Advance payment schedule to monthly payments, without interest?
• Have your personal or business bank accounts been levied, frozen or restrained because you defaulted on your Merchant Cash Advance repayments?
• Have your clients or vendors been contacted directly by your Alabama Merchant Cash Advance Funder?
• Did you attempt to restructure your MCA payments with your Merchant Cash Advance Funder due to a decline in the business and its accounts receivables?

If you answered “Yes” to any of these questions, call your Alabama Merchant Cash Advance Attorneys.

Merchant Cash Advance Attorney – ALABAMA

A Merchant Cash Advance remains one of the most devastating lending instruments available to cash strapped businesses. Rather than infuse the business with necessary funds, the MCA eats away at the businesses revenues and cash, until the ACH repayments (daily or weekly) become cost prohibitive and inevitably impossible to repay.

While ALABAMA still has no specific regulation or laws governing Merchant Cash Advances and MCA Funders, the topic remains front and center with regulators and administrative bodies such as the Securities and Exchange Commission looking at regulating the industry.

People find the practice of usury inhumane and distasteful, there are others who feel businesses should be free to profit from legal nuances and at the expense of small business.

It is interesting to note that ALABAMA actually regulates Payday Loans.

Unfortunately, its protections apply to consumers only, because a Payday Loan is marketed and sold to individuals only and thus the law does not extend to commercial financing products such as a Merchant Cash Advance. In fact, it is entirely up to each State to regulate Payday lending within its own borders.

Therefore, the regulation that does exist, is targeted at consumer borrowing, not commercial and while some States like California and New York have already or are enacting laws that SPECIFICALLY govern a Merchant Cash Advance within its ambit of coverage, no such laws have been passed in ALABAMA to date.

Contact: Grant Phillips Law, PLLC, a New York based Law Firm focused on Merchants and specializing in defending small businesses against Merchant Cash Advance loans across all 50 States as well as Merchant Cash Advances originated by a resident of ALABAMA.

DEFAULTING ON A MERCHANT CASH ADVANCE

What happens if I default on my Merchant Cash Advance?

When a merchant defaults on their Merchant Cash Advance, there are several possible repercussions.

Your MCA Funder may choose to enforce all, or some of the following acts:

1. File a UCC-1 Lien with an Information Subpoena and Restraining Notice with all your creditors, in order to enforce its UCC-1 Lien filing. These documents are designed to notify anyone and everyone that owes the business money that those funds must be sent to the Merchant Cash Advance Funder rather than to the business.

2. Additionally, a Merchant Cash Advance Funder may Commence a Lawsuit against the business and you personally, for “Breach of Contract” and “Unjust Enrichment.”.

3. An MCA Funder may also try to Freeze/Levy your business and or personal bank accounts.

** Please note that your MCA Funder is permitted to try enforce its MCA Agreement through lawsuit, UCC Lien and or a bank account levy, and each Action is independent of the other, but may be brought simultaneously in the event of default.

Not every Merchant Cash Advance default is a breach of contract.

If your receivables have declined for example, your non-payment and subsequent default may not be a breach of the Merchant Cash Advance Contract.

For a thorough analysis of your legal rights and whether your default is a breach of contract and if so, what may be done, call the MCA Attorneys at Grant Phillips Law, PLLC – 516.670.5165

TAKE BACK YOUR RECEIVABLES… TAKE BACK YOUR BUSINESS …

Merchant Cash Advance Attorney ALABAMA

Did you know?

In the State of Alabama there is no licensing requirement to become an MCA lender or broker!

Some States are beginning to take a look at this for example California and more recently the States of New York, Utah and Vermont, but at present, neither require background checks, licensing, posting of a bond or enrolling in a registration system. In fact, there are NO laws that exist to govern the creation of a Merchant Cash Advance Funder and a Merchant Cash Advance Brokerage in the State of ALABAMA.

Merchant Cash Advance Attorney Alabama

Did you know?

New York State enacted a law on August 31^st, 2019 banning New York Merchant Cash Advance Funders and other types of lenders from issuing Confessions of Judgment to a Merchant residing out of the State of New York, such as an ALABAMA Merchant.

In other words, it is illegal to be provided with a Confession of Judgment in the MCA Contract or to be asked to sign a Confession of Judgment as part of a Merchant Cash Advance closing.

*** PLEASE NOTE*** Many Merchant Cash Advance Funders try to include these documents in their contracts and attempt to disguise it by renaming the CONFESSION OF JUDGMENT an “AGREED JUDGMENT.”

Agreed Judgments are Confessions of Judgment.

For example, a borrower from Alabama takes out a Merchant Cash Advance from a New York Merchant Cash Advance Funder, it is now illegal for this funder to issue or ask the Alabama borrowing merchant to sign a Confession of Judgment or Agreed Judgment.

What is a Confession of Judgment?

A Confession of Judgment or COJ is a law that allows one party to obtain a judgment against another party without needing to file a lawsuit or go through the normal litigation process. Think of a Merchant Cash Advance COJ or Agreed Judgment as a judgment on “steroids,” it provides a judgment to the Merchant Cash Advance Funder without you getting a day in Court to defend yourself and your business from allegations of your breaching the Merchant Cash Advance Contract. In summary, a COJ and Agreed Judgment detracts from your fundamental constitutional right to a day in court, also known as Due Process.

• Did you sign a Confession of Judgment?
• Did you sign an “Agreed Judgment?”
• Were you promised a term loan?
• Will your personal credit be affected by defaulting on your MCA’s?

Contact Grant Phillips Law, PLLC. Merchant Cash Advance Attorneys ALABAMA– 516.670.5165

Merchant Cash Advance Attorney Alabama

Why is the Merchant Cash Advance market centered around New York?

New York City remains the hub of finance and financial transactions throughout the world. Like other forms of alternative finance, the world of Merchant Cash Advance found a stronghold and “home” in New York City.

Also, as an alternative form of financing (without limitations in interest charged), made Merchant Cash Advance very attractive to alternative investors, predominantly located in New York City and Wall Street. Additionally, many MCA investors are located in New York and so it was New York that facilitated the coming together of investors and Funders of Merchant Cash Advance and has been the epicenter of the industry ever since.

Finally, with Manhattan the epicenter of economic and world finance, coupled with the fact that the largest lenders, banks, private equity and law firms are generally located there, it is no wonder that Merchant Cash Advance loans are dominated by New York based lenders.

Another major reason that Merchant Cash Advance funders set up shop in New York State, is because, prior to the law being repealed, New York Law permitted Merchant Cash Advance funders to issue a borrowing Merchant, the infamous “Confession of Judgment.”

As stated earlier in this article, on Aug 31^st, 2019, this law was updated to prohibit New York Merchant Cash Advance Funders from issuing a COJ to an Alabama resident.

Grant Phillips Law, PLLC – Merchant Cash Advance Attorneys providing Merchant Cash Advance Defense and Debt Relief to ALABAMA Merchant Cash Advance Borrowers..

Merchant Cash Advance Attorney Alabama

Did you know?

Twenty-Three (23) year ago information about Merchant Cash Advance loans became available and publicly accessible. Specifically, an individual by the name of Barbara S. Johnson is listed as the official inventor of split-funding, a system that allows for automatic loan repayment to the funders from a single credit card processor shared with the Merchant. Ms. Johnson obtained a Patent for this system in 1997.

Her story is fascinating. Johnson was running four Gymboree Playgroup & Music franchises. Unable to get working capital to fund a summer marketing campaign, she wondered whether she could borrow against future credit card sales derived from parents bringing their kids back for fall classes. About a year later, Johnson and her husband founded Advance Me, a Merchant Cash Advance Funder. Her Patented technology (allowing for the splitting of credit card sales) was a major step in the birth and growth of the Merchant Cash Advance world. Later her company would become CAN Capital, a major player in the MCA lending space.

Merchant Cash Advance Attorney Alabama

Did you know?

The interest rate or effective APR on a Merchant Cash Advance is so excessive and in turn profitable for Merchant Cash Advance funders that large publicly traded companies have also entered the Merchant Cash Advance arena. Some examples include Shopify, Square, PayPal, Amazon and even American Express. There are also major investment banks like Goldman Sachs and Morgan Stanley backing several Merchant Cash Advance funders and hedge funds.

Merchant Cash Advance Attorney Alabama

Did you know?

The attorneys at Grant Phillips Law, PLLC have seen cases where the effective APR on a Merchant Cash Advance was in excess of 1,000% – This is NOT a misprint, again this law firm has seen several Merchant Cash Advance Contracts with an effective APR of 850%!

If your Merchant Cash Advance positions are eating away at your business cash flow and revenues, don’t hesitate to contact ALABAMA Merchant Cash Advance Attorney Grant Phillips representing clients in ALABAMA and across all 50 States.

Your Business – Your Money

You put in time, money, equity, experience and knowledge into building your business. It feeds you, supports your family, creates jobs and as such is worth fighting for. Let Us Help You! Grant Phillips Law, Merchant Cash Advance Attorneys ALABAMA– a Merchant Cash Advance Defense Law Firm.

GRANT PHILLIPS LAW, PLLC has the success, results, knowledge, compassion and experience to handle all your Merchant Cash Advance positions, no matter what State you call home, including the State of ALABAMA.

Merchant Cash Advance Attorney Alabama

You have questions: We have answers.

• Is my bank account safe during settlement negotiations?
• What is the Legal Representation fee?
• Can you handle a lawsuit with any funder?
• Do we have to sue or can we negotiate a settlement?
• Do the lawyers at Grant Phillips Law review and inspect each contract and all accompanying paperwork for flaws, illegality or unreasonable clauses?
• Will the funder continue to ACH my account during settlement negotiations?
• Will the hiring of Grant Phillips Law end the phone calls, texts and constant harassment?
• Should I change my credit card processing machine?
• Should I switch my bank account?
• What can I do during settlement negotiations?
• How long does a settlement take?
• Will a settlement show on my credit?
• My funder is contacting my clients and claiming ownership of my receivables, will a settlement put a stop to it?
• Is the law firm of Grant Phillips Law able to tackle any funder?
• Can Grant Phillips Law represent me if I am a resident of ALABAMA?
• Can you put an end to daily payments?
• Are you able to put me into a Monthly payment plan?
• Can you lower my principal?
• What if I payoff my loan early?
• How does a settlement work when I have multiple or stacked positions?
• Does Grant Phillips Law obtain a formal Stipulation of Settlement Agreement documenting the settlement?
• What happens to my Merchant Cash Advance loans if I file bankruptcy?
• What happens to the personal guarantee when a settlement is reached?
• If a Judgment has already been filed against my business and I, can it be vacated?

For answers to these questions and any other you may have, don’t hesitate to contact the Merchant Cash Advance Attorneys at Grant Phillips Law, PLLC. A Merchant Cash Advance Law Firm.

Let our Law Firm alleviate the stress, worry and sleepless nights. Let us help you get your business back on track.

Reclaim your Revenues

Grant Phillips Law can help me with my MCA positions!

Yes, Grant Phillips Law has successfully negotiated hundreds of Merchant Cash Advance settlements and filed hundreds of lawsuits against the majority of Merchant Cash Advance Funders.

We are a law firm with a practice dedicated entirely to Defending Merchants from Merchant Cash Advances and Predatory Lending.

Merchant Cash Advance Defense Attorneys, Grant Phillips Law, has settled or litigated and won hundreds of Merchant Cash Advance lawsuits against virtually every MCA Funder, whether the funder is located in Alabama, New York or elsewhere.

We handle multiple positions, even if “stacked,” and the law firm can also assist if a UCC lien has been filed against the business receivables or a lawsuit commenced against you personally and or against your business.

Our Merchant Cash Advance Defense Law Firm is well versed in the law and we will fight zealously in our representation of you and your business and uphold your legal rights and privileges.

Which MCA Funders has Grant Phillips Law settled a Merchant Cash Advance with?

The following is a list of some of the Merchant Cash Advance Funders that Grant Phillips Law have EITHER negotiated a settlement with, or sued successfully.

** Please note: This list is non-exhaustive, but rather a sampling of those MCA Funders we have engaged with on behalf of Merchant Borrowers:

GRANT PHILLIPS LAW, PLLC

Merchant Cash Advance Defense Law Firm

• REPRESENTING MERCHANTS ACROSS THE UNITED STATES.
• REPRESENTING MERCHANTS WITH MULTIPLE POSITIONS.
• REPRESENTING MERCHANTS WHO SIGNED PERSONAL GUARANTEES.
• REPRESENTING MERCHANTS WHO HAVE BEEN SUED BY AN MCA FUNDER OR THEIR MCA COLLECTION ATTORNEYS.
• REPRESENTING MERCHANTS WHO HAVE A JUDGMENT AGAINST THEM.
• REPRESENTING MERCHANTS DEALING WITH UCC LIEN FILINGS AGAINST ACCOUNTS RECEIVABLES.