I couldn't pay the Merchant Cash Advance company, and now I have defaulted.
What should I do?
Many business owners are caught between a rock and a hard place when it comes to merchant cash advance debts. Sometimes, merchant cash advance companies act so aggressively and unprofessionally upon a non-payment that business owners just refuse to pay them on principal. Other times, the business owners recognize that if they pay what the merchant cash advance company says they owe, the business would go bankrupt right away.
In the eyes of merchant cash advance companies, they are untouchable because they believe that you signed your life away when you signed the merchant cash advance agreement. However, that isn’t always the case – in fact, it usually is not the case.
Merchant cash advance companies often use the confession of judgment (or judgment by confession) to obtain a quick judgment, and you might not even know about it until you receive something from the court in the mail. A lot of the time, you’ll see that it’s entered in a state like New York or Pennsylvania.
Once the merchant cash advance companies obtain the judgments against your business and you, personally, they can cause substantial harm to your business through asserting UCC liens, freezing and levying bank accounts, and sending threatening letters to your clientele. This might not just harm your business – it might completely destroy it.
Your clients might refuse to pay you, or your credit card processor might lock up funds that are rightfully yours. Banks are often required to freeze your accounts, which can hold up payments you need to operate your business. When one thing leads to another, it is not uncommon that a company facing these issues falls behind on payroll, taxes, and other costs of doing business.
If you are in a situation like this, it is vital to hire a law firm with experience in handling merchant cash advance companies and the legal issues you will see. Sometimes, litigation is necessary, and you should hire an aggressive law firm to protect your business and you, personally.
Romaguera Law Group has that experience, and we have a track record of negotiating settlements and litigating cases against merchant cash advance companies. Call us today for a completely FREE consultation and evaluation of your situation.