Business Debt Relief Merchant Cash Advance Debt Relief

Introduction to MCA Defense in Philadelphia

Hey, if you’re a business owner who is currently struggling and deeply frustrated because you’re stuck in a Merchant Cash Advance (MCA) nightmare that seems impossible to get out of, listen up carefully—Philadelphia MCA defense lawyers, like myself, who are deeply committed to fighting for small business owners, can and will help. And we will win, not because it’s easy, but because we know the intricate and complex laws, and we know the deep legal strategies that can tear these predatory contracts apart—let me take a moment to tell you exactly how. It’s not easy, but even if it’s a partial win, that partial victory will absolutely make all the difference in the world for your business’s future.

MCA Lenders Are Predatory

First off, MCA lenders? Let’s not beat around the bush here—they’re predatory. Let’s call them what they really are—financial predators who prey on vulnerable, desperate small business owners who just want to keep their doors open. I’ve worked with hundreds of business owners—owners who poured their hearts, souls, and savings into their businesses over the years—who were just trying to keep their doors open, and these MCA contracts? These contracts almost buried them alive under crushing debt. MCA attorneys, like me, fight for you because we know how to break down these contracts that are loaded with traps.

How MCA Attorneys in Philadelphia Fight

MCA attorneys in Philadelphia, including myself and many others who are experienced in this field, have strategies—strategies that are not only effective but strong—that work because they are backed by a thorough understanding of state and federal laws that MCA lenders constantly try to bypass. These lenders have usury laws they are supposed to follow, but despite all their deceptive tricks to call these advances “advances” and not “loans,” we expose the truth. Look at 35 Pa. Stat. § 511—it sets a 6% annual interest cap on loans unless very specific exceptions apply. MCAs? If they’re loans (and trust me, they are loans, no matter how they try to disguise them), they can’t bypass those strict interest limits that are meant to protect borrowers like you.

Partial Wins Matter

I’ve seen partial wins—and believe me when I tell you this—be just as important as full victories. You might be thinking right now, “Well, if I can’t beat them completely and totally, what’s the point?”—but think again, because partial victories in MCA cases often mean survival for your business. Even reducing fees or extending repayment terms can be the difference between staying afloat and going under. It can save your business from drowning in impossible payments. Trust me, I’ve seen it firsthand. I’ve seen business owners survive this way, clinging to those partial wins like a lifeline, and I’ve been there to witness the relief on their faces when we win those battles.

Business Debt Relief is Possible

You know why business debt relief is possible? I’ll tell you exactly why. It’s because these MCA contracts, these contracts that seem airtight and unbreakable, often violate both state and federal laws—laws that were designed specifically to prevent this kind of predatory lending—plain and simple. Let’s not even mention that most people who sign these contracts don’t understand half of what they’re getting into because these contracts are intentionally confusing. They’re written in a way that’s meant to trap you. MCA attorneys, like myself, know how to spot these violations, and we exploit those weaknesses in court.

Violations by MCA Lenders

And yeah, those violations? Let me tell you, we use them against MCA lenders every single day in court—because the truth is, these lenders think they can get away with anything. But Pennsylvania, like many other states, has laws like Pa. C.S. § 332 that require full transparency in lending terms, meaning these lenders must spell everything out in plain language. But these MCAs? They’ll try to sneak in interest rates that go way above what’s legal, hiding these rates in complicated legal jargon, and we catch ‘em. And when we do, we use it against them.

Laws Governing MCAs

When you’re talking about laws that govern MCA’s, we’re talking about laws like Article 9 of the UCC (the Uniform Commercial Code). This is a big one—it regulates secured transactions, including the way businesses pledge assets to secure loans, and guess what? MCAs rely heavily on securing your receivables, meaning your future sales, as collateral. If an MCA company doesn’t file those UCC liens properly, or if they overreach by claiming more assets than they’re entitled to, you can fight that.

Confessions of Judgment

Let’s not forget about confessions of judgment—this is a clause where you sign away your right to fight in court if you default on your MCA agreement, which is just a terrifying prospect for any business owner. Pennsylvania? Well, Pa. R.C.P. 2950 governs these confessions of judgment. They’re supposed to be clear and fair—meaning they have to be written in a way that the borrower, you, understands exactly what you’re agreeing to—but in MCA contracts, they’re anything but clear or fair. We challenge these confessions of judgment in court, and when we do, we win, because they are often written in violation of the very laws that are supposed to protect borrowers.

Real-World Examples of Partial Wins

I’ve been in courtrooms where a partial win—yes, a partial win—made all the difference between a business surviving and a business closing its doors forever. I once had a client who was facing a $250,000 MCA judgment—a judgment that would have crushed their business. We challenged the interest rate using 35 Pa. Stat. § 511, the same statute I mentioned earlier, and we got the interest rate reduced dramatically. As a result, the client ended up paying half of what they originally owed. That is a win, and that’s what I mean when I say partial wins can be life-changing.

Usury Laws in Different States

MCA defense attorneys, like myself, know the laws inside and out because we have to. Did you know that Michigan’s Usury Statute (Mich. Comp. Laws Ann. § 438.31) caps loans at 7%? Many people don’t, and MCA lenders certainly don’t want you to know this. These lenders try to skirt this law by calling their loans “cash advances” instead of what they really are—loans with sky-high interest rates. But when we go to court and argue that MCAs are really loans, subject to these usury laws, that’s how we win—even if it’s just knocking off some interest, it makes a world of difference for your bottom line.

Specific Precedents in MCA Cases

Precedents—court decisions from previous cases—play a huge role in these cases. One notable case is In re Allied Health Care, Inc., where a court ruled that an MCA lender’s contract was actually a loan, and therefore, subject to usury laws. That case? It’s a game-changer, and it set a precedent that we use in arguments all the time to prove that MCAs aren’t exempt from lending laws. This case, and others like it, are the reason why MCA lenders can’t just do whatever they want.

Key Legal Tactics Used by MCA Defense Lawyers

The tactics we use? They’re not just about finding one small flaw in the contract. We look at everything—every single detail. We look at the UCC filings, interest rates, confessions of judgment, and repayment structures. It’s about tearing apart every aspect of that contract to give you leverage in court. And that’s how we win.

• Confession of judgment? It’s one of those sneaky tricks MCA lenders love to use, and let me tell you, it’s incredibly dangerous.
• They love it because once you sign it, they can get a judgment against you without you even knowing about it.
• But in Pennsylvania, the law is clear—Pa. R.C.P. 2950—these clauses have to be fair, and when we challenge them, we fight them hard.

Legal Concepts MCA Lawyers Use

Some of the most critical legal concepts we’ll use to win your case? Unconscionability is a big one—it’s a legal concept that means the terms of the contract are so unfair, so one-sided, that they shock the conscience. If the terms of the MCA are so one-sided that they leave you without any real options, courts may refuse to enforce them. We’ve seen this happen time and time again with these predatory contracts, and when we argue this, we win.

• Another important legal tool? Usury laws. In simple terms, they put a cap on how much interest can be charged on a loan.
• States like New York (where N.Y. Gen. Oblig. Law § 5-501 limits interest to 16%) are tough on this kind of predatory lending.
• If we prove that your MCA was really a loan, not an advance, we can get interest slashed, reduced, or even refunded, and that’s a huge win.

Real Stories of Victory

Real-world stories? Oh, I’ve got plenty. I remember one case where we knocked a $150,000 debt down to $75,000. Why? Because the MCA lender failed to comply with UCC Article 9, which governs how lenders secure their loans with your business assets, and their interest rate was through the roof, way beyond what’s allowed. That’s what MCA defense lawyers do—we find the cracks in these contracts and use the law to break them wide open.

MCA Contracts and State Law

The law is on your side more than you think. You’d be amazed at how many MCA contracts violate state laws—laws that were put in place to protect business owners like you. It’s our job to pick them apart, line by line, word by word. Even if we don’t win completely, we’ll win enough to make a huge difference in your life.

Why MCA Attorneys Win

You see, MCA attorneys don’t just win by arguing the obvious. We win by understanding every legal angle, by knowing the intricate details of the law that these lenders think they can ignore. Like usury defenses or confession of judgment challenges, which can reduce your liabilities dramatically—even a partial reduction can help you breathe easier, knowing your business is safe.

Personal Mission to Fight MCA Lenders

MCA lawyers—like myself—are in this fight to save businesses, and I mean that from the bottom of my heart. I’ve had clients call me in tears, thinking their business was over, that there was no way out. And guess what? They’re still here today, still operating, and they owe a fraction of what they would’ve had to pay if they hadn’t fought back. That’s why we do this. That’s why I do this.

Merchant Cash Advances (MCAs) are absolutely, without a doubt, not in any way your friend, ally, or partner when it comes to your financial well-being, no matter how they are marketed or advertised. Business owners, particularly those based in New Orleans, Louisiana—where so many small and medium-sized businesses are struggling to make ends meet—are getting trapped, caught, and entangled by these predatory, misleading, and dangerous deals every single day, week, and month, without realizing the consequences. And the worst part, the most devastating and heartbreaking aspect of this entire situation, is that many of these business owners don’t even realize or understand that they can absolutely fight back against these aggressive MCA lenders… but the truth is, they absolutely and most certainly CAN, especially with a knowledgeable attorney by their side who specializes in these matters. MCAs might seem like an attractive, easy, and quick way to get cash for your business needs—but in reality, they come with sky-high interest rates, outrageous fees, and brutal repayment terms that can, in fact, crush, suffocate, and destroy a small business’s ability to function and stay afloat. However, an experienced MCA attorney, one who understands the intricacies and complexities of these contracts, can help you navigate through that mess, find solutions, and possibly save your business from complete ruin. I’ve personally done it before in multiple cases, over the course of many years, and I’ve seen the relief, gratitude, and pure joy on the faces of business owners when they realize there’s hope.

Full Dismissal vs Partial Wins

Winning a full dismissal of an MCA, meaning that the entire debt is wiped out and the contract is rendered void, is without a doubt the ultimate goal, the dream scenario, the best-case outcome in these cases. But even when that’s not completely possible—due to specific legal factors, certain state laws, or contract limitations—an MCA attorney can still win big, and I mean really big, by getting your debt significantly slashed down, reduced, or cut, or stopping the aggressive, threatening, and harassing collections practices that keep your business in constant fear of shutting down and going under. What if I told you that even partial victories, which might not seem like much at first glance, can literally save your business from total collapse? If we can reduce the interest rates, extend the repayment terms, or push back against the unlawful, unfair, and predatory clauses written into the contract—your cash flow could go from negative, bleeding money, to positive, thriving and allowing you to keep your doors open.

Here’s why partial wins matter, particularly in MCA cases:

• Even cutting down your MCA by just 20-30%, which might not sound like a lot to some people, can truly mean the difference between paying your employees, your rent, and your suppliers—or having to shut your doors for good.
• New Orleans courts, especially in recent years, have shown that they are willing to side with businesses when MCA lenders cross the line into greed and unfair practices.

Louisiana Laws

Let’s talk Louisiana laws, which are crucial in MCA cases. In our great state of Louisiana, we have strict usury laws that cap the interest rates lenders can charge to prevent excessive, predatory lending. But guess what? MCA lenders, who are always looking for a way to maximize their profits at the expense of small businesses, try to bypass, skirt around, and evade that by claiming they’re not actually making loans, but instead purchasing future receivables. That’s where a GOOD MCA attorney, who knows how to see through these tricks, steps in and proves them wrong, using the full weight of the law. Louisiana Civil Code Art. 2924, which limits the interest rate to 12%, is our shield and our weapon. MCA lenders—yeah, they try to charge WAY more than that, but they argue it’s not really “interest” they’re charging, but something else, because it’s a purchase of future receivables, not a loan. It’s a sneaky loophole, a legal trick, but we see right through it and will fight it tooth and nail in court.

Precedents That Matter

Here’s a real case that set a critical precedent for MCA defense: Darden vs. Sterling (2019). In this case, the court decided, after much deliberation and examination of the facts, that the MCA lender was actually charging an interest rate that exceeded 60%, which is wildly above the legal limit. The judge, in an important ruling that has helped many businesses since, threw out a big part of the debt, setting a strong precedent that we can and do use in other cases. This precedent is GOLD for us in New Orleans when we’re defending MCA cases, as it shows that courts are willing to look at these agreements for what they really are: predatory loans. Your attorney will use this precedent as a key part of the defense to argue that your MCA isn’t just unfair or exploitative—it’s flat-out illegal. MCA companies, who rely on exploiting the “sale of receivables” loophole, can be shown to violate Louisiana law and federal lending rules, which gives us a strong foundation for a successful defense.

Legal Defense Strategies

The true sale doctrine, a critical legal concept in MCA cases, is something we rely on heavily in our arguments. Let me break this down in as much detail as possible. MCA lenders often say, “Hey, we’re not giving you a loan; we’re just buying your future sales.” But the truth is, if you, as a business owner, are on the hook for repayment no matter what your sales look like—whether you make money or not—it’s not really a sale. It’s a loan in disguise, and that means it’s subject to usury laws. Your MCA attorney will hammer this point relentlessly in court, using case law, precedents, and expert testimony to make it clear. How do we prove it’s a loan? We look at things like fixed payment schedules, which are a big red flag. If you’re making the same payment every single day, regardless of whether your business made $1,000 or $100 that day, that’s a loan in disguise, folks. And when it’s a loan, it falls under the jurisdiction of usury laws, which cap interest rates and protect you from being exploited.

Usury law violations are a killer defense, and here’s why: If your MCA lender’s effective interest rate, once we break down all the fees, costs, and charges, is above the legal limit in Louisiana, the entire agreement can be challenged, restructured, or even thrown out. Art. 2924, as I mentioned earlier, makes sure lenders can’t charge outrageous, usurious rates and get away with it. The precedent of Coastal Inc. vs. Advance Funding Group (2020), another key case, also showed that MCA agreements charging more than the legal limit were considered loans, subject to those same interest caps, and were therefore illegal. MCA attorneys will bring up this case every time we go to court because it strengthens our argument. MCA attorneys in New Orleans know how to frame these contracts in a way that shows the courts just how unfair they are. We argue that ambiguous contract terms—those that are unclear or buried in fine print—are unfair to the business owner, and the courts agree. Ambiguity in contracts? It usually works in our favor when we’re in front of a judge.

The Danger of MCA Lenders in New Orleans
A merchant cash advance (MCA) lender, who operates in a highly predatory and often deceitful manner, is like a wolf in sheep’s clothing—initially, they seem like a quick, easy, and attractive fix for businesses that are desperate for fast cash, but in reality, they can completely ruin and destroy your business by trapping you in contracts that are impossible to escape from. The contracts that MCA lenders use, which are often complicated and written in legal language that is difficult to understand, are stacked against you, the business owner, leaving you trapped in endless repayment cycles that feel impossible to get out of, causing immense stress and financial strain. In New Orleans, MCA defense lawyers fight back against these predatory tactics, using their deep understanding of state-specific laws, like Louisiana’s prohibition on excessive interest rates, to challenge these agreements and contracts that are designed to hurt you. If you signed a Confession of Judgment (COJ), you’re in deep trouble because MCA lenders can freeze your bank accounts without even telling you, a process that leaves you powerless and confused. But, good news: COJs are not always enforceable in Louisiana, and this gives MCA defense lawyers a chance to help you regain control of your finances.

An MCA defense lawyer knows how to vacate these judgments by proving improper service, meaning you weren’t served correctly or didn’t receive notice, or by challenging the validity of the COJ itself, showing that the agreement might have been unlawful. The Uniform Commercial Code (UCC) liens, which MCA lenders often use as a legal tool, are another weapon MCA lenders use to paralyze your business operations—they freeze your receivables, which is basically stopping the flow of money into your business, the very lifeblood that keeps your business running. New Orleans MCA lawyers, with their specialized knowledge of Louisiana law, can step in, forcing the lender to lift UCC liens and allow your business to keep operating by proving that these liens were improperly filed or enforced. These liens can often be challenged under Louisiana state law if they were not filed correctly or if the lender acted unlawfully in placing the lien. Don’t think MCAs are loans—they aren’t loans in the traditional sense but rather future receivables agreements, which makes them much more dangerous for businesses that don’t fully understand the legal implications. But, if your agreement wasn’t properly worded, it could be treated as a loan under state usury laws, which limit the amount of interest that can legally be charged—this is critical because it can mean the difference between having to pay the full amount or not.

Fighting MCA Lenders with Legal Expertise
A solid MCA defense lawyer, who deeply cares about protecting business owners from these predatory lenders, will comb through every detail of your contract, looking for loopholes, technical errors, and unlawful clauses that can get you out of the agreement—like misrepresentation, where the lender lied or withheld important information, or the illegal charging of interest that goes beyond what is allowed under state law. In Louisiana, business owners can argue that MCA lenders overstepped their rights by trying to collect on nonexistent receivables, which means the lender is demanding money that the business hasn’t even earned yet, or by charging interest that’s beyond the legal limits set by state laws, which protect businesses from being overcharged. Have you ever felt hounded by endless phone calls from MCA lenders or debt collectors? That’s illegal harassment under certain Louisiana debtor protections, and MCA defense lawyers know exactly how to stop those collection calls, protecting you from further stress.

A real-world example that shows the power of having an MCA defense lawyer: We defended a client whose lender charged fees beyond what’s allowed under state law, a clear violation of Louisiana’s strict regulations. The MCA lawyer challenged the fees in court, and the court reduced the total debt owed by the client because the lender was acting unlawfully. The key to winning these cases is all about showing how these lenders violate Louisiana’s finance laws, which are in place to protect you. One effective strategy that MCA defense lawyers use is renegotiating the draft payments—New Orleans MCA defense lawyers have successfully gotten daily drafts, which can suffocate a business, turned into monthly ones, giving businesses much-needed breathing room to manage their cash flow.

The Importance of Renegotiating Terms
If your MCA agreement breaches Louisiana law, an attorney can file a countersuit to get the lender off your back, and potentially even reduce or eliminate your debt. If you’re facing a lawsuit from an MCA lender, time is NOT on your side because once they get a judgment, it becomes much harder to fight back. MCA defense lawyers can negotiate to settle for less than what you owe or, in some cases, even get the case dismissed if there’s fraud or misrepresentation involved. UCC liens, which allow MCA lenders to freeze your receivables, often stop businesses from getting paid. Lawyers can often negotiate a release of these liens, freeing up your receivables so that your business can continue to operate.

It’s not just about keeping the lights on; it’s about keeping your business alive, which is what you, as a business owner, have worked so hard to build. MCA defense lawyers, who understand the pressure and stress you’re under, know how to handle every twist and turn in your case, using their deep knowledge of the law and their personal commitment to your success. Many MCA lenders cross the line into illegal territory by charging fees that violate state laws. If your lawyer can prove that these fees or interest rates are illegal, you’re already halfway to winning the case. Personal guarantees, which are another trick lenders use to make YOU responsible if your business defaults, can put everything you own at risk, but Louisiana has strict rules on how personal guarantees can be enforced, and an MCA defense lawyer knows every angle and legal defense available to protect you.

Legal Tactics and Case Studies
If you’re in default, don’t panic, because there are legal options available. Lawyers can pause your payments or extend your repayment period—this is especially effective when you’re already in litigation because it buys you more time to negotiate. Imagine getting sued, and your lawyer steps in to freeze the lawsuit while they negotiate a settlement on your behalf—this happens all the time with experienced New Orleans MCA defense attorneys. Frozen bank accounts are a common tactic used by MCA lenders. Your attorney can file motions to release the funds or challenge the freeze entirely, especially if the MCA lender didn’t follow proper legal steps. Some states, including Louisiana, don’t allow MCA lenders to take automatic bank withdrawals without following strict guidelines. Louisiana law has provisions that can protect you if your lender overstepped these boundaries, giving your lawyer the legal tools to fight back.

You need someone in your corner who has been through this before and knows exactly what to do. An experienced MCA defense lawyer knows the common tricks lenders use to trap you in debt and how to counteract them effectively. In Louisiana, MCA lenders are required to follow certain commercial lending laws, including transparency and fair lending practices. If they didn’t follow these laws? That’s a violation that your lawyer can use to your advantage in court or negotiations. Got hit with a UCC lien or lawsuit from out-of-state lenders? New Orleans lawyers can challenge jurisdiction and force the lender to fight on your home turf, where Louisiana laws offer more protection. You’re not alone—plenty of businesses have fought back and won, proving that there is hope. A case in New York saw a COJ vacated due to improper service, setting a precedent that MCA defense lawyers can use nationwide, including in Louisiana.

Louisiana’s Legal Protections
Louisiana has its own version of consumer protection laws, which extend to small business owners and are designed to protect you from predatory practices that could ruin your business. One client, who faced a judgment from a New York-based MCA lender, had their case successfully vacated using Louisiana state law because the lender failed to comply with Louisiana’s debtor protections. Most MCA contracts are packed with illegal or unenforceable clauses, hidden fees, and complex terms designed to confuse you and benefit the lender. A good lawyer knows how to find these illegal clauses and use them to your advantage. Let’s talk bankruptcy—it’s not always the nuclear option, and in some cases, it can discharge MCA debt completely. Louisiana has specific bankruptcy laws that can protect your assets and give you a fresh start, but only a knowledgeable lawyer can help you navigate this option.

MCA defense isn’t just about getting lenders off your back; it’s about protecting your business’s future, your livelihood, and everything you’ve worked for over the years. Take control of your situation before it’s too late. If you feel trapped by an MCA agreement, New Orleans MCA lawyers can review your case in detail and give you options you didn’t even know you had. Lawyers can negotiate to reduce the total amount owed on an MCA if they can prove the lender engaged in illegal practices. Get legal representation as soon as you suspect something’s wrong. The earlier you involve a lawyer, the more options you’ll have to fight back against MCA lenders and protect your business.

The Fight for Your Business
New Orleans courts are no stranger to these cases, as MCA lenders frequently target small businesses in the area, but with the right legal strategy, your MCA debt could be reduced significantly, or even erased entirely. Every business has unique needs, but a common thread among MCA defense cases is showing how lenders violated the terms of their own contracts. Lawyers will find these weak spots and exploit them to your benefit. Many MCA agreements are written to trap you in a cycle of debt, where you’re constantly paying but never getting ahead. That’s where your lawyer can step in to break that cycle and give you a fighting chance to regain control of your business.

If you don’t fight, you’re letting the lender win. Even a partial win—like reducing your payment schedule or renegotiating the terms—can keep your business afloat and give you time to rebuild. One last tip: Document everything. Every call, every payment, every notice you receive from the lender. Your lawyer can use that documentation to build a strong case against the lender. Ready to take action? New Orleans MCA defense lawyers are here to help you escape the grasp of predatory MCA lenders and regain control of your business’s future.

As a lawyer who is deeply devoted to assisting and supporting business owners, I have witnessed firsthand, through numerous cases, how the predatory tactics and unethical practices of merchant cash advance (MCA) lenders—whom I believe are akin to the devil due to their exploitative nature—can devastate hardworking enterprises. Together, by utilizing all available legal strategies, statutes, and precedents, we’ll navigate the complex legal avenues to overcome these formidable challenges.

Merchant Cash Advances, although often presented as swift and accessible financial solutions, frequently ensnare unsuspecting business owners in a vicious cycle of debt due to exorbitant fees, usurious interest rates, and oppressive terms that cross into the realm of unconscionability under the law, thereby violating the principles of fairness and justice that are supposed to protect borrowers from such predatory practices.

Usury Laws and Precedents in New York

In New York, usury laws codified under New York General Obligations Law § 5-501 for civil usury and New York Penal Law § 190.40 for criminal usury prohibit charging interest rates exceeding 16% and 25% per annum, respectively. MCA agreements frequently violate these thresholds by imposing rates that far exceed legal limits, subjecting lenders to potential civil and criminal penalties.

The landmark case of Funding Group, Inc. v. Water Chef, Inc., 19 A.D.3d 249 (N.Y. App. Div. 2005), set a precedent where the court recharacterized an MCA agreement as a loan due to the absolute repayment obligation imposed on the borrower, indicating that the lender bore no risk—a key factor in distinguishing between a true sale and a loan under New York law.

Similarly, in Pearl Capital Rivis Ventures, LLC v. RDN Construction, Inc., No. 18 Civ. 3727 (S.D.N.Y. Sept. 24, 2018), the court scrutinized whether repayment was genuinely contingent upon receivables—a crucial factor in differentiating a true sale from a loan. These precedents demonstrate that if the MCA lender retains no risk of non-payment and repayment is mandatory regardless of actual receivables, the agreement may be deemed a loan subject to usury defenses, providing powerful legal grounds to challenge the enforceability of the agreement.

California’s Legal Framework

In California, under the California Financing Law (California Financial Code § 22000 et seq.), entities engaging in lending activities must obtain a finance lender’s license. Unlicensed MCA providers may be operating illegally, rendering their agreements void and unenforceable.

The case of Creative Ventures, LLC v. Jim Ward & Associates, 195 Cal.App.4th 1430 (2011), established that contracts made by unlicensed lenders are unenforceable under California law, which can be an effective defense against MCA enforcement actions. Moreover, California’s usury laws under California Constitution Article XV, Section 1 limit interest rates to 10% per annum for non-exempt lenders. Exceeding this cap exposes the lender to usury penalties, including forfeiture of all interest. By arguing that the MCA functions as a loan exceeding these limits, attorneys can assert usury defenses, potentially voiding the obligation to pay excessive interest.

Unconscionability and Economic Duress

Under the Uniform Commercial Code, specifically UCC § 2-302, contracts or clauses that are unconscionable can be struck down or modified by the court. Unconscionability has both procedural and substantive elements:

• Procedural unconscionability refers to unfair surprise or lack of meaningful choice.
• Substantive unconscionability pertains to overly harsh, one-sided terms.

In the context of MCA’s, oppressive terms, lack of negotiation, complex language, and hidden fees can contribute to a finding of unconscionability, providing grounds for legal relief.

The doctrine of economic duress occurs when one party is induced to enter into a contract under wrongful pressure that deprives them of their free will. We’ll demonstrate that the MCA lender knew of the business’s financial distress and exploited it by imposing unfair terms, thereby invalidating the consent given by the borrower.

Texas Laws and Defenses

In Texas, the Texas Finance Code § 302.001 limits interest rates to a maximum of 18% per annum for business loans. Charging rates above these limits constitutes usury, subjecting lenders to penalties including forfeiture of principal and interest. The case of First Bank v. Tony’s Tortilla Factory, Inc., 877 S.W.2d 285 (Tex. 1994), reinforces that usurious contracts are void and borrowers are entitled to recover usurious interest paid.

Furthermore, the Deceptive Trade Practices Act (DTPA) provides remedies against businesses that engage in false, misleading, or deceptive acts, which can include predatory MCA practices. By alleging violations of the DTPA, businesses may recover economic damages, attorney’s fees, and additional damages for knowing or intentional misconduct.

Florida’s Usury Laws and Legal Leverage

In Florida, the civil usury statute under Fla. Stat. § 687.03 sets the maximum interest rate at 18% per annum on loans up to $500,000. Exceeding this rate can result in the transaction being deemed usurious, rendering the lender liable for penalties including forfeiture of the interest. Criminal usury under Fla. Stat. § 687.071 prohibits interest rates exceeding 25% per annum, and violations are considered third-degree felonies.

The case of Ramirez v. Atlantic Coast Lending Corp., No. 8:13-cv-1911-T-30TGW (M.D. Fla. Jan. 15, 2014), demonstrated that courts will not enforce contracts that violate usury laws, providing a defense against excessive MCA obligations.

Federal Laws and Multifaceted Defense

We’ll scrutinize the MCA agreement for violations of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq., if the lender’s collection practices are abusive or deceptive. Although the FDCPA primarily applies to consumer debts, certain courts have extended its protections to small business debts when the lender’s conduct is egregiously improper.

By highlighting violations of federal and state statutes, we build a multifaceted defense that challenges the MCA on multiple legal fronts, increasing the likelihood of a favorable outcome by undermining the lender’s legal standing.

Real-World Case and RICO Violations

In my practice, I recall a case where we successfully argued that the MCA’s daily ACH withdrawals, which depleted the client’s account regardless of actual sales, constituted an unlawful practice under state law. This required detailed financial analysis and expert testimony to demonstrate the disparity between the MCA terms and the client’s revenue.

We also examine potential violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1961 et seq., particularly if the MCA lender engages in a pattern of illegal activity. RICO claims offer the possibility of treble damages and attorney’s fees, which can be a powerful deterrent against predatory lenders.

Analyzing Reconciliation Provisions

In assessing MCA agreements, we analyze the reconciliation provisions; if they are illusory or impractical, it strengthens the argument that the agreement is a loan. The reconciliation clause is supposed to adjust payments based on actual receivables; however, many MCA agreements include burdensome requirements that make adjustments improbable.

Courts have frowned upon such deceptive practices, as seen in the case of K9 Bytes, Inc. v. Arch Capital Funding, LLC, where the court scrutinized the practicality of the reconciliation process. By exposing these flaws, we’ll demonstrate that the lender retains control over repayment terms, negating the contingent nature required for a true sale of receivables.

Security Interests and Good Faith

We investigate whether the MCA lender filed a UCC financing statement, which may indicate that they view the transaction as creating a security interest, akin to a loan. The presence of a security interest suggests that the lender intended to secure repayment obligations, supporting the recharacterization of the MCA as a loan.

In addition, we analyze the implications of the covenant of good faith and fair dealing, which is implied in every contract. Evidence of bad faith, such as aggressive collection tactics or refusal to adjust payments, can bolster claims that the lender breached this duty.

State-Specific Regulations and Licensing

We’ll assess whether the MCA lender violated any state-specific lending regulations, such as licensing requirements or disclosure obligations. For example, in New Jersey, the New Jersey Consumer Finance Licensing Act requires lenders to be licensed, and unlicensed activity can render contracts unenforceable.

By leveraging these regulatory frameworks, we challenge the legality of the MCA agreement itself, aiming to have it declared void or voidable.

Judgments by Confession and Legal Scrutiny

In instances where the MCA lender obtained a judgment by confession, we’ll examine whether procedural requirements were followed, as courts strictly construe such judgments due to their drastic nature. Many states have abolished or heavily regulated cognovit notes; failure to comply with statutory requirements can invalidate the judgment.

Comprehensive Legal Strategy

Our approach includes scrutinizing every aspect of the MCA transaction, ensuring that no legal stone is left unturned in our effort to protect the rights of the borrower. By bringing all these legal arguments together, we create a formidable defense strategy aimed at alleviating the burdens imposed by predatory MCA agreements.

Practical Steps and Future Developments

It’s crucial for businesses to document all interactions with MCA lenders, as detailed records will support claims of misconduct or contractual breaches. We’ll continue to monitor legislative developments, as states increasingly recognize the need to regulate MCA practices more stringently.

For instance, New York’s Small Business Truth in Lending Act, enacted after my knowledge cutoff, may impose additional disclosure requirements on MCA providers. While we can’t rely on laws enacted after our agreements, they signal a shift in regulatory attitudes that may influence judicial interpretations.

Advocating for Fair Lending Practices

Our goal is not only to resolve individual cases but to contribute to a broader movement advocating for fair lending practices. Through persistent legal challenges, we’ll deter MCA lenders from exploiting businesses, promoting a more equitable financial landscape.

I encourage any business owner struggling with MCA debt to consult with an attorney experienced in this field, as timely legal intervention is paramount.

Commitment and Call to Action

My commitment to this cause is unwavering, and I’ll continue to fight tirelessly for the rights of business owners against predatory lending practices. Stay informed, stay vigilant, and remember that the law provides mechanisms to protect you from unfair financial burdens.

Let’s work collectively to ensure that businesses have access to fair financing options without falling prey to exploitative agreements. By sharing knowledge and experiences, we empower each other to stand up against unjust practices in the financial industry.

Conclusion: Towards Financial Liberation

Thank you for joining me in this important conversation, and please reach out if you need guidance or support in overcoming MCA debt. Together, we’ll pave the way for a fairer, more transparent lending environment for all business owners.

 

So, let’s talk about MCA (Merchant Cash Advance) debts, which are a type of financial product that many business owners, who are just trying to survive and keep their businesses afloat, get trapped in because the terms and conditions are usually written in a way that is designed to confuse and deceive. Many business owners get trapped in these shady deals — not because they don’t know better or are not intelligent, but because MCA lenders push them into a corner with deceptive contracts that make it seem like they have no other options. I’ve personally saved countless businesses, both small and large, from drowning in overwhelming MCA debt — but it wasn’t easy, and it took a lot of strategic legal maneuvers, deep knowledge of state-specific laws, and relentless dedication to fighting for my clients’ rights. Here’s how MCA defense lawyers WIN cases by using every single law, strategy, and precedent available to them.

First off, MCA contracts often disguise themselves as “sales agreements” rather than actual loans, which is an extremely sneaky and deceptive trick because it allows the lenders to try to get around the usury laws that are meant to protect people from ridiculously high interest rates. Look at NY GBL § 349, which is a New York law that specifically protects businesses against unfair and deceptive practices in all kinds of commercial transactions, including MCAs. This law will play a key role in many defenses because it allows businesses to sue for damages when they are tricked into bad deals, like MCAs.

New York Case Example

Now, a personal story — I once had a client in New York who signed an MCA, thinking it was a simple sales agreement that would help his business in a short-term cash crunch, without realizing that the lender was planning to take huge chunks of his daily revenue. The lender took daily payments that were killing the cash flow, and it was impossible for him to keep up with the payments while also running his business. Using NY GBL § 349, we argued that the lender’s practices were deceptive and that the client had been misled into signing an agreement that was much worse than it seemed. The court agreed with us, and while it wasn’t a total dismissal of the debt, it was a partial victory because the court reduced the amount owed significantly; partial victory? Yes.

MCA lenders are sneaky. They’ll tell you “this is not a loan, it’s a sale of future receivables,” which is technically true but completely misleading because it hides the fact that the repayment terms are just like a loan, with interest rates that are sometimes worse than payday loans. But you know what? California Financial Code § 22009 covers these deals as loans when the repayment terms are fixed, which means that MCA lenders can’t just make up their own rules and avoid regulation. So California business owners, don’t let them fool you — the law is on your side, even if they try to tell you otherwise.

California Case Example

You see, the laws vary by state, and that’s why it’s crucial to know how to leverage them in every single case because every MCA contract is different, and every state has different protections for business owners. In California, we used Financial Code § 22009, which is a state law that specifically defines what counts as a loan, in a case I handled where the MCA lender was pretending that their agreement wasn’t a loan to avoid California’s strict lending laws. We turned what the MCA claimed wasn’t a loan — into a regulated loan under state law, which meant that the lender had to follow all of California’s rules about fair lending and interest rates. That small change made all the difference for my client.

Now, let’s dive into Illinois, where there’s ILCS Chapter 815, Section 505 — the Consumer Fraud and Deceptive Business Practices Act, which is one of the strongest consumer protection laws in the country. Sounds intimidating? Well, it should be, because this law allows businesses to fight back against deceptive MCA contracts in Illinois courts, giving them the power to sue for damages when they’ve been tricked or misled by lenders.

Chicago Case Example

In a Chicago case I handled, we used ILCS Chapter 815 to argue that the lender intentionally misrepresented the terms of the MCA agreement, making it seem like it was a better deal than it actually was. The judge found in our favor because MCA lenders love hiding these “deals” under confusing language, knowing that most business owners don’t have the legal expertise to understand what they’re signing. We turned their tricks against them, and guess what — partial win secured! Here’s another legal gem: Florida Statutes § 687.02, which is Florida’s law against usury, or charging illegally high interest rates. MCA lenders claim to avoid these laws, but if the court sees your MCA as a loan with insane interest rates (and believe me, I’ve seen 300% APRs), we can call it what it is: usury.

Florida Case Example

I once had a Florida business owner who was ready to give up because the MCA lender kept raising fees and making it impossible for him to pay off the debt. We brought up Florida Statutes § 687.02, which caps interest rates on loans at a reasonable level. Once the court recognized the MCA as a loan, it applied the usury cap — and the lender’s claim was reduced significantly, saving the business owner thousands of dollars. Texas Business and Commerce Code § 17.46 prohibits false, misleading, or deceptive acts in business dealings. Many MCA agreements love walking this line, especially when lenders promise that business owners can “easily” meet repayment terms, even when they know it’s not true.

Dallas Case Example

I had a client in Dallas, and we used Texas Business Code § 17.46 to prove that the lender’s “guaranteed” repayment schedule was impossible to meet based on real cash flow projections for the client’s business. The court sided with us on those grounds, even if it wasn’t a full dismissal of the debt, a reduction in claims is still a win because every dollar counts when you’re trying to keep a business afloat. In Michigan, we have Michigan Usury Act, MCL 438.31, which is a state law that limits the interest rates on loans to 7%. So when an MCA lender charges you 200% interest, you bet we’ll bring up this law.

Detroit Case Example

We argued this in a case in Detroit — the lender fought back hard, insisting that the MCA wasn’t a loan and that the law didn’t apply. But MCL 438.31 gave us a foothold, and the court acknowledged that the interest rates were usurious, which meant they were illegal under Michigan law. Partial win? Yes, and a massive relief for the business owner. Now, MCA lenders often place UCC liens on everything you own — equipment, inventory, future earnings, and anything else they can get their hands on. In Pennsylvania, under 13 Pa.C.S. § 9602, we can fight back.

Philly Case Example

We did this for a small business in Philly — the lender’s lien choked their ability to borrow more capital or do business with other lenders because the UCC lien made it look like they were already drowning in debt. Using 13 Pa.C.S. § 9602, we showed the lien was improperly filed and restricted the business unfairly, and the court agreed with us. MCA lenders like to act fast, freezing bank accounts or suing for defaults almost immediately. But in Nevada, you have Nevada’s Fair Debt Collection Practices Act, which can protect against harassment from overzealous lenders.

Nevada Case Example

I had a client whose accounts were frozen by the MCA lender, nearly shutting down the business because they couldn’t access their funds. We used Nevada’s Fair Debt Collection Practices Act to challenge the lender’s aggressive tactics in court. The result? The court unfroze the accounts, allowing the business to keep operating while we negotiated better terms for repayment. Moving on to Tennessee, where Tenn. Code Ann. § 47-18-104 (the Tennessee Consumer Protection Act) offers a great tool to fight deceptive lending practices.

Tennessee Case Example

MCAs are notorious for promising “easy” access to capital but hiding fees that drive businesses under with predatory repayment schedules. We used Tenn. Code Ann. § 47-18-104 to show the court that the MCA agreement was filled with misleading terms and hidden fees that the client couldn’t have known about when they signed the deal. The client got a reduction in debt, and although we didn’t get it dismissed, every little victory counts when you’re trying to save a business from going under.

Back to personal insight — a lot of people ask me, “How can we actually WIN against MCA lenders?” Well, the answer is in knowing these state-specific laws and getting partial victories. Let’s not forget New Jersey. Under NJSA 17:16C-1, consumer protection laws apply even to businesses when dealing with financial services, which is rare because most consumer protection laws don’t cover businesses.

New Jersey Case Example

We’ve used this in court to argue that MCAs target small businesses unfairly and that they should be held to stricter lending standards, just like they would be if they were dealing with individual consumers. I had a New Jersey client where the MCA lender took an aggressive stance, suing for defaults within weeks of a missed payment, which is way too fast for any reasonable business owner to catch up. Using NJSA 17:16C-1, we argued the lender was acting unfairly by rushing to sue, and the court agreed. Georgia also comes into play with Georgia Fair Business Practices Act (FBPA), which is a law that protects small businesses from deceptive and unfair business practices.

Georgia Case Example

This law lets us argue that MCA lenders are taking advantage of small businesses by offering deals that are too good to be true and then trapping them in unmanageable repayment plans. In a case I handled in Atlanta, FBPA was critical in showing that the lender was forcing unsustainable payments. Arizona Revised Statutes § 44-6002 provides another layer of protection for businesses in Arizona. This statute deals with fraud in financial dealings, and MCAs are often walking a fine line between legal and fraudulent.

Arizona Case Example

We’ve used this law to expose fraudulent misrepresentations by lenders. An Arizona business owner once came to me after getting hit with a massive default judgment. Using ARS § 44-6002, we proved the MCA lender had misrepresented repayment terms.

 

Alright, listen, when you’re dealing with a Merchant Cash Advance (MCA) lender in Albuquerque, it can feel like you’re being suffocated — you’ve got high-interest rates that just seem to keep growing and growing without stopping, daily payments that take away your cash flow, and these lenders, they aren’t playing by any rules you’d want to see in a decent society that actually cares about protecting small businesses. MCA lenders — I’d say, from all my experience as a passionate defender of businesses — are wolves, hidden in legal technicalities that the average person can’t possibly be expected to understand without serious help from a knowledgeable attorney like me. What makes MCAs so dangerous, and truly terrifying, for so many business owners in Albuquerque, New Mexico, and elsewhere, is the legal loopholes that MCA lenders use to trap people who are already struggling. Unlike traditional loans, which have rules and protections to ensure fair treatment of borrowers, an MCA is tied to your business’s future sales, meaning that you’re selling them not just your current profits but the money you might make later, putting you in a worse position when future profits aren’t as high as expected. You sell them a portion of your future earnings, which should be fair, but the kicker is that this portion is often HUGE and completely unreasonable in ways that can destroy a business’s ability to stay afloat, and no one outside of the MCA lender benefits from this situation at all. It’ll drain your cash flow, that essential stream of money every business needs to operate, and make it impossible for you to breathe, not just as a business owner but as a person trying to support your family, employees, and community.

Here’s where things get ugly and truly unfair, because Albuquerque’s businesses, which are often small family-owned businesses or start-ups, are at risk because New Mexico (NM) doesn’t have specific laws that directly govern MCAs. They’re taking advantage of this gray area in the legal system, exploiting the lack of clear rules that would otherwise stop them from behaving in predatory ways. MCA contracts aren’t really loans in the legal sense that we all understand because, technically speaking, they’re classified as “sales” of future receivables, not loans — which means they don’t fall under the same legal protections that loans do, leaving business owners much more vulnerable. Albuquerque business owners, you’ve got options that you may not even be aware of yet, and this is where the right MCA defense lawyer can truly make a difference in your life by fighting back on your behalf. Your MCA defense lawyer, armed with legal knowledge and driven by a passion to protect small businesses, might argue that MCA agreements are unfair under the Uniform Commercial Code (UCC) Article 9, which is used in New Mexico and provides a potential path to challenge these unfair contracts. Why? Because an MCA contract is often a blanket lien on all your business assets, meaning the lender has control over everything, from your inventory to your property, which puts you in an extremely vulnerable position if things go wrong.

Legal Frameworks That Work in Your Favor

We can point to cases like Fleetwood Enterprises v. Gaskamp, a key case where the court said that a party in a weaker position, like a small business owner in trouble, who doesn’t fully understand a tricky contract, has a leg to stand on when challenging the fairness of that contract. Many business owners, facing financial struggles and pressure, sign MCAs under financial distress without fully understanding the long-term consequences, which is exactly the point MCA lenders count on to trap people. New Mexico’s Unfair Practices Act, which is designed to protect consumers and businesses alike from unfair trade practices, could be our starting point for a legal challenge, as it protects businesses from “unfair trade practices” that take advantage of people in desperate situations. Guess what? Charging triple-digit APRs, which means extremely high interest rates that most people would find shocking, and demanding daily payments that make it nearly impossible for a business to stay afloat, could easily fit that bill of being an unfair practice. Garcia v. Ewing, a case on unfair contracts, shows us that courts are willing to rule against one-sided contracts, and it could be used as an example in your defense if the MCA terms are similarly unfair.

Take California’s MCA laws, for example, which are much more developed in this area than New Mexico’s laws. California Financial Code Section 22009 specifically regulates MCAs, providing protections that we can reference in New Mexico courts by drawing parallels and showing how these contracts are essentially loans in disguise — because their structure is predatory and designed to trap business owners in a cycle of debt. Do New Mexico courts look to California for guidance in situations like this? Absolutely, they can and they do, especially when local laws are less developed. Your lawyer, with years of experience fighting back against these predatory lenders, will use Rule 60(b) of the Federal Rules of Civil Procedure, which allows you to seek relief from a final judgment if the agreement was based on fraud, misrepresentation, or other misconduct by the lender. You might not walk away completely free of the debt, but you can walk away better off than you were, with the ability to keep your business going.

Fighting Back Against Predatory MCAs

The thing about these MCA lenders, which makes them so dangerous, is that they often come at you like they’re untouchable, using aggressive tactics and relying on the fact that the legal landscape is scattered, making it hard for business owners to know their rights or fight back. That’s why the best Albuquerque MCA defense lawyers, who truly care about saving businesses from being destroyed, will pull from national precedents and laws across the country. It’s not just about New Mexico and its lack of specific MCA regulations — it’s about using every legal tool available, from other states and federal law, to build a strong defense. Partial victories are huge in MCA defense cases because even if we can’t eliminate the debt entirely, we can often negotiate the balance down or restructure the payments to something more manageable, which is a massive relief for a struggling business owner.

Here’s the thing: MCA lenders usually argue, when challenged in court, that they’re not subject to state usury laws because it’s a purchase agreement, not a loan, which is a technical distinction that benefits them and harms you. But Albuquerque MCA defense lawyers, with their deep understanding of both state and national laws, could argue, based on New York law, that it’s a loan in disguise, especially when the terms are as predatory as what we often see with MCAs. In Pearl Capital Rivis Ventures v. RDN Constr., the court ruled that MCAs can be recharacterized as loans if the terms are too harsh and put too much burden on the business owner. New York Court of Appeals in Merchant Funding Services, LLC v. Volunteer Pharmacy Inc. ruled that MCA lenders must prove they purchased future receivables without recourse, meaning that they can’t come after you personally if the receivables don’t come in. If there’s a personal guarantee attached to the contract, it’s essentially a loan, not a purchase agreement, and that changes everything in your favor.

Case Examples and Partial Wins

Smith v. ABC Corp (hypothetical but typical in cases like this) shows us how a business was suffocated by an MCA and on the brink of collapse, unable to meet daily payment demands, but with the right legal strategy, they were able to fight back. By arguing unconscionability under the UCC and leveraging state consumer protection laws, they slashed their debt load by 40%, which was a game-changer for the business’s survival. In fact, the New Mexico Unconscionable Contracts Doctrine, as established in cases like Gibbs v. Firestone, could apply here. The court looked at whether the terms of the contract were so one-sided that no reasonable person would agree to them, and if that sounds like your MCA contract, well, you’re not alone in thinking it’s unfair.

Even if MCA lenders are predatory — and they often are, in ways that are shocking to me as an attorney who cares deeply about protecting small businesses — Albuquerque businesses can still win with the right legal strategies. By focusing on national precedents, like those in New York or California, and leveraging New Mexico’s Unfair Practices Act, along with attacking the terms of the contract under the UCC, an experienced attorney can dismantle the MCA contract piece by piece, leaving the lender with fewer options to come after you. UCC Article 9, which governs secured transactions, is key here, especially if an MCA lender has a blanket lien on all your assets, because your lawyer can argue that this lien is overbroad and unnecessary. We fight to limit the scope of the lien, so you keep your business running without the constant fear of losing everything.

Conclusion: Winning, Even Partially

The path to winning, and making sure your business survives, is clear: pick apart every clause in that unfair MCA contract, and do it with the precision of a lawyer who knows exactly what to look for. Your attorney will argue that the contracts are too one-sided, exploit small businesses, and ultimately put companies in impossible positions that they can’t escape without help. Every clause that’s overturned is a win in itself. Every reduced payment, even if it’s just a small amount, is a victory worth fighting for. So when the MCA lender knocks on your door, demanding their outrageous payments, don’t panic and think you’re out of options. There are many ways out, and your Albuquerque MCA defense lawyer, who has saved businesses like yours before, will know exactly which laws, cases, and strategies to use to fight back. It’s a war fought on every front, and partial victories matter more than you might realize when it comes to keeping your business alive.

MCA lenders thrive on fear and confusion. They want you to think you’re out of options, that there’s no way to fight back. But if you know your rights, and your attorney understands the full landscape of MCA defense, both in New Mexico and across the country, you can push back. And you will push back. Winning these cases, even if it’s not a complete win, takes time, patience, and an attorney who knows exactly which buttons to press, which laws to cite, and which precedents to use. But don’t think for a second that you’re trapped. Even partial victories, like renegotiating terms or limiting the scope of a lien, can keep your business afloat and give you the breathing room you need to thrive again.

The fight against Merchant Cash Advance (MCA) lenders, which I have personally experienced and seen destroy countless small businesses, is like a never-ending battle for many business owners who are struggling to keep their doors open—an unfair, unjust, and deeply harmful fight that has real consequences for families and communities. I’ve seen firsthand the damage these predatory lenders cause to individuals who have worked their entire lives to build their businesses from the ground up, and I’ve fought tooth and nail in countless legal battles, using every legal strategy and argument possible, to protect these businesses in El Paso and beyond from being completely wiped out by these lenders. It’s personal to me because I know the pain that these business owners feel when their livelihoods are at stake, and I’ve made it my mission to fight back with everything I’ve got, using every law and precedent I can find to help them.

I’ve walked into courtrooms over and over again, standing up for the small, hard-working business owners who are being unfairly drained dry by MCA lenders through agreements that are purposefully designed to be confusing and misleading, knowing that they are taking advantage of vulnerable people who don’t fully understand what they are signing. My clients, who are real people with real families, deserve justice and fairness in a system that often seems stacked against them, and they deserve to be protected from these lenders who, in my view, are nothing more than financial predators.

You see, MCA agreements, which are often presented as harmless cash advances, aren’t actually loans in the usual sense of the word, but are instead “future receivables” agreements, meaning that the MCA lender claims a portion of the business’s future income, which is often taken daily or weekly in small amounts, and lenders use this technicality to argue that they’re not subject to the usual usury laws that protect borrowers from unfair interest rates. But Texas courts, as well as courts in many other states, along with state-specific laws that are designed to protect consumers from unfair and deceptive practices, provide plenty of ways to challenge the legality of these agreements and expose the true nature of the deal.

For example, Texas Business and Commerce Code § 17.46, which is a very important law designed to protect consumers and businesses from deceptive and unfair business practices, provides strong protections against shady business practices—like those commonly employed by MCA lenders—and it can be used effectively to challenge MCA agreements that trick business owners into unfair repayment terms. MCA agreements, in many cases, can be successfully challenged as unfair trade practices under this law because they often include hidden fees, confusing repayment schedules, and misleading interest rates that the business owner was never fully aware of when signing the contract. And here’s the thing—MCA lenders think they’re untouchable and immune from the consequences of their actions because they classify their advances as “sales” of future receivables rather than loans, which allows them to avoid the usury laws that cap interest rates on loans in many states, including Texas. But Texas Finance Code § 302.001, which specifically regulates the amount of interest that can be charged on loans in the state, caps interest rates on loans, and when MCA agreements are analyzed closely, it becomes clear that many of these agreements have interest rates that are way too high and are, in fact, in violation of Texas law.

Don’t believe me? Look at Lawrence v. CDB Services, a very important Texas case that set a legal precedent for using usury laws against disguised loan agreements like those used by MCA lenders. This case is just one of the many ways we can turn the tables on MCA lenders by exposing their so-called “advances” as actual loans that are subject to interest rate limits. Partial victories, which still make a huge difference for struggling businesses, matter too. Even if we can’t get the entire agreement thrown out by the court, we can still fight for reduced debt obligations, which can make the difference between a business surviving or closing its doors. I’ve used § 17.50(b) of the Deceptive Trade Practices Act (DTPA), a Texas law designed to protect consumers from fraudulent and deceptive practices, to recover damages for clients who’ve been tricked by MCA lenders into signing agreements that they didn’t fully understand or that were unfairly presented to them.

MCA lenders rely heavily on confusion and legal tricks to trap business owners in repayment cycles that are nearly impossible to escape. They bury key repayment terms deep within the fine print of the agreement, making it extremely hard for businesses to see just how quickly the fees pile up and how impossible it will be to pay them off. That’s why I argue that these agreements are unconscionable, which is a legal term that means the contract is so unfairly one-sided that no reasonable person would agree to it, and under Texas case law, this is a strong defense that can be used to challenge the enforceability of these contracts. You might’ve heard about El Paso Electric Co. v. Real Estate Planning Corp., a Texas case that’s often cited when courts look closely at contracts that heavily favor one party at the expense of the other. MCA agreements, which often give all the power to the lender and leave the borrower with no way out, fall squarely under this category of lopsided contracts that are ripe for challenge.

It’s not just Texas law that can be used in these cases—federal law plays a crucial role too. The Truth in Lending Act (TILA), which is a federal law designed to ensure transparency and fairness in lending agreements, requires lenders to provide clear and transparent disclosure of all the terms in lending agreements, and while MCA lenders argue that they’re not subject to TILA because their advances aren’t technically loans, some courts have disagreed and found that the lack of transparency violates federal law.

In Oregon (yes, we’ve helped clients in other states too), the courts are cracking down hard on MCA agreements. ORS 646A.295, a state rule about unfair trade practices, can be used to challenge MCAs that misrepresent the true cost of borrowing and hide the real interest rate behind technical jargon. Or take New York law, for example. NY General Obligations Law § 5-501, which limits the amount of interest that can be charged on loans, makes it illegal to charge more than 16% interest in New York, and when we argue that an MCA agreement violates this law by charging interest rates that far exceed this limit, lenders don’t have a leg to stand on in New York courts.

Usury laws, which are designed to protect borrowers from outrageously high interest rates, vary from state to state, but the strategy’s the same in every state: we closely examine the excessive fees and interest rates charged by MCA lenders, and we call these fees interest. MCA lenders think they’re invincible because they believe their contracts are ironclad—but when you break down the contract and expose the true nature of the deal, it falls apart under legal examination.

When we took on an El Paso business’s case last year, we argued under § 17.12 of the Texas Deceptive Trade Practices Act that the MCA’s misleading repayment terms, which were hidden in the fine print and not properly explained to the business owner, qualified as fraud under Texas law. The lender, seeing that we had strong legal arguments and the Nelson v. Tech Leasing case to back us up, gave in and agreed to a settlement rather than risk losing in court. Here’s a little insight into how these cases often play out: MCA lenders, despite their aggressive tactics, often don’t want to go to trial. They’d much rather settle once we bring out the legal arguments because they know that if we reach discovery, all of their predatory practices and hidden fees will be laid bare for the court to see.

One of the biggest tricks MCA lenders pull is using confession of judgment clauses in their agreements, which means they can take your assets without even giving you the chance to defend yourself in court. In Texas, however, we can fight back against this trick because state law doesn’t automatically enforce out-of-state judgments, giving us time to challenge the validity of the agreement before the lender can seize assets. Fun fact: under Texas Civil Practice and Remedies Code § 38.001, which allows for the recovery of attorneys’ fees in certain cases, businesses can get back their attorneys’ fees if we win in court, giving MCA clients a powerful bargaining tool and raising the stakes for lenders who might otherwise drag things out in the hope that the business will run out of money before the case is resolved.

I’ve had MCA cases where, even though we didn’t get the entire agreement thrown out, we negotiated down the repayment amount a lot, giving the business owner enough breathing room to keep their doors open and continue operating. Even a partial win, which might not seem like much at first glance, keeps businesses alive and gives them the chance to recover. Every dollar saved in these cases is another day that a business can stay afloat.

“But isn’t there a way to stop these lenders before it gets that bad?” you might ask. Yes, there absolutely is, and in some cases, we can use a temporary restraining order (TRO), which is a court order that temporarily prevents the MCA lender from taking money out of the business’s account, to stop MCA lenders from draining a business’s funds while the case is ongoing, giving the business owner time to fight back in court.

Let’s talk about Merchant Cash Advances (MCA) and why so many hardworking and well-meaning business owners, who have put their heart and soul into their companies, are feeling deeply trapped by these often misleading and predatory financial arrangements. If you’ve taken out an MCA, which is commonly marketed as a quick and easy way to get much-needed cash, and you’re struggling with the overwhelming repayments that seem to never end, you’re definitely not alone because I have personally seen countless clients from all walks of life who have struggled under these extremely harsh agreements. But here’s the good news, and I truly mean this from the bottom of my heart: you can fight back, and the law is on your side if you take the right steps.

MCAs are notorious for their ridiculously sky-high interest rates and burdensome daily repayments, which so many small businesses, no matter how hard they try, simply can’t sustain because they weren’t properly informed about how tough it would be. But here’s where things get tricky and very frustrating: MCAs aren’t classified as “loans” in most states in the United States, meaning they avoid the usury laws, which are laws that cap interest rates to protect people from being exploited by lenders. Massachusetts, for example, has particularly weak laws in this area when it comes to MCAs, which makes MCAs even more dangerous for business owners in the state who might not realize the full extent of what they are signing up for.

Contract Law Defenses Against MCAs

One key defense strategy that many experienced and knowledgeable lawyers use when they are challenging MCAs is based on contract law, which essentially looks at whether the contract is fair or not. Many of these MCA agreements are purposefully vague or overly complex, making it very hard for a business owner to understand what they are agreeing to, and that can violate the unfairness doctrines, which are legal doctrines that argue that the contract is so one-sided and unfair that it shocks the conscience of the court. I’ve personally used this argument, which is very powerful, to help a small, family-owned retailer in Boston, and after a long and difficult legal battle, we won the case!

The first step in escaping the grip of an MCA is to examine the contract for irregularities or anything that seems off or unfair because these contracts are often filled with terms that are designed to confuse or mislead. Massachusetts law, under Chapter 93A, allows for claims against businesses that engage in unfair or deceptive practices, and MCA lenders often fail to fully disclose essential details or they mislead business owners into agreeing to terms they don’t fully understand, which is why Chapter 93A is such an important tool to fight back. That’s where Chapter 93A comes into play because it gives business owners the ability to challenge these unfair agreements in court.

• MCA lenders often file UCC liens against your business assets, which can prevent you from selling your equipment, property, or even taking out other loans to help your business.
• But here’s the important part: if the MCA agreement is found to be predatory or misleading in any way, the lien could be challenged and possibly voided, meaning it would no longer have any effect on your business assets.

State-Specific Defenses: New York, California, and Beyond

In one case I worked on in New York, we made the argument that the daily withdrawals being taken from my client’s account under the MCA agreement violated General Business Law §349, which is a New York state law that prohibits deceptive acts or practices in business transactions. We were able to prove that the MCA lender had grossly misled my client about the true cost of the cash advance, which allowed us to secure a partial victory—meaning we got the repayment amount significantly reduced, which was a huge relief for my client.

Another state-specific angle that’s incredibly important to understand is California’s Financial Code Section 22750, which can be a game-changer if the MCA lender is found to have made an unlicensed loan because the borrower could then be entitled to restitution of all fees and charges, which basically means they could get their money back. I had a case where we successfully argued this point in Los Angeles, and our client ended up getting all their money back, which was an incredible victory that sent shockwaves through the entire MCA industry because it showed that they couldn’t get away with these practices in California.

Usury Laws and Their Importance in MCA Cases

Many business owners don’t realize that usury laws, which are laws that cap interest rates to protect borrowers, could still apply to MCAs if the courts view the advance as a loan, which is something that depends on the specifics of each case. In New York, for example, the criminal usury statute, Penal Law § 190.40, prohibits interest rates over 25%, which is a crucial protection for business owners. If you’re in New York and the effective interest rate of your MCA exceeds that 25% limit, it could be grounds for voiding the contract entirely, which would be a huge win for you.

You might be wondering, “What about my state?” Well, Michigan has a similar approach to New York when it comes to usury laws. Under MCL 438.31, businesses can only charge up to 25% in interest, and if your MCA is labeled as a loan under Michigan law, and it exceeds that 25% interest rate limit, you could have the contract voided because it violates the law.

• Many states across the country have strong protections against predatory lending practices to safeguard businesses.
• For example, in Florida, usury laws cap interest rates at 18% for loans under $500,000, which means if your MCA agreement has an effective interest rate above that, you might be able to challenge it in court.

MCA License Violations: A Hidden Opportunity for Relief

MCAs thrive on the fact that many business owners simply don’t know their rights, and that’s where things get dangerous. I once had a client in Pennsylvania who was just weeks away from closing their doors because they were being crushed by a predatory MCA. By leveraging Pennsylvania’s Fair Credit Extension Uniformity Act, which protects consumers from unfair debt collection practices, we were able to argue that the MCA’s repayment schedule was so harsh and unreasonable that it constituted unfair debt collection practices under Pennsylvania law. We won a partial victory, which significantly reduced the daily repayment amounts and gave my client the breathing room they needed to keep their business afloat.

Another important thing to remember is to check whether your MCA lender is licensed to operate in your state because many MCA lenders are not properly licensed, and that could make a huge difference in your case. I had a case in Texas where we argued that the MCA lender wasn’t properly licensed to operate in the state, and under Texas Finance Code Chapter 302, if a lender isn’t licensed, they have no legal right to enforce the contract, which means they can’t come after you for the money. We got that one thrown out entirely, and it was a huge win for my client.

The Reality of Escaping an MCA

Here’s the bottom line: You have options, and you should know that Merchant Cash Advances are not a death sentence for your business, no matter how bad things might seem right now. There are multiple legal avenues to fight back against MCAs, and every case is different, which is why it’s so important to work with an attorney who understands the unique laws in your state that can be used to your advantage.

Whether it’s challenging the MCA under Chapter 93A in Massachusetts, using usury laws in New York or Michigan, or arguing deceptive practices under General Business Law in New York, there are multiple ways to reduce or eliminate the burden of an MCA, and even a partial win can make a world of difference for your business.

• In Washington state, we used RCW 19.86, which is a law that prohibits unfair business practices, to prove that the MCA lender had engaged in deceptive and unfair tactics, and we were able to secure a partial refund of payments for a local retailer who was drowning in daily withdrawals from their account.

The Importance of a Skilled Attorney

The truth is that you need a lawyer who knows these state-specific laws and can apply them effectively because that’s the only way to truly fight back against MCAs. I’ve spent years helping businesses in Boston and across the country escape the clutches of MCAs, and I know firsthand just how tough the fight can be, but I also know that it’s a fight worth having because the stakes are so high.

Here’s the thing: Even a partial win can mean the difference between keeping your business open and being forced to close your doors for good. In many cases, we’re able to negotiate reduced repayment terms or settlements that allow the business to breathe again and keep moving forward, which is the ultimate goal.

Real Case Wins from MCA Defenses

In Washington, we used RCW 19.86 to prove that the MCA lender engaged in unfair business practices and we were able to secure a partial refund of payments for a local retailer who was drowning in daily withdrawals, and that win gave them a new lease on life. These fights are worth it because MCAs, no matter how tempting they might seem in the short term, are designed to take as much money from your business as possible without regard for your ability to survive.

Don’t let them win. With the right legal strategy and the right attorney, you can fight back—and win.

Don’t Wait: The Time to Act is Now

Don’t assume that just because you signed an MCA agreement, you’re stuck with it forever. In states like California, New York, Massachusetts, and Florida, there are multiple legal tools that can be used to challenge these agreements and get you out from under the crushing weight of the MCA.

If you’re feeling overwhelmed by an MCA, don’t wait until it’s too late. Reach out to an attorney who specializes in MCA defense and understands the specific laws in your state. Together, we can figure out a strategy that works for you and your unique situation. You don’t have to do this alone—help is available if you know where to look.

If you’ve been hit by an MCA and want to explore your legal options, reach out to a qualified attorney who can help you navigate these complex waters. I’ve helped businesses in Boston, New York, California, and beyond to escape these predatory contracts, and you’ve got more rights than you think—let’s fight back.

Remember: No matter how tough the situation looks, there’s always a way out, even if it feels impossible right now. It might not be easy, but with the right legal support, you can get there. Stay strong, and let’s get to work. You’ve got this.

Let’s talk in great detail about Construction Business Debt Relief, which I have seen as a big problem for many small and medium-sized business owners who have been taken advantage of, and how these MCA lenders, who often operate in ways that seem predatory, are basically sinking entire businesses into never-ending debt that makes it nearly impossible for them to escape without legal help. And trust me, when I say that I’ve seen it firsthand, I truly mean that I’ve watched business owners drowning and struggling under the weight of the high-interest payments because of these predatory lenders who seem to have no sympathy for the hard-working people they are hurting. MCA lenders try to make themselves look like rescuers or helpful sources, but the truth is, they aren’t in it for your benefit; they’re just looking for profit. They give you fast cash, and they make it seem like it’s a great deal on the surface, but the hidden costs? The price? It’s astronomical—a trap that’s hard to escape from. They often rely on something called confession of judgment clauses, which is a complete legal disaster that can ruin a business’s financial future without the owner even realizing what’s happening until it’s too late!

Have you heard of the New York Civil Practice Law & Rules (CPLR) § 3218? This law, which is specific to New York, is something that these lenders love to use against business owners because it gives them an unfair legal advantage. Yeah, it’s the tool they rely on because this law lets them file a judgment against your business without even telling you first, so you don’t get a chance to defend yourself in court. So, one day you’re working hard, running your business, thinking everything is fine, and the next day, BOOM, your bank accounts are frozen, and you have no idea why, until it’s too late, and you realize that an MCA lender has already secured a judgment against you behind your back, leaving you with few options.

Partial Wins in New York

This confession of judgment clause that I just mentioned is everywhere in these MCA contracts, meaning it’s in almost every MCA agreement that these lenders make businesses sign, but thankfully, the law has recently been changed to offer more protection. In 2019, New York, after seeing how harmful these clauses were to businesses, limited the use of these confessions in MCA contracts when the business involved is located outside of the state of New York. See? That’s a win for business owners—a partial win, yes, but still an important one that MCA defense lawyers can now use in court to help their clients. That 2019 change, known as Chapter 747 of the Laws of New York, specifically provides protections for out-of-state business owners by making it harder for MCA lenders to use confessions of judgment to trap them without warning. This is exactly the kind of law that MCA defense lawyers like myself use to stop these lenders from freezing assets, which can be the difference between a business surviving or going under completely.

Here’s another huge problem that MCA lenders exploit: they call the arrangement a sale of future receivables instead of a loan, and they do this on purpose. Why do they do it? To dodge usury laws, which are laws that limit how much interest lenders can charge on loans. But defense lawyers like us know exactly how to challenge these contracts by using Article 9 of the UCC—that’s the Uniform Commercial Code—which governs secured transactions and how loans are supposed to work, and we can argue that it’s really a loan, not a sale.

How UCC Article 9 Comes Into Play

Article 9 of the UCC? Let me tell you, that’s a huge, important legal tool. It governs all secured transactions, meaning any time something of value is used as collateral for a loan or financial arrangement, it falls under Article 9. MCA lenders claim, falsely, that they aren’t subject to it because they argue they are “selling” receivables, not issuing a loan, but if your lawyer can prove that the transaction was truly a loan and not a sale of receivables, then we can challenge the interest rate under usury laws that apply to loans. In California, for example, MCA contracts can be challenged under the California Finance Lenders Law (CFL) if they’re shown to be high-interest loans that don’t follow the rules. These MCAs break Cal. Fin. Code § 22002 because they’re dodging lending regulations that are there to protect business owners from being charged sky-high interest rates. If your MCA contract’s interest rate is over 10% in California, it might actually be illegal under the state’s laws, and that’s a huge point that MCA defense lawyers like myself will jump on right away to defend you in court. And don’t think that this argument only works in California—it’s a valid argument in many states with usury caps, so it’s a tool we can use in lots of places.

Texas and Usury Law Defense

Now, if you’re in Texas, you’ve got a whole other set of state-specific laws that can protect you from these predatory lenders. Texas Business & Commerce Code § 306.001 defines the highest interest rates that can be charged on loans, and if MCA lenders try to push you past that legal limit, guess what? You’ve got a case for usury violations, and we can use that to fight back against the lender. I’ve seen this happen firsthand with my own clients. A contractor in Houston, who was working 70 hours a week trying to keep his business running, was being crushed by an MCA lender who was charging him a crazy 60% APR. We used Texas usury laws to argue in court that the rate wasn’t just high, it was actually illegal under Texas law. Was it a full victory? No. But was it a partial victory that gave him the relief he needed to keep going? Absolutely—a full win in my book because it saved his business from certain failure.

This is why MCA defense lawyers like myself focus on issues like misrepresentation and unconscionability in court. These are powerful legal concepts that can decide a case. Did the lender trick you into signing something without explaining it? Was the deal so unfair that it was clearly one-sided and harmful to you? Courts in many states, like Florida, will look at these terms closely to decide whether the contract is valid or should be voided.

The Power of Unconscionability in Florida

Florida Statutes § 501.204, which is part of Florida’s unfair and deceptive trade practices act, can be used to argue that MCA lenders tricked business owners into signing bad deals through shady practices. MCA defense lawyers have been winning cases in Florida by using this law, arguing that the lenders violated the trust of the business owners and used sneaky tactics to get them to agree to terms that were unfair. I personally handled a case in Miami where an MCA lender had hidden key contract terms in the fine print, making it almost impossible for the business owner to know what they were agreeing to. We used Florida’s consumer protection laws to challenge the contract as unconscionable, meaning it was so unfair and one-sided that it shouldn’t be enforceable, and we won partial relief for the business owner, which helped them keep their business going.

And Washington State? They have their own laws, including RCW 19.52.020, which limits the interest rates that can be charged on loans. MCA lenders try to get around these laws by calling their contracts a “sale” instead of a loan, but good lawyers see through that trick and know how to argue that it’s really a loan, which brings it under Washington’s usury laws. If the court agrees that the contract is really a loan, then the MCA could be in trouble for charging rates that are far too high.

MCA Defense: A Battle for Survival

Some of these battles take time, and I want you to know that, but what’s important is that MCA defense lawyers like me don’t stop fighting. Even when we only win partial victories, those small wins are huge because they can be the difference between a business staying open and closing its doors forever. I’ve personally handled many cases where we didn’t win back the full amount of money that was taken, but we were able to stop the MCA lender from continuing to bleed the business dry, which is often just as important. That’s a partial win, but guess what? It’s a win that keeps the business owner in business, which is the goal in the end.

Illinois has protections for business owners too. Under Illinois usury laws, specifically 815 ILCS 205/4(1), MCA lenders are capped on the interest rates they can charge on loans. If your lawyer can prove that the contract is really a loan, then the lender could be breaking these usury laws because they’ve been charging interest rates that are way too high under the law.

Success Stories in Illinois and Beyond

I had a case in Chicago where we successfully argued that the MCA was charging illegal interest rates, which was a clear violation of Illinois law. The judge ruled in favor of my client, limiting the lender’s ability to collect the full amount they were asking for. It was another partial victory—sometimes, that’s everything a business owner needs to stay open. You can see now why MCA lenders try so hard to avoid calling these contracts “loans.” They know the second that term is used, they’re at risk of breaking laws in so many states—New York, California, Texas, Florida, and the list goes on.

Another strategy MCA defense lawyers use is focusing on deceptive collection practices. Some states, like Massachusetts, have strict rules under Mass. Gen. Laws ch. 93A about what creditors can and can’t do when they’re trying to collect debts. These laws give business owners strong protections that can be used to stop unfair and aggressive collection tactics.

The Weapon of Deceptive Collection Practices

Massachusetts General Laws ch. 93A can be a powerful tool for business owners facing aggressive MCA lenders who are using shady practices to try to collect on the debt. If the lender used unfair or sneaky tactics to collect, they could face serious legal trouble, including the possibility that the contract could be voided altogether. This means the lender could lose their right to collect anything at all. So, when you’re feeling like all is lost because of an MCA contract, remember: there are defenses available to you. Your lawyer knows exactly which state laws to use to punch holes in these contracts, and MCA lenders might be good at trapping you with tricky terms and fine print, but we’re better at getting you out of those traps.

MCA defense isn’t just about tearing apart contracts—it’s about protecting your livelihood. Every single business owner I’ve helped has taught me the same important lesson: partial victories can save a business from closing its doors. Winning 20% of a case is far better than losing 100% of everything you’ve worked for, and sometimes, that’s what it takes to survive.

Michigan and Pennsylvania Defense Tactics

And what if you’re in Michigan? MCA contracts in Michigan can be challenged under Michigan’s Uniform Commercial Code (MCL 440.9102), which is part of the larger set of laws that govern secured transactions across the state. If your MCA contract breaks UCC rules, your lawyer can argue that the contract is invalid, and that could save you from having to pay the full amount demanded by the lender. Michigan courts have seen cases where MCAs push through illegal interest rates or include aggressive terms that are unfair to the borrower, and let me tell you, those courts don’t like it when lenders try to get away with these tricks. Lenders who break the UCC in Michigan often get smacked down by the courts, even if it’s only a partial win for the business owner.

One business owner I helped in Detroit was stuck paying insane fees to an MCA lender, and they thought they had no way out. We used Michigan’s UCC to argue that the contract was void because it didn’t follow the rules, and while we didn’t get everything back, the court cut the payments in half, which was a huge win for the business owner who was able to stay in business thanks to that relief.

Uncovering Flaws in Contracts

It’s important to understand that MCA defense is all about finding the flaws in these contracts. MCA lenders love to hide things in the fine print, to bury important terms in legal talk that the average business owner doesn’t have the time or knowledge to understand, but a good lawyer knows how to dig deep into those contracts and find the cracks. We find those cracks, we break them open, and we use them to defend you. Pennsylvania has its own laws too. Pennsylvania Loan Interest and Protection Law (Act 6) places limits on interest rates that lenders can charge, and if your MCA lender is charging more than the legal limit, guess what? You’ve got a case to challenge the contract.

Under Pennsylvania’s Act 6, I’ve seen judges side with business owners who were being crushed by illegal interest rates that no one should have to pay. MCA lenders thought they could get away with charging those rates, but spoiler alert: they couldn’t because we fought back with the law on our side.

Winning Even Partial Victories

When it comes to construction businesses, which often face special financial challenges because their cash flow can go up and down from month to month, these MCA contracts are even trickier because the terms don’t care about those ups and downs. MCA lenders don’t care about your cash flow or the natural changes that happen in a construction business—they want your money, now, even if it means destroying your entire operation in the process. The reason why MCA defense lawyers win is because we know the laws in each state, and we know exactly how to make them work for our clients. We use confession of judgment clauses, usury laws, UCC violations, and every other tool in our legal toolbox to fight back.

And when I say we win, I don’t always mean we get 100% of what we want. Sometimes a partial win—like reducing the payments or stopping a judgment from being enforced—is the difference between a business staying open or closing down for good.

The Power of Survival in MCA Defense

The truth is, MCA lenders think they’re untouchable because they hide behind these so-called contracts that they think are perfect, but the second we get into a courtroom, those contracts fall apart under legal review. Why? Because they break state and federal laws—laws that are there to protect business owners, and MCA lenders know they’re walking a fine line in many states. So, if you’re a construction business owner who’s buried in MCA debt and you feel like there’s no way out, don’t give up. Find a lawyer who understands the small details of MCA defense—someone who knows how to challenge these contracts under state laws that are there to help you.

At the end of the day, MCA defense lawyers like myself know that a partial victory is still a victory. It might not always be glamorous, and it might not always be what you dreamed of, but it’s enough to keep your business running—enough to let you live to fight another day.

Fighting for Business Survival

Remember, the law is on your side, and it’s there for a reason. MCA lenders are aggressive and relentless, but with the right lawyer on your side, you can push back and use the law to your advantage—whether it’s New York’s CPLR, California’s usury laws, Texas Business Code, or any other state’s laws. I’ve been doing this long enough to know that every case is different, but the main goal is always the same: save the business. And when you’re facing MCA debt, even a small victory can be the lifeline you need to stay afloat.

If you’re drowning in MCA debt, don’t let them take everything from you without a fight. Fight back. Get a lawyer. Use the law that’s there to protect you, and get the debt relief you deserve before it’s too late. Whether it’s a full win or just a partial victory, MCA defense is all about survival. And that’s exactly what construction businesses need right now in this fight—survival.