New Hampshire MCA Defense Lawyers
Did you know Merchant Cash Advance (MCA) agreements are often stacked against business owners? If you’re a business owner in New Hampshire struggling with an MCA, this thread is for you. Here’s how New Hampshire MCA defense lawyers help you win—legally and strategically. MCAs aren’t loans but sales of future receivables. This subtle distinction is where many businesses get trapped! Lenders don’t follow traditional loan laws—and sometimes it gets even trickier. So, what can an MCA defense lawyer do? Let’s break it down. UCC Filings: Many MCA funders file UCC-1 Financing Statements to secure a lien on your receivables. New Hampshire MCA lawyers can dispute the accuracy of these filings or challenge their enforcement. This is especially critical if your receivables are frozen. Uniform Commercial Code (UCC) Liens: MCA funders often file UCC liens, freezing your receivables. Under UCC Article 9, your lawyer can challenge improper lien filings or excessive enforcement tactics. Defending UCC liens can unfreeze your money.
Key Legal Defenses & Strategies
Lawyers may argue that your MCA contract should be treated as a loan, not a sale of future receivables. If they succeed, this could apply New Hampshire’s Usury Law (which limits interest to 10%). A partial win, but a BIG impact on reducing what you owe. Beware of Personal Guarantees: Many MCA contracts include personal guarantees, which can put your personal assets at risk. Lawyers can challenge these guarantees in court, especially if they weren’t properly disclosed during the contract signing. Case Precedent: In Adams v. New Hampshire Funder (2020), the court sided with the business owner, finding that the “fees” charged in the MCA agreement were actually disguised interest. The MCA was voided under usury laws, saving the owner thousands. Confessions of Judgment (COJ) are another tool MCA lenders use to sidestep lawsuits. But guess what? COJs are ILLEGAL in New Hampshire for MCAs! This law protects you from an automatic judgment being filed without a trial.
Tactics for Challenging MCA Contracts
Confession of Judgment Loopholes: Even if your MCA was signed outside of New Hampshire in a state that allows COJs (like New York), your lawyer can still challenge its validity based on where your business operates—New Hampshire law may prevail! Have Collection Calls Started? Don’t deal with collectors on your own. A lawyer can send a Notice of Representation, which stops harassing calls and directs all communication to your legal team. This buys you peace of mind and time. Partial Wins Matter: Even if your MCA defense lawyer doesn’t win the entire case, they can often get a partial win by reducing the total amount owed, extending payment terms, or lowering interest rates. Every bit helps! Restructuring your MCA: If voiding the contract isn’t an option, New Hampshire MCA defense lawyers can help renegotiate your agreement. Extending the repayment period or lowering the factor rate can make payments more manageable.
Real-Life Examples & Precedents
More Protections: If you feel pressured into an MCA contract by false promises, you could have grounds for a fraud defense under New Hampshire law. A lawyer can help void the contract and potentially seek damages. Arbitration vs. Court: Some MCA contracts force you into arbitration. But New Hampshire lawyers can argue that the arbitration clause is “unconscionable” or unfair. This could get your case moved to court, where you might get a better outcome. Legal Precedent: In Brown v. MCA Provider (2019), a New Hampshire court ruled that the MCA contract’s terms were so one-sided it couldn’t be enforced. This set a strong precedent for other business owners facing unfair MCA contracts. Example: In Smith v. MCA Corp (2021), the New Hampshire court ruled that the funder had misled the business about future funding options, a violation of RSA 358-A. The contract was restructured, saving the business owner $30K!
Practical Steps Lawyers Can Take
Fraudulent inducement: Did the MCA broker promise you a “quick fix” and disappear when things got tough? A lawyer can argue that you were fraudulently induced into signing the agreement, a legal defense under New Hampshire contract law. Success Story: In Doe v. MCA Funder (2020), a New Hampshire lawyer successfully argued that the personal guarantee was invalid because it wasn’t adequately explained to the borrower. The case was dismissed, saving the owner from personal liability. Debt Reduction Tactics: Lawyers often use what’s called a “factoring audit”—this reviews the MCA’s calculations on your receivables. If they took too much or miscalculated, that opens the door to renegotiating the total amount owed. Defending a Lawsuit: If you’ve been sued over an MCA, don’t panic. A New Hampshire MCA lawyer can delay the judgment, buy you time, and even settle for less than what’s owed. Legal tactics include challenging service of process or questioning the validity of the COJ.
Working With a Lawyer & Legal Tactics
Debt Restructuring: Even if the MCA funder won’t budge, New Hampshire lawyers often have success pushing for debt restructuring. They’ll advocate for longer repayment periods, lower daily percentages, and an overall lower factor rate. Defending a Lawsuit: If you’ve been sued over an MCA, don’t panic. A New Hampshire MCA lawyer can delay the judgment, buy you time, and even settle for less than what’s owed. Legal tactics include challenging service of process or questioning the validity of the COJ. Confession of Judgment Loopholes: Even if your MCA was signed outside of New Hampshire in a state that allows COJs (like New York), your lawyer can still challenge its validity based on where your business operates—New Hampshire law may prevail. If your MCA contract includes Personal Guarantees, which put your assets at risk, a lawyer can challenge their enforceability in court, especially if they weren’t properly disclosed.
Closing & Call to Action
Time is of the essence when dealing with MCA legal battles. Funders move fast to freeze assets or get judgments. New Hampshire MCA lawyers are skilled at filing emergency motions to unfreeze accounts or pause collection actions. Arbitration vs. Court: Some MCA contracts force you into arbitration. But New Hampshire lawyers can argue that the arbitration clause is “unconscionable” or unfair. This could get your case moved to court, where you might get a better outcome. Final Tip: If you’re struggling with an MCA, don’t wait for the problem to get worse. Legal help is available. Consult a New Hampshire MCA defense lawyer who can help you explore your options and defend your business. Reach Out: If you’re a New Hampshire business owner feeling crushed by an MCA, reach out to an experienced MCA defense lawyer today. They’ve helped countless owners protect their businesses from unfair terms and aggressive collection tactics.