San Diego MCA Defense Lawyers
Facing a Merchant Cash Advance (MCA) lawsuit? You’re not alone. But here’s the good news: an MCA defense attorney can help you fight back. MCA contracts are not like regular loans. They’re classified as sales of future receivables. Sounds confusing? That’s intentional. It’s designed to get around certain laws. But here’s where it gets interesting: some courts see these contracts as loans—especially when the interest rates are sky-high. If that happens, state laws can limit the interest rates. Why does that matter? If your attorney can prove your MCA is really a loan, you might only have to pay a fraction of what you owe. Huge savings.
MCA contracts can be full of hidden fees and unclear terms. Did you know that? Most business owners don’t realize it until it’s too late. If your attorney can show that the contract was misleading or deceptive, it could be grounds to reduce the debt or even dismiss it. Let’s talk personal guarantees. They make you personally liable if your business can’t repay the MCA. But were you fully aware of what you were signing? A skilled attorney can challenge personal guarantees, protecting your personal assets like your home, car, or savings. That’s a big win. Another key defense? Jurisdiction. Did your lender try to drag you into court in another state? That’s common in MCA cases, but it doesn’t always hold up in court. A good lawyer can argue that you shouldn’t have to fight a legal battle in a state far away. Courts often side with the borrower on this.
MCA lenders like to file UCC-1 liens against your business. These liens give them the right to seize your assets if you default. But it’s not the end of the road. If your lender didn’t follow the proper process when filing the UCC lien, your attorney can challenge it. That means you might keep control of your business assets. Even if the lien is valid, an attorney can often negotiate its release or reduction as part of a broader settlement. This can be a lifeline for your business. Speaking of settlements—most MCA cases end this way. Why? Because going to trial is expensive and uncertain for both sides. Attorneys can negotiate to reduce what you owe, adjust repayment terms, or even remove liens. You don’t need a perfect win to come out ahead.
Then there’s the Confession of Judgment clause. This allows MCA lenders to get a judgment against you without going to court. Sounds unfair, right? The good news? Many courts are starting to scrutinize these clauses, especially when borrowers didn’t fully understand what they were signing. If your attorney can challenge the confession of judgment, you might get a chance to present your case in court—leveling the playing field. Remember: MCA defense is about protecting what matters most—your business, your assets, and your future. Even a partial win can save you thousands of dollars and lots of stress. A good attorney can help you find the loopholes in the MCA contract, challenge unfair clauses, and protect your rights as a business owner.
So, how do MCA attorneys win? They attack the contract itself. Was the language misleading? Were the terms unclear? These are often signs of an unfair deal. They also look at the interest rates. If they’re astronomical, they might be able to argue the MCA is a loan, which brings state usury laws into play. And if your attorney can convince the court it’s a loan, you could see the interest reduced to legal limits. That’s a huge win. Let’s talk more about personal guarantees. Many business owners don’t realize what they’re agreeing to. You might be putting your house, car, and savings at risk. A smart attorney will challenge those guarantees, especially if the lender wasn’t clear about what you were signing. This can protect your personal wealth.
There’s also the issue of unconscionability. If the contract is so one-sided that it’s unfair, your attorney could argue it shouldn’t be enforced at all. This is a big deal because some MCA contracts have terms that are simply outrageous. Courts don’t like it when one party takes advantage of the other. Another key to winning? Venue. Lenders often try to force you into court in a different state, far from where you operate. But that’s not always legal. A good attorney will fight to keep the case in your home state, where the laws may be more favorable to you. This can make a big difference in the outcome. Even if you can’t win outright, a good settlement is often better than a long, expensive court battle. Attorneys can negotiate deals that save you money and protect your assets.
And remember, just because the lender filed a UCC lien doesn’t mean they automatically win. If they didn’t follow the rules, your attorney can challenge the lien and protect your business assets. MCA cases aren’t just about stopping collections—they’re about getting your business back on track. Your lawyer can help you renegotiate terms, reduce what you owe, and keep your business running. Even a small win can make a big difference. A partial settlement, a reduction in what you owe, or the release of a lien can give you the breathing room you need to move forward. So how do you find the right MCA defense attorney? Look for someone with experience in both business litigation and contract law. MCA cases require a unique blend of skills.