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Indiana Merchant Cash Advance Attorney

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Leslie H. Tayne - Financial Attorney New York

If you’re a small business owner in Indiana, you may have considered using a merchant cash advance (MCA) to provide cash flow to your business. MCAs are a popular type of financing because they’re generally easy to qualify for, and you can access the money relatively quickly.

However, MCAs also have some downsides and risks, including high fees and short repayment times, which can ultimately hurt your business. Before turning to an MCA for your business financing, it’s important to consider these risks, as well as the state laws regulating MCAs.

Understanding Merchant Cash Advance

If you’re a small business owner, it’s important to understand how MCAs work, including their key features and risks. Here are the basics:

Definition of Merchant Cash Advance

A merchant cash advance (MCA) is a type of financing arrangement where you receive a lump sum of money as an advance on your business’s future credit card sales or receivables. It’s considered an alternative form of financing since it’s not a traditional business loan.

How do Merchant Cash Advances Work?

When you take an MCA, you’ll receive a lump sum of cash based on your business’s future projected revenue. Unlike other forms of business financing, MCAs don’t require collateral, and they also frequently don’t require good credit scores on the part of the business or its owner.

Legalities of Merchant Cash Advances in Indiana

MCAs are legal in Indiana, but that doesn’t make them a good idea for most businesses. It’s important to understand the risks associated with them before borrowing one.

Governing Laws of Indiana on Merchant Cash Advances

As of 2024, there are no specific laws regulating MCAs. And because MCAs aren’t considered traditional loans, they aren’t regulated by many of the federal and state laws that regulate other lending instruments. As a result, it’s your responsibility as a business owner to protect yourself and look out for predatory lending.

Interestingly, Indiana does regulate payday loans for individuals, which have similar characteristics and risks to MCAs. However, because the two are different — one is for businesses and the other for individuals — those protections don’t extend to MCAs.

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Role of a Merchant Cash Advance Attorney

A merchant cash advance attorney can provide legal advice to clients on all things related to MCAs and legal issues that arise from them. If you’re having trouble with an MCA, an attorney may be able to help.

What Does a Merchant Cash Advance Attorney Do?

MCA attorneys and law firms can help their clients navigate these complex financing tools in several ways. Here are a few services an MCA attorney may be able to provide:

  • Review MCA and business loan agreements: First, an MCA attorney can review your MCA agreement and help explain your responsibilities and certain clauses you may not understand.
  • Negotiate with creditors: An MCA attorney can negotiate with your creditors on your behalf in the hopes of restructuring your debt in your businesses best interests.
  • Advocate for your rights: An MCA attorney can advocate for your rights, especially if you’ve been treated unfairly or unethically by a creditor.
  • Representation in court: If you’re sued by your MCA lender, an MCA debt attorney can represent you in court.

Importance of Merchant Cash Advance Attorney in Indiana

Why do Business Owners in Indiana Need a Merchant Cash Advance Attorney?

Because of the predatory nature and lack of regulation around MCAs, many Indiana business owners find themselves needing the help of an MCA or business debt relief attorney. Here are some situations in which you might want to hire an attorney to help you deal with your MCA:

  • You’re having trouble making your MCA payments
  • You pay a large portion of your revenue to your MCA debt
  • You’ve missed MCA payments and want to restructure your debt
  • You’ve signed a confession of judgment (COJ)
  • A UCC lien has been filed against your business
  • You’ve defaulted on your MCA and are facing a lawsuit
  • You believe you’re being treated unethically or unfairly by your creditor

How Can a Merchant Cash Advance Attorney Help Businesses in Indiana?

An MCA attorney may be able to help you with all aspects of your contract, from reviewing and understanding your contracts to negotiating to restructure your debt to defending you in court if your MCA lender sues you in another State like New York, Utah or Florida. 

Having an MCA attorney represent you comes with plenty of benefits. Not only does your attorney help address a topic that can be quite complex, but they can also handle all communication on your behalf, saving you from stressful phone calls and negotiations with your creditors. Instead, you can focus on running your business and trust that your MCA attorney can handle the rest.

Process of Hiring a Merchant Cash Advance Attorney in Indiana

If you’re considering hiring an MCA attorney in Indiana, it’s important to consider what you need from an experienced debt relief attorney and follow the right steps to hire one that specializes in MCA debt resolution.

Things to Consider When Hiring a Merchant Cash Advance Attorney

Before hiring an MCA attorney in Indiana, it’s important to consider what you need from the professional you’re working with. You’ll want an attorney who specializes in this area rather than one who practices in many different areas of law. The more specialization, the more likely they’ll be able to help resolve your issue with as little cost and stress to you as possible.

It’s also important to make sure you can trust the attorney and law firm you hire. You can get an idea of whether you trust them by reading past client reviews, getting recommendations from colleagues, and scheduling a free phone consultation to get to know the attorney and how long they have been in business in the MCA world.

Steps in Hiring a Merchant Cash Advance Attorney

Here’s a quick step-by-step guide to hiring an MCA attorney for your Indiana business:

  1. Make a list of MCA attorneys: You can gather a list through an internet search or by asking for referrals from other colleagues and business owners.
  2. Evaluate their MCA experience: Research each attorney on your list to ensure they’re experienced in merchant cash advance law and are in good standing.
  3. Schedule consultations: Most attorneys offer free consultations, during which you can get to know them and their approach to MCA issues.
  4. Compare costs: Hiring an attorney can be expensive. Ask each attorney about their fee structure and compare your estimated costs.

Choose an attorney: Once you’ve gathered all the information and weighed all the factors, it’s time to choose the best MCA attorney for your business debt situation.

Common Mistakes to Avoid When Using a Merchant Cash Advance

Given their complex nature and lack of regulation, it’s easy to fall victim to costly MCA fees and find yourself unable to repay your debt. One of the most common mistakes business owners make when using MCAs is failing to fully understand what they’re agreeing to. 

MCAs are an attractive option because they’re easier to qualify for and provide fast funding, so many business owners rush into them rather than explore other financing options. Then, given the predatory nature of many of these lending tools, business owners may be unable to repay what they owe, resulting in constant calls and letters from merchant cash advance lenders, potential lawsuits, and a costly debt cycle.

How a Merchant Cash Advance Attorney Can Help Mitigate These Mistakes

An MCA attorney can help you before you even take out your MCA by reviewing your contracts and warning you of any potential pitfalls. If you’ve already taken out an MCA and are having issues, an MCA can help advocate for you against your creditor, help negotiate on your behalf, and help you avoid unknowingly violating the terms of your MCA contract.

We work with MCA business creditors

After more than 20 years of working solely in debt relief, Tayne Law Group has established healthy and long-lasting relationships with business lenders, creditors, and merchant cash advance lenders and companies. Because we’re a law firm, our process is respected, which, in the end, saves you time and money.

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To get started call (866) 890-7337.

FAQs About Merchant Cash Advance Attorneys in Indiana

You can settle for MCA by working with an experienced MCA attorney, who can negotiate with your creditors on your behalf to settle for a lower amount or restructure your debt. It’s very challenging to do on your own since you have a contractual obligation to the MCA company.

An MCA lawsuit is when MCA companies sue you to recover your unpaid debt. If you go to court, the lender will attempt to get a judgment against you to require payment, garnish your wages, or collect the debt in another way like through UCC liens.

MCAs are often considered predatory because of their high fees. When you account for the high factor rates and short repayment terms, the cost is considerably higher than traditional business loans and can hinder the cash flow of a business very easily.

If you stop paying your MCA, your lender is likely to attempt to collect the debt through aggressive debt collection tactics like phone calls, emails and letters. If you still fail to repay what you owe, your MCA provider may sue to seek a judgment against you personally and your business.

Unfortunately, yes, a debt collector can refuse to settle with you and often that is the case with the MCA debt collectors.This is why using an experienced MCA debt attorney is the best option in these matters. While many creditors may be willing to negotiate with debtors, that’s not always the case, and some may prefer to go through the courts and other routes to collect the debt they claim you owe them.

Still have questions? Call (866) 890-7337

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