Florida Merchant Cash Advance Attorney

What Is a Merchant Cash Advance?

A merchant cash advance is a fast alternative financing option that provides lump-sum disbursement of capital for small businesses. The extra capital might be used to keep your business afloat during seasonal slowdowns, scale your existing operations, or toward other immediate business needs.

Merchant cash advance companies usually don’t require collateral, and primarily look at your business revenue or card transactions to determine your MCA approval. This flexible eligibility criteria can be appealing, particularly for businesses that don’t have a strong credit score.

To recoup the debt, MCA providers take a portion of your future debit and credit card sales as payment, plus fees. The MCA lender is essentially purchasing a cut of your business’s future receivables.

An MCA has a fee, but it’s not like a typical loan since an MCA is not a loan. An MCA fee is known as a factor rate. For example, if the factor rate is 1.25 for an MCA worth $100,000, the business would owe the lender $125,000. MCAs are often repaid directly through a business’ card processor or directly via ACH withdrawals from a business’ bank account.

Legality of Merchant Cash Advances in Florida

Merchant cash advances are legal in Florida. There are no state laws making them illegal, and they are generally not considered loans under Florida law. This distinction matters because Florida’s usury statute—which caps how much interest a lender can charge—applies to loans, not to the purchase and sale of future receivables.

In January 2021, a Florida appellate court confirmed this position, ruling that a merchant cash advance is a purchase and sale agreement rather than a “disguised loan.” As a result, MCA companies are not subject to Florida’s criminal usury statute and can charge factor rates that, when expressed as an annual percentage rate, can reach 350% or more. This makes it easy for Florida business owners to get trapped in a cycle of debt when high MCA payments significantly reduce cash flow.

When Can a Florida MCA Be Treated as a Loan?

There is an important exception under Florida law. If the repayment of an MCA is unconditional—meaning the business must repay the advance no matter what, regardless of future sales—it may actually be classified as a loan. In that case, the MCA lender would be subject to Florida’s usury restrictions and could not charge excessively high fees.

With a true MCA, the funder is purchasing future receivables and accepts the risk that the business may not generate sufficient sales. If adverse business conditions outside the merchant’s control cause revenue to fall, the lender may have to absorb that loss. Understanding how your specific contract is structured can make a significant difference in your legal options. An experienced MCA attorney can review your agreement and advise you accordingly.

5 Ways MCA Attorneys Help Your Florida Business

Merchant cash advances are high-risk alternative funding solutions that aren’t heavily regulated under federal law. And without Florida-specific MCA disclosure requirements in place, business owners face real exposure from aggressive collection tactics, extreme factor rates, and contract terms that can be difficult to fully understand without legal guidance. MCA debt can quickly balloon, compromising your business’s financial stability.

Merchant cash advance attorneys have specialized knowledge about MCAs. They offer guidance and counsel for your business before you get an MCA and afterward. Here are a few ways an MCA attorney can support your Florida business:

1. Review contracts

MCA attorneys read through your contracts to identify and explain how clauses, like Confession of Judgment (COJ) and Uniform Commercial Code (UCC) liens, can affect your business.

2. Negotiate MCA terms on your behalf

A merchant cash advance attorney negotiates a restructure directly with the MCA provider to protect your business’s interests and facilitate dispute resolution.

3. Advocate for your business’ rights

They flag non-compliant or predatory practices by the provider, and seek redress on behalf of your business—including filing a countersuit if the MCA has engaged in illegal conduct.

4. Education and counseling

Merchant cash advance attorneys provide tailored legal advice about your current MCA obligations and help you understand debt relief options available to your Florida business.

5. Defend your business in court

If the merchant cash advance lender is unwilling to restructure your debt, an MCA attorney helps take the pressure off by filing paperwork with the court and representing you during your case—including potential bankruptcy filings if necessary.

Top Signs You Might Need a Florida MCA Attorney

There are a handful of tell-tale signs that you might benefit from the guidance of a merchant cash advance attorney:

• A large portion of your Florida business revenue is going toward MCA payments.
• You signed a Confession of Judgment (COJ) upon accepting the MCA.
• You signed a personal guarantee, making you personally liable for the business debt.
• Your business is having trouble keeping up with daily or weekly payments.
• You’ve missed multiple MCA payment dates and need to renegotiate.
• You have debt collectors from the MCA demanding payment.
• You’ve received notice that the provider filed a UCC lien against your business.
• Your business or personal bank accounts have been frozen.
• The MCA lender is contacting your clients or threatening legal action.

If one or more of these statements hits home, hiring a merchant cash advance attorney might offer the clarity and relief you need.

Why Choose Tayne Law Group for Florida MCA Debt Relief

As a Florida small business owner, it can be disheartening to see how a merchant cash advance can adversely impact your operations when repayment becomes unmanageable. Having an experienced attorney in your corner who works regularly with MCA debt relief can help your business regain stability so you can focus on moving forward.

Tayne Law’s headquarters are in New York, but we provide legal assistance to clients all over the country—and even the world. The Tayne Law Group, P.C. is an award-winning business debt relief law firm with an A+ BBB rating and more than 20 years of experience negotiating debts like MCAs. We’ve helped countless small businesses with a customized, manageable plan to tackle their MCA debt and get back on track.

Receive a free phone consultation to learn more about our services at (866) 890-7337 or fill out our short contact form to get the information your business deserves to make an informed decision on what to do with your MCA debt. All information shared during the conversation is confidential, and your information will never be sold to a third-party.

FAQs About Merchant Cash Advance Attorneys in Florida

Are merchant cash advances considered loans in Florida?

Generally, no. In January 2021, a Florida appellate court ruled that a merchant cash advance is a purchase and sale agreement—not a loan—and therefore not subject to Florida’s criminal usury statute. This means MCA providers are not bound by Florida’s interest rate caps in most cases. However, if an MCA requires unconditional repayment regardless of business performance, a court may treat it as a loan. An attorney can review your specific contract to determine how it may be classified.

Can an MCA funder file a Confession of Judgment against my Florida business?

Florida has banned Confession of Judgment (COJ) clauses in commercial contracts governed by Florida law. However, many MCA contracts specify that they are governed by the laws of another state—such as New York or Utah—which can affect whether a COJ is enforceable. If your contract is governed by another state’s law, Florida’s COJ ban may not apply. An MCA attorney can review your agreement to assess your exposure.

What happens if I default on my MCA in Florida?

Defaulting on an MCA in Florida can have serious consequences for your business. The MCA funder may pursue a lawsuit, obtain a judgment, file a UCC lien against your business assets, or freeze your bank accounts. If you signed a personal guarantee, your personal finances may also be at risk. Contacting an MCA attorney as soon as you anticipate trouble can help you explore options before the situation escalates.

Does Tayne Law Group need to be licensed in Florida to help me?

Tayne Law Group is headquartered in New York, and we have been helping clients across the country—including Florida—for more than 20 years. Because many MCA contracts are governed by New York law and we negotiate directly with MCA funders, we are well-positioned to assist Florida business owners with MCA debt relief. Call us at (866) 890-7337 for a free consultation to discuss your situation.