Georgia 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 Georgia

Since MCAs aren’t technically considered loans, they’re not subject to federal regulation or consumer-based debt collection laws. There is, however, a Uniform Commercial Code (UCC) that typically is tied to MCAs. The UCC is a set of laws regarding commercial contracts that’s been adopted in nearly all U.S. states.

If you’ve signed an MCA contract, the provider could put a UCC lien or blanket lien on your assets. This means the provider could be entitled to future income streams or business assets in the event of a default. On the upside, if you’ve paid off the MCA and the UCC lien remains on your assets, you’re legally entitled to have it removed.

Georgia’s MCA Regulatory Landscape

Merchant cash advances are legal in Georgia. Because MCAs are structured as purchases of future receivables rather than loans, they fall outside the reach of Georgia’s usury laws and are not subject to state lending regulations. Georgia does not have licensing requirements for MCA providers.

However, Georgia’s consumer lending protections—including payday loan regulations—do not extend to business borrowers, leaving small business owners with limited state-level recourse against predatory MCA terms.

One meaningful protection for Georgia businesses came from a 2019 New York law that prohibits New York-based MCA funders from filing a Confession of Judgment (COJ) against out-of-state borrowers, including those in Georgia. Note that COJs are still legal in Georgia itself, and funders based outside of New York may still attempt to include COJ clauses in their contracts or file in other states.

Georgia also enacted a Commercial Financing Disclosure Law (SB 90) effective January 1, 2024. For MCA transactions of $500,000 or less, providers must now disclose key terms before the deal is consummated—including the total funding amount, total cost, annual percentage rate (APR), and payment schedule. This is an important step toward transparency, but it does not cap fees or limit aggressive collection tactics. If you’re reviewing an MCA offer or struggling with existing MCA debt, consulting with a business debt help law firm can help you understand your rights and options.

5 Ways MCA Attorneys Help Your Georgia Business

Merchant cash advances are high-risk alternative funding solutions that aren’t heavily regulated under federal law. Without Georgia-specific MCA protections in place, business owners face additional exposure from opaque pricing, aggressive collection tactics, and one-sided contract terms. 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 Georgia 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 Georgia 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 Georgia MCA Attorney

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

• 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.
• 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 Georgia MCA Debt Relief

As a Georgia 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.

If you’re struggling with MCA payments, or are at risk of defaulting on an MCA debt, you need a trustworthy legal team at your side. The Tayne Law Group, P.C. is an award-winning business debt relief law firm with 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 Georgia

Are merchant cash advances legal in Georgia?

Yes, merchant cash advances are legal in Georgia. Because MCAs are structured as the purchase and sale of future receivables—not loans—they are not subject to Georgia’s usury laws or state lending regulations. There are currently no licensing requirements for MCA providers in the state. This regulatory gap makes it especially important to review your MCA contract carefully before signing.

Can a Confession of Judgment be used against my Georgia business?

COJs are still legal in Georgia, meaning a funder could include a COJ clause in your contract. However, a 2019 New York law prohibits New York-based MCA funders from filing a COJ against out-of-state borrowers, including those in Georgia. That said, funders based in other states may still file COJs in jurisdictions that permit them. An attorney can review your contract to identify whether a COJ is present and what your exposure may be.

Does Georgia’s new disclosure law protect me from predatory MCA terms?

Georgia’s Commercial Financing Disclosure Law (effective January 1, 2024) requires MCA providers to disclose key terms—including APR, total cost, and payment schedule—before you sign. This improves transparency, but it does not cap fees, restrict collection tactics, or limit factor rates. Knowing what you’re signing is a starting point, but if you’re already struggling with MCA debt, legal counsel offers more direct protection.

What should I do if my Georgia business is being sued by an MCA funder?

Act quickly. You typically have 20 to 30 days to respond to a lawsuit before a default judgment may be entered against you. A default judgment gives the funder powerful tools to collect, including bank account freezes, asset seizures, and UCC liens. An experienced MCA attorney can help you mount a defense, negotiate a resolution, and protect your business. Call us at (866) 890-7337 for a free consultation.