New York Merchant Cash Advance Attorney

This page covers MCA information for this state only. For general MCA guidance:

MCA debt relief for New York business owners

A New York merchant cash advance attorney helps business owners review, negotiate, and resolve MCA agreements before they threaten the survival of the business. That includes handling defaults, frozen bank accounts, UCC liens, and lawsuits filed by MCA companies.

MCAs are a common source of fast funding for New York small business owners who need money for equipment, payroll, or cash flow. But the high fees and short repayment timelines often strain the very cash flow the advance was supposed to protect. Fall behind on payments, and you could face a default notice, a lawsuit, or collection tactics that reach your customers and vendors.

If you’re considering an MCA or already struggling with MCA debt, it’s important to work with an experienced attorney who understands New York merchant cash advance matters. The right attorney can help you navigate contracts, defaults, and liens, and work to resolve the MCA debt issues your business is facing.

What Is a Merchant Cash Advance?

A merchant cash advance is business financing where a company receives a lump sum of money in exchange for a portion of its future receivables. An MCA is not legally a loan. It’s an advance that is typically repaid through automatic daily or weekly deductions from the business’s bank account or credit card sales.

Instead of an interest rate, MCAs use a factor rate, usually between 1.1 and 1.5, to set the cost of the advance. For example, a $10,000 advance with a 1.2 factor rate means the business repays $12,000 in total. Converted to an annual rate, many MCAs cost far more than traditional financing.

Repayment works differently, too. The MCA company deducts a percentage of daily or weekly sales, known as the holdback rate, which usually ranges from 5% to 20%. Higher sales mean faster repayment, while slower sales stretch out the timeline.

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Are Merchant Cash Advances Legal in New York?

Yes, merchant cash advances are legal in New York. But legal doesn’t mean safe. MCAs are often considered predatory because of their high costs and the cycle of debt many business owners fall into.

What disclosures do MCA companies have to give you?

New York’s Commercial Finance Disclosure Law requires MCA companies and other non-bank financing providers to give business borrowers clear, upfront disclosures. Before the deal is finalized, those disclosures must cover the total amount financed, the total cost, the APR, and the payment schedule.

New York also passed a 2019 law that prohibits MCA funders from filing a Confession of Judgment (COJ) against out-of-state borrowers. New York businesses can still sign COJ agreements, so it’s critical to understand what you’re agreeing to before you sign.

New York is cracking down on predatory MCA companies

For years, the MCA industry operated with little oversight. That is changing fast. Since 2024, the New York Attorney General has brought some of the most aggressive MCA enforcement actions in the country:

In January 2025, the Attorney General secured a $1.065 billion judgment against one of the largest MCA operations in the country after proving its advances were disguised loans with effective interest rates as high as 820%. The judgment canceled more than $534 million in small business debt and permanently banned the companies from the industry.
In 2024, the Attorney General won a $77 million judgment against another group of MCA companies for similar predatory practices.
In June 2026, the Attorney General sued an online arbitration platform that allegedly worked with the MCA industry to rig dispute outcomes. Small businesses lost roughly 97% of about 3,000 arbitration cases decided there.

State lawmakers are also weighing a bill known as the End Loan Sharking Act, which would extend New York’s usury protections to merchant cash advances. As of this writing, it has not become law.

Despite this progress, MCAs remain largely unregulated compared to traditional loans, with no caps on factor rates or fees. But courts and regulators are increasingly willing to look past the “not a loan” label, so struggling business owners may have leverage that didn’t exist a few years ago. Working with an experienced business debt help law firm is the most effective way to find out what applies to your agreement.

Bottom line: MCAs are legal in New York, but regulators have canceled hundreds of millions of dollars in MCA debt, and courts are questioning abusive agreements. An attorney can tell you whether your contract has the same red flags.

5 Ways MCA Attorneys Help Your New York Business

MCA attorneys focus on protecting business owners who are considering or already locked into MCA contracts. Here are five ways an MCA attorney can support your New York business:

1. Review contracts

MCA attorneys review agreements to ensure terms are fair and legally compliant, advising you on potential risks, including the use of UCC liens, enforcement, and litigation.

2. Negotiate and restructure MCA terms

They negotiate with MCA companies to restructure terms, often seeking lower payments, longer repayment timelines, or an outright settlement.

3. Defend against predatory practices

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

4. Legal representation in disputes

In disputes or litigation, they represent and defend your interests, addressing contract breaches, predatory practices, and lawsuits filed by MCA attorneys.

5. Help avoid costly mistakes

A merchant cash advance debt relief attorney can help you avoid trouble before it starts by reviewing contracts before you sign, identifying hidden fees, advising on whether an MCA is the right option, and confirming your agreement complies with New York’s disclosure requirements.

What Are Your Options for Resolving MCA Debt in New York?

If your business is struggling with MCA payments, you have more options than most funders want you to know about. The right path depends on your contract, your cash flow, and how far collection has progressed.

Option	How it works	When it may fit
Negotiation or restructuring	Your attorney negotiates lower payments or a longer timeline with the MCA company	Payments are straining cash flow, but the business is still viable
Debt settlement	Your attorney negotiates to resolve the balance for less than the full amount owed	The business can’t sustain payments and needs a full resolution
Reconciliation request	You ask the funder to adjust payments to match a real drop in revenue, as many contracts require	Your sales dropped, but the fixed daily withdrawals didn’t
Legal defense	Your attorney challenges the agreement, judgment, lien, or collection tactics	You’ve been sued, hit with a COJ or UCC lien, or the agreement looks like a disguised loan

Notice what’s not on this list: taking on new debt to pay off old debt. Stacking a second MCA on top of the first is one of the fastest ways to push a business toward failure.

Top Signs You Might Need a New York 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 MCA payments.
You’ve missed multiple MCA payment dates and need to renegotiate.
You have debt collectors or MCA attorneys demanding payment or threatening legal action.
You’ve received notice that the MCA company filed a UCC lien against your business.
The MCA funder is contacting your customers or vendors directly.
You’re considering stacking multiple MCAs to cover an existing advance.

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 New York MCA Debt Relief

If your business is struggling due to MCA debt, you may not know who to turn to for help. Tayne Law Group, P.C. is a trusted source of legal assistance for businesses struggling with MCA debt. Our team of knowledgeable debt relief attorneys and trained staff can help you understand your options and get your business back on track.

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 build a customized, manageable plan to tackle their MCA debt.

Call us for a free phone consultation at 866-890-7337 or fill out our short contact form to get the information your business deserves to make an informed decision about your MCA debt. We never sell or share your information, and calls are never outsourced. All conversations are confidential.

FAQs About Merchant Cash Advance Attorneys in New York

How do I get out of paying a merchant cash advance?

You can’t get out of an MCA by ignoring it, but you do have options. Depending on your situation, an attorney can negotiate a restructured payment plan, pursue a settlement for less than the balance, request a reconciliation if your revenue dropped, or challenge the agreement in court. Learn more about how to get out of a merchant cash advance.

What happens if you don’t pay back a merchant cash advance?

If you don’t pay back an MCA, the funder may sue your business, freeze your bank accounts, or enforce a UCC lien. Many MCA agreements also include a personal guarantee, which can put your personal assets and credit at risk. Some funders use aggressive collection tactics, including contacting your customers directly, so it’s important to get legal advice before things escalate.

What does a New York merchant cash advance attorney do?

A New York merchant cash advance attorney reviews financing agreements, negotiates with funders, and represents businesses in disputes over cash advance, factoring, and funding agreements. Their job is to make sure the terms are fair and lawful, and to protect your business, assets, and reputation when problems come up.

Are merchant cash advances regulated in New York?

MCAs face far fewer rules than traditional loans, but New York now requires upfront cost disclosures and has aggressively pursued predatory funders in court. Even so, there are no caps on factor rates or fees, so the contract you sign controls most of what happens. That’s why a careful legal review matters so much.

How do I choose the right merchant cash advance attorney in New York?

Look for an attorney with significant, specific experience negotiating and resolving MCA matters, not just general business litigation. Ask about their track record with cases like yours, read client reviews, and make sure they understand New York’s MCA laws and disclosure rules. You don’t want to be a test case.

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