Trapped by a merchant cash advance from Yellowstone Capital?

Merchant cash advances (MCAs), business loans and other quick-fix business cash funding options, like those offered by Yellowstone Capital, LLC, can trap businesses in a debt cycle where you can no longer meet your other obligations. You may feel as if you’re drowning as you try to manage repaying your debts along with your other business’s expenses. Tayne Law Group, P.C. has more than 20 years of experience helping businesses like yours resolve debt, avoid bankruptcy, and get a fresh start without putting you further into debt.

Yellowstone Capital, LLC, claims to offer financing options to small businesses that are struggling to find funding for inventory, daily expenses, business expansion, payroll and other business expenses. One option the company offers is a merchant cash advance (MCA). Merchant cash advances are basically business loans that often come with astronomical APRs. As a result, they can be nearly impossible for a business to repay. Additionally, they require you to give up control of your operating account by having daily or weekly funds withdrawn to pay down the advance.

The Federal Trade Commission filed a complaint against Yellowstone Capital in 2021 on “charges that it took money from businesses’ bank accounts without permission and deceived them about the amount of financing business owners would receive and other features of its financing products.” Yellowstone Capital will pay approximately $9.8 million to settle the case with the FTC. The case status is currently pending.

Business owners have other options aside from the loans and financing offered by Yellowstone Capital. For businesses that may not have good credit, short-term business loans are often easier to qualify for. Small business lines of credit, which are revolving and have much lower interest rates than merchant cash advances, can also be a good option if your business has the credit and time to apply. There are alternatives to consider that don’t put you further into debt, and instead help you resolve the debt you have.

Tayne Law Group, P.C. has proven strategies that can help your business resolve this debt. We are not a cookie-cutter debt settlement company. Additionally, we know debt, and understand exactly how to resolve it. You will need personalized attention to find the right solution for your business. Also, we will never ask you to go into more debt. Contact us today for a free consultation to help get your business back on track now.

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