Have you been contacted by CAN Capital about an outstanding merchant cash advance debt for your business? When dealing with lenders and debt collectors, it’s important to understand your legal rights and the best steps to take. Keep reading to learn more about CAN Capital and what to do if they contact or sue you about your debt.

Who Is CAN Capital?

CAN Capital is one of the longest-running alternative business lenders in the country, offering working capital loans, merchant cash advances, and equipment financing to small businesses. Before taking on any form of financing from CAN Capital, it’s important to understand how the company operates and what other customers have to say.

Is CAN Capital Legitimate?

Yes, CAN Capital is a legitimate business lender. The company has been in operation since 1998 and is accredited by the Better Business Bureau with an A+ rating.

Though CAN Capital is a real company, you may still run into issues working with them. Merchant cash advances are one type of complex business funding that isn’t regulated the same as other business loan products. For that reason, it’s important to do your research before working with any business lender, even a legitimate one like CAN Capital.

Overview of CAN Capital

CAN Capital was founded in 1998, originally operating under the AdvanceMe brand. In 2013, the company rebranded as CAN Capital Inc., bringing the Capital Access Networks, AdvanceMe, and New Logic brands under one banner. The company is headquartered in Kennesaw, Georgia, and is also registered in New York. According to its website, CAN Capital has provided over $8 billion in funding to more than 80,000 small businesses since its founding.

CAN Capital offers several types of business funding, including:

  • Working capital loans
  • Merchant cash advances
  • Equipment financing
  • E-commerce working capital

CAN Capital’s working capital loans and merchant cash advances range from $2,500 to $250,000, with loan terms between 6 and 24 months. Its equipment financing ranges from $5,000 to $250,000, with terms from 24 to 72 months. MCA repayment is based on a percentage of future sales, with factor rates ranging from 1.15 to 1.48 and a $595 administrative fee. Term loans carry an origination fee of up to 3%.

CAN Capital Reviews and Complaints

CAN Capital has a Better Business Bureau rating of A+ and is BBB accredited. According to BBB public records, the company has just one complaint closed within the past three years and none within the past 12 months. CAN Capital does not appear to have any complaints with the Consumer Financial Protection Bureau. On Trustpilot, the company has a rating of 4.9 out of 5 stars based on over 1,200 customer reviews.

Before getting a loan or an MCA from CAN Capital or any other business lending company, make sure to read some of its customer reviews, both good and bad, to get an idea of how the company treats its customers and how it responds to issues.

Understanding How CAN Capital Operates

CAN Capital offers both traditional term loans and alternative funding methods, including merchant cash advances. MCAs tend to be riskier since they’re an advance on future sales rather than a traditional loan backed by your current assets or revenue. CAN Capital’s MCAs use factor rates instead of interest rates, meaning the total cost of borrowing is determined upfront as a multiplier of your advance amount. The company also requires a personal guarantee on its financing products.

One thing to note is that, according to multiple third-party sources, CAN Capital does not report repayment activity to the major credit bureaus. This means that making timely payments on a CAN Capital loan or MCA may not help you build your business or personal credit score.

MCAs can be an effective form of working capital for many businesses, but they also come with risks. Make sure to do your research and fully understand the terms of your agreement before taking money from CAN Capital or any other company for an MCA.

Dealing with CAN Capital

What Should I Do If I Receive a Letter or Call from CAN Capital?

If you’re contacted by CAN Capital, start by verifying the legitimacy of the contact. While CAN Capital is a real company, scammers may try to impersonate lenders and debt collectors. You can ensure the communication is really from CAN Capital by comparing the contact information to that on the company’s website.

Once you know the communication is seemingly authentic, it’s time to figure out exactly why CAN Capital is contacting you. If they’re contacting you or suing you regarding an outstanding MCA debt that you have not paid, you should request validation of the debt before moving forward.

Finally, if you’re unsure what to do with your communication from CAN Capital, consider enlisting the help of an MCA attorney who has experience with these types of lenders and can advise and advocate on your behalf.

Handling Communications from CAN Capital

Make sure to maintain all of your communications with CAN Capital, whether that be keeping copies of letters and emails or taking comprehensive notes of all your phone calls. You may need to reference these later on if CAN Capital pursues legal action or tries to file UCC liens.

Knowing Your Rights Against CAN Capital

When dealing with CAN Capital, you have certain rights as a borrower, just as the company has certain responsibilities as a lender. You have the right to receive transparent information about your MCA or other loan, including any fees you’re being charged.

You have the right to fair treatment from CAN Capital and any other lender. CAN Capital can’t mislead or deceive you about the terms of your loan or MCA. It can’t engage in discrimination in its lending practices and dealings. And if you believe CAN Capital treats you unfairly, you have the right to recourse by filing complaints through official legal and government channels.

Finally, you have the right to legal representation in your dealings with CAN Capital. An MCA attorney can review the terms of your loan, communicate with CAN Capital on your behalf, and represent you in any legal proceedings.

MCAs aren’t regulated in the same way as traditional lending products. Unfortunately, this can lead to unethical practices on the part of lenders and business owners borrowing money without truly understanding what they’re getting into. Additionally, MCAs often result in costly rates and fees that become quickly unaffordable.

It’s worth noting that in 2020, the Securities and Exchange Commission (SEC) charged CAN Capital with misleading investors in a securitization offering. According to the SEC, CAN Capital failed to properly disclose its handling of delinquent accounts. The company settled the charges without admitting or denying the allegations. While this action involved investors rather than borrowers, it’s relevant context for understanding the company’s history.

Like other lenders, CAN Capital has the right to take legal action against you if you don’t repay your MCA or business loan, and they may be quick to do so.

What Happens If You Get Sued by CAN Capital

If CAN Capital files a lawsuit against you, you should be prepared for a formal legal process. If you’re sued by CAN Capital, the first thing that will happen is you’ll receive a legal complaint against you. Normally any lawsuit will outline the company’s claims and the remedy they’re seeking (such as a judgment to repay the debt). Once you receive the legal complaint, here’s a step-by-step guide of what happens:

  1. Review the documents: Make sure you thoroughly read and understand CAN Capital’s complaint. You may compare the information in their complaint to your loan documents to verify their accuracy.
  2. Seek legal help: At this point in the process, you may decide to hire an MCA attorney or debt relief attorney to represent you. MCA attorneys have plenty of experience dealing with companies like CAN Capital.
  3. Respond to the complaint: The complaint will include a deadline by which you must respond, and it’s important to follow it. Failing to respond to the claim could result in a default judgment against you.
  4. Discovery: During the discovery process, the two sides — you and CAN Capital — will exchange relevant information and documents related to the case. An MCA attorney can facilitate the discovery process on your behalf and advocate for you.
  5. Negotiations: Many lawsuits settle before they go to court. You (or your attorney on your behalf) may negotiate with CAN Capital with the goal of settling instead of going to trial.
  6. Trial: If you aren’t able to reach a settlement agreement with CAN Capital, the lawsuit will go to trial, where a judge will issue a judgment that dictates how much you’re required to pay.

How to Negotiate with CAN Capital

Check to Make Sure CAN Capital Isn’t a Scam

As we mentioned, CAN Capital is a legitimate lender. However, scammers frequently target the financial services industry, including impersonating lenders or debt collectors. If you receive a letter from CAN Capital, it’s important to make sure it’s legitimate.

The first thing you can do is make sure the information on your letter matches the contact information on CAN Capital’s website. If you are still not totally certain CAN Capital is the one contacting you, simply call their customer service line and ask.

Strategies for Negotiating with CAN Capital

In some cases, you may be able to avoid your lawsuit moving to the judgment stage by negotiating a settlement directly with CAN Capital. Here are a few tips to help you through the negotiation process:

  • Understand your loan or MCA agreement: Before negotiating with CAN Capital, it’s critical that you understand the ins and outs of your loan agreement, including what you were originally required to pay, how much you’ve already paid, and how much you still owe.
  • Decide how much you’re willing to pay: It helps to go into negotiations with a number in mind. Consider how much you’re willing to offer to pay to avoid going to court.
  • Know your rights: As we discussed, you have certain rights as a borrower when you’re dealing with CAN Capital. Knowing those rights can help you advocate for yourself if the company crosses a line.
  • Hire an attorney: It can be challenging navigating the negotiation process alone. Consider hiring a debt relief or MCA attorney to negotiate with the company on your behalf.
  • Get everything in writing: Make sure all of your dealings with CAN Capital are well-documented, especially any agreements you come to.

How to Protect Against CAN Capital

Steps to Take If You’re Contacted by CAN Capital

If you’re contacted by CAN Capital about an MCA or another debt you owe, here are the first three steps to take:

  1. Verify the validity of the letter: Make sure it’s really CAN Capital reaching out to you. And if it is, request validation of the debt and reconciliation of all payments made by you to them.
  2. Decide on your next steps: If CAN Capital is suing you or filed a UCC lien, consider your desired next steps, whether it be a settlement, trial, or something else.
  3. Hire a debt relief attorney: You don’t have to deal with CAN Capital alone. Consider hiring an attorney to represent and advocate for you as there are attorneys that specialize in MCA debt help.

Filing a Complaint Against CAN Capital

Remember that you have rights as a borrower when you’re dealing with CAN Capital. You can go through government channels like the Federal Trade Commission, your state’s department of finance or banking, or your state’s attorney general. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) and/or the Better Business Bureau.

CAN Capital Phone Number and Address

If you have questions for CAN Capital about your debt, you may contact the company through one of the following methods:

  • Phone: 877-500-8282
  • Mail: 1850 Parkway Place, Suite 1150, Marietta, GA 30067

How Can a Debt Settlement Attorney Help?

If you’re being sued by CAN Capital, a debt relief or MCA attorney can help. MCA attorneys have plenty of experience dealing with CAN Capital and other similar companies and can help guide you through the process, reducing your stress and possibly even reducing the amount you have to pay.

Tayne Law Group offers a free phone consultation with one of our experienced team to discuss your situation and see if legal representation is the right choice. Contact our offices by calling (866) 890-7337 or filling out our short contact form. We never share or sell your information, and all conversations are confidential.

FAQs

Is CAN Capital a Legit Company?

Yes, CAN Capital is a legitimate business lender that has been in operation since 1998. The company offers working capital loans, merchant cash advances, and equipment financing, and is accredited by the Better Business Bureau with an A+ rating.

Does CAN Capital Report to Credit Bureaus?

Based on multiple third-party sources, CAN Capital does not report repayment activity to the major business or personal credit bureaus. This means that paying off your CAN Capital loan or MCA on time may not help build your credit score. However, if you default on your payments, CAN Capital may still take legal action or file UCC liens that could affect your business.

How Do I Know If a Loan Company Is Scamming Me?

An MCA company may be scamming you if they charge exorbitant fees, pressure you to act quickly, or are evasive when you ask questions about your loan. Confirm the legitimacy of any lender before working with them. Additionally, if you receive communications that appear to be from a lender, make sure it’s really the lender contacting you.