Have you been contacted by Fox Business Funding about an outstanding business debt? Dealing with creditors can be complex, and it’s important to understand your legal rights. Here’s what to do if you’ve been contacted by Fox and what your next steps should be.
Who is Fox Business Capital?
Fox Business Funding is a lender that provides alternative sources of business financing, including merchant cash advances.
Is Fox Business Funding Legitimate?
Yes, Fox is a legitimate company that’s been in business for more than a decade. However, just because it’s a legitimate company doesn’t mean it doesn’t present some risks. Alternative forms of business financing like Fox provides can be higher-risk for borrowers.
They often have lower eligibility requirements, high interest rates, and short repayment terms, meaning you could end up with an expensive loan that you can’t repay. It’s important to proceed with caution before getting a merchant cash advance from Fox or any other business lender.
Overview of Fox Business Funding
Fox Business Funding was founded in 2012 to provide small businesses with working capital. Its founder was inspired to start the business after seeing the need for alternative sources of business financing after the financial crisis a few years earlier.
Since its founding, Fox has provided working capital to thousands of businesses. It boasts a quick turnaround and straightforward loan requirements that make it easy for businesses to get the money they need quickly.
Fox Business Funding Reviews and Complaints
It’s difficult to find reviews from Fox’s past customers online. The company doesn’t have a page or rating with the Better Business Bureau. It also doesn’t have any online reviews or complaints with Trustpilot, the Consumer Financial Protection Bureau, or any other third-party site.
Unfortunately, the lack of customer feedback makes it difficult to determine whether Fox is a good company to work with. It’s best to proceed with caution and consider all of your options before getting a merchant cash advance from Fox or any other lender.
Understanding How Fox Business Funding Operates
Fox offers alternative business financing like merchant cash advances. These cash advances are a unique type of business financing, allowing you to borrow against your future sales or revenue. Then, the lender automatically withdraws payments from your bank account based on your credit card sales and other revenue.
Merchant cash advances often have lenient borrower requirements. Fox only requires borrowers to have a credit score of 550 to qualify. You’ll also need at least $50,000 of monthly revenue and at least one year in business.
Merchant cash advance fees are generally higher than those on other types of business loans, making them an expensive form of financing for small businesses. And when you combine these high fees with the often short repayment terms, many businesses find themselves unable to repay what they owe.
Dealing with Fox Business Funding
What Should I Do If I Receive a Letter or Call from Fox Business Funding?
If you receive a letter or phone call from Fox, your first step is to make sure the communication is legitimate. While Fox is a legitimate company, it’s possible for another company to contact you pretending to be Fox to get you to hand over your hard-earned money.
To determine the legitimacy of a letter, compare the contact information to that on Fox’s website. If you still aren’t sure, contact Fox directly and ask them to confirm it. If you receive a phone call, simply call Fox back at the number listed on the website to continue your communications.
Once you’ve confirmed it is really Fox contacting you, thoroughly review the communication so you understand why the company is reaching out. If they’re contacting you to collect a debt, you may consider speaking with a merchant cash advance (MCA) attorney for help.
Handling Communications from Fox Business Funding
When you’re dealing with Fox or any other lender, it’s important to maintain all of your communications for your records. Keep copies of all letters and emails, and make sure to take thorough notes of all phone calls. If there are ever future disputes or misunderstandings about your debt, these records will come in handy.
Knowing Your Rights Against Fox Business Funding
As a borrower, you have rights when dealing with Fox or any other MCA or business lender. Here are some of the rights you should know:
- Right to transparent terms: Fox must provide you with clear and transparent information about your debt, including the loan amount, factor rate, and repayment term.
- Right to fair treatment: Fox must treat you fairly, including not discriminating against you and not using unethical or deceptive business practices.
- Right to withdraw: Depending on your state, you may have the right to withdraw from your merchant cash advance agreement within a certain period.
- Right to redress: If Fox has violated the terms of your agreement or made errors with your account, you have the right to have it addressed in a timely manner. You also have the right to recourse if Fox engages in unfair business practices.
- Right to legal representation: You have the right to hire a debt relief attorney to represent you in your dealings with Fox or any other business lender.
The Legal Side of Fox Business Funding
Common Legal Issues with Fox Business Funding
Fox offers alternative forms of business financing, like merchant cash advances, which can often cause issues for businesses who take the funds and then can’t afford to pay back the funds. After all, these funding methods aren’t regulated in the same way traditional loans are, which leaves more room for challenges.
One of the most common issues with Fox and other MCA lenders is high fees. These fees can result in paying back far more than they anticipated.
Another issue with MCA funder is their unclear repayment requirements. Some borrowers find themselves unable to repay the money on time, which opens up the opportunity for legal recourse. Fox and other alternative business lenders may engage in aggressive collection tactics or lawsuits to collect defaulted merchant cash advances or loans.
What Happens If You Get Sued by Fox Business Funding
If you get sued by Fox, it’s important to understand your rights and how the legal process works to improve your chances of a good outcome. Here’s how you can expect the process to go:
- Receive the complaint: If Fox sues you, you’ll receive a legal complaint that outlines the company’s claims against you and what recourse it’s seeking.
- Review the documents: When you receive the complaint from Fox, it’s important to thoroughly read and understand it so you know what’s being asked of you and what to do next.
- Hire an MCA attorney: If you’re planning to hire a debt relief attorney to represent you, this is the best time in the process to do so.
- Respond to the complaint: You’ll be required to respond to the complaint within a certain time frame. If you don’t respond, you could have a default judgment issued against you.
- Discovery: During the discovery process, both parties (you and Fox) will exchange relevant information about the loan and court case.
- Negotiation and settlement: It may be possible to settle your case before ever going to court. Your debt help attorney can try to negotiate a settlement with Fox on your behalf.
- Trial: If you aren’t able to reach a settlement with Fox, the case will go to trial, where both parties will have the opportunity to present their arguments.
- Judgment: Once the trial is complete, a judgment will be issued, which could result in you having to pay Fox some or all of your unpaid debt, including legal fees.
How to Negotiate with Fox Business Funding
Check to Make Sure Fox Business Funding Isn’t a Scam
Fox is a legitimate company, but before entering into any negotiations, it’s important to make sure any debt collection letters you receive are legitimate and from Fox. It’s also important to validate the debt to ensure you really owe what Fox is saying you owe.
Strategies for Negotiating with Fox Business Funding
As we mentioned, you may be able to negotiate a settlement with Fox with an experienced MCA attorney helping you before going to court. While every case is different, a settlement could help you pay less than you would if you went to trial and received a judgment.
When you’re negotiating with Fox, it’s important to have a goal in mind. Review how much you owe and what recourse Fox is requesting. Then, consider how much you can afford to pay, either in a lump sum or an installment plan. However, a lump sum could help you pay less.
During your negotiation planning, make sure to hire the best possible help so that you and your business are protected. Maintain all of your communications in writing so you can provide that to your debt relief attorney helping to resolve the matter for you with Fox. This is especially important if you end up coming to a settlement agreement with Fox.
It’s important to act with a clear and level head, even if you believe Fox is treating you unfairly. An MCA attorney can negotiate with Fox on your behalf to ensure the negotiations remain as professional as possible and protect you and your business.
How to Protect Against Fox Business Funding
Steps to Take If You’re Contacted by Fox Business Funding
If you’re contacted by Fox about your business debt, or MCA it’s important to understand your rights and how to protect yourself. Here’s a recap of what you should do if Fox contacts you:
- Make sure it’s legitimate: First, make sure the letter or phone call you receive is really from Fox and that you aren’t being targeted by a scammer.
- Validate the debt: Once you know the communication is from Fox, ask the company to validate the debt in writing.
- Consult an MCA debt attorney: At this point, consider consulting an MCA attorney to discuss your options.
- Consider your next steps: Decide what your next steps will be, whether you’ll pay the debt, negotiate a settlement, or proceed with a trial.
Filing a Complaint Against Fox Business Funding
If you believe Fox has violated your rights or treated you unfairly, you can file a complaint against the company. Here are some places to consider filing complaints:
- Consumer Financial Protection Bureau (CFPB)
- Federal Trade Commission (FTC)
- State Attorney General
- Better Business Bureau (BBB)
Fox Business Funding Phone Number and Address
If you need to contact Fox, you can do so at the following phone number and address:
- Phone: 800-895-4424
- Address: 803 S 21st Ave, Hollywood, FL 33020
How Can a Debt Settlement Attorney Help?
If you’re being contacted or sued by Fox Business Funding, a debt relief attorney may be able to help. Debt relief attorneys have experience dealing with MCA lenders, whether you’re negotiating a debt or going to court to fight a lawsuit.
Tayne Law Group offers a free phone consultation with one of our experienced debt relief attorneys. If you’re being contacted by Fox Business Funding, we may be able to help. 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
What type of financing does Fox Business Funding offer?
Fox Business Funding offers alternative forms of business financing, including merchant cash advances of up to $1 million.
How do merchant cash advances work?
A merchant cash advance is an advance on your business’s future sales. You’ll be approved for a certain amount based on your projected revenue and will repay it in daily or weekly payments pulled directly from your bank account and based on your sales. Merchant cash advances charge fees known as factor rates, similar to interest rates on traditional loans.
How do I get approved for Fox Business Funding?
To get approved for financing from Fox Business Funding, you’ll need a credit score of at least 550, at least $50,000 of monthly revenue, and at least one year in business.
What happens if I default on a Fox Business Funding loan?
If you default on your Fox Business Funding loan, the company may seek legal recourse, including suing you to collect the unpaid debt. Defaulting on your debt can also hurt your personal and business credit.
