If Honest Funding has contacted you, you may be dealing with a merchant cash advance (MCA) situation that’s placing serious pressure on your business and finances. These high-interest agreements can quickly spiral, leading to aggressive collection tactics, legal threats, and long-term financial consequences.
Whether you’re behind on payments or just exploring your options, this guide will help you understand who Honest Funding is, how they operate, and what steps you can take. That includes how a debt settlement attorney can help you find the best path forward.
Who Is Honest Funding?
Honest Funding is a financial services company that provides access to capital in the form of MCAs. In most cases, the business owner receives a lump sum in exchange for a percentage of future receivables, plus high fees and daily or weekly payments that can drain your monthly income.
Unlike traditional lenders, MCAs are typically not regulated by state lending laws. That means there may be fewer protections for business owners struggling with repayment plans or financial hardship.
Is Honest Funding Legitimate?
Yes, Honest Funding is a legitimate business lender that provides merchant cash advances to small businesses.
However, legitimacy does not always mean fairness. Business owners often experience aggressive repayment demands, frequent phone calls, and unexpected legal action when they fall behind on payments.
Honest Funding Reviews and Complaints
Honest Funding doesn’t have a large online presence, so it’s hard to get a good gauge of how the MCA provider works with its customers. There’s no Better Business Bureau profile for the company, but it does have relatively strong — albeit few — reviews on Trustpilot.
The Consumer Financial Protection Bureau (CFPB) has yet to receive a complaint about Honest Funding LLC.
Understanding How Honest Funding Operates
Honest Funding operates by offering quick capital to businesses in exchange for a cut of future sales. While this can provide short-term relief, it often comes with high interest rates, daily repayments, and terms that make it difficult to maintain financial stability.
Unlike credit card debt, personal loans, or other business loans, MCAs are repaid through fixed daily withdrawals, regardless of how much your business brings in. This can put pressure on your cash flow and lead to additional debt.
If you fall behind on payments, Honest Funding may use various methods to collect what you owe.
What Should I Do If I Receive a Letter or Call from Honest Funding?
If you receive a call or letter from Honest Funding, do not ignore it. Acting quickly and carefully can help you avoid legal complications and give you more control over your debt relief options:
- Review all documents: Read through the terms of the agreement and note key figures like the repayment amount, schedule, and any applicable late fees.
- Do not send payments immediately: Consult with a legal or financial professional first to understand the implications.
- Preserve all communication: Save emails, letters, and voicemails in case you need them as evidence later.
When dealing with Honest Funding, it’s important to remain calm, professional, and strategic. Some ways to handle communication include requesting all documents in writing and avoiding verbal agreements.
Knowing Your Rights against Honest Funding
While Honest Funding is not subject to the same rules as consumer debt collectors, business owners still have legal protections. You may be able to challenge certain contract terms, defend against unfair collection tactics, or even pursue bankruptcy as a last resort.
Consulting with an experienced MCA debt relief attorney is the best way to understand your rights and the legal process ahead of you when faced with debt collection and reductions in cash flow.
The Legal Side of Honest Funding
Like many MCA providers, Honest Funding is known for filing lawsuits when businesses fall behind on payments. Common legal issues with MCA matters can include:
- Confessions of judgment: These legal documents allow the lender to win a judgment without a trial. Many business owners unknowingly sign them.
- Breach of contract claims: If you default on payments, the company may claim you violated the agreement.
- Freezing bank accounts: In some cases, lenders move quickly to seize funds or place a hold on business assets.
If Honest Funding sues you, you’ll receive a summons and complaint. This is your formal notice that legal action has begun. It’s important to note that you must respond within a deadline, which is usually within 20 to 30 days depending on how you were served with the lawsuit. Failing to respond may result in a default judgment against you.
How to Negotiate with Honest Funding
Before engaging, make sure the communication is actually from Honest Funding. Scammers often impersonate legitimate lenders or debt settlement firms to access your personal information.
To avoid scams, start by cross-checking phone numbers and mailing addresses they provide with what you can find online. Also, be sure to avoid giving sensitive information until you can verify that the communication is legitimate.
If you are struggling with payments, you may be able to negotiate better terms, especially with appropriate legal support to help you navigate challenging creditors who are coming after you:
- Ask for a modified repayment plan: Lowering your monthly payment can ease strain on your cash flow.
- Request a lump-sum settlement: If you can access funds, offer a percentage of the balance in exchange for closing the account.
- Challenge contract terms: If the agreement was misleading, an attorney may help you contest it.
How to Protect Against Honest Funding
If you have been contacted by Honest Funding, take these steps to protect yourself and your business:
- Don’t ignore the communication: Even if the debt feels overwhelming or unfamiliar, ignoring contact from Honest Funding can escalate the situation quickly. Taking early action gives you more control over your options and may prevent legal consequences like a default judgment.
- Preserve all written records: Keep copies of every document or message you receive or send, including envelopes and digital correspondence. These records can support your defense if there’s a dispute over the debt’s terms or validity.
- Review your credit reports: Honest Funding typically deals with business debt, but some debts or legal judgments can still show up on your personal credit reports. Monitoring your reports ensures you’re aware of any potential damage and can dispute inaccurate information promptly.
- Consult an attorney: A qualified debt help attorney can help you evaluate repayment plans, challenge unfair contract terms, or explore alternatives like debt consolidation or bankruptcy. Getting expert legal input early can make a major difference in protecting your business and achieving financial stability.
If you believe you have been treated unfairly, you may file a complaint with the CFPB and your state’s attorney general’s office.
Honest Funding Phone Number and Address
You can reach Honest Funding by phone at 512-979-2772 or by email at admin@honestfundingllc.com. For written communication, use the following mailing address:
Honest Funding, LLC
447 Broadway, 2nd Floor #1197
New York, NY 10013
How Can a Debt Settlement Attorney Help?
Dealing with a merchant cash advance lender like Honest Funding can be stressful, especially if you’re facing financial hardship, high fees, or aggressive collection tactics. A debt settlement attorney can help you:
- Review and challenge the validity of the MCA debt, ensuring the contract terms are enforceable and the balance is accurate.
- Communicate directly with Honest Funding on your behalf, reducing the pressure of phone calls and negotiation.
- Develop a strategic debt settlement or repayment plan tailored to your financial situation and business goals.
- Represent you in state or federal court if Honest Funding files a lawsuit against you.
Tayne Law Group has years of experience helping small businesses resolve unsecured debts like MCAs. If you’re ready to explore your debt relief options and regain control, call us at (866) 890-7337 or fill out our short contact form. Your consultation is confidential, and we never share or sell your personal information.
Frequently Asked Questions
Is Honest Funding a Scam?
No, Honest Funding is a legitimate company, but that doesn’t mean their practices are always fair or in your best interests. Always verify who you’re dealing with and protect your personal information.
Can Honest Funding Take Money from My Bank Account?
If you signed an agreement allowing ACH withdrawals, they may attempt daily or weekly deductions. In legal cases, they may seek to freeze accounts through a court judgment.
Should I Work With a Debt Settlement Company or an Attorney?
Attorneys who specialize in debt resolution and MCA matters are better equipped to handle legal disputes and protect your rights, especially if you’re being sued. A debt settlement company may help, but be sure they are reputable and transparent about fees.
Can I Settle My Debt with Honest Funding?
Yes, many business owners settle for less than the full balance. Having a legal advocate can increase your chances of a favorable outcome.
What Are My Options if I Can’t Afford to Pay Honest Funding?
You may consider a modified repayment plan, settlement, or even business bankruptcy under Chapter 7 or Chapter 11. A lawyer can help you explore the best option based on your situation.
