LG Funding

Facing a Lawsuit From LG Funding, LLC?

If you took a merchant cash advance (MCA) from LG Funding, LLC and the company is now suing you or threatening to sue, you have options. Tayne Law Group, P.C. helps business owners understand their rights and work toward a resolution. We have more than 20 years of experience negotiating and resolving the legal side of business debt.

Is LG Funding, LLC Legitimate?

Yes. LG Funding, LLC is a real company that provides business funding through merchant cash advances. It operates out of Brooklyn, New York, and has had a Better Business Bureau file open since January 2017.

Being a legitimate company does not mean the funding is affordable. A merchant cash advance is not a loan. It is the purchase of a share of your future sales, which is why the cost is often far higher than a bank loan and why traditional lending rules frequently do not apply.

LG Funding Reviews and Complaints

As of July 30, 2026, LG Funding holds an A+ rating with the Better Business Bureau (BBB) and is not BBB accredited. The company has an average customer review rating of 5 out of 5 stars based on two reviews. BBB records show one complaint filed in the last three years, with none closed in the past 12 months.

Those review and complaint counts are small, so they say very little about how your deal will go if your sales slow down. The language in your agreement matters far more than a star rating. It is worth knowing what to look for in a merchant cash advance contract before you sign or before you respond to a lawsuit.

Your Rights When Dealing With LG Funding

MCAs are treated as commercial transactions, not loans. That means many consumer protections do not apply, including the Fair Debt Collection Practices Act, the federal law that limits how collectors can contact you about personal debts.

Your exact rights depend on your state and on the terms you agreed to. In general, a business owner dealing with an MCA company can expect the following.

• A written agreement, and a copy of everything you signed
• Clear disclosure of the total amount you must repay and all fees. New York now requires commercial financing companies to provide standard disclosures before funding.
• An explanation of how your daily or weekly payment is calculated
• The chance to request a reconciliation if your sales drop, when your agreement includes a reconciliation clause
• The right to respond in court if you are sued, and to raise defenses
• Freedom from threats, harassment, and false statements by anyone collecting the debt
• The right to have an attorney review your agreement and negotiate on your behalf

The Federal Trade Commission publishes plain-language debt collection guidance that is a useful starting point. Keep in mind it covers personal, family, and household debts rather than business debts like an MCA.

What to Do if LG Funding Sues You

Acting quickly protects more of your options. Here is a practical order of operations.

1. Do not ignore court papers. Find the deadline to respond and put it on your calendar the same day you receive them.
2. Gather your paperwork. Pull your agreement, every amendment or renewal, and bank statements showing each payment taken.
3. Add up the numbers. Write down what you received and what you have paid to date, so you know where you actually stand.
4. Check for liens and account restrictions. See whether a UCC lien has been filed or whether your business bank account has been frozen.
5. Do not take new funding to cover the old advance. Stacking advances almost always makes the problem worse.
6. Talk to a debt relief attorney first. Do this before you sign anything or agree to a new payment plan.

Dealing With LG Funding Debt

Businesses often fall behind on MCAs because payments come out frequently and the total cost is high. If a business defaults on the advance, the funder can sue for the balance owed. A judgment can lead to frozen accounts, seized assets, or liens against the business.

If the account has already been handed off to a collection agency, the approach changes. Our guide on what to do when a merchant cash advance goes to collections walks through the next steps.

Other MCA Funders We Work With

Many business owners have advances with more than one company at the same time. These pages may also help.

• LCF Group
• Vox Funding
• Specialty Capital
• Everest Business Funding
• Bitty Advance
• See all MCA companies we work with

How Tayne Law Group Can Help

If you are being sued over a merchant cash advance, do not panic. We review your agreement, your payment history, and your current cash flow, then talk through what is realistically achievable.

Our goal with merchant cash advance debt relief is to resolve the debt and help your business avoid bankruptcy without taking on any further debt. Every case is different, and we will tell you honestly what we think we can do.

Call 866-890-7337 or fill out our short contact form to start with a free phone consultation.

FAQs About LG Funding, LLC

What is LG Funding, LLC?

LG Funding, LLC is a Brooklyn, New York company that provides working capital to businesses through merchant cash advances. It has held a Better Business Bureau file since January 2017.

Is a merchant cash advance from LG Funding a loan?

No. A merchant cash advance is structured as the purchase of a share of your future sales, not a loan. That structure is why many traditional lending and consumer protection rules do not apply to it.

Why would a business take out a merchant cash advance?

Merchant cash advances are often a quick and simple way for a business to get funding. They are usually easier to qualify for than a traditional bank loan, which makes them appealing to owners with poor or limited credit. Funds are often available within a few days.

How does merchant cash advance repayment work?

Most advances are repaid over a short period, often three to twelve months. The business pays daily, weekly, or monthly through a percentage of its sales, usually auto-debited from the business bank account. The effective cost can be very high, with APR equivalents sometimes reaching triple digits.

What happens if I stop paying LG Funding?

The funder can declare a default and sue for the balance it says you owe. If it wins a judgment, it may be able to freeze business accounts, seize assets, or place liens. Responding to the lawsuit on time protects far more of your options than ignoring it.

Does LG Funding have complaints on file?

As of July 30, 2026, the Better Business Bureau lists one complaint filed against LG Funding in the last three years and none closed in the last 12 months. The company holds an A+ BBB rating and is not BBB accredited.

Where is LG Funding, LLC located?

LG Funding, LLC is located at 1218 Union St, Suite 2, Brooklyn, New York 11225.