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 to repay your debts along with your other business 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.
Struggling with your debt?
Yellowstone Capital, LLC, claims to offer financing options to small businesses 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, it 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 Additionally, they require you to give up control of your operating account by having daily or weekly funds are withdrawn to pay down the advance.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. Short-term business loans are often easier to qualify for businesses that may not have good credit. 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 but instead help you resolve your debt.
Tayne Law Group, P.C. has proven strategies to 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.
Struggling with your debt?
FAQs about Yellowstone Capital, LLC
The company claims to provide financing options to small businesses with difficulty qualifying for regular funding.
Merchant cash advances, like those offered by Yellowstone Capital, are often quick-fix options for businesses. The application and approval process is often quicker than a traditional bank loan. Merchant cash advances are also easier to be approved for. Additionally, they often come with high interest rates, challenging repayment schedules, and confessions of judgment. As a result, this confession of judgment can help the company bypass the legal system if you default.
Merchant cash advances are repaid by taking a portion of the business’s sales on a daily, weekly, or monthly basis. As a result, APRs are generally very high. Thus, the business could end up with more debt problems.
1 Evertrust Plaza
Jersey City, NJ 07302
Leslie H. Tayne, Esq. is a New York debt relief attorney and the founder of Tayne Law Group, P.C. With more than 25 years of experience, she focuses on consumer and business debt resolution, including merchant cash advance (MCA) debt, credit card debt, and small business debt. Leslie earned her J.D. from Touro Law Center and holds a B.A. in Public Affairs from SUNY Albany.
She is the author of Life & Debt: A Fresh Approach to Achieving Financial Wellness. A New York Super Lawyer from 2015 to 2024, Leslie is regularly quoted as a financial expert by CBS News, Forbes, The Wall Street Journal, CNBC, Consumer Reports, and other national outlets.