Should You Hire a Merchant Cash Advance (MCA) Attorney?
Quick Answer When should you hire an MCA attorney? Hire an MCA attorney if: you have $50K+ in MCA debt, you have been served with a lawsuit or COJ, your…
Category: MCA Legal Issues
Legal issues surrounding merchant cash advances: lawsuits, confession of judgment, personal guarantees, default consequences, and your rights as a borrower.
Can MCA Lenders Take My Personal Assets?
Quick Answer Can MCA funders seize personal assets? Yes, if you signed a personal guarantee. The personal guarantee allows the funder to pursue your personal assets — bank accounts, real…
What Is a Merchant Cash Advance Confession of Judgment?
Quick Answer What is a confession of judgment in an MCA? A confession of judgment (COJ) is a pre-signed legal document that allows the MCA funder to obtain a court…
What Happens to a Merchant Cash Advance If My Business Closes?
Quick Answer Am I still liable for an MCA if my business closes? It depends on your personal guarantee. If you signed one (most MCAs require it), you are personally…
Are Merchant Cash Advances Even Legal?
Quick Answer Are MCAs legal? Yes, MCAs are legal in all 50 states. They operate in a regulatory gap — classified as commercial transactions rather than loans. However, specific MCA…
Can I Use ChatGPT For My MCA Lawsuit?
Quick Answer Should I use AI for my MCA legal case? No. AI tools can help you understand concepts, but they cannot file court documents, appear at hearings, negotiate with…
What California’s New MCA Debt Collection Protections Mean for Your Business
Quick Answer What MCA protections does California law provide? California requires MCA funders to disclose total cost, estimated APR, and payment amounts (SB 1235). The DFPI enforces these rules. If…
Can You Sell Your Business If You Have a Merchant Cash Advance?
Quick Answer Can I sell my business if I have an MCA? Technically yes, but the UCC lien complicates the sale. Buyers will discover the lien during due diligence. You…
Top 3 Reasons to Keep an MCA Attorney on Retainer, Even If You’re Not in Default
Quick Answer Why keep an MCA attorney on retainer? 1) Contract review before signing new MCAs, 2) Proactive reconciliation assertions during revenue drops, 3) Immediate response capability if a funder…
Scammed by an MCA Broker? Steps to Take to Protect Your Business
Quick Answer What should I do if an MCA broker scammed me? Document everything, report to your state AG and the FTC, consult an attorney about fraud and misrepresentation claims,…