New York Merchant Cash Advance Defense Lawyer

What Is A Merchant Cash Advance?

A financial agreement known as a Merchant Cash Advance (MCA) allows a company to receive a one-time payment in exchange for a portion of its future credit card transactions. MCAs provide easy access to funds without having stringent credit standards. However, because of the fees and daily repayment demands, they can be very expensive. As experienced MCA defense lawyers in New York, we emphasize how crucial it is to fully comprehend these terms before committing. It's critical to thoroughly read the contract to make sure that the terms of repayment are clear and to steer clear of any potential financial hazards. Consulting with a legal expert can help navigate these complexities effectively.

How Long Do I Have To Pay Back A Merchant Cash Advance?

The repayment period for a merchant cash advance typically ranges from three to eighteen months, depending on the terms of the lender-business agreement. Repayments are made daily or weekly, based on a percentage of the company's credit card sales, as opposed to predetermined monthly installments. This flexible schedule allows for flexibility in repayment terms based on sales volume while still maintaining alignment with your cash flow. As legal professionals, we suggest that before moving further, you carefully read the MCA contract to ensure that you understand all of the terms and conditions as well as all obligations and potential repercussions.

Pros and Cons of Merchant Cash Advances

Because MCAs don't have the strict conditions of traditional loans, they are appealing to firms in need of rapid cash since they provide instant access to capital. Businesses can repay based on cash flow thanks to the flexibility of daily or weekly repayments linked to a percentage of credit card sales, which helps during sluggish times. However, there are substantial drawbacks associated with these benefits. 

Because of their high fees and interest rates, MCAs can be expensive, with repayment amounts frequently exceeding the initial loan. The weekly or daily repayment schedule may put pressure on cash flow and have an impact on everyday business operations.

For businesses in New York, understanding these complexities is crucial. Consulting with a merchant cash advance defense attorney at Law office of Jonathan P Rubin PLLC can help you navigate the legal intricacies and evaluate the best options for your financial situation. Our company is set up to safeguard your interests, making sure you are aware of all the contractual responsibilities and any dangers related to MCAs. Before committing, weighing the pros and cons with professional legal advice can safeguard your business from unforeseen financial strain.