When merchants default on Merchant Cash Advances or future receivable purchase agreements, it can be detrimental to your bottom line. Merchant Cash Advance Creditors are forced to subject business and personal guarantors to lawsuits, judgments and liens as well as negative credit reporting that results. You are in business to make money. The Needle Law Group is in money to help your business recovery what you are owed.
Our law firm’s collection strategy is to increase Florida recovery percentages for Merchant Cash Advance providers. This involves developing a customized outbound collection campaigns and litigation in order to deliver our capital provider clients aggressive and dependable results. Our resources allow us to locate elusive merchants, secure pre-litigation commitments and if necessary initiate legal proceedings to obtain judgments, then proceed with garnishment actions, levies and forwarding services if applicable in case the responsible parties have moved or removed assets outside of Florida jurisdiction.
Small to midsize business owners often require additional operating capital to further their business objectives and occasionally to run the day-to-day business operations. Under the auspices of needing new equipment, additional inventory or maybe you they just need to cover payroll, these merchants acquire funding by selling their future receivables to alternative funding providers. If a business owner does not qualify for traditional financing, Merchant Cash Advance or Future Receivable Purchasers can become the destination for a merchant to obtain the funds they need.
Unfortunately, many small business owners enter into contractual agreements with one or more MCA lenders with the expectation that the lender will provide short term factoring receivable funding to assist the business owner to meet the financial needs of the business between the intervals of its customer regular pay cycles.
Merchants often think that they can pay off an MCA with their next job, sale or receivable that comes in, and often engage in stacking or executing multiple MCA agreements with different alternative funding providers. This creates a confusing landscape for creditors to navigate depending on priority of lien recordings, bankruptcy filings and other factors employed by merchants to avoid paying the amounts they committed to pay.
While MCA’s are not considered loan’s, and they do not fall under Florida’s usury laws, many merchants claim these advances fall under the definition of predatory lending and that the contracts are disguised usurious loans with exorbitant fees which cause serious cash flow issues for the merchant. It is important to have an aggressive and dependable law firm advocating and representing your interests and entitlements to recovery of the debt due because these merchants were not forced into accepting the funding or made to get advance after advance.
Effective solutions for getting merchants to paying back and settle business debts can be very time consuming, stressful and challenging for funding companies and that is why outsourcing this function to The Needle Law Group produces net results. Our team can and has been representing creditors, funding companies and lenders for over twenty five (25) years. Our clients enjoy results that include allowing merchants to make the necessary payments while also keeping their doors open.