Merchant Cash Advance Attorneys in New York

What Is a Merchant Cash Advance?

A Merchant Cash Advance is not structured as a traditional loan. Instead, a funder provides your business with a lump sum of capital in exchange for a percentage of future revenue.

For example, if you receive $100,000 through an MCA, the funder may take a fixed percentage of your daily sales, such as a set amount for every transaction processed, until it collects not only the original advance but also an additional return, sometimes far exceeding traditional loan interest rates. The return is often not expressed as an interest rate, which can obscure the true cost of the financing.

MCAs differ from traditional loans in several key ways, including:

• Repayment is tied to daily or weekly revenue, not fixed monthly payments.
• Payments fluctuate with sales volume rather than remaining constant.
• The agreement is framed as a purchase of future receivables rather than a loan.
• If your business struggles or revenue is slow, you may not technically be in default.
• The lender assumes much of the business risk.

While this structure can be workable and even preferred when properly implemented, many MCA agreements are drafted in ways that shift nearly all risk onto the business while granting funders sweeping control over bank accounts and cash flow. A funding company that uses predatory practices may fail to follow required protocols or intentionally abuse the flexibility of MCA agreements.

When MCA Agreements Cross the Legal Line

Many MCA agreements are structured in ways that violate usury laws or other statutes or regulations. For example, in New York, certain loans cannot exceed 25% annual interest, yet some MCA arrangements effectively charge double, triple, or more, under the guise of revenue-share agreements. Some MCA funders attempt to avoid these limits by labeling their agreements as revenue purchases, even when the terms function like high-interest loans.

How We Help Businesses With Merchant Cash Advances

We work with businesses at every stage of the MCA process, from initial review to dispute resolution and litigation. Our role is to give you clarity, leverage, and informed legal guidance so you can make decisions that align with your business’s long-term stability.

Our representation may include:

• Analyzing existing agreements to determine whether they violate usury laws or other regulations.
• Challenging funders that improperly enforce MCA terms or misclassify loans.
• Attempting to negotiate revised repayment schedules or reduced obligations.
• Defending businesses against aggressive collection efforts, account freezes, and predatory actions.
• Suing predatory funders and lenders for unlawful practices.

We focus on practical, business-minded solutions while preparing every matter as though it could proceed to litigation, so you can trust that your MCA case is in the right hands when you leave it with Barket Epstein Kearon Aldea & LoTurco, LLP.

Representation for New York Business Owners

For most Merchant Cash Advance cases, we represent small and medium-sized businesses, including retailers, restaurants, service providers, and more. Many of our clients are hardworking entrepreneurs who accepted MCA funding under time pressure, only to later discover how restrictive and damaging the terms can be. If this happened to you, we want to hear from you.

Protect Your Business & Future – Call Now

Merchant Cash Advances can impact far more than short-term cash flow. Left unaddressed, a one-sided MCA agreement can threaten the viability of an otherwise successful business.

At Barket Epstein Kearon Aldea & LoTurco, LLP, our New York MCA attorneys bring nationally recognized insight, skill and experience to every matter we handle. Our goal is to help you protect your business, assert your rights, and allow your business to thrive without being financially crippled by abusive agreements.

Contact us today by calling (888) 779-0267 to discuss your concerns if a Merchant Cash Advance is unfairly draining your profits.