Collections and Litigation

Global Legal Merchant Cash Advance Collections and Litigation

Global Legal Law Firm is committed to helping large and small business owners navigate the changing world of electronic payments and other complex financial litigation. Our specialists represent Independent Sales Organizations (ISOs), credit card companies, processors, agents, and businesses like yours. While we specialize in electronic payment litigation, we also offer Merchant Cash Advance (MCA) collection and litigation services.

Global also represents MCA companies related to cash advance agreements regarding future receivable purchases, loans, residual purchases, or other financing agreements. Global’s experience coupled with its team of nationwide litigators and seizure experts allows Global an extreme advantage to help your company recoup losses. Global will tailor its services, collection, lawsuit, enforcement, and liquidation to your needs. If you are having trouble with repayment or an defaulted MCA, rely on our attorneys as the best option to get your money back. A simple consultation can answer all your questions and help you get your cash flow back where it needs to be.

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Defining Merchant Cash Advances

As a small business, you are constantly buying and selling inventory. Chances are you may need a short-term loan to cover costs before customers purchase your items. This is considered a Merchant Cash Advance. It is a lump sum of money that you can use toward future sales. Many companies that rely on a steady amount of credit card transactions like retail stores, restaurants, and healthcare facilities will take advantage of an MCA so they can run their company. Unlike a traditional loan, you can pay back an MCA as you begin to make sales. The life of this loan is also much shorter than a normal remittance which can end up causing problems if the borrower is not prepared to pay back the money during that agreed-upon time. Overall, this is a financing option that many businesses will take advantage of if they don’t have a great credit score to get other types of financing from traditional banks.

How They Work

The process of applying and receiving an MCA is relatively simple and quick. Within a few business days of being approved, you’ll receive your lump-sum payout. This can be any amount from a thousand dollars to hundreds of thousands of dollars. However, there are some extra strings attached when you go with a merchant cash advance. Rather than paying back interest on a line of credit, you end up paying a percentage of your sales, sometimes on a daily basis. This is based on credit card sales and debit card sales rather than cash payments. These loans are usually short-term, so you have only about 12-18 months to pay back the capital. If you are operating as a lender and a business owner can’t repay their MCA on time, that is when you may want to seek legal action.

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Collecting On Non-Performing Debts

It is not uncommon for merchants to default on their payments because of their previous poor line of credit. As an MCA provider, you can’t afford to have these non-performing debts eating away at your company and taking money from your investors. This is where Global comes in. We are the better option for merchant cash advance companies to collect outstanding debts from merchant accounts. Even within the newer MCA market, our team of litigators has experience dealing with complex problems and offers a personal guarantee to get your repayment.

Global Legal Law Firm Delivers

Global Legal Law Firm doesn’t just talk a big game, we actually deliver. We tailor our services to your needs and will work to obtain the highest return on your negatively performing obligations. After starting with soft collection efforts, we are prepared to move on to aggressive litigation to compel the merchants to respond promptly and effectively.  If merchants do not comply, they become judgment debtors subject to judgment enforcement and the full force of all legal garnishment, levy, and lien structures.

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