Our Process

Please note - Corporate Debt Advisors is not a law firm, and simply not lawyers. The information provided on this website is not being offered as legal advice or suggestion, and for more thorough legal information an attorney should be consulted. The legal information on our website is provided without any representations or warranties, express or implied.


 

Evaluate & Prepare – Acting Quickly on Behalf of Clients

While some loans can be refinanced prior to a default, most Merchant Cash Advances (MCAs) metastasize rapidly by design. A confession of judgment (“COJ”) in MCA contracts allows the lenders to move very quickly to secure a judgment (more on COJs here). Therefore, it is critical that we act fast when negotiating on behalf of commercial borrowers that find themselves on the wrong side (in default) of a merchant cash advance.  For our process to be successful, clients must respond quickly and strategically.

Leveraging our Legal Network

Creditors use a legal process to collect a debt from consumers, it stands to reason you should use a legal defense to respond. Learn from our website about common abuses in the MCA lending and collections industries to better understand the process of negotiating a debt settlement. Depending on the circumstances, we refer clients to experienced MCA lawyers that can represent defaulting business owners with the end goal of saving their business and reputation.

Initial due diligence questions for commercial borrowers:

  • Do you have the financial resources to refinance the loan and/or negotiate a new schedule?
  • Where do you stand with respect to default/breach? How much time do we have to respond?
  • Where are you located, where is the creditor located, and which state’s rules apply in your situation?

Important questions that members of our legal network address:

  • Have your personal or business accounts been frozen?
  • Have your clients or merchant accounts been contacted by your lender?
  • Where there any deficiencies in the executing of the judgment (done via COJ), according to state law?
  • What was the use of proceeds of the MCA loan (personal v. business) and can the FDCPA be applied?
  • Has the judgment been domesticated in a legal manner, according to relevant state law?
  • Are there terms in the underlying contract that would indicate that the agreement is a loan (and state usury laws apply)?
  • Are there substantive elements of the agreement that indicate it is a loan, and state usury laws apply?
  • Has the lender engaged in deceptive or illegal tactics in attempting to collect on the judgment, according to state and federal law?

Our Process

Evaluate & Prepare – Acting Quickly on Behalf of Clients

While some loans can be refinanced prior to a default, most Merchant Cash Advances (MCAs) metastasize rapidly by design. A confession of judgment (“COJ”) in MCA contracts allows the lenders to move very quickly to secure a judgment (more on COJs here). Therefore, it is critical that we act fast when negotiating on behalf of commercial borrowers that find themselves on the wrong side (in default) of a merchant cash advance.  For our process to be successful, clients must respond quickly and strategically.

Leveraging our Legal Network

Creditors use a legal process to collect a debt from consumers, it stands to reason you should use a legal defense to respond. Learn from our website about common abuses in the MCA lending and collections industries to better understand the process of negotiating a debt settlement. Depending on the circumstances, we refer clients to experienced MCA lawyers that can represent defaulting business owners with the end goal of saving their business and reputation.

Initial due diligence questions for commercial borrowers:

  • Do you have the financial resources to refinance the loan and/or negotiate a new schedule?
  • Where do you stand with respect to default/breach? How much time do we have to respond?
  • Where are you located, where is the creditor located, and which state’s rules apply in your situation?

Important questions that members of our legal network address:

  • Have your personal or business accounts been frozen?
  • Have your clients or merchant accounts been contacted by your lender?
  • Where there any deficiencies in the executing of the judgment (done via COJ), according to state law?
  • What was the use of proceeds of the MCA loan (personal v. business) and can the FDCPA be applied?
  • Has the judgment been domesticated in a legal manner, according to relevant state law?
  • Are there terms in the underlying contract that would indicate that the agreement is a loan (and state usury laws apply)?
  • Are there substantive elements of the agreement that indicate it is a loan, and state usury laws apply?
  • Has the lender engaged in deceptive or illegal tactics in attempting to collect on the judgment, according to state and federal law?
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