At David I. Mizrahi Law, P.C., we represent merchant cash advance (MCA) funders and help recover defaulted payments through proven legal strategies. As a collections attorney, we deliver results-driven representation, guiding you through complex MCA collections recovery cases and ensuring your financial interests are protected.
Whether you’re a small business funder or a large-scale creditor, we provide tailored solutions to maximize collections recovery while maintaining compliance with relevant laws.
Hiring an attorney familiar with MCA agreements ensures compliance with UCC filings, state-specific rules, and the unique nature of merchant cash advance disputes.
Funders often face unresponsive merchants, bounced ACH payments, disputes over contract terms, or debtors transferring assets to avoid repayment.
A lawyer who helps individuals, businesses, and financial institutions recover money owed to them. Unlike a collections agency, which primarily sends reminders, attorneys can take legal action when merchants default on their obligations.
For MCA funders, we act as your legal partner, managing the entire collections process, from sending demand letters and negotiating settlements to initiating lawsuits and enforcing judgments when necessary.
Attorneys can escalate matters to litigation and judgment enforcement, which agencies cannot.
If merchants begin ignoring you, refuse to make payments or agree to a reduced payment amount, dispute liability, or attempt to hide assets, legal action becomes the most effective path to recovery.
MCA defaults are classified as commercial debt, meaning the FDCPA’s consumer protections don’t apply. This allows us to use more assertive strategies tailored for MCA recovery. While agencies rely on reminders, our legal authority enables us to escalate when necessary during the collection process.
Commercial debts are governed by contract and UCC provisions, whereas consumer debts are subject to stricter federal oversight under the Fair Debt Collection Practices Act, commonly referred to as the FDCPA.
Because MCA contracts are commercial in nature, funders can use broader strategies without violating consumer debt laws.
When merchants fail to pay, some MCA funders consider using a collection agency. However, hiring a collection attorney offers distinct advantages:
If the debt is small and straightforward, an agency may be sufficient for initial reminders and soft collections.
Having an attorney on retainer provides significant advantages and positions your company for long-term success. As soon as an attorney receives a file, they promptly send out UCC lien notices to all relevant parties. If the merchant and guarantor fail to engage in settlement discussions, a lawsuit can be filed within days, or even hours. This level of speed and efficiency maintains pressure on the opposing parties and greatly increases the likelihood of a settlement.
We employ a structured process to maximize recoveries while protecting your business reputation and improving debt collection outcomes.
Before escalating to litigation, we focus on efficient collections options:
If pre-litigation efforts fail, we escalate by:
Our team balances aggressive recovery with professionalism to protect your brand and relationships.
We minimize financial risk for MCA funders by offering contingency fee arrangements, meaning you only pay if we successfully recover your collection funds. Additionally, we front all the costs and get reimbursed upon settlement.
Court filing fees, process server fees, and other costs are also reimbursed from recovered funds.
By partnering with us, you gain a dedicated legal team focused on efficient recovery while you concentrate on funding new deals. We handle the complexities of MCA debt collection so you can focus on business growth.
Our history of favorable outcomes demonstrates our skill in navigating MCA disputes.
We can domesticate and enforce judgments across state lines, ensuring your recovery efforts are not limited geographically.
You’ll receive regular updates and clear explanations, so you’re never in the dark about your case.
Don’t let merchant defaults slow your business. Contact David I. Mizrahi Law, P.C., today for a free consultation with an experienced collection attorney.
We’ll review your case, explain your options, and create a collections recovery strategy designed to secure what you’re legally owed.
Our goal is to act quickly and efficiently to protect your financial interests, maximize collections recovery, and reduce potential losses, giving you the confidence to move forward.
It is time to hire an attorney when a debtor is unresponsive, the debt is high-value, or the case involves complex legal issues or disputes. Hiring the right attorney usually increases recovery success rates.
To help an attorney build a strong case, a creditor should prepare all documents related to the transaction, including contracts, payment history, merchant's bank statements, and communication records.
It depends on the specific attorney and agency, but more often than not, a contingency-fee attorney will cost the same, or even less, than a collection agency. Additionally, collection agencies have limited authority: they cannot file lawsuits themselves, which is why they often refer unresolved cases to attorneys once they’ve reached their limits.
Yes, we have the ability to enforce judgments and pursue collections across state lines.