Unique Funding Solutions
MCA Review
Is Unique Funding Solutions a Legal MCA or an Illegal Disguised Loan?
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Is Unique Funding Solutions' MCA Agreement Legal?
Unique Funding Solutions, LLC ("UFS"), based in Lynbrook, New York, has been the subject of at least one reported federal court decision examining whether its merchant cash advance agreements were true purchases of future receivables or, in substance, disguised loans.
In GMI Group, Inc. v. Unique Funding Solutions, LLC, 606 B.R. 467 (Bankr. N.D. Ga. 2019), the bankruptcy court reviewed a UFS advance agreement and held that the transaction was a loan rather than a sale of receivables, and that it was criminally usurious under New York law. The court's decision relied on the personal guaranty, the confession of judgment provision, the default remedies, and a reconciliation right the court found to be illusory — invokable only once a month, while a separate covenant required the merchant to maintain a bank balance equal to roughly 34% of daily collections.
If Unique Funding Solutions has filed a Confession of Judgment against you, frozen your bank accounts, placed UCC liens on your receivables, or is enforcing a personal guarantee, you need legal defense immediately.
Grant Phillips Law has successfully litigated over 600 MCA and fintech lending cases and provides nationwide representation to businesses just like yours.
Unique Funding Solutions'
Red Flags Identified
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Confession of Judgment Provisions
A UFS agreement included a COJ clause; court records show a related Confession of Judgment entered against a merchant in New York in November 2018. -
Court Finding of Criminal Usury
A federal bankruptcy court held a UFS advance agreement was a loan carrying a criminally usurious rate under N.Y. Penal Law §190.40. -
Restrictive Reconciliation Rights
The court found the reconciliation clause illusory — limited to once monthly and undercut by a minimum-balance covenant. -
Personal Guaranty Enforcement
Personal guaranties were a central factor in the court's analysis of default exposure for business owners. -
Active Collection Litigation
UFS has filed breach-of-contract suits against merchants, including a 2023 New York action alleging interference with collections.
How Unique Funding Solutions Operates
Confession of Judgment
UFS agreements have included confession of judgment clauses. In one bankruptcy proceeding, records show UFS obtained a COJ against a merchant in a New York court in November 2018, allowing entry of judgment upon default without a contested hearing.
Minimum Balance Covenants
A federal court found a UFS agreement required the merchant to keep a bank balance equal to roughly twice the daily payment — about 34% of daily collections — a covenant the court cited when calling the reconciliation right illusory.
New York Court Filings
UFS has pursued both confession-of-judgment enforcement and breach-of-contract litigation in New York courts, a venue that can be costly and logistically difficult for out-of-state merchants to defend.
Collection Enforcement
UFS has filed suit directly against merchants it alleges impeded collections, underscoring the importance of understanding your covenants before a dispute over reconciliation or repayment arises.
Contact Information
Unique Funding Solutions, LLC
Important: If Unique Funding Solutions has contacted you regarding outstanding balances, do not negotiate directly. Contact Grant Phillips Law first for a free legal review of your contract and obligations.
The Solution You Need
We Fight For
Your Business
How We Fight Back
Grant Phillips Law deploys proven legal strategies to protect your business and restore your financial freedom.
Judgment Vacatur
If Unique Funding Solutions has filed a Confession of Judgment against your business, we file emergency legal papers to vacate it and stop account seizures.
Debt Settlement Solutions
Our attorneys negotiate directly with Unique Funding Solutions to reduce outstanding balances and reach settlements that let your business recover.
UCC Lien Removal
We challenge unlawful UCC liens placed on your business receivables and assets, restoring cash flow and access to legitimate financing.
I was drowning in MCA debt with daily debits draining my account. Grant Phillips Law negotiated a settlement I never thought possible. They genuinely care about their clients and fight hard for results. I can't recommend them enough.
— Verified Client • Business Owner • Grant Phillips Law
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