American Business Funders
MCA Review
Is American Business Funders a Legal MCA or an Illegal Disguised Loan?
We Listen • We Fight • You Win
Is American Business Funders' Financing Arrangement Legal?
American Business Funders, LLC ("ABF"), based in Montebello, New York, describes itself publicly as an independent loan advisory and brokerage service not a direct lender. ABF states it refers applicants to a network of third-party banks and private lenders offering merchant cash advances, business lines of credit, real estate loans, and personal term loans.
That structure matters legally. The agreement that ultimately governs your obligations is the one issued by whichever lender ABF refers you to not ABF's own marketing terms. A broker's placement commission is typically paid by that lender, and is often built into your factor rate or interest rate rather than charged to you directly.
If a lender referred through ABF's network 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.
What to Watch For
Before You Sign
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Confession of Judgment Provisions
Many MCA and short-term financing agreements including those from lenders ABF refers to allow a COJ to be entered against you in New York courts immediately upon default. -
Factor Rates Without APR Disclosure
"No minimum credit score, no up-front fees" offers can still carry a factor rate that translates to an effective annualized cost far higher than a traditional loan. -
Blanket UCC-1 Liens
Liens filed against all business receivables and assets at funding can block access to outside capital while the advance remains outstanding. -
Personal Guaranty Enforcement
Personal guarantees attached to a business advance or credit line can expose owners to personal liability if the business defaults. -
Broker Commission Buried in the Rate
ABF's placement fee is generally paid by the lender it refers you to a cost often built into your factor rate rather than disclosed as a line item.
How These Financing Arrangements Can Operate
Confession of Judgment
A lender in ABF's network can file a COJ in New York courts upon default, bypassing legal process and obtaining an immediate judgment that freezes accounts before you can respond.
Bank Account Seizure
Once a COJ judgment is entered, a lender can freeze and seize funds from business and personal bank accounts without any prior court hearing or notice.
UCC Liens on Receivables
Blanket UCC-1 liens filed against all business receivables and assets at funding can make it difficult to access outside financing or refinance while the advance remains outstanding.
Daily / Weekly ACH Sweeps
Fixed ACH debits are pulled from your business account regardless of actual revenue, leaving little ability to pause, defer, or reconcile payments during a slow period.
Contact Information
American Business Funders, LLC
Important: If American Business Funders or a lender they referred you to 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 whether your financing came directly from a funder or through a broker like American Business Funders.
Judgment Vacatur
If a lender 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 funders and brokers 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
Get a Free Consultation Today
Don't let American Business Funders destroy what you've worked so hard to build. Call now.
➤ Call (516) 670-5165