24 Capital
MCA Review
Is 24 Capital a Legal MCA or an Illegal Disguised Loan?
We Listen • We Fight • You Win
Is 24 Capital's MCA Agreement Legal?
24 Capital is a Miami, Florida-based direct funder in the fintech and alternative lending space, offering merchant cash advances and working capital to small and moderate-sized businesses in industries such as retail, restaurants, and services. The company advertises funding in as fast as 24 hours, with approvals available regardless of credit history.
Like any merchant cash advance provider, the agreement 24 Capital issues is a binding contract with real legal consequences and the specific terms matter far more than the marketing. MCA agreements in general can include provisions such as confessions of judgment, personal guarantees, blanket UCC-1 liens on business receivables, and fixed daily or weekly ACH debits that don't adjust for a slow revenue period.
Whether any specific agreement includes these terms depends entirely on the contract you were given which is why a careful read before signing, or before responding to a default notice, matters. If you've received a funding offer or are already dealing with collection activity tied to an MCA agreement, Grant Phillips Law can review the specific language and explain your options.
What to Watch For
Before You Sign
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Confession of Judgment Clauses
Some MCA agreements allow a funder to obtain a court judgment against you immediately upon default, without a hearing or advance notice. -
Factor Rates Without APR Disclosure
"Funding in 24 hours regardless of credit" offers can still carry an effective annualized cost far higher than a traditional loan once the factor rate is converted to APR. -
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 Guarantees
Personal guarantees attached to a business advance can expose owners to personal liability if the business is unable to repay. -
Daily / Weekly ACH Debits
Fixed automatic withdrawals that don't adjust for a slow revenue period can drain a business account regardless of actual sales.
How These Financing Arrangements Can Operate
Confession of Judgment
A funder can file a COJ in court 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 funder 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
24 Capital
Important: If 24 Capital has contacted you regarding an outstanding balance, 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 from 24 Capital or another provider.
Judgment Vacatur
If a funder has filed a Confession of Judgment against your business, we file emergency legal papers to vacate it, stopping account seizures and restoring your funds.
Debt Settlement Solutions
Our attorneys negotiate directly with funders to reduce your outstanding balance and reach settlements that let your business keep operating.
UCC Lien Removal
We challenge and remove unlawful UCC liens placed on your business receivables and assets, restoring your 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 24 Capital destroy what you've worked so hard to build. Call now.
➤ Call (516) 670-5165