AJ Equity
MCA Review
Is AJ Equity a Legal MCA or an Illegal Disguised Loan?
We Listen • We Fight • You Win
What Merchants Should Know About AJ Equity Group
AJ Equity Group, LLC is a Brooklyn, New York-based direct merchant cash advance (MCA) provider. Like most MCA companies, it advances a lump sum to small businesses in exchange for a fixed percentage of future receivables, repaid through daily or weekly ACH debits, and structures the arrangement as a "purchase of future receivables" rather than a loan.
New York court records confirm that AJ Equity Group actively litigates its merchant cash advance agreements. In AJ Equity Group LLC v. Cyzen's Capital LLC, Index No. 652058/2023 (Sup. Ct., N.Y. County, decided Feb. 27, 2024), the company sued over a Standard Merchant Cash Advance Agreement involving scheduled payments of $12,500 due on a recurring basis the same contract structure used across most of the MCA industry.
Consumer-facing debt relief and law firm sites that track MCA providers report that agreements from AJ Equity Group, like most MCA contracts, commonly include a confession of judgment (COJ) clause, a UCC-1 blanket lien on business receivables, and a personal guarantee and that when a merchant falls behind, AJ Equity Group has enforced these terms by filing suit, entering judgments, freezing bank accounts, and pursuing personal guarantors. If AJ Equity Group has sued you, entered a judgment, or frozen your account, Grant Phillips Law can review your agreement and explain your options.
Terms Merchants Should
Watch For
-
Confession of Judgment Clauses
MCA agreements of this type commonly allow the funder to obtain a court judgment against the merchant immediately upon default, without a hearing. -
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 Guarantee Enforcement
Reports indicate AJ Equity Group has pursued personal guarantors' assets and wages after a merchant default, in addition to the business itself. -
Bank Account Freezes
Once a judgment is entered, funds in business and personal accounts can reportedly be frozen or levied with little advance notice to the merchant. -
Daily / Weekly ACH Debits
Standard MCA repayment pulls fixed payments directly from a merchant's bank account regardless of actual daily revenue, absent an honored reconciliation request.
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
AJ Equity Group, LLC
Important: If AJ Equity Group has contacted you regarding an outstanding balance, filed a lawsuit, or frozen your account, 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 AJ Equity Group 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
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