Funding Circle
MCA Review
Is Funding Circle's cash advance agreement enforceable, or does it cross the line into a disguised, illegal loan? Our attorneys examine the contract terms merchants are up against.
We Listen • We Fight • You Win
Is Funding Circle's MCA Agreement Legal?
Funding Circle built its reputation as a small business lender, but its merchant cash advance product and 2024 sale to iBusiness Funding, a division of Ready Capital Corporation, have left many merchants confused about who actually holds their debt and under what terms it can be enforced.
Our attorneys have reviewed agreements tied to Funding Circle financing and identified recurring red flags: personal guarantees, blanket UCC liens, undisclosed fee structures, and payoff practices that merchants say made it nearly impossible to close out their balance in good faith.
If Funding Circle is pursuing your business for an outstanding balance, do not sign anything or make a payment before speaking with Grant Phillips Law PLLC. A free contract review could reveal defenses you did not know you had.
Funding Circle
Red Flags Identified
-
Ownership Transition Confusion
Funding Circle USA was sold to iBusiness Funding, a division of Ready Capital, in 2024. Merchants report uncertainty over who legally services and collects on their debt today. -
Personal Guarantee Enforcement
Financing agreements routinely require a personal guarantee, putting an owner's personal assets on the line if the business cannot repay. -
Blanket UCC-1 Liens
Collateral and blanket lien filings attach to business assets and receivables, giving the funder leverage well beyond the advance itself. -
Undisclosed Fee Structure
Reported APRs on term financing range from roughly 22% to 45%, with origination and other fees that industry reviewers note are not fully disclosed upfront. -
Payoff Obstruction Complaints
Better Business Bureau reviews describe merchants who tried to pay off their balance in full being met with shifting, unreasonable requirements that blocked settlement.
How Funding Circle Operates
Ownership Handoff Servicing
Following the 2024 sale of Funding Circle USA to iBusiness Funding, accounts were shifted onto a new servicing platform. Merchants report receiving little notice before the change affected their payments and communication.
Aggressive Documentation Cycles
BBB complaints describe repeated requests for bank statements, tax returns, and financial disclosures that stall applications indefinitely, pressuring merchants into accepting whatever terms are eventually offered.
Blanket Lien Filings
UCC-1 filings against all business assets and receivables are recorded early in the relationship, often before the full advance is even deployed, and remain in place as leverage.
Rigid Payoff Conditions
Merchants attempting to settle their balance in full describe conditions that made timely payoff difficult, prolonging the debt and allowing additional costs to accrue.
Contact Information
Important: If Funding Circle 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
If Funding Circle has placed your business under financial strain, our attorneys have several strategies to protect your assets and challenge the enforceability of the agreement.
Contract Illegality Defense
We examine whether Funding Circle's agreement functions as a disguised loan subject to usury limits, and challenge personal guarantee and default clauses that overreach.
Debt Settlement
We negotiate directly with Funding Circle and its current servicer to reduce your outstanding balance and stop rigid, unreasonable payoff conditions from prolonging your debt.
UCC Lien Removal
We work to remove blanket UCC-1 liens filed against your business assets and receivables, freeing up your operating capital and banking relationships.
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 Funding Circle destroy what you've worked so hard to build. Call now.
➤ Call (516) 670-5165