Grant Phillips Law PLLC


If you answered “Yes” to any of these questions, call your ARKANSAS Merchant Cash Advance Attorneys.

Merchant Cash Advance Attorney – ARKANSAS

A Merchant Cash Advance remains one of the most devastating lending instruments available to cash strapped businesses. Rather than infuse the business with necessary funds, the MCA eats away at the businesses revenues and cash, until the ACH repayments (daily or weekly) become cost prohibitive and inevitably impossible to repay.

While ARKANSAS still has no specific regulation or laws governing Merchant Cash Advances and MCA Funders, the topic remains front and center with regulators and administrative bodies such as the Securities and Exchange Commission looking at regulating the industry.

People find the practice of usury inhumane and distasteful, there are others who feel businesses should be free to profit from legal nuances at the expense of small business.

It is interesting to note that ARKANSAS actually prohibits Payday Loans. Unfortunately, these protections apply to consumers only, because a Payday Loan is marketed and sold to individuals and thus the law does not extend to commercial financing products such as a Merchant Cash Advance. In fact, it is entirely up to each State to regulate lending within its own borders.

Therefore, the regulation that does exist, is targeted at consumer borrowing, not commercial and while some States like California and New York have or are enacting laws that SPECIFICALLY address a Merchant Cash Advance within its ambit of coverage, no such laws have been passed in ARKANSAS to date.


What happens if I default on my Merchant Cash Advance?

When a merchant defaults on their Merchant Cash Advance, there are several possible repercussions. Your MCA Funder may choose to enforce all, or some of the following acts: 

1. File a UCC-1 Lien with an Information Subpoena and Restraining Notice with all your creditors, in order to enforce its UCC-1 Lien filing. These documents are designed to notify anyone and everyone that owes the business money that those funds must be sent to the Merchant Cash Advance Funder rather than to the business.

2. Additionally, a Merchant Cash Advance Funder may commence a lawsuit against the business and possibly you personally, for “Breach of Contract” and “Unjust Enrichment.”

3. An MCA Funder may also try to freeze/levy your business and or personal bank accounts.

Please note that your MCA Funder is permitted to try enforce its MCA Agreement through lawsuit, UCC Lien and or a bank account levy, and each Action is independent of the other, but may be brought simultaneously in the event of default.

A Decline in Receivables is Not a Default

On the other hand, not every Merchant Cash Advance default is a breach of contract.

If your receivables have declined for example, your non-payment and subsequent default may not be a breach of the Merchant Cash Advance Contract.

For a thorough analysis of your legal rights and whether your default is a breach of contract and if so, what may be done, call the MCA Attorneys at Grant Phillips Law, PLLC – 516.670.5165


Merchant Cash Advance Attorney – ARKANSAS MCA Law

Did you know?

In the State of ARKANSAS there is no licensing requirement to become an MCA lender or broker! Some States are beginning to take a look at this for example California and more recently the State of New York, but at present, neither require background checks, licensing, posting of a bond or enrolling in a registration system. In fact, there are NO laws that exist to govern the creation of a Merchant Cash Advance Funder and a Merchant Cash Advance Brokerage in the State of ARKANSAS.

Contact: Grant Phillips Law, PLLC, a New York based Law Firm focused on Merchants and specializing in defending small businesses against Merchant Cash Advance loans across all 50 States as well as Merchant Cash Advances originated by a resident of ARKANSAS.

Merchant Cash Advance Attorney ARKANSAS

Did you know?

New York State enacted a law on August 31st, 2019 banning New York Merchant Cash Advance Funders and other types of lenders from issuing Confessions of Judgment to an out of New York Merchant such as an ARKANSAS Merchant.

In other words, it is illegal to be provided with a Confession of Judgment in the MCA Contract or to be asked to sign a Confession of Judgment as part of a Merchant Cash Advance closing.

*** PLEASE NOTE*** Many Merchant Cash Advance Funders try to include these documents in their contracts and attempt to disguise it by renaming the CONFESSION OF JUDGMENT an “AGREED JUDGMENT.”

Agreed Judgments are Confessions of Judgment.

For example, a borrower from ARKANSAS takes out a Merchant Cash Advance from a New York Merchant Cash Advance Funder, it is now illegal for this funder to issue or ask the ARKANSAS borrowing merchant to sign a Confession of Judgment or Agreed Judgment.

What is a Confession of Judgment?

A Confession of Judgment or COJ is a law that allows one party to obtain a judgment against another party without needing to file a lawsuit or go through the normal litigation process. Think of a Merchant Cash Advance COJ or Agreed Judgment as a judgment on “steroids,” it provides a judgment to the Merchant Cash Advance Funder without you getting a day in Court to defend yourself and your business from allegations of your breaching the Merchant Cash Advance Contract. In summary, a COJ and Agreed Judgment detracts from your fundamental constitutional right to a day in court, also known as Due Process.

Contact Grant Phillips Law, PLLC. Your Merchant Cash Advance Attorneys in ARKANSAS – 516.670.5165

Merchant Cash Advance Attorney ARKANSAS

Why are Merchant Cash Advance Centered Around New York?

New York City is a central hub for finance and alternative lending transactions such as Merchant Cash Advance.  This is largely down to Wall Street and its desire for outrageous returns and its enthusiasm for creating non-conventional lending instruments to achieve its goals.

 Accordingly, when the world of Merchant Cash Advance met Wall Street, the instrument became a reality, as investors plowed millions into originating new Merchant Cash Advance.

New York City and Wall Street in particular were very receptive to the MCA industry in its infancy days and duly provided unlimited capital and its backing to a plethora of Merchant Cash Advance Funders and in turn allowed the industry to get off the ground and go mainstream.

With the support and financial backing of Wall Street, coupled with the fact that the largest lenders, banks, private equity and law firms are located there, it is no wonder that Merchant Cash Advance originations are dominated by New York based lenders.

A Merchant Cash Advance offers Wall Street and Private Equity an alternative form of lending, without limitations on the amount of interest they may charge borrowers, and therefore is very attractive to hard money lenders and their investors. The majority of these investors stem from New York State and thus, it was New York State that facilitated the coming together of Merchant Cash Advance Investors with Merchant Cash Advance Funders and in turn, has been the epicenter of the industry ever since.

Another major reason that Merchant Cash Advance funders set up shop in New York State, is because, prior to the law being repealed, New York Law permitted Merchant Cash Advance funders to issue a borrowing Merchant, the infamous “Confession of Judgment.” As stated earlier in this article, on Aug 31st, 2019, this law was updated to prohibit New York Merchant Cash Advance Funders from issuing a COJ to an ARKANSAS resident.

If you have a Merchant Cash Advance position with any funder in New York, ARKANSAS or across the United States, contact the law firm of Grant Phillips Law – 516.670.5165.

Merchant Cash Advance Attorney ARKANSAS

Did you know?

Twenty-Three (23) year ago information about Merchant Cash Advance loans became available and publicly accessible. Specifically, an individual by the name of Barbara S. Johnson is listed as the official inventor of split-funding, a system that allows for automatic loan repayment to the funders from a single credit card processor shared with the Merchant. Ms. Johnson obtained a Patent for this system in 1997.

Her story is fascinating. Johnson was running four Gymboree Playgroup & Music franchises. Unable to get working capital to fund a summer marketing campaign, she wondered whether she could borrow against future credit card sales derived from parents bringing their kids back for fall classes. About a year later, Johnson and her husband founded Advance Me, a Merchant Cash Advance Funder. Her Patented technology (allowing for the splitting of credit card sales) was a major step in the birth and growth of the Merchant Cash Advance world. Later her company would become CAN Capital, a major player in the MCA lending space.

Merchant Cash Advance Attorney ARKANSAS

Did you know?

The interest rate or effective APR on a Merchant Cash Advance is so excessive and in turn profitable for Merchant Cash Advance funders that large publicly traded companies have also entered the Merchant Cash Advance arena. Some examples include Shopify, Square, PayPal, Amazon and even American Express. There are also major investment banks like Goldman Sachs and Morgan Stanley backing several Merchant Cash Advance funders and hedge funds.

Merchant Cash Advance Attorney ARKANSAS

Did you know?

The attorneys at Grant Phillips Law, PLLC have seen cases where the effective APR on a Merchant Cash Advance was in excess of 1,000% – This is NOT a misprint, again this law firm has seen several Merchant Cash Advance Contracts with an effective APR of 1,000%!

If your Merchant Cash Advance positions are eating away at your business cash flow and revenues, don’t hesitate to contact ARKANSAS Merchant Cash Advance Attorney Grant Phillips. Esq. representing clients in ARKANSAS and across all 50 States.

Merchant Cash Advance Attorneys. 

You put in time, money, equity, experience and knowledge into building your business. It feeds you, supports your family, creates jobs and as such is worth fighting for.

Let Us Help You! Grant Phillips Law, Merchant Cash Advance Attorneys ARKANSAS – a Merchant Cash Advance Defense Law Firm.

GRANT PHILLIPS LAW, PLLC has the success, knowledge, compassion and experience to handle all your Merchant Cash Advance positions, no matter what State you call home, including the State of ARKANSAS.


Merchant Cash Advance Attorney ARKANSAS

You have questions: We have answers.

For answers to these questions and any other you may have, don’t hesitate to contact the Merchant Cash Advance Attorneys at Grant Phillips Law, PLLC. A Merchant Cash Advance Law Firm.

Let our Law Firm alleviate the stress, worry and sleepless nights. Let us help you get your business back on track.

Reclaim your Revenues

Merchant Cash Advance Attorney ARKANSAS

Can Grant Phillips Law help me with my MCA positions?

Yes, Grant Phillips Law has successfully negotiated hundreds of Merchant Cash Advance settlements and filed hundreds of lawsuits against the majority of Merchant Cash Advance Funders.

We are a law firm with a practice dedicated entirely to Defending Merchants from Merchant Cash Advances and Predatory Lending.

Merchant Cash Advance Defense Attorneys, Grant Phillips Law, has settled or litigated and won hundreds of Merchant Cash Advance lawsuits against virtually every MCA Funder, whether the funder is located in ARKANSAS, New York or elsewhere.

We handle multiple positions that are stacked and can assist if a UCC lien has been filed or a lawsuit commenced against you and your business. Our Merchant Cash Advance Defense Law Firm is well versed in negotiating very large balances to small payoff amounts and everything in between.

Merchant Cash Advance Attorney ARKANSAS

Which MCA Funders has Grant Phillips Law settled a Merchant Cash Advance with?

The following is a list of some of the Merchant Cash Advance Funders that Grant Phillips Law have EITHER negotiated a settlement with, or sued successfully.

** Please note: This list is non-exhaustive, but rather a sampling of those MCA Funders we have engaged with on behalf of Merchant Borrowers:

1st Global Systems CloudFund GTR Source Merchant Cash Group Richmond Capital
24 Hour Capital Coastal Capital HFH Capital Merchant Finance Same Day Financing
24/7 Capital Credibility Hi Bar Capital MFS Global Second Chance Funding
60 Day Capital Credibly HOP Capital Monberg Silver Cup Funding
A&J Equity Delancey Street Hunter Caroline ML Factors Silverline
Accel Eagle Eye Advance Ibex Funding Mr. Advance Simply Funding
Ace Funding EIN Cap In Advance National Capital Slate Advance
ACH Elevate Infinity National Funding Snap Advance
Accord Business Funder Elevation Itria Newco South End Capital
Alpha Capital Source Everest (EBF) Jet Capital New Logic SOS Capital
American Express Family Business Fund Kabbage Next Wave Spartan Capital
Americas Fenix Funding Kalamata NRO Boston SPG Advance
Amerifi Capital Five Tower Karish Capital On Deck Financing Spin Capital LLC
Atipana Capital LLC Fora Financial Kash Capital One Park Splash
Austin Business Finance LLC Forward Financing Kingdom Kapital Panthers Capital Streamline Consultants
Balboa Fox Funding Knight Capital Payability Stripe
Banana Exchange Fresh Funding Landmark PayPal Square
BCP Providers Fundation Legacy Capital 26 LLC PDM Capital LLC SRS
BFS Fundbox Legacy Funding Peak Solutions Swift
Bitty Funding Circle Legend Funding Pearl Beta TBF Financial
Blue Vine Fundkite Lendbox Pearl Capital Torro
BMF Funding Metrics Lendbug Pearl Delta Trust Capital
BMF Advance LLC Fundr Lendfi PIRS TVT
BMF Capital Fundry Lendr Platinum United Business Funding
Business Merchant Funding Fundworks Lending Circle Pledge Cap Unique Funding
ByzFunder Fundzio Lendini Premier Velocity Funding Group
Biz Funder Lendio Primo Vertex Funding
Can Capital LLC Lending Valley Propulsion Funding Vital Cap
Cambridge Funding Source GetBackd Loan Builder (PayPal) Quarter Spot Vox Funding
Cap Fund G&G Funding Group Loan Me Queen Funding Wellen Capital
Capital Advanced Services Gibraltar M&D Capital NY RAM Capital Funding WG Capital
Cardinal Equity Global Funding Networks (GFE) Main Street Funders Rapid Finance Wise Capital
Cashable LLC Green Capital Mantis Funding RDM World Global
Central Diligence Green Box Max Advance Regal Capital Wynwood Capital Group
CFG GRP Funding Maxim Commercial Capital Region Capital Yellowstone Capital


Merchant Cash Advance Law Firm

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