Merchant Cash Advance Defense Attorneys for Florida and New York Businesses

Merchant cash advance disputes can escalate quickly. A missed payment, reduced revenue, a blocked ACH withdrawal, a reconciliation dispute, or an alleged default may lead to demand letters, lawsuits, personal guarantee claims, UCC issues, customer or payment processor contact, or other enforcement activity.

Lomba, P.A. represents businesses facing merchant cash advance disputes, lawsuits, negotiations, and settlements involving Florida and New York.

Our MCA attorneys review the agreement, payment history, alleged default, personal guarantees, reconciliation provisions, UCC filings, jurisdiction, enforcement activity, and the business's objectives to develop a legal strategy based on the dispute's circumstances.

If your business is facing an MCA lawsuit, default notice, settlement demand, personal guarantee claim, UCC issue, or escalating collection activity, speak with an attorney before making a decision that could affect your legal position.

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Call (954) 280-6992

Reviewed by Daniel Lomba, Esq., Founder and Managing Attorney. Licensed to practice law in Florida. New York matters are handled with Jeb Singer, Esq., Of Counsel, admitted in New York since 2009.
Last reviewed: October, 2026

What Is Merchant Cash Advance Defense?

Merchant cash advance defense is legal representation for businesses involved in disputes arising from merchant cash advance agreements.

An MCA dispute may involve much more than a disagreement over payments.

Depending on the agreement and circumstances, the dispute may involve:

• an alleged contractual default

• an MCA lawsuit

• a personal guarantee

• reconciliation rights

• ACH withdrawals

• UCC filings

• claimed rights to receivables

• customer or payment processor contact

• disputed balances

• stacked merchant cash advances

• settlement agreements

• judgments or enforcement

• Florida and New York jurisdiction questions

An MCA defense attorney evaluates these issues together rather than focusing only on the amount a funder says is due.

The right strategy depends on the agreement, transaction structure, payment history, the parties' conduct, jurisdiction, litigation posture, and the business's needs.

When Should You Contact an MCA Defense Attorney?

You don't have to wait until an MCA company files a lawsuit or obtains a judgment to speak with an attorney.

Consider contacting an MCA attorney if:

• daily or weekly withdrawals are becoming difficult to maintain

• your business has received a default notice

• an MCA company is threatening litigation

• your business has been served with a summons or complaint

• you are being pursued under a personal guarantee

• a funder claims rights against receivables or business assets

• customers or payment processors have been contacted

• UCC-related enforcement is affecting operations

• you are considering stopping ACH withdrawals

• you have several active merchant cash advances

• a settlement agreement has been presented for signature

• a prior MCA settlement is allegedly in default

• a judgment has been entered

• the dispute involves Florida and New York

• you are unsure where the MCA company can sue

Early review gives you more time to examine the agreement, identify deadlines, understand the funder's position, evaluate potential defenses, and consider the consequences of your options.

Waiting until the matter becomes an emergency can limit those options.

Facing an MCA dispute? Contact Lomba, P.A. to discuss your legal options.

What Does an MCA Attorney Review?

An effective MCA defense starts with the documents and facts.

An MCA attorney may review:

• the merchant cash advance agreement

• amendments and addenda

• ACH authorizations

• remittance provisions

• reconciliation provisions

• alleged default provisions

• personal guarantees

• UCC filings and claimed security interests

• payment history

• bank statements

• revenue records

• communications with the funder

• broker communications

• demand letters

• settlement proposals

• claimed payoff balances

• governing-law provisions

• forum-selection clauses

• jurisdiction and venue

• lawsuit documents

• judgments

• customer or processor notices

• agreements with other MCA companies

This review is not simply to determine what the MCA company claims is owed.

The attorney evaluates the parties' legal relationship, the validity and scope of the allegations, potential business-owner exposure, litigation risk, enforcement issues, and options for defending or resolving the dispute.

Has an MCA Company Sued Your Business?

Don't ignore an MCA lawsuit.

Once litigation begins, court deadlines may apply even if the parties are discussing settlement.

An MCA lawsuit may include claims against:

• the business

• an individual guarantor

• multiple guarantors

• related business entities

An attorney may evaluate:

• whether the allegations are supported by the agreement

• whether the claimed balance is accurate

• whether the funder complied with its contractual obligations

• whether reconciliation provisions are relevant

• whether jurisdiction and venue are proper

• whether the personal guarantee applies as alleged

• whether defenses may exist

• whether counterclaims are appropriate

• whether settlement should be considered while litigation continues

Being sued does not mean the MCA company automatically wins.

A complaint represents the plaintiff's allegations. You still need to evaluate the agreement, facts, procedural posture, claimed damages, and potential defenses.

However, failing to respond may lead to default proceedings and significantly reduce the business's options.

Already been sued? Learn more about Lomba, P.A.'s Merchant Cash Advance Lawsuit Defense representation.

What Issues Can Arise in an MCA Defense?

No universal merchant cash advance defense exists.

Evaluate each agreement and dispute based on its own facts.

Several issues commonly deserve close review.

Reconciliation Rights

Some MCA agreements include reconciliation provisions that allow remittances to be adjusted based on the business's actual receivables.

If business revenue declines, the agreement may describe a process for requesting an adjustment.

Questions may include:

• whether reconciliation is available

• how the request must be made

• what documentation is required

• whether a proper request was submitted

• how the MCA company responded

• whether reconciliation affects the parties' broader contractual dispute

The agreement's language matters.

Merchant Cash Advance Reconciliation Rights Explained

True Sale vs. Loan Analysis

Merchant cash advances are commonly structured as purchases of future receivables rather than traditional loans.

When a dispute arises, the transaction's actual structure and operation may matter.

An attorney may review factors such as:

• reconciliation rights

• whether repayment was tied to receivables

• whether the agreement contemplated a finite term

• contractual allocation of risk

• default provisions

• the actual conduct of the parties

The characterization of an MCA transaction depends on the agreement, governing law, and facts.

It should not be determined solely by the title placed on the contract.

MCA Personal Guarantees

Many merchant cash advance agreements require an owner or principal to sign a personal guarantee.

After an alleged default, the MCA company may attempt to pursue the guarantor in addition to the business.

An attorney may review:

• what obligations the guarantee actually covers

• what events allegedly trigger liability

• whether a contractual default occurred

• the amount being claimed

• defenses affecting the business

• defenses specific to the guarantor

• jurisdiction and venue provisions

• whether a proposed settlement releases both the business and guarantor

Evaluate the company's contractual position and an owner's personal exposure separately.

MCA Personal Guarantees Explained

UCC Filings and Receivables

Some MCA transactions involve UCC filings relating to business assets or receivables.

Problems may arise when the funder claims rights involving:

• receivables

• customers

• account debtors

• payment processors

• other business assets

A UCC filing does not eliminate the need to examine the underlying agreement, the claimed default, the scope of the filing, and the enforcement activity being taken.

Businesses should preserve UCC notices and communications involving customers or processors so counsel can evaluate them in context.

What Is a UCC Lien?

ACH Withdrawals

Many MCA agreements use daily or weekly ACH debits.

When those withdrawals become difficult to sustain, a business owner may consider blocking the debits or changing accounts.

That decision can have consequences beyond the bank transaction.

Depending on the agreement, changing ACH access may affect:

• default allegations

• litigation risk

• personal guarantees

• UCC-related issues

• settlement leverage

• other contractual rights

Stopping an ACH debit and resolving the underlying MCA dispute are not the same thing.

The better question is often not simply:

"How do I stop the withdrawal?"

It is:

"What happens legally after the withdrawal stops?"

Claimed MCA Balance

Compare the amount an MCA company demands against the underlying records.

Relevant documents may include:

• the original agreement

• amount funded

• purchased amount

• payment history

• fees

• credits

• prior modifications

• settlement agreements

• prior payments

• default provisions

A demand letter or payoff figure represents the funder's position. Evaluate it against the agreement and payment records.