Merchant Cash Advance Defense Attorney in Florida
Your business took a merchant cash advance to survive, not to be crushed by it. When MCA funders file lawsuits, freeze your accounts, or enforce personal guarantees, Lomba, P.A. fights back with precision, strategy, and a proven track record across Central and South Florida.
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What Is a Merchant Cash Advance and Why Do They Lead to Litigation?
A merchant cash advance is a financing arrangement in which a company purchases a portion of your business's future receivables in exchange for an upfront lump sum. Unlike traditional loans, MCAs are repaid through daily or weekly ACH withdrawals directly from your bank account, often at effective annual percentage rates ranging from 200% to 350%.
Because MCA agreements are typically structured as purchases of future receivables rather than loans, they have historically avoided Florida's usury statute, which caps interest at 18% per annum on transactions under $500,000. However, when an MCA requires unconditional repayment regardless of business performance, Florida courts may recharacterize the agreement as a loan, triggering usury protections and opening the door to powerful legal defenses.
When businesses fall behind on payments, MCA companies often respond aggressively: filing UCC liens, freezing bank accounts, suing on personal guarantees, and attempting to enforce Confessions of Judgment. Without experienced legal counsel, these actions can destroy a business in weeks.
When You Need an MCA Defense Attorney
Frozen Bank Accounts
Your business or personal accounts have been restrained by an MCA funder, cutting off access to operating capital and threatening your ability to meet payroll and expenses.
Lawsuit Filed Against You
An MCA company has initiated legal proceedings against your business or against you personally under a personal guarantee clause in the funding agreement.
UCC Lien on Your Assets
A UCC-1 financing statement has been filed against your business receivables, restricting your ability to obtain financing and signaling the possibility of enforcement action.
Confession of Judgment
A New York-based MCA company claims to have obtained a judgment against your Florida business through a Confession of Judgment, which may be unenforceable under current law.
Stacked MCA Agreements
Multiple MCA funders are competing to collect from the same revenue stream, creating conflicting liens and compounding daily ACH withdrawals, leaving nothing for operations.
Broker Misrepresentation
An MCA broker made false promises about refinancing, misrepresented the cost of funding, or coached you to provide inaccurate information to the funder.
Defenses We Pursue in MCA Litigation
Usury Recharacterization
If your MCA agreement mandates unconditional repayment, we argue it constitutes a disguised loan subject to Florida's 18% usury cap. Successful recharacterization can void the agreement or drastically reduce the amount owed.
Reconciliation Provision Violations
Many MCA contracts include a reconciliation clause requiring the funder to adjust daily withdrawals based on actual revenue. When funders ignore this provision and withdraw fixed amounts regardless of sales, they breach the agreement and undermine the "true sale" classification.
Invalid Confessions of Judgment
Since August 2019, New York law has prohibited MCA companies from issuing Confessions of Judgment against out-of-state merchants. Any COJ obtained against a Florida business by a New York-based funder is invalid and can be vacated.
Fraud & Misrepresentation
We pursue claims against MCA brokers and funders who misrepresented terms, concealed the true cost of funding, or used deceptive practices to induce your business into signing the agreement.
Unconscionability
When MCA terms are so one-sided that they shock the conscience, including factor rates equivalent to triple-digit APRs and broad personal guarantees, Florida courts have the power to void or reform such contracts.
Counterclaims & Affirmative Relief
Beyond defense, we pursue counterclaims for breach of contract, unjust enrichment, and violations of Florida's Deceptive and Unfair Trade Practices Act when MCA funders engage in predatory or illegal conduct.
How Lomba, P.A. Handles MCA Defense
01 Agreement Analysis
We begin with a forensic review of every MCA contract, personal guarantee, UCC filing, and related document to identify defects in standing, documentation, and enforceability.
02 Emergency Relief
If your accounts are frozen or assets are under immediate threat, we pursue emergency motions and injunctive relief to restore access to your funds and stabilize operations.
03 Strategic Litigation
We deploy targeted motion practice to challenge defective claims, assert affirmative defenses, and position the case for a favorable settlement or complete dismissal.
04 Resolution & Recovery
Whether through a negotiated settlement, a courtroom victory, or by pursuing counterclaims against predatory funders, we resolve the dispute on terms that protect your business and personal assets.
Why Business Owners Choose Lomba, P.A. for MCA Defense
Merchant cash advance disputes operate at the intersection of contract law, commercial litigation, and consumer protection, a space that demands both technical precision and aggressive advocacy. Lomba, P.A. brings deep experience in commercial litigation across Broward, Miami-Dade, Palm Beach, and Hillsborough counties, combined with a strategic approach built for the unique dynamics of MCA enforcement.
Unlike firms that treat MCA cases as simple debt disputes, we understand the evolving legal landscape surrounding the "true sale" versus "disguised loan" distinction, the enforceability of personal guarantees, and the procedural defects that MCA companies frequently rely on. Our approach is designed not just to defend but to create leverage, challenging the funder's claims while positioning our clients for resolution on favorable terms.
Daniel Lomba's background in complex commercial transactions and corporate negotiation gives our clients a decisive advantage when facing well-funded MCA companies and their counsel.
Frequently Asked Questions
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In most cases, Florida courts classify MCAs as purchases of future receivables rather than loans. However, if the agreement requires unconditional repayment regardless of your business's performance, meaning the funder bears no real risk, a court may recharacterize the MCA as a loan. This triggers Florida's usury statute, which caps simple interest at 18% per annum for transactions under $500,000. If your MCA's effective rate exceeds this cap under recharacterization, the entire agreement may be voidable or the balance significantly reduced.
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Yes. MCA funders can obtain restraining orders or enforce UCC liens, resulting in frozen business and personal bank accounts. However, these actions are frequently challengeable. If the underlying agreement is defective, the lien was improperly filed, or the funder failed to follow proper legal procedures, an attorney can file emergency motions to release restrained funds and restore access to your accounts.
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A Confession of Judgment is a clause that allows a lender to obtain a court judgment against you without giving you the opportunity to present a defense. Since August 2019, New York law has prohibited MCA companies from issuing COJs against merchants located outside of New York. This means any COJ issued by a New York-based MCA funder against a Florida business is invalid and unenforceable, including those disguised as "Agreed Judgments." If a funder attempts to enforce such a judgment, your attorney can move to have it vacated.
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Effective defenses include usury recharacterization (arguing the MCA is a disguised loan with illegally high interest), unconscionability, fraud or misrepresentation by the funder or broker, breach of the reconciliation provision, invalid Confessions of Judgment, and improper UCC filings. An experienced MCA attorney will review the specific terms of your agreement, the funder's conduct, and the procedural history to determine which defenses offer the strongest path to resolution.
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If you signed a personal guarantee as part of the MCA agreement, the funder can pursue your personal assets in addition to the business's obligations. However, personal guarantees can be challenged on grounds including unconscionability, fraud in the inducement, and scope limitations. It's critical to have an attorney review the guarantee's language and the circumstances under which it was signed to determine whether defenses are available.
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If your MCA funder engaged in deceptive practices, misrepresented repayment terms, failed to honor the reconciliation provision, or charged rates that constitute criminal usury when the agreement is recharacterized as a loan, you may have grounds for counterclaims. These can include fraud, breach of contract, unjust enrichment, and violations of Florida's Deceptive and Unfair Trade Practices Act. Successful counterclaims can reduce or eliminate your obligation and may entitle you to damages.
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Lomba, P.A. offers a free initial consultation to evaluate your case and explain your options. Fee structures are tailored to the complexity of the matter and may include flat fees, hourly arrangements, or contingency-based structures depending on the claims involved. The initial conversation costs nothing and carries no obligation.
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