Facing A Lawsuit From LG Funding?
LG Funding, LLC provides funding to businesses through merchant cash advances. According to the company’s website, www.lgfunding.com, their approval process is quick and simple. The company is headquartered at 1218 Union St, Brooklyn, NY 11225 and can be reached at 800-419-1160.
Why Would A Business Take Out A Merchant Cash Advance?
Merchant cash advances are a fast and simple way for businesses to get money. They’re usually easier to get approved for compared to regular bank loans, making them a good option for people with less-than-perfect credit. You can typically get the funds in just a few days, which makes merchant cash advances attractive for those who need quick cash.
What Are The Drawbacks Of A Merchant Cash Advance?
While merchant cash advances offer quick access to funds, they come with some drawbacks:
- High Costs: Merchant cash advances often have high fees and factor rates, which means you’ll end up repaying more than the amount you initially received.
- Daily Repayments: Repayments are typically made daily or weekly as a percentage of your daily credit card sales. This frequent schedule can strain your cash flow.
- Not Regulated Like Loans: Merchant cash advances are not regulated in the same way as traditional loans. This lack of regulation can lead to less favorable terms for the borrower.
- Impact on Cash Flow: The daily or weekly repayments can impact your business’s cash flow, making it challenging to cover other operational expenses.
- Renewal Can Increase Costs: If you need additional funding after repaying the initial advance, the cost of renewal can be substantial, increasing the overall expense of the cash advance.
- May Lead to a Debt Cycle: Due to the high costs and frequent repayments, some businesses may find themselves in a cycle of debt, relying on successive cash advances to cover previous ones.
- Limited by Card Sales: Since repayments are tied to daily credit card sales, businesses that primarily deal in cash or other non-card transactions may face difficulties with this repayment structure.
Before opting for a merchant cash advance, it’s crucial to carefully weigh the benefits against these drawbacks and explore alternative financing options to make an informed decision based on your business’s unique needs and financial situation.
How Does Merchant Cash Advance Repayment Work?
Businesses sometimes take merchant cash advances, which are like short-term loans lasting 3-12 months. They pay back the advance every day, week, or month by giving a portion of their sales. However, the catch is that the interest rates can be super high, sometimes even in the triple digits when you calculate the Annual Percentage Rate (APR).
How To Restructure MCA Loans
Restructuring Merchant Cash Advance (MCA) loans with the assistance of a debt relief firm involves a strategic and professional approach. Here’s a guide on how to navigate the process:
- Select a Reputable Debt Relief Firm:
- Choose a debt relief firm with expertise in restructuring MCA loans. Look for firms with a successful track record in negotiating with MCA lenders.
- Consultation and Assessment:
- Schedule a consultation with the debt relief firm. Provide detailed information about your business’s financial situation, outstanding debts, and challenges with the current MCA terms.
- Document Gathering:
- Gather all relevant documents, including MCA agreements, financial statements, and communication with the MCA lender. The debt relief firm will review these documents to understand the terms and conditions.
- Legal Evaluation:
- Utilize the legal expertise of the debt relief firm to evaluate the MCA agreement for any potential violations or areas that can be leveraged during negotiations.
- Communication with the MCA Lender:
- The debt relief firm will initiate communication with the MCA lender on your behalf. They will explain the financial difficulties your business is facing and express the need for restructuring the MCA terms.
- Proposal Development:
- Work with the debt relief firm to develop a comprehensive restructuring proposal. This may involve extending the repayment period, reducing the daily or weekly payment amounts, or modifying the factor rate.
- Negotiation Strategy:
- Develop a negotiation strategy with the debt relief firm. This includes anticipating potential counteroffers from the MCA lender and having a clear plan for achieving favorable restructuring terms.
- Counteroffer Handling:
- Expect counteroffers from the MCA lender. The debt relief firm will handle these counteroffers, negotiating on your behalf to secure the most favorable terms.
- Documentation of Restructured Terms:
- Once an agreement is reached, ensure that all terms are clearly documented. This includes any modifications to the MCA terms, changes to repayment schedules, and a clear plan for resolution.
- Payment Structuring:
- If the restructuring involves a lump-sum settlement or modified payment terms, the debt relief firm will work on structuring a payment plan that aligns with your business’s financial capabilities.
- Monitoring and Compliance:
- The debt relief firm will monitor the implementation of the restructured terms and ensure compliance. They will serve as the intermediary between your business and the MCA lender throughout the process.
- Resolution and Debt Freedom:
- Once the restructured terms are fulfilled, your business achieves resolution, potentially reducing the overall debt burden. The debt relief firm’s involvement ensures a strategic and professional approach to the restructuring process.
Choosing a reputable debt relief firm with experience in MCA negotiations is crucial for a successful restructuring. Their expertise can significantly enhance your chances of reaching a favorable agreement with the MCA lender.
How To Negotiate MCA Loan Reductions
Negotiating Merchant Cash Advance (MCA) loan reductions involves a strategic and professional approach. Here’s a step-by-step guide:
- Select a Reputable Debt Relief Firm:
- Choose a debt relief firm with expertise in negotiating MCA loan reductions. Look for firms with a successful track record in helping businesses achieve favorable outcomes.
- Initial Consultation:
- Schedule an initial consultation with the debt relief firm. Provide comprehensive details about your business’s financial situation, outstanding debts, and challenges with the current MCA terms.
- Document Gathering:
- Collect all relevant documents, including MCA agreements, financial statements, and communication with the MCA lender. The debt relief firm will review these documents to understand the current terms and conditions.
- Legal Evaluation:
- Utilize the legal expertise of the debt relief firm to evaluate the MCA agreement for potential violations or areas that can be leveraged during negotiations.
- Communication with the MCA Lender:
- The debt relief firm will initiate communication with the MCA lender on your behalf. They will explain the financial difficulties your business is facing and express the need for a reduction in the MCA amount.
- Proposal Development:
- Work closely with the debt relief firm to develop a comprehensive proposal for reducing the MCA amount. This may involve proposing a lump-sum settlement or negotiating more favorable repayment terms.
- Negotiation Strategy:
- Develop a negotiation strategy with the debt relief firm. Anticipate potential counteroffers from the MCA lender and have a clear plan for achieving the most favorable reduction.
- Counteroffer Handling:
- Expect counteroffers from the MCA lender. The debt relief firm will handle these counteroffers, negotiating on your behalf to secure the best possible terms for your business.
- Documentation of Reduction Agreement:
- Once an agreement is reached, ensure that all terms are clearly documented. This includes the reduced MCA amount, changes to repayment schedules, and any other modifications to the original agreement.
- Payment Structuring:
- If the reduction involves a lump-sum settlement or modified payment terms, the debt relief firm will work on structuring a payment plan that aligns with your business’s financial capabilities.
- Monitoring and Compliance:
- The debt relief firm will monitor the implementation of the reduction agreement and ensure compliance. They will act as an intermediary between your business and the MCA lender throughout the process.
- Resolution and Debt Freedom:
- Once the reduced terms are fulfilled, your business achieves resolution and potentially reduces the overall debt burden. The debt relief firm’s involvement ensures a strategic and professional approach to the negotiation process.
Choosing a reputable debt relief firm with experience in MCA reductions is crucial for a successful negotiation. Their expertise can significantly enhance your chances of reaching a favorable agreement with the MCA lender.
Facing A Lawsuit From LG Funding, LLC?
If you got a merchant cash advance from LG Funding, LLC and they’re now taking legal action against you, CuraDebt is here to help you understand your rights. LG Funding, LLC provides businesses with merchant cash advances, but these often come with very high-interest rates, making it challenging for businesses to repay. If your business can’t pay back the loan, LG Funding may sue for the debt, and if a judgment is made, they could garnish wages, seize assets, or place liens. Your business has alternatives to merchant cash advances.
Is Business Bankruptcy Right For You?
Filing for business bankruptcy, while it may offer a way to alleviate immediate financial pressures, comes with significant drawbacks. Firstly, the process can be lengthy, complex, and costly, involving legal fees and court expenses that can further strain already limited resources. Additionally, the stigma associated with bankruptcy may harm the business’s reputation, making it challenging to regain the trust of customers, suppliers, and creditors. Business owners also risk losing control of their company, as the bankruptcy court may appoint a trustee to oversee the proceedings. Moreover, bankruptcy may not discharge all types of debts, leaving certain obligations still payable. Furthermore, the impact on personal credit for business owners, potential liquidation of assets, and limitations on future financing options are enduring consequences that can hinder future entrepreneurial endeavors. Therefore, while bankruptcy can provide relief, its drawbacks necessitate careful consideration of alternative financial strategies before taking such a significant step.
What Happens If You Don’t Respond To A Lawsuit From LG Funding, LLC?
If you are facing a lawsuit from LG Funding, LLC, it is essential to seek legal advice from a professional to understand your specific situation.
Generally, if you fail to respond to a lawsuit, the court may issue a default judgment against you. Here are potential consequences:
- Default Judgment:
- If you don’t respond to the lawsuit within the specified time frame, the court may issue a default judgment in favor of LG Funding, LLC. This means they could be granted the relief they sought in the lawsuit, such as obtaining a judgment for the amount owed.
- Garnishment of Wages or Bank Accounts:
- With a judgment, LG Funding, LLC may have the legal right to pursue collection actions, such as garnishing your wages or bank accounts to satisfy the debt.
- Asset Seizure:
- In some cases, a judgment may allow LG Funding, LLC to seek the seizure of certain assets to fulfill the debt obligation.
- Negative Impact on Credit:
- A judgment can have a severe impact on your credit score, making it more challenging to secure credit in the future.
- Legal Costs and Fees:
- You may be responsible for covering LG Funding, LLC’s legal costs and fees associated with pursuing the lawsuit.
It’s crucial to take legal action seriously and respond within the specified timeframe.
Get Help Today
CuraDebt has effective plans to reach an agreement that benefits both your business and creditors, such as LG Funding. We can potentially save you time and money. Your needs and your business come first, and we won’t push you to take on more debt. Our approach is an alternative to bankruptcy and sets the stage for a healthier financial future for your business. As of May 2023 CuraDebt received a score of 5 out of 5 on CustomerLobby for a total of 1179 customer views. CuraDebt is an Accredited Member of the American Fair Credit Council. Contact us toll free today for a free consultation. 1-877-850-3328. Not only do we handle personal debt relief, we also offer business debt relief and tax debt relief.