Being sued by an MCA funder?
Served with an MCA complaint, an arbitration demand, a confession of judgment threat, or a COJ already filed? What usually happens next and the moves that keep options open.
If this is you
One or more of these probably describes the last two weeks.
If two or more apply, the window for the most favorable moves is usually measured in days, not months.
The Clock
Missing a response deadline — court summons or arbitration demand — is the single most common way owners lose leverage they still had.
What typically happens next
How the next 30 to 90 days usually unfold.
MCA funders typically file in the state named in the contract's forum-selection clause, often New York. Default judgments move fast — in some cases weeks.
Many MCA agreements include a binding arbitration clause routing disputes to AAA, JAMS, or a similar forum. Arbitration deadlines are short, the procedural posture is different from court, and the award is usually confirmed into a court judgment afterward.
"Many MCA agreements include a binding arbitration clause routing disputes to AAA, JAMS, or a similar forum."
If a confession of judgment was signed, counsel may enter judgment without a trial, then move to enforce across any state where the business holds assets.
Once judgment or an arbitration award is confirmed, the funder's options expand: bank restraining notices, property liens, and third-party subpoenas to customers and processors.
First moves that keep options open
What to do this week. And what not to do.
Do not ignore the summons. A qualified attorney in the filing state should review the complaint and the contract's COJ language.
Gather every document tied to the advance: the original agreement, amendments, daily-debit records, and all correspondence.
Pause any new funding conversations. Another advance into a position already in litigation often accelerates other funders too.
A commercial-debt workout specialist can coordinate with counsel on a pre-answer negotiation where that is realistic.
Questions we hear
Quick answers.
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A specialist reads your situation, tells you whether a negotiated workout fits, and if not, where to go next.
Fees are discussed during a qualified consultation, per FTC Telemarketing Sales Rule. Before Business Bankruptcy does not guarantee any outcome, savings, or timeline.
Don't wait until it's too late
Every day you delay gives creditors more leverage. Whether you're facing daily debits, a pending lawsuit, or a frozen account—talking to an attorney now can preserve options that disappear later.
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