MCA Debt Relief for New York Businesses
If stacked merchant cash advances are draining your New York business, you have options. We negotiate directly with your lenders to restructure what you owe — and we know the New York landscape.
Merchant Cash Advance Debt Is a New York Problem
New York has long been the epicenter of the merchant cash advance industry. Many of the largest MCA funders operate out of New York, and for years New York courts were where MCA companies enforced aggressive collections against small businesses across the country.
That history cuts both ways. It means New York business owners are heavily targeted by stacked advances and daily debits — but it also means New York lawmakers, regulators, and courts have paid closer attention to abusive MCA practices than almost anywhere else. Understanding that landscape is part of how we help you negotiate from a stronger position.
Rapid Restructure works with New York merchants to restructure merchant cash advance debt — reducing weekly payments and creating terms a business can actually operate under. We are a debt-restructuring service, not a law firm, and the information below is general education, not legal advice.
What New York Law Says About Merchant Cash Advances
In 2019, New York amended its confession-of-judgment statute (CPLR § 3218) to bar filing a confession of judgment in New York against a defendant who is not a New York resident. This effectively ended the once-common practice of MCA companies obtaining mass confessions of judgment in New York courts against out-of-state small businesses.
New York's Commercial Finance Disclosure Law (Article 8 of the Financial Services Law), with regulations effective for compliance on August 1, 2023, requires merchant cash advance providers to give small businesses standardized, up-front disclosures — including an estimated APR, the finance charge, and total repayment amount — on commercial financing of $2.5 million or less.
The New York Attorney General has actively pursued predatory MCA operators. In 2024 the office secured a judgment of more than $77 million against one group of MCA companies for usury and fraud, and in a January 2025 settlement obtained roughly $1 billion in relief against another large MCA operation — including hundreds of millions in canceled debt and permanent bans from the industry.
New York's criminal usury rate is 25% annual interest (Penal Law § 190.40), and while corporate borrowers generally cannot raise the 16% civil usury cap, they can raise criminal usury as a defense. MCAs are structured as purchases of future receivables to fall outside these caps, but New York courts apply a multi-factor test (looking at reconciliation, term, and recourse on bankruptcy) and have, in specific cases, recharacterized an MCA as an unlawful loan when repayment was effectively guaranteed rather than truly contingent on the business's revenue.
The above is general information, not legal advice. Consult a licensed attorney about your specific situation.
How Restructuring Works for a New York Business
Restructuring is not a new loan and it is not bankruptcy. We contact each of your merchant cash advance lenders directly and negotiate to lower your payment burden — by reducing the total payoff, extending the timeline, or both. The aim is a payment structure your business can sustain.
Because many MCA funders are based in New York, the negotiations are often with lenders we deal with regularly. That familiarity helps us understand what a given funder is realistically willing to accept, which can make the process more efficient.
You keep operating your business throughout. There is no court filing required to start, no credit check, and no upfront fee.
If You're Already Facing Collections in New York
Once an MCA company has a money judgment in New York, its attorney can freeze your business bank accounts by serving a restraining notice under CPLR § 5222 — without a separate court hearing — and the restraint can tie up as much as twice the amount of the judgment.
If you are dealing with a lawsuit, a frozen account, or relentless lender demands, time matters. The sooner we can get involved, the more options are typically on the table. If your situation is urgent, call us directly rather than waiting on a form.
Who We Help Across New York
We work with business owners throughout New York — from New York City and Long Island to Buffalo, Rochester, Syracuse, Albany, and everywhere in between. Restaurants, construction firms, trucking operations, medical practices, retailers, and service businesses all end up stacked with merchant cash advances when cash flow gets tight.
If you have two or more advances, are paying thousands a week in daily or weekly debits, and need relief sooner rather than later, you are likely a strong candidate for restructuring.
“Between the lawsuit threats and three advances draining my account, I thought I was going to lose everything I'd built. Getting the payments restructured pulled me back from the edge.”
— Wholesale distributor, Brooklyn, NY
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Frequently Asked Questions
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Results vary based on your lenders, balances, and individual circumstances. Rapid Restructure is a debt-restructuring service, not a law firm, and does not provide legal, tax, bankruptcy, or credit-repair advice. Any figures shown — such as potential payment reductions or timelines — are illustrative examples, not guarantees of results. Information about state laws is general in nature, may change, and should not be relied upon as legal advice; consult a licensed attorney for guidance specific to your situation.