Carter Ledyard represents merchant cash advance (MCA) companies and (as well as other small business lenders) in sophisticated, high-stakes contested commercial litigation across New York state and federal courts, bankruptcy court, and on appeal. Our attorneys defend funders against usury claims, fraud defenses, and unconscionability challenges that merchants raise to invalidate revenue purchase agreements — and we pursue enforcement actions when merchants default on their obligations. We also co-counsel with local counsel in other states when merchants commence actions in other forums.
MCA litigation demands deep familiarity with a rapidly evolving body of case law that continues to define the line between a true purchase of future receivables and a regulated loan. Our team litigates dispositive motions seeking summary judgment and dismissal of meritless defenses, and secures injunctive relief when needed. We understand the outsized stakes these cases carry: a single adverse decision — even at the trial level — can be weaponized by future merchants and their counsel. We work to prevent that outcome and to ensure funders’ agreements are enforced.
Representative Matters
- Court Reconsiders Denial of Revenue Purchase Agreement Funder’s Summary Judgment Motion
- Carter Ledyard Defeats Debt Settlement Company’s and Lawyer’s Motions to Dismiss Revenue-Based Funder’s Conspiracy Claims
- Carter Ledyard Gets Usury Decision Reversed On Appeal
- Summary Judgement Granted to Revenue Purchase Funder in Hotly Contested Litigation
- Carter Ledyard & Milburn LLP Defeats Appeal from Order Dismissing Usury Claim on Statute of Limitations Grounds
- Carter Ledyard Wins Summary Judgment Enforcing Merchant Cash Advance Agreement, Overruling Usury Defense
- Commercial Division Enforces On-The-Record Settlement Agreement of Carter Ledyard Merchant Cash Advance Client
- Got default judgment entered after merchant defaulted on settlement agreement affirmed on appeal. Capytal v. DJL Inc., 242 A.D.3d 1533 (4th Dept. 2025).
- Enforced stipulation of settlement where merchant refused to execute it after it was co-signed by merchant’s counsel. Glob. Merch. Cash, Inc. v. Tammy Tran Attorneys at Law, LLP, 234 A.D.3d 438 (1st Dept. 2025).
- Won summary judgment enforcing agreement over merchant’s usury and other defenses and obtained award of the full measure of attorneys’ fees. Union Funding Source, Inc. v. GLH Delivering Servs. Inc., 2025 N.Y. Misc. LEXIS 8144 (Nassau Sup. Ct. Oct. 14, 2025)
Transactional Work for Merchant Cash Advance Funders
In addition to Carter Ledyard’s litigation practice, we offer services to assist MCA funder clients. This includes everything from drafting and updated existing MCA agreements, advising on websites and advertising materials, employment law counseling to advising funders entering into Wearhouse lines of credit.
Representative Matters