Experienced Enforcement. Commercial Clarity. Proven Results.
At Neubert, Pepe & Monteith, P.C., we represent merchant cash advance (MCA) funders in complex litigation, contract enforcement, and regulatory matters throughout Connecticut. Our firm has extensive experience in the MCA industry and understands the unique challenges our clients face, including receivable volatility, merchant defaults, and regulatory scrutiny. We provide end-to-end legal support designed to secure funders’ rights, enforce contractual remedies, and streamline recoveries, all while maintaining compliance with evolving legal standards.
Whether pursuing prejudgment relief, prosecuting a default to judgment, negotiating settlement, or providing structural guidance on MCA contracts, our attorneys deliver practical legal solutions with urgency, precision, and commercial focus. We also advise MCA funders on risk mitigation strategies and nationwide enforcement options through a trusted network of partner firms when Connecticut enforcement is unavailable.
Full-Service Legal Counsel for MCA Funders
Prejudgment Remedy Attachments
Swift and strategic asset preservation is critical in merchant cash advance enforcement. We frequently obtain ex parte prejudgment remedies under Connecticut General Statutes § 52-278a et seq., allowing us to secure the funder’s interest before litigation is complete. These orders freeze merchant bank accounts, accounts receivable, and other assets to prevent dissipation and preserve the client’s ability to collect.
Example: In one case, we obtained an ex parte bank attachment on a merchant’s operating account containing $150,000, preserving critical assets that would have otherwise been at risk of dissipation during the course of litigation.
UCC Account Debtor Notices (UCC §§ 9-406 and 9-607)
Redirecting receivables at the point of default is a powerful enforcement tool for funders. Upon merchant default, we prepare and issue notices under the Uniform Commercial Code directing account debtors to remit payment directly to the MCA funder. These statutory notices cut off the merchant’s ability to collect receivables and redirect cash flow to the secured party.
Example: After the merchant ceased forwarding daily receivables, we issued UCC § 9-406 notices to the merchant’s three largest customers—successfully redirecting over $50,000 per month in recurring receivables to our client.
Litigating MCA Defaults to Judgment
Effective recovery often requires direct legal action against merchants and guarantors who default. We file and prosecute litigation against defaulting merchants and guarantors in Connecticut courts, moving cases expeditiously toward judgment. Our team is experienced in managing all phases of litigation, including complaint drafting, motion practice, discovery, and trial, while preserving all available enforcement options.
Example: We successfully obtained a $375,000 judgment against a corporate merchant and two guarantors following full discovery and a contested trial. The defendants raised defenses of impossibility and unconscionability, which were rejected by the court.
Settlement Negotiation and Documentation
Not every default requires full-scale litigation—strategic settlement can provide a faster, more cost-effective path to recovery. Where appropriate, we negotiate structured settlements, stipulated judgments, and forbearance arrangements that balance recovery and efficiency. Settlements are carefully documented with appropriate security instruments, judgment provisions, and payment enforcement mechanisms.
Example: We negotiated a settlement of a $200,000 MCA default for $180,000, payable over six months, and secured by a personal guaranty, a UCC-1 lien, and a default judgment provision triggered upon nonpayment.
Post-Judgment Collection Strategies
Judgment alone does not guarantee payment; timely and strategic enforcement is essential. Once judgment is entered, we employ all available post-judgment remedies, including bank executions, wage garnishments, turnover orders, charging orders, and judgment debtor examinations. We move quickly to convert judgments into tangible recoveries.
Example: After obtaining a $220,000 judgment, we promptly identified the merchant’s business checking account and executed against it, recovering $90,000 within weeks of judgment entry.
Nationwide Judgment Domestication and Enforcement
Cross-border enforcement is often necessary when debtors operate beyond Connecticut’s jurisdiction. In cases where a judgment debtor operates outside Connecticut, we utilize a trusted nationwide network of creditors’ counsel to domesticate and enforce judgments in other states. We manage and oversee this process to ensure continuity and results.
Example: After securing a judgment in Connecticut, we engaged local counsel to domesticate and enforce the judgment in California, where the merchant was headquartered and maintained inventory, resulting in full recovery for our client.
MCA Contract Drafting and Review
Well-drafted agreements are the foundation of enforceable and efficient MCA transactions. We prepare and review merchant cash advance agreements, security agreements, personal guarantees, and supporting documentation to ensure legal enforceability. We help our clients reduce exposure and protect their ability to enforce funding terms.
Example: We revised a client’s suite of MCA agreements to include clear reconciliation procedures, defined daily ACH withdrawal protocols, and enhanced venue and jurisdiction provisions to strengthen enforceability.
Legal Compliance and Risk Management
Maintaining regulatory compliance is essential to preserving enforceability and minimizing legal exposure. We advise MCA companies on compliance with state and federal laws governing collections and commercial finance. This includes evaluating risks of recharacterization of MCAs as loans, usury defenses, and the applicability of loan statutes. We also help clients develop internal protocols for compliant collections.
Example: We conducted a compliance audit for a funder, identified several contractual provisions requiring revision, and advised on structuring practices to mitigate exposure under applicable usury statutes.
Best Practices in Connecticut MCA Collections
Successful recovery efforts require more than legal action; they demand disciplined procedures and strategic foresight. We offer proactive guidance on best practices in MCA enforcement, including the use of UCC liens, structured communication with defaulting merchants, and litigation escalation timelines. Our counsel is informed by extensive in-court experience and creditor strategy.
Example: For a client new to operations in Connecticut, we prepared a tailored best practices guide addressing local court procedures, including step-by-step protocols for initiating litigation, seeking prejudgment attachments, and enforcing judgments.