In one paragraph
Illinois does not currently require APR disclosure on merchant cash advances, and Illinois law permits confessions of judgment in commercial contracts, so an Illinois business can face a judgment without a lawsuit either in New York or at home. Cook County courts see a steady flow of domesticated New York judgments, and an unaddressed COJ can become a frozen account quickly.
Disclosure
With no Illinois statute covering sales-based financing disclosure, funders present factor rates and daily debits without an annualized figure. Request the total payback and term in writing and convert to APR before signing or negotiating.
Confessions of judgment
Illinois allows COJ clauses in commercial (not consumer) obligations, and Illinois courts will enter judgment on them. That means a funder may skip New York entirely and file directly in Illinois. Review your agreement for a cognovit or “confession” clause and any power of attorney to confess judgment.
Enforcement
Once a judgment exists, Illinois citation proceedings allow the creditor to freeze bank accounts and examine assets. Citations to discover assets are fast and commonly used in Cook County. Motions to vacate a confessed judgment must be brought promptly and with a meritorious defense.
Industries and patterns
Freight and last-mile carriers around Chicago’s rail and distribution hubs are the most common stacked borrowers in our Illinois set, with three to four positions typical at intake.
What to do first in Illinois
Read your agreement for a confession clause first; in Illinois it matters twice. If you find one, engage counsel or a relief firm before the next missed payment, not after.
General legal information as of September 2026, not legal advice, and no attorney-client relationship is created. Statutes and case law change; confirm with a Illinois-licensed attorney before acting. Zogby shares ownership with Delancey Street, a debt relief company it rates.