At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Delancey Street
Merchant cash advance (MCA) debt is entirely different from consumer debt, and this distinction is why a specialized firm like Delancey Street exists. An MCA is not technically a loan — it is structured as a purchase of future receivables. The MCA company buys a portion of your future credit card sales or bank deposits at a discount, then collects by taking daily or weekly automated withdrawals from your business bank account. Because MCAs are purchases rather than loans, they are exempt from usury laws in most states. This legal classification means effective APRs on MCAs routinely range from 50% to 350%, with some short-term advances exceeding 400% when annualized. Traditional debt settlement companies that handle credit card debt have no experience with MCA contract structures, factor rates, or the specific legal arguments available to challenge these agreements. The most dangerous element in most MCA contracts is the confession of judgment (COJ). A COJ is a pre-signed legal document embedded in the MCA agreement that allows the lender to obtain a court judgment against the business — and freeze its bank accounts — without any notice, hearing, or opportunity to defend yourself. The lender simply files the COJ with a court clerk, gets a judgment, and sends a restraining notice to your bank. Your first warning is often discovering that your business checking account is frozen and you cannot make payroll. New York banned the enforcement of COJs for out-of-state transactions in August 2019 after widespread abuse, but many existing MCA contracts predate the ban, and some lenders continue filing them in violation of the new rules. Delancey Street's primary value proposition for business owners in crisis is challenging these COJs in court — filing motions to vacate the judgment, arguing improper service, jurisdictional defects, or violation of the 2019 New York ban. Beyond immediate crisis defense, Delancey Street addresses the downstream damage MCAs cause through UCC lien mechanics. MCA lenders routinely file UCC-1 financing statements on a business's assets as security for the advance. These liens appear on the business's credit reports and in Secretary of State databases, effectively blocking the business from obtaining any new financing — SBA loans, bank lines of credit, equipment leasing, even new vendor credit terms. Removing a UCC lien requires either full payoff of the MCA, a negotiated release as part of a settlement, or a legal challenge arguing that the lien was improperly filed (for example, if the UCC-1 was filed after the MCA was already in default and the MCA contract did not grant a security interest in business assets). Delancey Street handles the full chain: COJ defense to unfreeze accounts, MCA negotiation to reduce the balance, and UCC lien termination to restore the business's ability to access capital.
Key Features
MCA Defense Specialists
When an MCA company files a confession of judgment and freezes your bank account, you need someone who has fought this fight before. Delancey Street does MCA defense day in and day out -- challenging COJs, getting freezes lifted, and stopping the bleeding.
UCC Lien Removal
MCA lenders file UCC liens on your business assets as standard practice. Even after you settle, those liens stay on record and block you from getting SBA loans, bank credit lines, or equipment financing. Delancey Street gets those liens terminated as part of every case.
Business Debt Restructuring
Beyond settlement, Delancey Street builds full debt restructuring plans that help businesses reorganize what they owe while keeping the doors open.
Rapid Response Team
If your bank account got frozen this morning, Delancey Street can do an emergency intake and have a strategy call with you the same day. They've filed motions to lift freezes within 48 hours of first contact.
Free Initial Consultation
No upfront fees. You don't pay Delancey Street a dime until they actually resolve a debt for you. That's the FTC rule, and it's how they operate.
Nationwide Coverage
Based in New York but works with business clients in all 50 states. Being NY-based is actually an advantage -- most MCA lenders file their COJs in New York courts, so Delancey Street is fighting on home turf.
How It Works
Business Assessment
Free call to go through every MCA agreement, business loan, and commercial obligation. They'll identify which contracts have COJ clauses, personal guarantees, and other land mines.
Strategy Development
Custom plan combining MCA defense, lien removal, and debt negotiation built around your specific business situation.
Creditor Communication
Delancey Street contacts every MCA lender and creditor directly. Once they're in the picture, the collection calls to you stop.
Negotiation & Defense
The team works two tracks at once: negotiating reduced payoffs with each lender while fighting any COJs or bank freezes in court. The legal pressure makes the settlement offers land harder.
Resolution
Settlements get finalized in writing, UCC liens get terminated with the Secretary of State, and your business can start rebuilding. Fees are only charged after results are delivered.
What They Do
- MCA Defense
- UCC Lien Removal
- Business Debt Restructuring
- Commercial Debt Settlement
Debt Types They Take On
- Merchant Cash Advances
- Business Loans
- Commercial Debt
- Equipment Financing
- Revenue-Based Financing
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Restaurant Chain: Bank Freeze on $340K Across 6 MCA Agreements
A two-location restaurant operator had taken six separate MCAs totaling $340K from four different lenders over 18 months — a classic MCA stacking situation where each new advance was taken to cover daily withdrawals from the previous ones. When one lender declared default, it filed a confession of judgment in New York County Supreme Court and obtained a restraining notice that froze both the business operating account and the owner's personal account (which was named as a personal guarantor). The business could not process payroll for 23 employees or pay food distributors, threatening both locations with closure within days. Delancey Street filed an emergency order to show cause within 48 hours, arguing the COJ was unenforceable because the business was based in New Jersey and New York's 2019 COJ ban applied to out-of-state transactions. The court vacated the judgment and lifted the freeze on day 4. With the immediate crisis resolved, Delancey Street then negotiated settlements with all four MCA lenders. The key leverage: once one COJ was vacated, the other lenders recognized that their own COJs were equally vulnerable to challenge. Lender 1 ($120K balance with a 1.42 factor rate): settled for $52K. Lender 2 ($85K, 1.38 factor rate): settled for $34K. Lender 3 ($78K, 1.45 factor rate): settled for $27K. Lender 4 ($57K, 1.35 factor rate): settled for $24K. Total enrolled: $340K. Total settlements: $137K (60% reduction). Delancey Street fees (17% of enrolled): $57,800. All six UCC-1 liens terminated. Timeline: 7 months from intake to final lien release.
E-Commerce Business: MCA Stacking with $215K Across 5 Lenders and Revenue-Based Financing
An e-commerce business selling specialty outdoor equipment had stacked five MCAs and one revenue-based financing (RBF) agreement totaling $215K. Daily ACH withdrawals across all six agreements consumed 85% of daily bank deposits, making the business operationally insolvent despite generating $1.2M in annual revenue. No COJ had been filed yet, but three of the five MCA contracts contained COJ provisions. The business owner had also personally guaranteed all six agreements. Delancey Street's strategy focused on the legal distinction between the RBF agreement and the MCAs. The RBF agreement ($45K) had a reconciliation clause requiring the lender to adjust daily payments based on actual revenue — but the lender had been withdrawing a fixed amount regardless of revenue fluctuations, which constituted a breach. Delancey Street sent a formal breach notice and demanded reconciliation, which reduced the RBF daily withdrawal by 60% immediately. For the five MCAs, Delancey Street sent cease-and-desist letters to each lender noting that the aggregate daily withdrawals exceeded the business's ability to operate as a going concern, and that continued withdrawals at this rate would push the business into bankruptcy — in which case all lenders would recover nothing. This argument carried weight because MCA lenders sit behind all secured creditors in bankruptcy priority. Settlements: three MCAs settled at 35-40% of balance, one at 50%, and one at 55%. The RBF was renegotiated to extend the term at a lower daily rate, reducing total repayment by 28%. Total enrolled: $215K. Total cost of settlements plus renegotiated RBF: $102K. Fees (18%): $38,700. Five UCC-1 liens terminated; one UCC-1 subordinated per the RBF renegotiation. Timeline: 9 months.
Pros & Cons
Pros
- Deep specialization in MCA contract law, including COJ challenges, factor rate analysis, and the legal distinction between purchases of future receivables and loans — this expertise does not exist at consumer-focused settlement companies
- Emergency response capability for bank freezes, with documented cases of motions filed within 48 hours and account freezes lifted within 3-7 days — critical when payroll and vendor payments are at stake
- UCC lien termination as a standard part of every resolved case, not an afterthought — unremoved UCC liens can block SBA lending, bank credit lines, and equipment leasing for years after the MCA is paid off
- Nationwide service despite New York headquarters, which is strategically important because most MCA lenders are based in New York and file COJs in New York courts regardless of where the business is located
Cons
- Founded in 2018, making Delancey Street one of the youngest firms in the debt relief space — limited track record means fewer data points for evaluating long-term client outcomes and less established creditor relationships compared to 20+ year firms
- No BBB accreditation or rating, which is not uncommon for business-focused debt firms but does mean there is no independent third-party complaint resolution channel if a dispute arises during your engagement
- Does not handle consumer debt of any kind (credit cards, medical bills, student loans, personal loans) — if you have both business MCA debt and personal credit card debt, you will need to engage a second company for the consumer side, adding coordination complexity
- Personal guarantees in MCA contracts can limit settlement options even with a specialized firm — if you signed a personal guarantee, the MCA lender can pursue your personal assets even if the business has no ability to pay, and Delancey Street's leverage is reduced because the lender has a collection path that survives business closure
User Reviews (23)
they unfroze my account in 3 days
MCA lender filed a confession of judgment and froze my business checking. Couldn't make payroll. Called Delancey Street Monday morning. Wednesday the freeze was lifted. Then settled the MCA for way less than I owed. My restaurant is still open because of these people.
CAN'T handle personal credit cards at all
MCA debt handled great. Then I had personal credit card debt and medical bills they couldn't touch?? Had to hire ANOTHER company separately. Two companies two fee structures two sets of deposits ZERO coordination between them. If Delancey Street added consumer debt they'd be unstoppable but right now it's a pain to use them alongside someone else and honestly I'm still kind of annoyed about it
settled 5 stacked MCAs
Had 5 MCAs with daily ACH withdrawals eating 80% of my revenue. Classic stacking. Delancey Street sent cease-and-desist to all 5 lenders and used the bankruptcy threat since MCA lenders get nothing in BK. Business is profitable again. Shoutout to Derek on the team who basically saved my company.
good results, fees were more than expected
Settled a bunch of MCA and equipment debt. Fees were 18% which on a big enrollment is real money. My construction company survived so I can't complain too much. But worth negotiating the fee percentage upfront.
finally got the UCC liens removed
Even after settling my MCAs, the UCC-1 filings stayed on my business credit and blocked me from getting an SBA loan. Delancey Street got all 4 liens terminated as part of the settlement agreements. Without lien removal you can't get new capital to rebuild.
personal guarantees killed my leverage
Signed PGs on all 3 MCAs. Settlements were decent but not the savings people without PGs get. They were honest about PG limitations upfront. If you signed PGs just manage your expectations going in.
great at MCA, average on regular business debt
MCA settlements were spectacular. Business credit card side was more like what any settlement company would get. Their real superpower is MCA-specific work.
would recommend
would recommend
great at MCA useless for everything else
Settled my MCAs. Fantastic. Then I asked about personal credit cards and medical bills. "We don't handle consumer debt." So now I need ANOTHER company ANOTHER consultation ANOTHER set of fees. For a firm calling themselves "debt relief" they only do one type. Come on.
same day intake when my account got frozen
Woke up to a frozen bank account at 7 AM. Called at 8:30. Strategy call by 11. Emergency motion filed next morning. Freeze lifted day 3. They understood that every hour counts when you can't pay suppliers or employees.
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Important Debt Relief Disclaimers
- Debt settlement programs may negatively affect your credit score. When you enroll, you typically stop making payments to creditors, which results in late payments, collections, and potential charge-offs on your credit report.
- There is no guarantee that a debt settlement company can settle all of your debts or reduce them by a specific amount. Creditors are not required to negotiate or accept settlement offers.
- Debt settlement fees are typically 15%-25% of the enrolled debt amount. You should not pay fees before a debt has been successfully settled. The FTC prohibits debt settlement companies from charging upfront fees before settling at least one debt.
- Forgiven debt of $600 or more may be considered taxable income by the IRS. You may receive a Form 1099-C from creditors for canceled debt. Consult a tax professional about potential tax consequences.
- Creditors may continue collection efforts, including lawsuits, wage garnishment, and bank levies, while you are enrolled in a debt settlement program. A debt settlement company cannot guarantee protection from legal action.
- Business debt resolution outcomes vary based on creditor cooperation, contract terms, and individual circumstances. MCA agreements may contain confessions of judgment or personal guarantees that complicate resolution. Consult with a qualified attorney before enrolling in any business debt relief program.
- Zogby does not provide debt relief services. We are an independent comparison service. We do not negotiate with creditors on your behalf or manage debt settlement accounts.
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