The Situation
The funder filed suit on September 30, 2024, in the Supreme Court of the State of New York, Kings County, naming both the business and its owner. It sought the amount owed under the merchant cash advance agreement, plus attorneys' fees, costs, and disbursements.
The Outcome
On March 11, 2025, the parties signed a stipulation resolving the claims for $5,000, in two payments: $4,000 due by March 14, 2025 and $1,000 due by March 28, 2025. Once the full amount was received, the funder was required to file a notice of discontinuance, ending the lawsuit.
What It Meant for the Business
The stipulation shows what was at stake. If a payment had been missed, the funder could enter a judgment for $12,791.87, less payments made, plus 16% prejudgment interest from September 26, 2024, and its costs and disbursements.
Instead, two payments totaling $5,000 closed the case. That is more than 60% below the base claim, before interest and costs are even counted.
If your business is dealing with MCA pressure of its own, here is what working with us looks like, or read our MCA default guide to understand where you stand.
