The Situation
The funder took this business to court in the Supreme Court of the State of New York, Nassau County, naming both the company and its owner as defendants. Its claim: a total balance of $40,569.92, including default fees, under an MCA contract entered into on or about June 11, 2024.
Many business owners assume that once a funder files suit, the number is fixed. It is not.
The Outcome
The parties signed a court stipulation with an execution date of July 17, 2025. Under it, the funder agreed to accept $18,000.00 as payment in full of its claims, as a single lump-sum payment by wire or check.
What It Meant for the Business
The stipulation was written under CPLR 3215(i), a New York rule that lets the funder go back to the court for a judgment if the agreed payment is not made. That is common in these agreements, and it is exactly why the payment terms need to be realistic before anyone signs.
Here, a lawsuit claiming more than $40,000 was resolved for less than half of that amount.
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.
