Glossary of Terms
Merchant Cash Advance (MCA):
Type of financing option particularly those with low credit card sales. An MCA provides a lump sum of money which is repaid by future receivables.
No Fee Retainer and Power of Attorney:
Allows counsel to speak on the client’s behalf. (without these documents counsel is not able to reach out).
Insufficient or Non-Sufficient (NSF):
A Payment that is returned by a bank because the account holder did not have enough money in their account to cover the payment amount. Draft was attempted but funds were unavailable.
Summons and Complaint (Lawsuit):
Legal process in a civil lawsuit. Once a summons is filed counsel has 30 days to file an answer. If it is not settled in 30 days, a judgement is enforced.
Judgement:
Legal document issued by the court. It allows lenders to collect the debt owed to them. Judgement freezes the account and processor.
Arbitration:
When the lender brings in a third party to dispute their side and it is faster than a lawsuit. We have 30 days to respond if it is not responded they can take everything from assets, personal belongings, accounts etc.
Electronic Fund Transfer (EFT):
Form that allows electronic funds to be drafted directly from a client’s bank account.
Month-to-Date (MTD):
Statement showing bank activity for current dates.
Bank Statements:
Always request the last 3 available statements.
Hardship Letter:
Describes explanation on why the debts cannot be paid. (Hardship Letter examples will be provided).