If your business has been sued by LiteFund, ClearFund, or a related Merchant Cash Advance (“MCA”) company, you are part of a rapidly growing trend across New York. These companies file high-volume lawsuits in NYC courts—often moving quickly to obtain judgments against small business owners.
At The Lebedin Kofman Law Firm, we represent New York businesses in defending MCA lawsuits and fighting back against predatory financing practices.
If you’ve been served with a lawsuit, time is critical. You may only have 20–30 days to respond before the lender seeks a default judgment.
What Is a LiteFund / ClearFund MCA?
LiteFund and ClearFund provide what they call “revenue-based financing,” but in reality, these agreements often function like high-interest loans disguised as purchases of receivables.
Typical features include:
- Daily or weekly automatic withdrawals (ACH debits)
- Personal guarantees by the business owner
- Broad and aggressive “default” provisions
- Immediate acceleration of the full balance upon alleged breach
Many NYC business owners only realize how restrictive these agreements are after cash flow problems begin.
LiteFund / ClearFund lawsuits in New York typically allege:
- Breach of contract
- Breach of personal guaranty
- Interference with ACH withdrawals
- “Technical defaults” (even without missed payments)
In many cases, businesses are sued not because they refused to pay—but because:
- Revenue dropped
- They switched bank accounts
- They took on additional funding (“stacking”)
These lawsuits are often filed quickly and aggressively, especially when merchants try to slow or stop withdrawals.
The Role of Collection Attorneys Like David Fogel
LiteFund and similar MCA companies rely on experienced, high-volume MCA collection litigation attorneys like David Fogel to enforce these agreements in New York courts.
This means:
- Lawsuits are standardized and filed efficiently
- Plaintiffs aggressively pursue default judgments
- Cases can move quickly if you do not respond
What Happens If You Ignore the Lawsuit?
Ignoring an MCA lawsuit in NYC can have severe consequences:
- Default judgment entered against you
- Bank account restraints
- Frozen business operations
- Wage garnishments (in some cases)
- Liens and enforcement actions
Once a judgment is entered, it becomes much harder—and more expensive—to fight back.
Defending Against LiteFund / ClearFund Lawsuits in NYC
At The Lebedin Kofman Law Firm, we analyze every MCA case for defensive leverage. These cases are not always as straightforward as lenders claim.
Potential defenses may include:
1. Disguised Loan / Usury Defense
If the agreement operates like a loan with a fixed repayment obligation, it may violate New York usury laws.
2. Lack of True Reconciliation
A legitimate MCA must adjust payments based on actual receivables. Many agreements fail this test in practice.
3. Fraud or Misrepresentation
If you were misled about repayment terms, risk, or flexibility, you may have a viable defense.
4. Improper Damages Calculations
MCA plaintiffs often inflate balances or fail to properly credit payments.
5. Jurisdiction & Service Defenses
Improper service or venue issues can delay or even dismiss a case.
Why Hiring an NYC MCA Defense Lawyer Matters
MCA litigation is highly specialized. These cases involve:
- Complex contract structures
- Evolving New York case law
- Aggressive litigation tactics
- Fast-moving court deadlines
A general business attorney may not be familiar with the unique defenses and strategies required in MCA cases.
At our firm, we focus on:
- Stopping default judgments before they happen
- Negotiating settlements from a position of strength
- Litigating aggressively when necessary
- Protecting your business and personal assets
If you’ve been sued by LiteFund, ClearFund, or any MCA company, you are not without defenses—but timing is everything.
At The Lebedin Kofman Law Firm, we help business owners:
- Respond to MCA lawsuits
- Fight aggressive collection tactics
- Challenge unfair financing agreements
- Protect their financial future
MCA companies like LiteFund and ClearFund rely on speed, pressure, and complex contracts to win. But with the right legal strategy, those cases can be challenged—and often resolved on far better terms.