2026 Best MCA Defense Lawyers in Houston, TX

Top MCA Defense Firms Serving Houston - 2026

Learn as much as you can about MCA defense, then talk to some lawyers. The best lawyer for you:

• reads your contract, clause by clause, so he or she knows exactly what you have signed;
• knows the new Texas laws that apply to MCAs;
• checks out with the State Bar as one with a good reputation.

Often, the contract will choose which state’s law applies, and which courts will hear disputes. If the contract calls for some other state law to apply, or to fight it out in the contract’s home state, your case could end up in an inconvenient forum, or governed by less favorable law. Many MCA funders choose New York law and courts to govern their contracts. In a few ways, this home field can backfire. New York usury laws could void a deal if called a loan. And loans charging over 25 percent interest are void under New York’s criminal usury law. And contracts that are void cannot be enforced at all.

Texas House Bill 700

Mostly effective since September of 2025, Texas House Bill 700 regulates MCA funders, and protects MCA clients. A written disclosure must clearly show the amount financed, the finance charge, and the total amount you will repay. The new law says it is an unfair, deceptive and abusive practice for a funder to file a confession of judgment to collect money. Automatic debits from your bank account must be backed by a first-priority lien on all of your receivables.

The Office of Consumer Credit Commissioner, or OCCC, issued regulations that took effect on July 9, 2026. Under the new regulations, providers and brokers must register through the Nationwide Multistate Licensing System, or NMLS, by December 31, 2026. As for New York, a confession of judgment there can be filed only in the county where the debtor lives. A Houston business, without an office in New York, likely is safe.

Disguised Loan

There is no “yes” or “no” on whether an MCA is a loan that covers all MCAs. To avoid the chance that a merchant might claim a defense to payment, MCA agreements are drafted to look as much as possible as something other than a loan. They show the “advance” as a purchase of future receivables. If an agreement looks or works like a loan, the courts can call it a loan, and all the usual loan defenses will apply.

A fixed daily debit, say $500, every day even though you may have sold $10,000 that day or only $100, that looks like a loan payment. That is just like the fixed payment you make on a car loan. This is the strongest sign that your agreement is really a loan.

A reconciliation clause allows a merchant to lower his or her payment when monthly sales drop. This sounds promising but can be useless. Many agreements give only three days to request lower payments. This is not enough time to find and check several months of statements. Besides, MCAs often allow for the funder’s “sole discretion” on lower payments. If you asked for reconciliation, and were denied or ignored, document it. That proves that the funder never meant to share business risk.

If the term has no end date, the agreement may be truly a purchase of receivables. If there is a fixed term, such as “estimated 6 months,” or a payoff deadline, it looks like a loan.

Once a court calls an MCA a loan, the factor rate becomes the interest rate. As an example, to get $100,000 and repay $135,000 over six months would be an APR of about 70 percent. Have your lawyer do the calculations, to add firepower to the defense that your deal is a disguised loan.

Some MCAs ask for a blanket security interest in all your business assets. This is something lenders do. Another big tell of a loan is a personal guarantee. Asking a merchant to put personal assets at risk in case of default is very like a lender.

But in some guaranties, the personal guarantee covers only certain specific promises, such as the truthfulness of the agreement’s statements. It may not include the whole balance due. If you are a guarantor, read the guarantee terms carefully. The individual guarantor may have usury law defenses the company cannot use.

Carefully read the events of default you agreed to. There may be second MCA agreements, any change of bank account and even seeking a lawyer among things that can trigger a default. These kinds of contractual “default” clauses protect lenders. But they may be unconscionable.

Many MCAs limit trials to just the judge, and ban a jury. Texas juries may tend to side with local owners, not out-of-state funders. In some cases, the jury waiver could even be challenged as unconscionable. Depending on the facts, your agreement may allow arbitration, which may be a better choice.

Find a Defense Lawyer for a MCA

Start by doing your homework. On the Texas State Bar website, check for any disciplinary history of lawyers you consider. Another good source for lawyers is the Houston Lawyer Referral Service, which provides you an initial 30-minute consultation for $20. The Texas State Bar’s referral service also offers a discounted first consultation, at no more than $20, at (800) 252-9690.

If it looks as though your case may go to trial, a board-certified civil trial lawyer could be a good choice. The Texas Board of Legal Specialization certifies lawyers in civil trial law. To earn the civil trial law board certificate, a lawyer must have tried at least 15 civil trials and satisfy other board requirements. Whichever lawyer you hire, a contingent fee deal must be put in writing and explain how the fee is figured.

Bring all your paperwork to the first meeting with your lawyer. Write down every place you find a red flag in your MCA agreement. Every flaw in the agreement is a defense to suit. Even if you cannot use them all, the more flaws you have, the less likely the funder will choose a costly lawsuit. The more flawed your agreement is, the more bargaining power you have to settle the matter for a fraction of the balance due.