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I applied for nancing for my business XXXX XXXX XXXXXXXX XXXX XXXX XXXX through multiple brokers for bridge loans with conventional terms to pay closing costs and international withholding taxes to close an international loan facility for XXXX XXXX XXXX XXXX and XXXX XXXX XXXXXXXX XXXX ( XXXX, XXXX XXXX XXXX, XXXX ). I was informed by the brokers multiple loans would be needed in order to obtain the amount of money required to close the loan facility. During calls with representatives of the lenders, I informed them the offered terms of up to 49 % interest with daily and weekly repayments were not affordable until receiving funds from the loan facility. I was misinformed several times by people associated with the loan facility of the amount of withholding taxes due and timeframe of when the funds from the loan facility would be received. After explaining the offered terms of interest and repayment schedules to the lenders were not affordable the representatives of the lenders told me during phone calls if I signed the offer to receive the funds that day they would restructure the loans to affordable terms within a week after they provided funds. I only applied for nancing for The XXXX XXXX XXXX XXXX XXXX for the real estate development purposes of XXXX XXXX XXXX and as guarantor of the loans the lenders over-leveraged my dental practice as my only revenue generating business. The contracted terms negatively affected my dental practice 's cash ow and normal business operations. I attempted to restructure the loans after receiving funding as the lenders stated they would but then they proceeded to tell me they were Merchant Cash Advances and not loans, the lenders also proceeded to continue to debit daily and weekly repayments from my dental practice 's business checking account, draining my dental practice 's cash ow as well as taking funds from PPP and EIDL loans. I requested XXXX XXXX XXXXXXXX to stop the debits from the Merchant Cash Advance lenders then the lenders started to draft different amounts to continue to debit funds from my dental practice. XXXX XXXX XXXXXXXX proceeded to risk closure all of my business and personal checking accounts after that activity by the Merchant Cash Advance lenders.
At the time I was and I'm still in financial hardship due to the pandemic and because of the daily and weekly payments amounts of the stacked merchant cash advances sourced through multiple brokers. I needed money to continue to operate my dental practice and my dental practice 's cash flow was being drained including EIDL and PPP funds that the MCA lenders debited as repayments which weren't revenue generated by my business. Even after I requested reconciliation from the multiple Merchant Cash Advance lenders and stop payments were requested through XXXX XXXX XXXXXXXX, the lenders continued to debit from my business checking account and file legal orders to debit funds from all my personal and business checking accounts without reconciliation. The brokers and lenders did not fund the amount needed to be used as the bridge loan to release the hold on the incoming first tranche from the private loan facility.
I have requested deferment multiple times from Lionheart Funding to allow me to close the private loan facility and inquire with authorities about fraud regarding the loan facility. I have also told Lionheart Funding multiple times I will repay the principal loan amount advanced with reasonable interest, their collection representation is attempting to add their fees to the amount due for an unsecured loan ( Merchant Cash Advance ), and also file lawsuits against me and my businesses. Please instruct Lionheart Funding, XXXX XXXX XXXX, and XXXX XXXX XXXX. to not continue with their deceptive business practices.
I believe the Merchant Cash Advance lenders conducted fraudulent lending practices, including but not limited to, fraudulent inducement to contract, criminal usury, breach of contract, extortion, grand larceny, harassment, and illegal collection conduct.
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