How MCA cases are filed
Funders typically file a summons and complaint in Supreme Court, Monroe County (Rochester), or the venue named in the agreement, sometimes with a motion for summary judgment early in the case. Some also send restraining notices to banks after obtaining a judgment.
Usury and disguised loans
New York courts look at whether the funder truly bore the risk of the business's revenue. If payments were fixed regardless of sales, reconciliation was illusory, or the funder could recover even if the business failed, the deal may be a loan — and loans above 25% annual interest can be void as criminally usurious.
Other defenses and leverage
Defective service, improper venue, an invalid confession of judgment, stacking of multiple advances, and the funder's own breaches can all matter. Strong defenses often lead to a significantly reduced payoff.