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By: Grant Phillips Law, PLLC

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Grants Phillips PLLC

Latest from Merchant Cash Advance Legal Blog

Is it Possible to Negotiate with an MCA Funder Directly?
Intimidating?For many business owners with merchant cash advance debt, the idea of negotiating with the funder directly, regarding obtaining a new financial arrangement for repayment of the MCA, may feel overwhelming and stressful. The short answer is that a merchant can most certainly attempt to negotiate with the MCA funder directly.Stacking Multiple Positions Often Leads to the Need to Renegotiate Terms.  The need to negotiate with a funder about new terms or obtain a settlement, is most common in the MCA world, when a business originates multiple different MCA’s. As

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Merchant Cash Advances: What Business Owners Often Overlook Until It’s Too Late

Many businesses and the merchants who own them, perceive a quick infusion of capital, as a necessity rather than an option.

For businesses whose earnings fluctuate or are seasonal, or merchants with more liabilities than assets, the idea of waiting weeks or months to obtain traditional financing becomes unrealistic.

This is the major factor and driving force for the merchant cash advance funding explosion. If you wish to understand the bottom line, think loan shark, predatory lenders preying on desperate businesses and merchants.

We want to understand the

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New York MCA Final Disclosure Laws
DO ANY REGULATIONS EXIST THAT GOVERN A MERCHANT CASH ADVANCE?
  • New York State, by all accounts the haven State for Merchant Cash Advances, ironically is also one of the first States to enact laws that require certain consumer like disclosures even for several commercial loans.
  • This is significant development since New York’s Commercial Finance Disclosure Law (CFDL) went into effect August 1st, 2023 and in the law the CFDL has extended disclosure requirements ordinarily required for consumer lending to commercial financing instruments such as a merchant cash advance.
  • The laws apply equally to both

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Beginning early 2010, after the Great Recession, when the American housing market blew up and the world fell into a financial crisis, conventional banking institutions, for example Chase Bank and Citi, were unwilling to extend credit to small businesses.As a direct result of the housing debacle, banks reacted with a plethora of new internal regulation, making it almost impossible for the average small business to qualify for a business loan.Worse yet, the Government’s intervention in saving the banking industry, brought with it more regulation, laws and strict underwriting standards, making it exceedingly unlikely for a small business to obtain necessary

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Continue Reading Merchant Cash Advance 101 – Explained

New York’s Commercial Financing Disclosure Law SB 5740UPDATED AND CLARIFIEDNEW REGULATION GOVERNING MERCHANT CASH ADVANCE POSITIONS IN THE STATE OF NEW YORKJune 2, 2021SB 5740 is New York State’s new law (commencing January 1st, 2021), requiring non-conventional lenders, including funders of Merchant CashAdvance, to make certain disclosures in the contract paperwork, available for a small business borrower to make informed borrowing decisions. Examples of required disclosures include revealing the total cost of financing as well as presenting the small business borrower with a defined APR (Annual Percentage Rate).SB 5740 applies to Merchant Cash Advance. In fact, New York law writers

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Continue Reading NEW YORK MCA LAWS UPDATED

NEW YORK PASSES MERCHANT CASH ADVANCE REGULATIONCOMMENCING – JANUARY 1st  2022“New York State Adopts Truth In Lending (TILA) – Like Disclosure Law for Business Loans, including Merchant Cash Advance and Purchase of Future Receivables.”Merchant CashThe Birth of S.B 5470On December 23rd of 2020, New York State Governor Andrew Cuomo signed Senate Bill 5470 or S.B. 5470 into law.https://www.nysenate.gov/legislation/bills/2019/s5470What is S.B 5470?S.B. 5470 is a New York law requiring non-bank lenders to provide corporate borrowers specific disclosures in the loan paperwork and prior to formalconsummation of the loan. The law was enacted in order to create more transparency for

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Continue Reading NEW YORK ENACTS APR DISCLOSURE LAWS

Only a Consumer National Debt Relief Attorney Can Help You With Total & Lasting Debt Elimination! This applies to most forms of debt, including but not limited to Merchant Cash Advance Loans, Payday Loans, Hard Money Loans, IRS Tax Debt, Medical Bills, Credit Card Debt and in certain instances even Student Loan Debt.
INTRODUCTION:
As an attorney licensed & practicing in Florida, New York and New Jersey, with a focus on Total Consumer Debt Relief, I am receiving more and more clients, who were once signed into an alleged debt settlement program, hired a non-attorney to address their debt

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