New York Enacts APR Disclosure Laws

Since a bona fide Merchant Cash Advance is not permitted to designate a definite deadline for repayment because the transaction, if done legitimately, is supposed to be premised solely on possible and potential future receivables, no one knows of the time it will take to make the receivables to be provided to the lender.



https://grantphillipslaw.com/n....ew-york-enacts-apr-d

Merchant Cash Advance 101 – Explained

A traditional loan is repayable absolutely and gives no contingencies to the borrowing company to not pay. On the other hand, a true Merchant Cash Advance is NOT repayable absolutely and thus there are circumstances where the money provided by the Merchant Cash Advance funder is not repayable.



https://grantphillipslaw.com/m....erchant-cash-advance

New York MCA Laws Updated

Advance, 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).



https://grantphillipslaw.com/n....ew-york-mca-laws-upd

Tackle All Your Debt with A Debt Relief Attorney

In other words “We will reduce your debt by x% but we still reserve the legal right to sue you and come after you for the x% we temporarily forgave at a later time when you have income or assets.” Often such judgments stay in affect for 20 years and lead to wage garnishments, liens and writs of possession.



https://grantphillipslaw.com/t....ackle-all-your-debt-

New York Enacts APR Disclosure Laws

How can Merchant Cash Advance lenders charge corporate borrowers what they do? The Courts have held a Merchant Cash Advance (a real MCA) i.e. the purchase of future receivables is not a loan.



https://grantphillipslaw.com/n....ew-york-enacts-apr-d