MERCHANT CASH ADVANCE ATTORNEY NEW YORK

A PROPOSED NEW YORK SENATE BILL THAT MIGHT LEAD TO THE END OF MERCHANT CASH ADVANCES! New York Senate Bill S1726 was introduced to the NY State Assembly during its 2025 to 2026 term. The proposed bill was sponsored by New York State Senator Samra Brouk and co-sponsored by five other NY Senators. The purpose of the proposed law is to stop predatory lending and is duly dubbed “End Loan Sharking Act” (ELSA.) Has ELSA (S1726) been passed into law? It is important to note that at the time of this writing (January 13, 2026), S1726 has not been signed into law. In fact, it has not passed the State Legislature at this point. The most recent legislative action was having S1726 “committed to the Rules Committee in the Senate” on June 13, 2025. Therefore, the bill is pending in the Senate Rules Committee at this time. NY Senate Bill S1726 is also referred to in the NY State Assembly as A4918. Exploring S1726 further. Let us explore S1726 further, because if it passes into law, it would arguably mean the end of the predatory Merchant Cash Advance! Despite funders and lenders claiming the financing arrangement is not loan but rather a purchase and sale agreement of future receivables, S1726 would end this argument and limit an MCA to a maximum 25 percent APR (Annual Percentage Rate). S1726 seeks to cap interest on a Merchant Cash Advance at 25%. While very few are paying attention, S1726 may actually make it to the Governor’s desk for signature and into law. Were S1726 to pass, the business of Merchant Cash Advances would be capped at New York State’s highest interest rate for commercial lending, 25%. To charge more, would mean the lender or funder are committing a felony pursuant to current NY usury laws. What is NY Senate Bill S1726? S1726 acts like a consumer protection bill aiming to cap interest rates and fees on certain financing arrangements, including Merchant Cash Advances, by extending New York’s usury laws to cover all “financing arrangements,” not just traditional loans. Additionally, S1726 will require providers and originators of Merchant Cash Advances to be licensed through New York’s DFS (Dept of Financial Services). Fees and costs will be taken into account when calculating usury in NY. In addition to the powers already cited, S1726 rules that any and all underwriting, origination and fees, are to be added to the calculation in determining whether the financing instrument or MCA is charging 25 percent or less interest. Therefore, S1726 takes the definition of interest and expands it to include fees and expenses. S1726 and additional powers granted to the NY Attorney General S1726 also proposes to provide additional powers to the New York State Attorney General to regulate Merchant Cash Advances and their contracts. The law is structured to plug loopholes and nuances and specifically spells out 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 MCA brokers and MCA funders.
• The final rules are a good start, but fall short in several areas. For example, an MCA Funder is exempt from full disclosure if they are “partnered” with FDIC insured banks. Another shortfall is the inclusion of a $2,500,000 cap. Thus, commercial financing in excess of $2.5M is exempt from the CFDL. Hardly ideal.
• Still in comparison to other States that enacted similar laws such as Virginia, California and Utah, the New York law goes a little further.
• The CFDL was in fact originally passed in 2020 and later amended to include additional commercial financing instruments such as a Merchant Cash Advance.
• Since 2020, the New York Department of Financial Services NYDFS issued multiple versions of the regulation and the law finally took effect on August 1, 2023.

Significant Adoptions of the CFDL:

• Bank Exception: MCA Entities of which a majority of the voting power or equity interest is owned, directly or indirectly, by a financial institution will be exempt from the CFDL. The most common institution would be a depository bank.
• New York Nexus: The final rules severely narrow the geography of where a transaction takes place or where the parties are from, in order to trigger the applicability of the CFDL.
• MCA Recipient Located: The final rules limit the CFDL to transactions where the recipient is directed or managed from New York or is a resident of New York. This is very similar to New York’s law. Both NY and CA allow a Merchant Cash Advance Funder to rely on the business address provided by the recipient in its application for financing to make the determination.
• Assignment: The law permits a Merchant Cash Advance Funder to assign their rights in the MCA Contract.
• Broker Compensation Disclosure: The final rules require any commercial financing that incorporates a Broker that the MCA Funder must inform the Business receiving the MCA in writing of how and by whom the broker will be compensated.
• Finance Charge Calculation: The final rules provide that the finance charge on a transaction should be calculated and disclosed. This means the fees that the Merchant Cash Advance Funder usually charges for underwriting and origination.

• The State of New York enacted a new law known as SB 1235 which like California requires that certain commercial financiers and Merchant Cash Advance Funders provide certain disclosures to the Merchant and MCA recipient.
• In fact, New York was the first state in the country to enact laws governing commercial loans and Merchant Cash Advances too.
• The New York law is unique for it requires the disclosure of an Annual Percentage Rate (APR). This is in opposition to the use previously of an Annualized Cost of Capital (ACC).
• New York’s law even holds the disclosure requirement is triggered whenever a “rate, cost of financing or price of financing is quoted based on information provided by a potential merchant recipient. As a result some New York based Merchant Cash Advance providers have applied for NY lender licenses.

                                                                                          Merchant Cash Advance Attorney New York

• Do the majority of your business revenues go towards daily or weekly ACH payments for your MCA?
• Did you sign a Personal Guarantee in order to obtain your New York MCA loan?
• Did the funder make you sign a COJ / Confession of Judgment?
• Is there a UCC Restraining Notice or Lien filed against your Merchant business, its bank accounts, receivables, vendors or client accounts?
• Has your NEW YORK Merchant Cash Advance funder contacted your clients directly in order to instruct them to send money owed to you, to them instead, claiming it as receivables?
• Are you paying a fixed amount on your MCA loan despite a change in your business cash flow, revenues and receivables?
• Are NEW YORK Merchant Cash Advance funders, their attorneys or collection agencies calling, texting, and harassing or threatening you?
• Does your Credit Card Terminal have a lock box?
• Do you need to change your MCA repayment schedule to monthly payments from daily?
• Are your NEW YORK merchant or individual bank accounts levied/frozen or restrained?
• Have your clients or vendors been contacted directly by your NEW YORK Merchant Cash Advance Funder?
• Did you attempt to restructure payments to the Merchant Cash Advance Funder due to a fluctuation in your sales volume and revenues?
• Were any of your requests to change a payment amount or payment schedule granted?
• Were you offered a Merchant Cash Advance Reconciliation?

If you answered yes to any of these questions, contact: Grant Phillips Law, PLLC a New York Law Firm focusing on settling Merchant Cash Advance loans for clients across all 50 States and Merchant Cash Advance loans in NEW YORK. Merchant Cash Advance Attorney NEW YORK Did you know? New York State enacted a law on August 31^st, 2019 banning New York Funders from issuing a Confession of Judgment to a NEW YORK Resident and NEW YORK Merchant. For example, a borrower from NEW YORK takes out a Merchant Cash Advance from a New York Merchant Cash Advance funder, that funder cannot issue or ask the NEW YORK borrowing merchant to sign a Confession of Judgment / COJ.

• Did you sign a Confession of Judgment?
• Did you sign a legal document called an “Agreed Judgment?”

Contact the Attorneys at Grant Phillips Law, PLLC. Your Merchant Cash Advance Attorneys, 516.670.5165. Merchant Cash Advance Attorney NEW YORK Why are the majority of Merchant Cash Advance Brokers, Merchant Cash Advance ISO’s and Merchant Cash Advance Funders based out of New York City? New York City remains the hub of finance and financial transactions throughout the world. Like most alternative forms of finance, the world of Merchant Cash Advance found a stronghold in New York City and being an alternative form of financing was attractive to alternative investors, whom are predominantly located in New York City and close to Wall Street. The coming together of investors and operators of Merchant Cash Advance funders was able to be facilitated in New York City, with both parties being located in or around Wall Street and New York City. Also, with Manhattan at the epicenter of economic and world finance, coupled with the fact that the largest lenders, banks, private equity and law firms are generally located there, it is no wonder that Merchant Cash Advance loans are dominated by New York based lenders. Another major reason that Merchant Cash Advance funders set up shop in New York State, is because, prior to the law being repealed, New York Law permitted Merchant Cash Advance funders to issue a borrowing Merchant, the infamous “Confession of Judgment.” As stated, last year (Aug 31^st, 2019), this law was updated to prohibit New York MCA funders from issuing a COJ to a NEW YORK resident. If you have a Merchant Cash Advance position with any funder in New York, NEW YORK or across the entire United States, contact the law firm of Grant Phillips Law, PLLC 516.670.5165. We are Merchant Cash Advance Attorneys providing assistance and relief to all NEW YORK merchant borrowers. Our law firm has the knowledge, compassion and experience to handle all your Merchant Cash Advance positions, no matter what State they originated from, including NEW YORK State. GRANT PHILLIPS LAW, PLLC – Merchant Cash Advance Attorneys for NEW YORK & all 50 States across the country. If you signed a Confession of Judgment with your MCA Contract, reach out to your Merchant Cash Advance Attorney for help and advice. 516.670.5165. LET US REVIEW AND ANALIZE YOUR MCA CONTRACTS FOR FREE AS PART OF OUR FREE CONSULTATION – OFFERED TO MERCHANT CASH ADVANCE BORROWERS IN NEW YORK AND ALL 50 STATES. Grant Phillips Law, PLLC fights for you, your business and lending justice. Merchant Cash Advance Attorney NEW YORK Did you know? Twenty Three (23) year ago information about Merchant Cash Advance loans became available and publicly accessible. Specifically, an individual by the name of Barbara S. Johnson is listed as the official inventor of split-funding, a system that allows for automatic loan repayment to the funders from a single credit card processor shared with the Merchant. Ms. Johnson obtained a Patent for this system in 1997. Her story is fascinating. Johnson was running four Gymboree Playgroup & Music franchises. Unable to get working capital to fund a summer marketing campaign, she wondered whether she could borrow against future credit card sales derived from parents bringing their kids back for fall classes. About a year later, Johnson and her husband founded Advance Me, a MCA Funder. Her Patented technology allowing for the splitting of credit card sales was a major step in the birth and growth of the MCA world. Later her company would become CAN Capital.  Merchant Cash Advance Attorney NEW YORK Did you know? The interest rate or effective APR on a Merchant Cash Advance is so excessive and in turn profitable for Merchant Cash Advance funders that large publicly traded companies have also entered the Merchant Cash Advance arena. Some examples include Shopify, Square, PayPal, Amazon and even American Express. There are also major investment banks like Morgan Stanley backing several funders and hedge funds. Merchant Cash Advance Attorney NEW YORK Did you know? The attorneys at Grant Phillips Law, PLLC have seen cases where the effective APR on a Merchant Cash Advance was in excess of 2,000% – This is NOT a misprint, again this law firm has seen several Merchant Cash Advance Contracts with an effective APR of 2000%! If you Merchant Cash Advance position is eating away at your business cash flow and revenues, don’t hesitate to contact NEW YORK Merchant Cash Advance Attorney Grant Phillips Law, PLLC – serving clients in NEW YORK and across all 50 States. Merchant Cash Advance Attorneys. Merchant Cash Advance Attorney NEW YORK Did you know? In NEW YORK State there is no licensing requirement to become an MCA lender or broker! Some States are beginning to take a look at this, but at present no background checks, licensing, bond requirements or laws exist, to govern the creation of a Merchant Cash Advance funder and or broker. Merchant Cash Advance Attorney NEW YORK You have questions: We have answers.

• Is my bank account safe during settlement negotiations?
• What is the Legal Representation fee?
• Can you handle a settlement with any funder?
• Do the lawyers at Grant Phillips Law review and inspect each contract and all accompanying paperwork for flaws, illegality or unreasonable clauses?
• Will the funder continue to ACH my account during settlement negotiations?
• Will the hiring of Grant Phillips Law end the phone calls, texts and constant harassment?
• Should I change my credit card processing machine?
• Should I switch my bank account?
• What can I do during settlement negotiations?
• How long does a settlement take?
• Will a settlement show on my credit?
• My funder is contacting my clients and receivables, will a settlement put a stop to it?
• Is the law firm of Grant Phillips Law equipped to tackle any funder?
• Can Grant Phillips Law represent me if I am a resident in a State out of NEW YORK? Can you put an end to daily payments?
• Are you able to put me into a Monthly payment plan?
• Can you lower my principal?
• What if I payoff my loan early?
• How does a settlement work when I have multiple or stacked positions?
• Does Grant Phillips Law obtain a formal Stipulation of Settlement Agreement documenting the settlement?
• What happens to my Merchant Cash Advance loans if I file bankruptcy?
• What happens to the personal guarantee when a settlement is reached?
• If a Judgment has already been filed against my business and I, can it be vacated?
• What is a reconciliation? How does it help me? Will it lower payments?

For answers to these questions and any other you may have, don’t hesitate to contact the Merchant Cash Advance attorneys at Grant Phillips Law, PLLC. A Merchant Cash Advance Law Firm. Let us take the stress and sleepless nights away and help you get your business back on track. You have put in time, money, equity, experience and knowledge into building your business. It feeds you, supports your family, creates jobs and as such is worth fighting for. Let Us Help You! Grant Phillips Law, Merchant Cash Advance Attorney NEW YORK. Merchant Cash Advance Attorney NEW YORK Can Grant Phillips Law help me with my MCA positions? Yes, Grant Phillips Law has successfully negotiated settlements or filed lawsuits against most of the Merchant Cash Advance funders. Our law firm has settled Merchant Cash Advance loans with virtually every funder, big to small, NEW YORK based to non-NEW YORK based, as well as negotiating very large loan balances to small payoff amounts and everything in between, our law firm has seen it and handled it for our Merchant Cash Advance clients. Merchant Cash Advance Attorney NEW YORK Which MCA funders has your Law Firm settled a Merchant Cash Advance loan with? The following is a sample list of many of the funders Grant Phillips Law have EITHER negotiated with, or sued successfully. Please note: if you do not see your specific funder listed, it is still very likely that we have negotiated and settled a Merchant Cash Advance loan with them but they are not listed here because this list is only a sampling of Merchant Cash Advance funders we have worked with:

1st Global Systems	CloudFund	GTR Source	Merchant Cash Group	Richmond Capital
24 Hour Capital	Coastal Capital	HFH Capital	Merchant Finance	Same Day Financing
24/7 Capital	Credibility	Hi Bar Capital	MFS Global	Second Chance Funding
60 Day Capital	Credibly	HOP Capital	Monberg	Silver Cup Funding
Accel	Eagle Eye Advance	Ibex Funding	Mr. Advance	Simply Funding
Ace Funding	EIN Cap	In Advance	National Capital	Slate Advance
ACH	Elevate	Infinity	National Funding	Snap Advance
Accord Business Funder	Elevation	Itria	Newco	South End Capital
Alpha Capital Source	Everest (EBF)	Jet Capital	New Logic	SOS Capital
American Express	Family Business Fund	Kabbage	Next Wave	Spartan Capital
Americas	Fenix Funding	Kalamata	NRO Boston	SPG Advance
Amerifi Capital	Five Tower	Karish Capital	On Deck Financing	Spin Capital LLC
Atipana Capital LLC	Fora Financial	Kash Capital	One Park	Splash
Austin Business Finance LLC	Forward Financing	Kingdom Kapital	Panthers Capital	Streamline Consultants
Balboa	Fox Funding	Knight Capital	Payability	Stripe
Banana Exchange	Fresh Funding	Landmark	PayPal	Square
BCP Providers	Fundation	Legacy Capital 26 LLC	PDM Capital LLC	SRS
BFS	Fundbox	Legacy Funding	Peak Solutions	Swift
Bitty	Funding Circle	Legend Funding	Pearl Beta	TBF Financial
Blue Vine	Fundkite	Lendbox	Pearl Capital	Torro
BMF	Funding Metrics	Lendbug	Pearl Delta	Trust Capital
BMF Advance LLC	Fundr	Lendfi	PIRS	TVT
BMF Capital	Fundry	Lendr	Platinum	United Business Funding
Business Merchant Funding	Fundworks	Lending Circle	Pledge Cap	Unique Funding
ByzFunder	Fundzio	Lendini	Premier	Velocity Funding Group
Biz Funder	Fundz.net	Lendio	Primo	Vertex Funding
Can Capital	Funderz.net LLC	Lending Valley	Propulsion Funding	Vital Cap
Cambridge Funding Source	GetBackd	Loan Builder (PayPal)	Quarter Spot	Vox Funding
Cap Fund	G&G Funding Group	Loan Me	Queen Funding	Wellen Capital
Capital Advanced Services	Gibraltar	M&D Capital NY	RAM Capital Funding	WG Capital
Cardinal Equity	Global Funding Networks (GFE)	Main Street Funders	Rapid Finance	Wise Capital
Cashable LLC	Green Capital	Mantis Funding	RDM	World Global
Central Diligence	Green Box	Max Advance	Regal Capital	Wynwood Capital Group
A&J Equity	Hunter Caroline	ML Factors	Silverline

GRANT PHILLIPS LAW, PLLC – your Merchant Cash Advance Law Firm.

• REPRESENTING MERCHANTS ACROSS THE UNITED STATES.
• REPRESENTING CLIENTS WITH MULTIPLE POSITIONS.
• REPRESENTING CLIENTS WHO SIGNED PERSONAL GUARANTEES.
• REPRESENTING CLIENTS WHO HAVE ALREADY BEEN SUED BY A FUNDER OR THEIR ATTORNEYS.
• REPRESENTING CLIENTS WHO ALREADY HAVE A JUDGMENT AWARDED AGAINST THEM.