If you answered “Yes” to any of these questions, call your UTAH Merchant Cash Advance Attorneys.


On the 24th day of March of 2022, the State of Utah passed new legislation governing Non-Conventional Commercial Financing. The law will formally be adopted and go into force on January 1st of 2023. Merchant Cash Advances are included in the new legislation.

The new laws passed in SB 0183 is termed the Commercial Financing Registration and Disclosure Act or CFRDA and requires Providers and Funders of Commercial Financing in the State of Utah to;

(1) be registered with the Department of Financial Institutions of Utah; and

(2) include in each financing packet and offer of commercial financing KEY terms and disclosures such as the TOTAL cost of financing, in order to allow a Merchant to make a fully informed decision about new financing and to adequately compare differing offers.

Further, the law provides penalties for non-compliant providers of commercial financing in Utah and the laws apply in equal force to Merchant Cash Advances.

Utah’s CFRDA, means beginning January 1st, 2023, it is illegal for a Person to be involved in a non-conventional commercial financing transaction, unless and until the person is registered with the Utah Department of Financial Institutions. As stated above, CFRDA also demands that Providers of commercial financing provide all borrowers certain transparency and disclosures related to the financing.

The law defines a Provider as a “Person who consummates in excess of five (5) commercial transactions during a calendar year” and includes a Person with ties to a depository banking institution that offers a financing product of the institution to a potential commercial borrower using its own platform. An example of such an arrangement would be Celtic Bank of Utah and Kabbage Funding.

“Commercial Financing Transaction” includes a commercial loan transaction or an accounts receivable purchase transaction. Hence, the law specifically targets Merchant Cash Advance transactions.  In fact, the law defines an “Account Receivable Purchase Transaction” as “a transaction in which a business forwards or otherwise sells to a person all or a portion of the business’s accounts at a discount to the accounts expected value.”

Entities to which the CFRDA does not apply include depository institutions, subsidiaries of or service corporations for depository institutions that are regulated by a federal banking agency, and money transmitters licensed under the Utah Money Transmitter Act.  The CFRDA does not apply to commercial financing transactions secured by real property or that are leases or purchase-money obligations.

The CFRDA requires a provider to give certain disclosures before a commercial financing transaction. Disclosures include “the total dollar cost of the commercial financing transaction,” but falls short of requiring an APR disclosure. 

Thus, in summary in Utah (beginning January 1st, 2023), a commercial borrower of a Merchant Cash Advance or certain other transactions resulting in the sale of a portion of the borrowing businesses future accounts receivables (to a Lender for a discounted price), requires transparency and disclosures of certain KEY terms, but does not require the APR be disclosed in the financing paperwork.

Merchant Cash Advance Attorney – UTAH

Contact: Grant Phillips Law, PLLC, a New York based Law Firm focused on Merchants and specializing in defending small businesses against Merchant Cash Advance loans across all 50 States as well as Merchant Cash Advances originated by a resident of UTAH.


What happens if I default on my Merchant Cash Advance?

When a merchant business defaults on its Merchant Cash Advance payments there are several possible repercussions. Your MCA Funder may;

  1. File an Information Subpoena together with a Restraining Notice with your creditors, in order to enforce its UCC-1 Lien filing. These documents are designed to notify everyone that owes money to the business that those funds must be sent to the Merchant Cash Advance Funder instead of you.
  2. Additionally, a Merchant Cash Advance Funder may commence a lawsuit against you due to your default for “Breach of Contract” and “Unjust Enrichment.” Please note that your MCA Funder is permitted to enforce its MCA Contract using both a lawsuit and a UCC lien filing and neither Action is dependent on the other.

On the other hand, not every Merchant Cash Advance default is legally a breach of contract. If your receivables have declined for example, your non-payment and subsequent default may not be a breach of the Merchant Cash Advance Contract.

For a thorough analysis of your legal rights and whether your default is a breach of contract and if so, what may be done, call the MCA Attorneys at Grant Phillips Law, PLLC – 516.670.5165


Merchant Cash Advance Attorney UTAH

Did you know?

New York State enacted a law on August 31st, 2019 banning New York Merchant Cash Advance Funders and other types of lenders from issuing Confessions of Judgment to an out of New York Merchant such as a UTAH Merchant.

In other words, it is illegal to be provided with a Confession of Judgment in the MCA Contract or to be asked to sign a Confession of Judgment as part of a Merchant Cash Advance closing.

*** PLEASE NOTE*** Many Merchant Cash Advance Funders try to include these documents in their contracts and attempt to disguise it by renaming the CONFESSION OF JUDGMENT an “AGREED JUDGMENT.”

Agreed Judgments are Confessions of Judgment.

For example, a borrower from UTAH takes out a Merchant Cash Advance from a New York Merchant Cash Advance Funder, it is now illegal for this funder to issue or ask the UTAH borrowing merchant to sign a Confession of Judgment or Agreed Judgment.

What is a Confession of Judgment?

A Confession of Judgment or COJ is a law that allows one party to obtain a judgment against another party without needing to file a lawsuit or go through the normal litigation process. Think of a Merchant Cash Advance COJ or Agreed Judgment as a judgment on “steroids,” it provides a judgment to the Merchant Cash Advance Funder without you getting a day in Court to defend yourself and your business from allegations of your breaching the Merchant Cash Advance Contract. In summary, a COJ and Agreed Judgment detracts from your fundamental constitutional right to a day in court, also known as Due Process.

Contact Grant Phillips Law, PLLC. Your Merchant Cash Advance Attorneys in UTAH – 516.670.5165

Merchant Cash Advance Attorney UTAH

Why is the Merchant Cash Advance market centered around New York?

New York City remains the hub of finance and financial transactions throughout the world. Like other forms of alternative finance, the world of Merchant Cash Advance found a stronghold and “home” in New York City.

Also, as an alternative form of financing with an unlimited amount of interest allowed to be charged, made this very attractive to alternative investors, predominantly located in New York City and Wall Street. Additionally, many MCA investors are located in New York and so it was New York that facilitated the coming together of investors and Funders of Merchant Cash Advance and has been the epicenter of the industry ever since.

Finally, with Manhattan 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 earlier in this article, on Aug 31st, 2019, this law was updated to prohibit New York Merchant Cash Advance Funders from issuing a COJ to an UTAH resident.

If you have a Merchant Cash Advance position with any funder in New York, UTAH or across the United States, contact the law firm of Grant Phillips Law – 516.670.5165.

Merchant Cash Advance Attorneys – Providing Merchant Cash Advance Defense and Relief to UTAH Merchant Cash Advance borrowers.

Our law firm has the success, knowledge, compassion and experience to handle all your Merchant Cash Advance positions, no matter what State they originated from, including the State of UTAH.


Merchant Cash Advance Attorney UTAH

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 Merchant Cash Advance Funder. Her Patented technology (allowing for the splitting of credit card sales) was a major step in the birth and growth of the Merchant Cash Advance world. Later her company would become CAN Capital, a major player in the MCA lending space.

Merchant Cash Advance Attorney UTAH

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 Goldman Sachs and Morgan Stanley backing several Merchant Cash Advance funders and hedge funds.

Merchant Cash Advance Attorney UTAH

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 1,000% – This is NOT a misprint, again this law firm has seen several Merchant Cash Advance Contracts with an effective APR of 1,000%!

If your Merchant Cash Advance positions are eating away at your business cash flow and revenues, don’t hesitate to contact UTAH Merchant Cash Advance Attorney Grant Phillips. Esq. representing clients in UTAH and across all 50 States.

Merchant Cash Advance Attorneys.

You 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 Attorneys UTAH – a Merchant Cash Advance Defense Law Firm.

Merchant Cash Advance Attorney UTAH

You have questions: We have answers.

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 our Law Firm alleviate the stress, worry and sleepless nights. Let us help you get your business back on track.

Reclaim your Revenues and Receivables

Merchant Cash Advance Attorney UTAH

Can Grant Phillips Law help me with my MCA positions?

Yes, Grant Phillips Law has successfully negotiated hundreds of Merchant Cash Advance settlements and filed hundreds of lawsuits against the majority of Merchant Cash Advance Funders.

We are a law firm with a practice dedicated entirely to Defending Merchants from Merchant Cash Advances and Predatory Lending.

Merchant Cash Advance Defense Attorneys, Grant Phillips Law, has settled or litigated and won hundreds of Merchant Cash Advance lawsuits against virtually every MCA Funder, whether the funder is located in UTAH, New York or elsewhere. We handle multiple positions that are stacked and can assist if a UCC lien has been filed or a lawsuit commenced against you and your business. Our Merchant Cash Advance Defense Law Firm is well versed in negotiating very large balances to small payoff amounts and everything in between. **See list of Funders we have engaged with below.

Merchant Cash Advance Attorney UTAH

Which MCA Funders has Grant Phillips Law settled a Merchant Cash Advance with?

The following is a list of some of the Merchant Cash Advance Funders that Grant Phillips Law have EITHER negotiated a settlement with, or sued successfully.

** Please note: This list is non-exhaustive but rather a sampling of those MCA Funders we have engaged with on behalf of Merchant Borrowers:

1st Global SystemsCloudFundGTR SourceMerchant Cash GroupRichmond Capital
24 Hour CapitalCoastal CapitalHFH CapitalMerchant FinanceSame Day Financing
24/7 CapitalCredibilityHi Bar CapitalMFS GlobalSecond Chance Funding
60 Day CapitalCrediblyHOP CapitalMonbergSilver Cup Funding
A&J EquityDelancey StreetHunter CarolineML FactorsSilverline
AccelEagle Eye AdvanceIbex FundingMr. AdvanceSimply Funding
Ace FundingEIN CapIn AdvanceNational CapitalSlate Advance
ACHElevateInfinityNational FundingSnap Advance
Accord Business FunderElevationItriaNewcoSouth End Capital
Alpha Capital SourceEverest (EBF)Jet CapitalNew LogicSOS Capital
American ExpressFamily Business FundKabbageNext WaveSpartan Capital
AmericasFenix FundingKalamataNRO BostonSPG Advance
Amerifi CapitalFive TowerKarish CapitalOn Deck FinancingSpin Capital LLC
Atipana Capital LLCFora FinancialKash CapitalOne ParkSplash
Austin Business Finance LLCForward FinancingKingdom KapitalPanthers CapitalStreamline Consultants
BalboaFox FundingKnight CapitalPayabilityStripe
Banana ExchangeFresh FundingLandmarkPayPalSquare
BCP ProvidersFundationLegacy Capital 26 LLCPDM Capital LLCSRS
BFSFundboxLegacy FundingPeak SolutionsSwift
BittyFunding CircleLegend FundingPearl BetaTBF Financial
Blue VineFundkiteLendboxPearl CapitalTorro
BMFFunding MetricsLendbugPearl DeltaTrust Capital
BMF Advance LLCFundrLendfiPIRSTVT
BMF CapitalFundryLendrPlatinumUnited Business Funding
Business Merchant FundingFundworksLending CirclePledge CapUnique Funding
ByzFunderFundzioLendiniPremierVelocity Funding Group
Biz FunderFundz.netLendioPrimoVertex Funding
Can LLCLending ValleyPropulsion FundingVital Cap
Cambridge Funding SourceGetBackdLoan Builder (PayPal)Quarter SpotVox Funding
Cap FundG&G Funding GroupLoan MeQueen FundingWellen Capital
Capital Advanced ServicesGibraltarM&D Capital NYRAM Capital FundingWG Capital
Cardinal EquityGlobal Funding Networks (GFE)Main Street FundersRapid FinanceWise Capital
Cashable LLCGreen CapitalMantis FundingRDMWorld Global
Central DiligenceGreen BoxMax AdvanceRegal CapitalWynwood Capital Group
CFGGRP FundingMaxim Commercial CapitalRegion CapitalYellowstone Capital


Merchant Cash Advance Law Firm