New York MERCHANT CASH ADVANCE ATTORNEY

The law added a new Section to the California Financing Law (CFL). The CFL generally covers both consumer and commercial lenders. Although the new law does not require Merchant Cash Advance providers to be licensed in California, it is still newsworthy because the new law now includes providers & funders of commercial, non-loan financing options like a Merchant Cash Advance loan into the purview of the California Financing Law.

In time, many feel that the CFL will require Merchant Cash Advance funders to be licensed.

Nevertheless the law does require a funder offering a form of “commercial financing,” of $500,000 or less to a merchant / borrower, must now provide the Merchant with a Cost Disclosure Statement before completing the transaction. The law requires the Merchant borrower to sign the Cost Disclosure Statement.

Interestingly the new California Law refers to “commercial financing,” meaning the loan or financing is for a corporate / commercial purpose. However, the law does not require a funder to confirm the funds were in fact used for an actual commercial purpose.

The Cost Disclosure Statement must state clearly the amount financed, the total costs involved, the length of time, the frequency and amount of payments to be made as well as state clearly the method of how payment is made, an explanation of pre-payment consequences, and state the total cost of the financing as an annualized percentage rate.

Are you a California resident? Send Grant Phillips Law your Merchant Cash Advance contract for a free legal review and analysis for compliance with California law. GPL, your California Merchant Cash Advance Attorneys. Fighting, Settling and Litigating for Merchants across California and the entire United States.

Unfortunately the new law does not provide guidance on the disclosures as it related to their definitions, what they should contain from a content perspective, nor does it describe the methods for calculating the items requiring disclosure as well as not describing the manner, time structure and format of the disclosures.

Frustratingly, the new California law turns over the duty to provide specific guidance and to create regulationsgoverning the disclosure requirements to the California Commissioner of Business Oversight (known as the DBO).

The experienced and compassionate lawyers at Grant Phillips Law can help you evaluate your Merchant Cash Advance contract for strict compliance with the new California Law. Merchant Cash Advance Attorney California – Here for you and your business. You have worked exceedingly hard to build your business. You have put in countless time, effort and money. You have provided support, knowledge and experience and helped provide and support jobs, all while trying to earn a living for your family. Do NOT let a predatory loan disguised as a “purchase of accounts receivables” destroy your revenues and business with daily payments at predatory and abusive interest rates.

If you need a Merchant Cash Advance Attorney California, contact our law firm. We offer a free no obligation review of your deal and your Merchant Cash Advance contract. 10 years of experience fighting, settling and litigating Merchant Cash Advance loans. To get the best, you must come to the best. Grant Phillips Law has a dynamic team of lawyers with the necessary knowledge, experience and expertise to help you get out from burdening Merchant Cash Advance positions. Grant Phillips Law focuses exclusively on Merchant Cash Advance law protecting merchants and borrowers. 10 years and counting. We have saved our clients millions of dollars. Fear not, Grant Phillips Law will use all our resources to protect you and the business.

Merchant Cash Advance Attorney California

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 allowingfor 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 California

Did you know?

The interest rate or effective APR 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 and even American Express. There are also major investment banks like Morgan Stanley backing several funders and hedge funds.

Merchant Cash Advance Attorney California

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 1,200%

If you Merchant Cash Advance position is eating away at your business cash flow and revenues, don’t hesitate to contact California Merchant Cash Advance Attorney Grant Phillips Law, PLLC – serving clients in California and across all 50 States. Merchant Cash Advance Attorneys.

Merchant Cash Advance Attorney California

Did you know?

In California 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 California

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