Are Merchant Cash Advances Legal?

Our lawyers here at the Business Debt Law Group are often asked a simple and straightforward question regarding merchant cash advances (MCAs). Are merchant cash advances legal? YES. Merchant cash advances are, in fact, legal. As of the latter half of 2023, there has been no attempt by the United States Federal Government to regulate the multi-billion-dollar MCA lending industry. Likewise, most state legislatures have chosen not to tackle the subject of merchant cash advances yet. MCAs Are Legal, But What Protections Do Borrowers Have? While MCAs are not against the law and are recognized as a legitimate type of alternative financing that many...

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