10 August

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Does Merchant Cash Advance Regulation Exist?

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If your business has ever needed a cash injection to operate in the short term or possibly to expand, you may have encountered merchant cash advances as a method of financing. While considering this option, you may have asked yourself what the difference is between alternative financing and traditional loans or questioned whether it affects credit scores the same way. You may even have gone as far in your research to wonder what sort of regulations exist for merchant cash advances to protect the borrower. Unfortunately, very few protections, if any, exist for business owners who are struggling to pay merchant cash...

14 July

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Steps to Consider to Avoid Merchant Cash Advance Default

Posted by Anthony Rumore

in Merchant Cash Advance

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Merchant cash advances can prove tempting to small business owners in need of fast cash. Some business owners pursue merchant cash advances to fuel business growth. Some seek advances to expand. Some look to advances as very short-term financing with the intent to repay very quickly. Others seek advances to help get through a period of unforeseen hardship. If you have found yourself with too much debt from merchant cash advances, it is natural and healthy to be concerned. Generally, a business will be unsuccessful and fall on even harder times if it attempts to borrow its way out of debt. However, if you...

13 July

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What You Know About Traditional Business Funding Does Not Apply to Merchant Cash Advance

Posted by Anthony Rumore

in Merchant Cash Advance

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You may be in a position where your business is booming but you need cash to expand your business. Or maybe you had a few bad months and need some additional capital to give you some breathing room. In either situation you may decide that now’s the time to find new funding. When you start researching your options on the internet, you will most likely be exposed to various types of funding sources to help meet your business needs — traditional loans, lines of credit, and alternative funding. A traditional business loan and a merchant cash advance are two of the most...

07 July

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Everything You Need to Know About Confessions of Judgment

Posted by Anthony Rumore

in Merchant Cash Advance

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When you sign a Confession of Judgment, you sign away your rights to legal process. A Confession of Judgment (Cognovit Note/Warrant of Attorney) is an extraordinary weapon that creditors can use to remedy loan defaults. In short, It allows Merchant Cash Advance companies and other creditors to enter a judgment against debtors without having to give notice when a complaint is filed in court and without a hearing where a borrower would have the ability to defend themselves. What does it look like in practice, though? The Aftermath of a Confession of Judgment Filing You wake up and go to work as you do...

29 June

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What are UCC-1 Lien Notice Filings, and What Do You Do if Your MCA Lender Files One Against You?

Posted by Anthony Rumore

in Merchant Cash Advance

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Did you just receive a call from one of your customers telling you that they received a UCC lien letter from your merchant cash advance lender? Is the lender demanding that your customer pay them directly instead of paying you? Hopefully, we can explain here what that is all about and advise you as to what your options may be. When you received your merchant cash advance, your lender prepared (and you signed off on) what is referred to as a UCC-1 filing. Sometimes, the prepared UCC-1 lines are not recorded until there is a default of the subject advance, but sometimes,...

22 May

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Do Merchant Cash Advances Affect Credit Scores?

Posted by Anthony Rumore

in Merchant Cash Advance

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You have come to the conclusion that you desperately need additional funding for your business. You may not qualify for a traditional loan (or need very quick funds) and you’ve had brokers contact you about a merchant cash advance. You may be wondering how applying for and receiving a merchant cash advance may impact your credit scores. We hope that we can answer some of your questions here. The Application Process and Credit Pulls To begin, in order to receive a merchant cash advance you must go through an application process. During this process you will be asked for your social security number and...

08 May

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Calculating Merchant Cash Advance Factor Rates

Posted by Anthony Rumore

in Merchant Cash Advance

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“Congratulations, you have been approved for a merchant cash advance.” The agreement shows up in your email inbox and you print it to read in detail. It appears to be in another language of sorts. Quickly you realize that you do not understand the terms and fees and you can’t quite figure how much the money you will be receiving is truly going to cost you. You have never heard of the term factor rate and you simply want to understand the basic terms and for those terms to make sense. Hopefully, we can help you decipher the seemingly inconsistent numbers you...

28 April

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Alternatives to Merchant Cash Advances

Posted by Anthony Rumore

in Merchant Cash Advance

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Your business has finally reached a point where you need additional capital. You have been searching for various options to help fund your business growth. You know that having additional funding will help increase your revenue stream. You have been called multiple times by merchant cash advance brokers offering you quick, easy money. Like any business owner, the temptation of having quick, additional cash on hand is hard to pass up. You are told that you only need to show 3 months of bank statements and can have money in your bank account within a day or two. You decide to...

17 April

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Merchant Cash Advance Myths and Facts

Posted by Anthony Rumore

in Merchant Cash Advance

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Every day, we have clients contact us and describe the horrible experiences they have encountered with merchant cash advance lenders. The same issue we hear time and time again is that they thought the advance they were receiving was a loan, and they did not take the time to review and understand the agreement. The borrower believed what the broker was telling them when, in actuality, the broker was saying whatever was necessary to sell the funding and to get paid a commission. There are many myths merchant cash advance brokers tell business owners. Many of these myths can also be found...

24 March

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Anatomy of an MCA Lawsuit

Posted by Anthony Rumore

in Merchant Cash Advance

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If you have defaulted on your payments for a merchant cash advance or you are dangerously close to defaulting on your payments, you may be worried about what legal action your lender may take against you. In this article, we will look at what leads up to an MCA lawsuit being filed, how the suit is filed and the notice is served, and how an attorney may respond in your defense. Before the Lawsuit Is Filed When a borrower defaults on daily or weekly payments for their merchant cash advance loan, the lender and its collection agents will work very hard over the...

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