A proposed class-action lawsuit has been filed against Penn Capital Funding, MapCap Funding, and other merchant cash advance (MCA) companies that used a loophole in Connecticut law to collect unlawful debts and otherwise fraudulently obtain money.  According to the complaint, filed in Manhattan Federal Court, a loophole in Connecticut law allows MCA providers to freeze […]

The Federal Trade Commission (FTC) recently obtained a court order permanently banning RCG Advances, LLC and its owner from the merchant cash advance industry. The FTC filed lawsuits against RCG and other merchant cash providers in 2021 for deceiving small business owners about the terms and fees for financing and threatening violence when they did […]

Companies that provide goods and services often face budget gaps between the time a sale is made and payment is ultimately received. One way to cover these shortfalls is by taking a merchant cash advance (MCA). There are risks, however, not the least of which is defaulting on an MCA agreement.  What Is a Merchant […]

Small businesses that face cash flow challenges often take a merchant cash advance (MCA) to cover their expenses. Businesses that get behind on payments may face an MCA lawsuit alleging a breach of contract. Merchant cash advance lawsuits are often filed in New York because the state’s laws are more favorable for MCA providers. These […]

Small businesses that run into cash flow problems can obtain a line of credit with a major bank, provided they meet the credit criteria. For those that don’t, one alternative source of funding is a merchant cash advance (MCA).  While the requirements for an MCA are not as strict as a traditional bank loan, there […]

Following the lead of California and New York, Utah and Virginia have passed disclosure requirements for commercial lending transactions, including merchant cash advances. While the New York and California requirements have not yet taken effect due to regulatory delays, more states are moving toward regulating revenue-based financing providers. Utah’s New Disclosure Requirements For Commercial Lending […]

As a small-business owner, you need working capital to pay employees and vendors, purchase equipment, and reinvest in business operations. Two funding options are invoice factoring and merchant cash advances, but there are differences between the two.  What Is Invoice Factoring? Invoice factoring is not a loan. Instead, you sell your invoices to a factoring […]

Small businesses need funding to grow. While merchant cash advances can provide working capital for payroll, new equipment, remodeling, and other business investments, there are alternatives, from traditional business loans to microloans. Let’s take a look at some of the funding options available to small businesses.  Term Loans Term loans are well-suited for capital investments […]

DoorDash is getting into the merchant cash advance (MCA) business. The restaurant delivery platform recently announced the launch of DoorDash Capital to provide financing and working capital to restaurants. While this may sound like good news to restaurant owners, merchant cash advances are risky.  If the business cannot pay back the advance, both the business’s […]

Businesses that have received one or more cash advances to obtain working capital may need to consolidate or refinance expensive merchant cash advance debt. Determining which option is best for you requires the advice of an experienced debt relief specialist. Why Businesses Need to Consolidate Merchant Cash Advances Small businesses that do not qualify for […]