Beware the Pitfalls of Merchant Cash Advances

When a small business needs cash fast for a short-term need, some will turn to a merchant cash advance to leverage the required funds. A merchant cash advance is not a loan, but rather an advance based on the business’ future revenue or credit card sales. Typically, merchant cash advances are available to businesses whose […]

What Happens When I Miss My Merchant Cash Advance Payments

What is a Merchant Cash Advance?  A merchant cash advance is an advance based on the business’ future revenue or credit card sales. Over the years, many business owners and entrepreneurs have turned to merchant cash advances as a means of non-traditional financing. According to the Green Sheet and Forbes, the current merchant cash advance […]

Tax Implications of Merchant Cash Advances

When a business owner takes out a merchant cash advance, he or she is essentially pledging a portion of the business’ future sales to a cash advance provider, in exchange for lump-sum payment upfront. With the April 17th deadline for filing taxes fast-approaching, it is important that business owners keep in mind the tax implications of […]

Merchant Cash Advances Are Not Loans

A New York State Supreme Court Judge recently ruled that a merchant cash advance (MCA) is not legally a loan. This means that merchant cash advance companies would no longer be accused of usury like those who offer regular loans. A merchant cash advance is an advance on future revenue. A company will give a […]

Questions to Consider Before Accepting a Merchant Cash Advance

A merchant cash advance is an advance on future revenue and may not require a person to pay the advance back if his or her business fails. However, while this may seem like a good option for some individuals, it may not be the best option for others. For this reason, here are a few […]

What Does it Mean to Sign a “Confession of Judgment” Agreement?

Before entering into a Merchant Cash Advance (MCA), it is important to understand how you, as the borrower, can be held responsible for repaying this loan. An MCA allows a business owner to pay back the money owed to the lender by forfeiting a portion of the business’s credit card transactions from each day. However, […]

Merchant Cash Advance Red Flags

Many business owners looking for a quick loan with little hassle turn to merchant cash advances as a way to fund their business expenses. Some merchant cash advances offer benefits that appeal to business owners, including online applications, few documents required, and same-day funding. However, when it comes to securing a merchant cash advance, it […]

Avoiding Default on a Merchant Cash Advance

A merchant cash advance is an advance on future revenue which may not require a person to pay the advance back if his or her business fails. Merchant cash advances can be a business savior for some, however, it can be detrimental to others. The type of business, sales forecasts, and other financial information are […]

New York AG Launches Investigation into Merchant Cash Advance Companies

Recently, Barbara Underwood, New York’s Attorney General, has launched an investigation into potential abuses conducted by merchant cash advance companies. Merchant cash advance companies are financial firms that offer quick money solutions to small businesses. According to Bloomberg News, the Attorney General’s office is looking into whether these companies have committed fraud or abused the court […]

Several NY County Clerks Seek to Curtail Use of Confession of Judgment

According to recent reports, at least three New York State county clerks have taken steps to curb the use of confessions of judgment, a predatory lending tactic used commonly by merchant cash advance companies. A confession of judgment is a written agreement, signed by the borrower, that accepts liability and an amount in damages that […]