Phoinike

Main Menu

Header Banner
Loans
››Reduce the regulatory risk of merchant cash advances and factoring

Reduce the regulatory risk of merchant cash advances and factoring

By Blake G. Keller
March 11, 2021
0
0


Law360 (May 17, 2019, 3:58 p.m. EDT) – A growing number of courts and regulators have reached different conclusions on whether factoring and merchant cash advances constitute loans subject to approval government lenders and usury regulations, leaving many factoring companies and their clients without legal certainty as to the nature of the transactions between them.

Businesses engaged in factoring (purchase of unpaid invoices) or merchant cash advance transactions (purchase of a percentage of future invoices and credit card sales) generally consider the purchase of existing or future receivables to be is fundamentally different from the loan.

New York is one of many states that have taken this position, with the courts relying on …

Stay one step ahead

In the legal profession, information is the key to success. You need to know what’s going on with customers, competitors, practice areas, and industries. Law360 provides the intelligence you need to stay an expert and beat the competition.

  • Access to case data in articles (numbers, filings, courts, nature of prosecution, etc.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, requests, etc.
  • Create personalized alerts for specific case articles and topics and more!

TRY LAW360 FREE FOR SEVEN DAYS


Related posts:

  1. East Nashville Neighbors Oppose Old Church to Bar | New
  2. Greensill Capital seeks insolvency protection in Australia
  3. Retail chains hit exit button on Manhattan leases, say it’s unsustainable
  4. Markelle Fultz signs long-term deal with Magic: Report
Tagscash advancecredit card