News & Analysis as of

Financing Merchant Cash Advance (MCA)

Mayer Brown

Louisiana Now Requires Disclosures for Revenue-Based Financing Transactions

Mayer Brown on

Effective August 1, 2025, Louisiana will subject revenue-based financing transactions to new disclosure requirements, joining the still-growing ranks of states passing commercial finance disclosure laws in recent years. But...more

Wilson Sonsini Goodrich & Rosati

Revenue Purchase or Predatory Loan? New York Attorney General Targets Merchant Cash Advance Providers

On March 5, 2024, the New York Attorney General (AG) Letitia James sued Yellowstone Capital LLC (Yellowstone) and various affiliates, accusing them of running a predatory lending operation by disguising the loans as purchases...more

Husch Blackwell LLP

Commercial Financing Disclosure and Broker Registration Bill Introduced in Missouri

Husch Blackwell LLP on

On January 5, 2023, a bill was introduced in the Missouri legislature that would require non-depository financial institutions to provide disclosures at or before consummation of certain commercial financing products....more

Troutman Pepper Locke

NJ Attorney General Reaches Settlement With Merchant Cash Advance Company Over Alleged Unfair and Deceptive Practices

Troutman Pepper Locke on

On December 27, the New Jersey Division of Consumer Affairs (the Division) entered a consent order with Yellowstone Capital LLC (Yellowstone) and several related companies to resolve allegations that, in violation of the New...more

Morrison & Foerster LLP

Square Peg, Round Hole: MCA Disclosures Under the California Commercial Financing Disclosure Regulations

In the third in our series on the California Commercial Financing Disclosure Regulations, we focus on the disclosure requirements for merchant cash advances (MCAs)....more

Ballard Spahr LLP

FTC Files Lawsuit Against Merchant Cash Advance Providers For Alleged Unfair And Deceptive Practices

Ballard Spahr LLP on

The FTC’s recently-filed lawsuit against two merchant cash advance providers and their chief executive officer and president for alleged unfair and deceptive conduct in violation of the FTC Act serves both as an illustration...more

Troutman Pepper Locke

Merchant Cash Advance Participations and the Federal Securities Laws

Troutman Pepper Locke on

One of the most interesting financial innovations pre-COVID-19 was the creation of the merchant cash advance transaction, or MCAT. While the MCA industry has grown significantly, MCAT originators have faced a significant...more

Hudson Cook, LLP

COVID-19 and MCA Transactions: Emergency Circumstances Demand Servicing Changes

Hudson Cook, LLP on

COVID-19 and the related emergency has had a dramatic effect on small businesses. States have implemented "stay-at-home" orders or otherwise ordered the closure of non-essential businesses, resulting in the virtual...more

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