Monthly Archives: July 2017

US District Court Holds Individual Guarantors Liable for Business Loan; Rejects Usury Challenge

An alternative small business lender provided a loan to a business located in Texas. The loan was guaranteed by two individuals.  The agreement contained a choice of law provision which provided that the transaction would be interpreted and governed by … Continue reading

Posted in Choice-of-Law, Civil Usury, Federal Court, Texas | Comments Off on US District Court Holds Individual Guarantors Liable for Business Loan; Rejects Usury Challenge

New York Court Recharacterizes Merchant Agreement as Loan, Vacates Confessed Judgment and Voids Transaction

A business received financing from an alternative small business funder. The parties’ agreement stated that in exchange for the financing provided, the funder would receive 11.02% of the business’ daily receipts which the funder would take by debiting $331.82 from the … Continue reading

Posted in Criminal Usury, Merchant Cash Advance, New York, Recharacterization, Sale vs. Loan, State Court | Comments Off on New York Court Recharacterizes Merchant Agreement as Loan, Vacates Confessed Judgment and Voids Transaction