Category Archives: Merchant Cash Advance

MCA Funder Fails to Defend Usury Counterclaim, Court Voids Agreement and Awards Damages to Defendants

An Florida MCA funder filed a breach of contract action against a business. The funder alleged that the business had failed to remit payments required by the merchant agreement. The funder sought to recover the amounts owed from the business … Continue reading

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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

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Citing Growing Body of Case Law, New York Court Finds Sale of Future Receivables is Not Subject to Usury Laws

A small business funder entered into an agreement with a business to purchase a portion of the business’ future receivables for an upfront lump sum. In exchange for the lump sum payment, the funder was to receive a portion of the … Continue reading

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In Three Separate Decisions, New York Courts Find Sale of Future Receivables Not Subject to Usury Laws

In three nearly identical cases, a small business funder entered into an agreement with three separate businesses to purchase a portion of the businesses’ future receivables for an upfront lump sum. In exchange for the lump sum payment, the funder was … Continue reading

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Another New York Court Upholds Bar on Corporate Usury Defense

A welding company sold a portion of its future business receivables to an MCA provider for a lump sum purchase price. When the welding company failed to remit the purchased sale proceeds as required by the parties’ agreement, the MCA provider filed … Continue reading

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New York Court Finds Sale of Future Receivables is Not Subject to Usury Laws

A small business funder entered into an agreement with a business to purchase a portion of the business’ future receivables for an upfront lump sum. In exchange for the lump sum payment, the funder was to receive 9% of the business’ … Continue reading

Posted in Civil Usury, Criminal Usury, Merchant Cash Advance, New York, State Court | Comments Off on New York Court Finds Sale of Future Receivables is Not Subject to Usury Laws