English literature – Anglomir http://anglomir.net/ Sun, 17 Apr 2022 11:42:10 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://anglomir.net/wp-content/uploads/2021/10/icon-2-120x120.png English literature – Anglomir http://anglomir.net/ 32 32 Insufficient saving, credit cards Money Regrets of the Richest Americans A survey by GAD Capital https://anglomir.net/insufficient-saving-credit-cards-money-regrets-of-the-richest-americans-a-survey-by-gad-capital/ Thu, 17 Mar 2022 17:36:12 +0000 https://anglomir.net/?p=889 Financial resolutions don’t always go as planned, despite your best efforts. Student Loan Hero concluded that an overwhelming majority of individuals had money regrets and wished they had managed their money differently after questioning over 1,000 Americans about their financial regrets from the previous year. In particular, 83 percent of Americans had financial regrets in […]]]>

Financial resolutions don’t always go as planned, despite your best efforts. Student Loan Hero concluded that an overwhelming majority of individuals had money regrets and wished they had managed their money differently after questioning over 1,000 Americans about their financial regrets from the previous year.

In particular, 83 percent of Americans had financial regrets in 2018, up 76 percent in our last study. The worst blunders were taking on credit card debt, not saving enough, and overpaying on non-essentials.

Continue reading for the complete poll findings, as well as tips on what to do if you’re having financial difficulties of your own.

Findings of importance:

  • 83 percent of Americans are unhappy with their financial decisions from the previous year.
  • 59 percent of people in the United States are low in credit card debt.
  • 47 percent of people did not save as much as they would have liked.
  • 34 percent overspent on items they didn’t need.
  • Only 27% paid off as much debt as they desired.
  • 14 percent wish they had put more money into their business.

In terms of particular expenditures:

  • Last year, 17% of people who acquired a vehicle regretted their decision.
  • 48 percent of Americans believe they need to limit their eating out.

The most common financial regret among Americans is not saving enough.

As we discovered in last year’s poll, the most prevalent financial regret among Americans is not saving as much as they intended to. Respondents stated they didn’t hold as much as they would have wanted and that they spent too much on goods they didn’t need, with 47 percent saying they didn’t save as much as they would have liked.

In terms of particular savings objectives, 29% wish they had saved more for retirement, 27% wish they had saved more for a house, 18% wish they had saved more for a vehicle, 15% wish they had saved more for vacation, and 7% wish they had saved more for education.

However, regrets over not saving enough and spending too much were not the only ones. Other blunders individuals believe they made in 2018 include:

  • Only 27% paid off as much debt as they desired.
  • 14 percent wish they had put more money into their business.
  • 11% of people did not pay their debts on time.
  • 7% of people made a poor professional choice.
  • 4% purchased a high-priced item they couldn’t afford.

Read more: Personal loans through GAD Capital can be use to aid in debt consolidation.Debt consolidation can streamline your financial situation and could assist in saving money.

A disastrous investment was made by 4% of the population.

If you’re one of the almost half of Americans who wish they had saved more money, it’s time to rethink your strategy. Take some time to set out your savings objectives and the steps you’ll need to take to accomplish them.

Set up a separate savings account and have a part of your paycheck automatically deposited into it on a weekly or monthly basis if feasible. You may build your savings over time by putting this technique in place with no work on your part.

Take a critical look at your spending patterns at the same time. You’ll be in a better position to meet your savings goals or pay off debt if you can identify methods to cut your spending while also using techniques to increase your income.

Nearly half of Americans believe they need to limit their dining out.

So, instead of saving, what are Americans spending their money on? Restaurants, according to our poll, are the largest offender. 48 percent of respondents believe they need to cut down on eating out.

Another significant expense that Americans regret is shopping, with 21% saying they need to cut down on clothing and shoes. Meanwhile, almost one out of every five people wishes they hadn’t spent so much money on smokes.

The following were the other areas where respondents said they needed to make cuts:

  • On alcohol purchases, you will save 17%.
  • 16 percent off your mobile phone/bill
  • Going to the movies is 12 percent of the total cost.
  • 12% off your groceries
  • 10% discount on coffee
  • 9% on video-on-demand services
  • 9% is spent on gambling
  • 9% discount on travel
  • 8% off when purchasing bottled water

More than one-third of respondents believe they spent more than $5,000 in the previous year, money they wish they could have put to better use. What would have been a wiser buy…

  • 21% would put it into a retirement account.
  • A home would be purchased by 20% of the population.
  • A vehicle would be purchased by 14% of respondents.
  • 12% of people would go across the globe.
  • 10% would put money into equities.
  • 7% of respondents said they would start a company.
  • 3% of the population would marry.
  • Only 2% of the population would have children.

Such regrettable spending also seems to weigh on the conscience, with 46% of respondents admitting to feeling sorry about their non-essential purchases. At the same time, 54% stated they only had partial or no control over their money.

Take time to monitor your spending patterns if you also feel that non-essential spending is burning a hole in your wallet. Determine where you’re overspending so you may make strategies to reduce your expenditure. Expense-tracking programs like Mint and YNAB, for example, may help you keep track of your spending and regain control of your finances.

However, the majority of people do not regret their significant purchases.

While many Americans believe that their regular spending habits are eroding their money, they do not think large expenditures are to blame. A 60 percent majority of those who stated they made a large purchase last year (such as a vehicle, trip, or investment) said they did not regret it.

Nonetheless, some people had second thoughts about major purchases, with vehicles topping the list (17%). Even still, such regrets were uncommon, particularly in other significant assets…

  • 12% of people are resentful of the money they spent on their holiday.
  • 10% of those who paid for their schooling are remorseful.
  • 10% of investors are unhappy with their decision.
  • 9 percent of people are unhappy with their home purchase.
  • 3% of couples are unhappy with their pay for their wedding.

Although vehicle, home, and wedding expenditures are essential life milestones, if not needs, they may excellently eat into your money. If you’re planning a large purchase for the next year, be sure it fits within your budget and objectives.

That way, you’ll be able to determine if a large purchase is worthwhile or will put your finances in jeopardy.

Almost six out of ten people regret their credit card debt.

Given how difficult it is for many people to pay off debt, it’s no surprise that 59 percent of individuals we polled indicated they regretted having credit card debt. This figure was higher than the 47% who expressed sorrow about credit card debt in last year’s poll.

Similarly, many respondents said they regretted taking out student or personal loans, while fewer said they regretted taking out a car or home equity loan. Specifically:

  • 19% of students are remorseful about their school loans (up to three percentage points from last year)
  • Only 17% of people regret taking out a personal loan (more than double from 8 percent last year)
  • 14% of homeowners are unhappy with their mortgage.
  • Medical debt is something that 14% of people regret.
  • 13% of people are remorseful about their car loan.
  • Of people regret taking out a payday loan.
  • A 401(k) loan is regretted by 7% of people.
  • 7% of people regret taking out a home equity loan.

Credit card debt, which typically comes with exorbitant interest rates, is one of the most challenging forms of debt to repay. If possible, avoid charging more than you can afford to pay off each month on your credit card.

Also, whether you’re thinking about getting a school loan or a personal loan, check around with a few different lenders. That way, you’ll be able to discover the most significant rate on a loan that won’t cost you a fortune in interest over time.

Take some time to research debt payback options such as the debt snowball and debt avalanche approaches if you’re currently in debt. Although repaying debts might be burdensome, making a plan can help you gradually but steadily work toward a debt-free existence.

The majority of students have no regrets about their education expenses.

With college tuition expenses at an all-time high, almost one out of every four Americans wishes they hadn’t spent so much money. However, a higher 43 percent believe their college investment was worthwhile. And 15% of those who did not attend college regret their choice.

Even though higher education is costly, a college diploma is still valid. However, you don’t want to go into a lot of debt along the way. Compare the expenses of attendance and financial assistance options before deciding on a college.

Apply for scholarships so you may get free money to support your tuition and living costs. Similarly, keep track of how much you borrow in student loans to prevent overextending yourself.

Make the most of last year’s errors by learning from them.

Even if you wish you had spent your money differently last year, it’s pointless to linger on the past. Instead, use your financial missteps as a chance to learn from them and make better decisions in the future.

Create a budget and monitor your spending until you’re back in control, for example, if you’re splurging on non-essentials. If you’re burdened by debt, look into debt repayment and restructuring options like income-driven repayment and student loan refinancing to make it more bearable.

Dealing with financial difficulties may seem incredibly isolated, but as the findings of this study show, you’re not alone in your regrets. Reach out to friends and family for support — a robust support system could be exactly what you need to change your financial situation (though try to be selective when it comes to taking advice).

While you are unlikely to make faultless financial decisions in the next year, you can make enough improvements to have considerably fewer regrets when you look back next year.

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Merchant cash advance providers banned from industry and ordered to turn around small businesses https://anglomir.net/merchant-cash-advance-providers-banned-from-industry-and-ordered-to-turn-around-small-businesses/ Wed, 05 Jan 2022 08:00:00 +0000 https://anglomir.net/merchant-cash-advance-providers-banned-from-industry-and-ordered-to-turn-around-small-businesses/ Two of the defendants behind an alleged small business financing scheme, RAM Capital Funding, LLC and its owner Tzvi Reich, will be permanently banned from the cash advance and debt collection industries and ordered to pay $675,000 to settle Federal Trade Commission charges that they used deceptive and illegal means to seize the assets of […]]]>



Two of the defendants behind an alleged small business financing scheme, RAM Capital Funding, LLC and its owner Tzvi Reich, will be permanently banned from the cash advance and debt collection industries and ordered to pay $675,000 to settle Federal Trade Commission charges that they used deceptive and illegal means to seize the assets of small businesses, nonprofits, and religious organizations.

“Today’s order makes it clear that going after small businesses will take a heavy toll,” said Samuel Levine, director of the FTC’s Consumer Protection Bureau. “These defendants have been banned from merchant cash advance activity, and we intend to hold their co-defendants similarly accountable.”

Merchant cash advances are an alternative type of financing for small businesses. In general, mCash advance companies provide funds to businesses in exchange for a percentage of the businesses turnover. Typically, a merchant cash advance company will make daily withdrawals from the company’s bank account until the obligation is met.

As detailed in the February 2020 FTC Staff Perspective on the “Strictly Business” forum, however, some merchant cash advance providers engage in aggressive and potentially misleading marketing practices and use potentially abusive collection tactics.

The FTC alleged that since 2015, the defendants have deceived small businesses and other organizations in violation of the FTC Act and the Gramm-Leach-Bliley Act by demanding personal guarantees and upfront fees from consumers after representing that ‘they wouldn’t make those demands, offering less financing to consumers than promised, and taking more from consumers’ bank accounts than they had advertised.

The agency also alleged that the defendants made unauthorized withdrawals from consumer accounts and used unfair collection practices, sometimes including threats of physical violence. In addition, the FTC alleged that the defendants unlawfully weaponized “judgment admissions,” contract clauses that allowed defendants to sue customers’ personal assets in court and obtain uncontested judgments against them.

As part of the settlement, the defendants are ordered to vacate any judgments against their former clients and release any liens on their clients’ property. The proposed order would also prohibit these defendants from making these and similar false statements, and further violations of the Gramm-Leach-Bliley Act.

The Commission’s case against the other defendants, RCG Advances, LLC, Robert Giardina and Jonathan Braun, is ongoing, and the proposed order requires defendants RAM Capital Funding and Reich to cooperate with the FTC.

The Commission’s vote approving the stipulated final order was 4-0. The FTC filed the draft order in the United States District Court for the Southern District of New York.

REMARK: Stipulated final orders or injunctions, etc. have the force of law when approved and signed by the district court judge.



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E-commerce on the rise thanks to merchant cash advance financing https://anglomir.net/e-commerce-on-the-rise-thanks-to-merchant-cash-advance-financing/ Mon, 29 Nov 2021 08:00:00 +0000 https://anglomir.net/e-commerce-on-the-rise-thanks-to-merchant-cash-advance-financing/ 47% increase in demand for flexible funding for online businesses 365 Business Finance reports 35% increase in average amount advanced for e-commerce customers Online businesses have flourished over the past two years, showing no signs of slowing down in terms of their growth or popularity with UK consumers. Unsurprisingly, there has also been an increase […]]]>



  • 47% increase in demand for flexible funding for online businesses
  • 365 Business Finance reports 35% increase in average amount advanced for e-commerce customers

Online businesses have flourished over the past two years, showing no signs of slowing down in terms of their growth or popularity with UK consumers.

Unsurprisingly, there has also been an increase in demand from online businesses for flexible funding, up 47%* according to the London-based lender. 365 Business Financing. As a provider of merchant cash advances, this dramatic year-over-year increase over 2020 shows how quickly some online businesses are growing, requiring additional funding.

SMEs frequently use merchant cash advances to help with cash flow, to purchase additional inventory and equipment, and for expansion or renovation of premises. However, in e-commerce, the cost of continuously updating and improving online storefronts often requires additional investment as well, with flexible financing a quick and easy solution, no APR, fixed term or with fixed monthly payments.

As the e-commerce industry continues to grow, the average amount advanced by 365 Business Finance at online outlets increased 35% in 2021, with a 56% increase in 2020 compared to 2019.

365 Business Finance Managing Director Andrew Raphaely said: “We are now working with more and more SMEs in e-commerce as the COVID-19 pandemic has further accelerated consumers’ needs and desires to do their shopping. shopping online from the comfort of their own homes.

“It is important to understand that online businesses need to invest heavily in their online presence, in terms of website development, setting funds aside for monthly running costs, search engine optimization and advertising and marketing needed to make an e-commerce business a success.

“The fact that with a merchant cash advance, these e-commerce businesses are only required to repay the funds through a small percentage of their online transactions, means that their cash flow is not negatively affected, as they only repay the advance when customers pay them.”

For more information on how merchant cash advances can help online businesses and how to apply for £5,000 to £200,000 go to Online business finance | 365 Business Financing.

365 Business Finance also published a helpful guide to e-commerce financingdue to the increase in demand from this sector.



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Need to access Fast Capital? Consider a merchant cash advance. https://anglomir.net/need-to-access-fast-capital-consider-a-merchant-cash-advance/ Fri, 19 Nov 2021 08:00:00 +0000 https://anglomir.net/need-to-access-fast-capital-consider-a-merchant-cash-advance/ Opinions expressed by Contractor the contributors are theirs. Businesses across the country are emerging from the brunt of the lingering Covid-19 pandemic with new and ever-changing needs – and surprisingly few financing options arise to meet them. Traditional bank loans, lines of credit and other resources are insufficient, and it is the entrepreneurs who lack […]]]>



Opinions expressed by Contractor the contributors are theirs.

Businesses across the country are emerging from the brunt of the lingering Covid-19 pandemic with new and ever-changing needs – and surprisingly few financing options arise to meet them. Traditional bank loans, lines of credit and other resources are insufficient, and it is the entrepreneurs who lack them.

The events of 2020 have indiscriminately forced companies of all sizes to be even more agile and adaptive. New exterior structures, safety equipment to meet regulations, increased e-commerce – all of this means that business owners now have days, not months, to adapt. Changing directives, labor shortages and structural changes all require rapid decision-making and funds quickly. The problem is that, for most businesses, access to quick and easy capital simply does not exist.

Related: Free On-Demand Webinar: How to Improve Your Business’ Cash Flow

Small businesses are strapped for cash

While small businesses are 99.9% of all American businesses and employ 47.1% of the country’s workforce, their finances can be incredibly fragile – fluctuating sales and high expenses make it difficult to save – and the Covid-19 pandemic has really shown us how the country’s small businesses are vulnerable. Majority of businesses with monthly expenses of $10,000 only had enough cash survive for two weeks when the pandemic hit and the shutdowns began. And that figure refers to their standard monthly expenses, not those needed for additional infrastructure, staff, or new products.

What does a business owner do when she needs $50,000 to pay her team and build an outdoor catering structure for her 18-month-old restaurant? She only has a few weeks before the money runs out and little time to devote to the process. Loans and lines of credit from major banks are hard to find and come up with a mountain of paperwork. They often require 24 months of profit – a tough question at the start of a business’s life – even if it is heading for success. Lines of credit could be an option, provided your credit is good enough to avoid interest rates of up to 80%.

Many business owners have turned to the options offered by the government, which has provided a stopgap for many. However, some programs, such as PPP and RRF, have recently ended. And data shows that businesses in communities of color were the last to access these types of loans due to their greater likelihood of being unbanked or underbanked. Worse still, these loans are not easy to understand for a layman, and their applications can be labyrinthine, reducing the chances of approval.

Restaurants are a perfect example of the trap in which businesses are caught. Many hotel workers have changed careers during the pandemic, and establishments are now severely understaffed. To attract workers and fight turnover, they offer higher wages, better benefits and hiring bonuses, all at the expense of the bottom line. But they cannot use their full capacity to make profits without a full staff. They need a capital injection with a high chance of approval to drive hiring, increase capacity and ultimately maximize profits.

Related: A post-pandemic survival guide for restaurants

Merchant Cash Advances are an agile and accessible solution

Homeowners have never had time to waste, and now they have less than ever. Businesses need a quick and easy way to raise capital that doesn’t require months and months of steady earnings so they can pursue new opportunities that will increase long-term growth. Merchant cash advances (MCAs) are one financing solution that can meet these needs – only a few months of profit is needed, some have fast online application, and you can receive money as early as the same day or the the following day.

How does a merchant cash advance work?

A Merchant Cash Advance gives business owners between $10,000 and $250,000 to fund hiring, buying, building, repairing – whatever they need to grow. With an MCA, a business owner has complete control over how they use their funds.

Essentially, a merchant cash advance lender buys a portion of a business’s future sales and advances the money. The advance is then repaid at a factor rate of approximately 1.2 to 1.5 – there is no compound interest as with loans and lines of credit.

Related: Beware, Small Business: There’s a Generation-Sized Untapped Customer Base

Merchant cash advances are great options to give businesses a much-needed boost as they continue to deal with the Covid-19 pandemic. The application process is quick and easy, and funds are available almost immediately, which means pressing issues can be resolved and opportunities seized. Funds can also be used to payroll or hire new employees, increase marketing efforts, build infrastructure, and generally help a business grow and prosper.



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iwoca and Funding Xchange Launch Automated Merchant Cash Advance https://anglomir.net/iwoca-and-funding-xchange-launch-automated-merchant-cash-advance/ Thu, 02 Sep 2021 07:00:00 +0000 https://anglomir.net/iwoca-and-funding-xchange-launch-automated-merchant-cash-advance/ iwoca and Funding Xchange Launch Automated Merchant Cash Advance By Joy Dumasia iwoca, one of Europe’s largest small business lenders, has launched its first cash advance product on Funding Xchange for small business online sellers. iwoca will be the first lender in the UK to use Open Banking to offer fully automated revenue-based refunds to […]]]>



iwoca and Funding Xchange Launch Automated Merchant Cash Advance

By Joy Dumasia

iwoca, one of Europe’s largest small business lenders, has launched its first cash advance product on Funding Xchange for small business online sellers. iwoca will be the first lender in the UK to use Open Banking to offer fully automated revenue-based refunds to e-commerce businesses with a business bank account in the market.

Small business owners operating on platforms such as eBay can access flexible income-based repayment loans ranging from £1,000 to £50,0001 when trying to find a loan product in the online marketplace from FundingXchange.

iwoca will calculate monthly repayments based on business income and take a pre-agreed portion of that income to repay the loan. Building on iwoca’s heritage of bringing flexibility to SME loans, the new Cash Advance product will, for the first time, allow SMEs to choose a loan repayment profile that reflects their ups and downs. commercial stockings, allowing maximum flexibility during operational interruptions or seasonal lows. As Open Banking is funding the loan, it will have mass market potential.

Christoph Rieche, CEO and co-founder of iwoca, said: “Our vision is to provide finance to SMEs when, where and how they need it. We transform small business lending through technology-fueled product innovation combined with creative distribution partnerships. With our new cash advance product and Funding Xchange partnership, we continue our proud track record of industry firsts. Just under a decade ago, we were the first UK company to integrate eBay and Amazon to provide instant credit decisions to e-commerce sellers. We were also the first commercial lender to offer a lending API, which is now used by over 20 major fintech partners, and the first SME lender to connect to the UK’s nine largest banks with Open Banking.

Recently, IBS Intelligence reported that new data from iwoca, one of Europe’s largest small business lenders, reveals how integrated financing will play a vital role for small businesses as they seek to recover from the pandemic.

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The worst place to settle Merchant Cash Advance disputes is out of state, so fix your contracts already! https://anglomir.net/the-worst-place-to-settle-merchant-cash-advance-disputes-is-out-of-state-so-fix-your-contracts-already/ Wed, 18 Aug 2021 07:00:00 +0000 https://anglomir.net/the-worst-place-to-settle-merchant-cash-advance-disputes-is-out-of-state-so-fix-your-contracts-already/ Our previous article discussed the predictability of usury disputes involving Merchant Cash Advance Agreements (MCAs) with choice of law clauses from New York to New York – although we assumed things were going become (a little) crazier. But New York is not the only forum in which MCA customers (referred to as “merchants”) assert usury […]]]>



Our previous article discussed the predictability of usury disputes involving Merchant Cash Advance Agreements (MCAs) with choice of law clauses from New York to New York – although we assumed things were going become (a little) crazier. But New York is not the only forum in which MCA customers (referred to as “merchants”) assert usury claims.

Despite New York’s choice of law and venue provisions, MCA funders are often forced to defend the legality of their New York MCA agreements when domesticating judgments or being sued by merchants in Sister States, or when making claims in the bankruptcy courts where the debtor merchants are. . Sometimes these procedures don’t go well for donors, but they provide instructive lessons for securing MCA contracts.



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Merchant Cash Advance Litigation Gets Wilder – Litigation, Mediation & Arbitration https://anglomir.net/merchant-cash-advance-litigation-gets-wilder-litigation-mediation-arbitration/ Fri, 30 Jul 2021 07:00:00 +0000 https://anglomir.net/merchant-cash-advance-litigation-gets-wilder-litigation-mediation-arbitration/ Following the tradition, the merchant cash advance (MCA) industry was born in New York, and its law continues to be the law of choice in many MCA agreements. This has led to many disputes because, unlike dozens of other statesNew York has a 25% criminal usury cap for business loans. In many cases, MCA funders […]]]>



Following the tradition, the merchant cash advance (MCA) industry was born in New York, and its law continues to be the law of choice in many MCA agreements. This has led to many disputes because, unlike dozens of other statesNew York has a 25% criminal usury cap for business loans. In many cases, MCA funders argue that MCA agreements are not loans and are therefore exempt; while business customers (known as ‘merchants’) seeking to evade their obligations, unsurprisingly, argue that these are in fact capped loans.

There are now dozens of trial decisions and several appellate decisions on this issue. This well-developed MCA case law has resulted in more careful drafting of MCA agreements in recent years, but some recent decisions suggest that MCA litigation is about to get wilder.

MCA agreements are purchases of future receivables, not loans. When properly drafted, MCA agreements should not be subject to a usury cap, as an MCA is not structured like a loan. In practice, however, wear caps have fueled much litigation against MCA backers, particularly in New York.

MCA transactions are similar to traditional factoring agreements. The funder purchases future receivables at a pre-determined price, and repayment depends on the success of the venture. Above all, unlike a loan, the company has no absolute obligation to repay. A trader does not have to hand over receivables that it does not receive as a result of business bankruptcy, and the trader’s remaining non-receivable assets cannot be seized. There is also no interest rate in the MCA agreement that would result in an increase in the gross amount the company is required to remit if its receivables are delivered over a longer period than originally estimated. These fixed discounts are estimates of an agreed percentage of average daily receivables which can be adjusted at the merchant’s request if receivables decrease. Initially, the MCA funder takes the risk of not being reimbursed if the company goes bankrupt.

Nevertheless, traders will often sue MCA backers seeking to void deals they claim are merely “disguised” loans with absolute repayment obligations. Merchants generally claim that when their fixed daily receivables installment amounts are annualized, they would effectively be paying the backer a rate well over 25% per annum. Most lawsuits have been dismissed at the trial court level because the written agreements prove that the MCAs were not loans. In addition, many courts have found that despite various protections for funders – such as security agreements, personal performance guarantees, and admissions of judgment – ​​funders still run the substantial risk of never recovering their investments. if the business fails.

This has particularly been the case with MCA agreements which contain a “matching” provision which allows the company to request, and require the funder to provide, an adjustment to the company’s daily remittances to reflect the decrease average debts. Such agreements, which reflect the actual ebbs and flows of the business and adjust remittances accordingly, are generally not considered loans.

MCA Appeal Decisions. New York, the most important state for the MCA law, until recently had no guidance from any appellate court.

In 2018, the First Department issued a terse ruling that appeared to give the MCA deals a green light in New York. To see Champion Auto Sales vs. Pearl Beta Funding159 AD3d 507, 507 (1st Dep’t 2018) (finding that “[t]The evidence demonstrates that the underlying agreement that led to the admission judgment was not a usurious transaction.”). However, the decision provided no detailed framework for determining which provisions of an MCA agreement could turn it from a legal purchase agreement into a loan sharking.

Some of these details were provided by the second department in LG Funding v. United Senior Props. of Olathe181 AD3d 664, 666 (2d Dep’t 2020), which adopted a three-part test used by some lower courts to determine whether an MCA agreement was a loan: “(1) if there is a reconciliation clause in the agreement; (2) whether the agreement has a fixed term; and (3) whether there is a remedy if the merchant declares bankruptcy.” The nature of the reconciliation provision was particularly important for the Second Department, which s is focused on the use of the term “may” in the matching provision, which could give the funder discretion to adjust installments to reflect diminishing claims.

This has spawned a significant number of disputes over whether reconciliation is a corporate right (and therefore the agreement is not a loan) or discretionary and illusory (thus creating an absolute payment obligation similar to a loan) . When the courts before LG Financing largely on the donor side, subsequent decisions have closely examined the obligation of reconciliation. Where the LG Financing indicate that a deal can be a loan, courts have granted preliminary injunctions in favor of merchants or dismissed motions to dismiss brought by lenders.

Last month, the First Department of Davis v. Richmond Capital Group2021 NY Slip Op. 03111, ¶ 1 (1st Dep’t May 13, 2021), affirmed the dismissal of a motion to dismiss, finding that the MCA agreements in question may be loans due to:

the discretionary nature of the reconciliation clauses, the allegations that the defendants refused to authorize the reconciliation, the selection of daily payment rates which did not appear to represent a good faith estimate of the claims, the provisions providing for the rejection of a direct debit two or three times without notice notice of an event of default entitling defendants to immediate reimbursement of the full amount purchased and not recovered, and provisions allowing defendants to recover the personal guarantee in the event of inability to pay or bankruptcy of the plaintiff company.

This probably means that after Davis The trial court’s decision will focus on additional provisions in the MCA agreements beyond the LG Financing factors to determine the true nature of the transaction. Further, the decision suggests that, even if the MCA agreement was valid at the time it was entered into, a later failure by the funder to provide a reconciliation would not only constitute a breach, but could prove that a funder dealt its deal as a loan rather than an MCA.

The impact of “Davis” is felt. The past few years have seen a series of lawsuits against MCA funders by state and federal investigators alleging usury and violations of other consumer protection laws.

In People of New York State vs. Richmond Capital GroupNY Co. Index No. 451368/2020, the New York Attorney General alleges that certain funders and their officers violated criminal usury law due to their pre-contractual conduct: transactions are described as “loans” in sales calls, emails, advertising materials and web pages, which also discuss payment terms, and because they are taken out as loans, in looking at credit scores and bank balances rather than historical debt. The NYAG also alleges that post-contractual conduct makes agreements ready, including filing judgment admissions or executing personal guarantees on one-time missed payments, filing false affidavits, double-dipping daily installments, and refusing to grant reconciliations .

On June 2, 2021, Supreme Court Justice Andrew Borrok heard plea and denial the MCA respondents’ motions to dismiss the NYAG motion. He rejected what he described as their “form over substance” argument that because MCAs are not structured as loans, they cannot be usurious. Instead, citing the recent First Department report Davis decision, he said the NYAG had sufficiently alleged fraudulent conduct on the part of the funders to overcome any rejection based on arguments of documentary evidence by the funders.

The court seems to interpret Davis as allowing it to look not only beyond the four corners of an MCA agreement to determine whether there was usurious intent at the time of the transaction, but also subsequent misconduct that could retroactively subject loans from MCA agreements to New York criminal usury law.

Conclusion

The recent Davis The decision will likely spur usury litigation against the MCA companies. Donors using legacy agreements written when the MCA industry was in its infancy are the target of such litigation, but even regularly updated agreements need to be reconsidered in this environment.

However, exposure to litigation – and frankly criminal litigation – cannot be mitigated by having a well-drafted form alone. Future litigation and investigations may examine not only the four corners of the MCA agreements, but also the pre- and post-contract behaviors of funders, vendors, underwriters and independent sales offices, to determine whether the product was properly presented and whether the actors acted. in accordance with the terms of the agreements.

In addition, various state legislatures (including New York) have introduced or passed legislation covering MCA agreements. These require certain pre-contractual disclosures of the terms of the agreements, including, most confusingly, an annual percentage rate (APR) and a repayment term. However, MCAs have neither and would be accused of breaching two of the three LG Financing factors if they did.

The time to update MCA agreements, bring itself into full compliance with New York law, and train staff in the basics of MCA law, was yesterday, but the momentum to do so has not expired. MCA funders should contact an experienced MCA attorney to review their forms and advise on best practices.

Reproduced with permission from the July 2, 2021 edition of the New York Law Journal © 2021 ALM Media Properties, LLC. All rights reserved.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.



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Merchant Cash Advance Disputes Are Getting Wilder https://anglomir.net/merchant-cash-advance-disputes-are-getting-wilder/ Thu, 01 Jul 2021 07:00:00 +0000 https://anglomir.net/merchant-cash-advance-disputes-are-getting-wilder/ Following the tradition, the merchant cash advance (MCA) industry was born in New York, and its law continues to be the law of choice in many MCA agreements. This has led to many disputes because, unlike dozens of other statesNew York has a 25% criminal usury cap for business loans. In many cases, MCA funders […]]]>



Following the tradition, the merchant cash advance (MCA) industry was born in New York, and its law continues to be the law of choice in many MCA agreements. This has led to many disputes because, unlike dozens of other statesNew York has a 25% criminal usury cap for business loans. In many cases, MCA funders argue that MCA agreements are not loans and are therefore exempt; while business customers (known as ‘merchants’) seeking to evade their obligations, unsurprisingly, argue that these are in fact capped loans.

There are now dozens of trial decisions and several appellate decisions on this issue. This well-developed MCA case law has resulted in more careful drafting of MCA agreements in recent years, but some recent decisions suggest that MCA litigation is about to get wilder.



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Vodacom Financial Services introduces business cash advance to help SMEs https://anglomir.net/vodacom-financial-services-introduces-business-cash-advance-to-help-smes/ Mon, 14 Jun 2021 07:00:00 +0000 https://anglomir.net/vodacom-financial-services-introduces-business-cash-advance-to-help-smes/ Vodacom Financial Services Vodacom financial services announces its latest loan product, VodaLend | business cash advance, which provides financing to unregistered small businesses that need quick access to short-term cash advances. Offer financing between R3000 and R350,000 to customers using VodaPay point of sale (POS), Business Cash Advance complements VodaLend’s range of loan products for […]]]>




Vodacom Financial Services

Vodacom financial services announces its latest loan product, VodaLend | business cash advance, which provides financing to unregistered small businesses that need quick access to short-term cash advances. Offer financing between R3000 and R350,000 to customers using VodaPay point of sale (POS), Business Cash Advance complements VodaLend’s range of loan products for the SME sector.

Vodacom Financial and Digital Services, Managing Director Mariam Cassimclaims that Business Cash Advance will further strengthen the financial security of SME partners.

“It often happens that a small business has intra-month cash flow problems. Although the business is liquid in the long term, it sometimes finds itself unable to meet its short-term cash flow needs. This is where our Business Cash Advance product comes into play.”

Business Cash Advance provides financing to SME partners who trade using VodaPay POS devices including VodaPay Max, E-Commerce Switch and VodaPay Chop-Chop QR Code. Financing is offered to the SME on the basis of its monthly turnover and, if accepted, is paid to the company within 24 hours.

“Refunds are specifically designed to help SME partners by being tied to the amount of money the business earns each day. When the business is not trading, no refunds are required,” adds Cassim.

To be eligible, users of VodaPay’s POS devices must have been trading for four months or more, have a monthly turnover of at least R3,000 (collected through the merchant’s wallet, regardless of the mechanism of acceptance) and have made 10 payment transactions per month. on the defined payment tracks. No business registration or VAT number is required. Companies seeking funding should apply through Vodacom SMME Portal and from there, merchants can view the funding options on offer. Once funding is approved, they can take it back whenever needed.

Non-eligible VodaPay customers can also access the SMME portal, where they receive a dashboard showing what they need to do to qualify. Once qualified, acceptance can be done in less than two minutes.

Startups and SMEs are the backbone of the economy and enabling them to access agile funding is essential to their success. In line with Vodacom’s commitment to being a purpose-driven company, VodaLend and the Business Cash Advance offering serve and strengthen the small business sector where it matters most.

Cassim concludes: “This is another small step by Vodacom Financial Services to further develop and stabilize the SME sector – a key element in the long-term growth of our economy. This sector is also vital for job creation in an environment where the unemployment rate is unacceptable.



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Global Merchant Cash Advance Market Competitive Analysis, https://anglomir.net/global-merchant-cash-advance-market-competitive-analysis/ Tue, 25 May 2021 07:00:00 +0000 https://anglomir.net/global-merchant-cash-advance-market-competitive-analysis/ Dallas, May 25, 2021 (GLOBE NEWSWIRE) — Merchant Cash Advance refers to a small business financing product that includes the transaction of a business’s future credit card receivables at an appropriate purchase price. MCA is basically provided as a lump sum payment to a business in exchange for a decided percentage of future debit and […]]]>



Dallas, May 25, 2021 (GLOBE NEWSWIRE) — Merchant Cash Advance refers to a small business financing product that includes the transaction of a business’s future credit card receivables at an appropriate purchase price. MCA is basically provided as a lump sum payment to a business in exchange for a decided percentage of future debit and credit card sales. Cash advance is a kind of short term loan offered by credit card companies, banks and other financial institutions in the market. Also, these services increase fees and interest rates on the principal amount. In addition to this, the cash advance service offers fast financing options and instant approvals which in turn drive huge demands from borrowers in the market. The global merchant cash advance market has seen an escalation in growth over the past few years.

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Merchant Cash Advance Market Breakdown by Manufacturers

American Express Merchant Funding
PayPal working capital
Box
Financial Forum
Credible
Square capital
Lendio
National funding
CanCapital
Stripes Capital
Cabbage
Capital CAN

The growth of the MCA industry is accredited with numerous growth propellant aspects and the growth is also expected to continue in the coming years. By conventional methods, the borrower was obligated to repay the product over a period of six months. Increasing competition in the industry has led to both longer-term and shorter-term payback periods (typically in the range of three to 18 months now). This factor has caused the price levels of MCA competitors to increase and is based on the credit profile of the merchant and is likely to drive the growth of the MCA industry. Additionally, MCA market players are now offering ACH financing and loans based not just on credit card volume, but more on a merchant’s total sales volume. This aspect is considered to propel the growth of the industry.

Merchant Cash Advance Market Segment by Types

$5,000 to $250,000
$250,000 to $500,000
> $500,000

Merchant Cash Advance Market Segment by Users/Application

Time spent in business Time in business 6-12 months
Time spent in business 12 to 18 months
Time spent in business > 18 months

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The Merchant Cash Advance system offers many beneficial features to customers and market participants. Compared to a bank commercial loan process, MCA requires less paperwork. In addition to this, the financing time and approval time involved in the MCA system is less than that of a commercial bank loan. The advanced methods used in the system such as lockbox, ACH debit or split funding which occurs daily reduce the efforts of a merchant for the collection process.

All these aspects are likely to accelerate the growth of the Merchant Cash Advance industry globally. Furthermore, the advantages offered by the adoption of MCA systems such as high loan renewal rate, low barriers to entry, high commissions, attractive returns, absence of repayment obligation in the event of business failure, no late fees if business sales slow, etc. are waiting. to increase the demand for the Merchant Cash Advance system in the coming years.

Contents

1. Introduction

1.1 Objective of the study

1.2 Market Definition

1.3 Market Scope

1.3.1 Market Segment by Type, Application and Marketing Channel

1.3.2 Major Regions Covered (North America, Europe, Asia-Pacific, Middle East & Africa)

1.4 Years considered for the study (2015-2027)

1.5 Currency considered (US dollar)

1.6 Stakeholders

2 main conclusions of the study

3 Market dynamics

3.1 Drivers for this market

3.2 Market Challenging Factors

3.3 Global Merchant Cash Advance Market Opportunities (Regions, Growing/Emerging Downstream Market Analysis)

3.4 Technology and Market Developments in the Merchant Cash Advance Market

3.5 Industry News by Region

3.6 Regulatory scenario by region/country

3.7 Market Investment Scenario Strategic Recommendations Analysis

4 Merchant Cash Advance Market Value Chain

4.1 Status of the value chain

4.2 Upstream Raw Materials Analysis

4.3 Major Midstream Company Analysis (by Manufacturing Base, by Product Type)

4.4 Distributors/Traders

4.5 Downstream Major Customers Analysis (by Region)

5 Global Merchant Cash Advance Market Segmentation by Type

5.1 $5,000 to $250,000

5.2 $250,000 to $500,000

5.3 > $500,000

6 Global Merchant Cash Advance Market Segmentation by Application

6.1 Time spent in business

6.2 Time spent in business 6 to 12 months

6.3 Time spent in business 12 to 18 months

6.4 Time spent in business > 18 months

7 Global Merchant Cash Advance Market Segmentation by Marketing Channel

7.1 Traditional Marketing Channel (Offline)

7.2 Online channel………….continued

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