[isaacdstern]

The appellate division, 1st Department has unanimously ruled that the transaction was not usurious!

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[NoBigDeal]

WooHoo! Go MCA companies and COJ's!

[TheFunda]

Unreal how Shane Heskin gets beat over and over and over yet he will not stop trying

[isaacdstern]

https://debanked.com/2018/03/its-settled-merchant-cash-advance-not-usurious/

[HDF]

https://debanked.com/2018/03/its-settled-merchant-cash-advance-not-usurious/

This is huge news however you want to slice it. A much needed shot in the arm for non-bank SMB financing in general. Now let's see if everyone can keep their noses clean and continue to grow (up).

[KINGCASH]

You know- you can slice it any way you want. When a potential merchant is in need of funds; Whether it to turn it and make a quick profit on the funds, gap for receivables coming in or just to make payroll, most can't get it as quick as we can get it to them. Hats off to the judge understanding the merchant knowingly received the funds and thought they would use it against Pearl after the fact.

I can't speak for all, but I'm here to help and get a sub 5 fico merchant or whatever the case may be the funds they need in order to continue on with their business.

Great read.

[soscap]

The appellate division, 1st Department has unanimously ruled that the transaction was not usurious!

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Shout out to Berkovitch, Bouskila, and DLA Piper for securing the first appellate decision MCAs are not loans.

[abfunders]

This is a legal win that's is good for our industry.

However, I hope that (for those of us that care) that an MCA is still is Ribis De'oraisa. Future GROSS is davar she'lo ba l'olam, so it can't be sold. It might be derabanan if it was on the future NET, but let's it's not, so let's not get into that.....

[abfunders]

For anyone out there that cares, I just got an email with an article / teshuva from Rav Marburger of Lakewood, who spent several hours looking over some contracts from various different funders out there and a broker, and had a long 2 hour conversation with him. For those with interest, and the ability to understand classic Jewish sources summarized in English, I'll be happy to forward it.

For those who don't know, he's probably the current known biggest dayan out there who actually understands (and deals with) business transactions.

[QuickFund]

For anyone out there that cares, I just got an email with an article / teshuva from Rav Marburger of Lakewood, who spent several hours looking over some contracts from various different funders out there and a broker, and had a long 2 hour conversation with him. For those with interest, and the ability to understand classic Jewish sources summarized in English, I'll be happy to forward it.

For those who don't know, he's probably the current known biggest dayan out there who actually understands (and deals with) business transactions.

What does he say?

[abfunders]

What does he say?

That it depends on the contract's PG. Aggressive PGs are almost certainly ribis, but there are some contracts that are okay.
That's not in the article, but that's what he told his congregant last night after reading several different contracts.
Basically, it all depends on the recourse.

[Keebler]

This is a legal win that's is good for our industry.

However, I hope that (for those of us that care) that an MCA is still is Ribis De'oraisa. Future GROSS is davar she'lo ba l'olam, so it can't be sold. It might be derabanan if it was on the future NET, but let's it's not, so let's not get into that.....

Its kinda hypocritical to be making such a post. If it bothers you so much you are always welcome to find another job.

[abfunders]

Its kinda hypocritical to be making such a post. If it bothers you so much you are always welcome to find another job.

I'm not sure who you think I'm funding..... who are your merchants?

[Cashman1]

I'm not sure who you think I'm funding..... who are your merchants?

Who are your "Merchants" ? I dont see you in deals....

[abfunders]

Who are your "Merchants" ? I dont see you in deals....

I didn't mean to start that game. I'm a broker, not a funder or lender. I'm a middleman for my merchants, which still makes a potential problem if both borrower and lender are Jewish. That's all I meant by "funding." Sorry for the confusion.