[J.Celifarco]

This actually looks worse then what California did.

https://debanked.com/2018/10/new-jer...9634876&_p_c=1

[BROKER TIME]

This actually looks worse then what California did.

https://debanked.com/2018/10/new-jer...9634876&_p_c=1

only a matter of time
for every state

need to look into a new industry other than MCA

[Karen37a]

This actually looks worse then what California did.

https://debanked.com/2018/10/new-jer...9634876&_p_c=1

And it will get worse which is why I tried so hard to block the first one

4000 posts later

[J.Celifarco]

only a matter of time
for every state

need to look into a new industry other than MCA

NO we will just have to adjust to whatever the rules are. There will still be an industry and the ability to make money it will just be different. Hopefully they will be able to get this worked out the way they did in California and get the APR disclosure removed

[Karen37a]

NO we will just have to adjust to whatever the rules are. There will still be an industry and the ability to make money it will just be different. Hopefully they will be able to get this worked out the way they did in California and get the APR disclosure removed

APR in calif is NOT Removed

They are leaving it up to the DBO the decision is not made yet

Just like we had a chance to fight to veto...and no one said anything but me

[J.Celifarco]

Actually they did get the APR removed from the bill and made it so that the DBO would decide.. In the original bill it had to be disclosed. This bill is worse then that because as of this draft everything needs to be disclosed 100%. We cant keep our heads in the sand anymore, regulation is coming whether we like it or not so everyone better get ready for it

[Karen37a]

Actually they did get the APR removed from the bill and made it so that the DBO would decide.. In the original bill it had to be disclosed. This bill is worse then that because as of this draft everything needs to be disclosed 100%. We cant keep our heads in the sand anymore, regulation is coming whether we like it or not so everyone better get ready for it

Right so they may decide to add it

And it is an illegal metric as I said all along

it is not an Apr

[Karen37a]

When this happens only Hedge funds who can structure these deals a different way will survive

one of them will be me. 30 years later...ill be one of the last survivors

Gl

[fundingsmbs]

Well, this business went 18 years or so without regulation. Once any industry reaches a certain scale, the government gets involved. Co's going IPO and partnering with banks didn't help keep things under the radar either....Im curious if the first position funder's will redo their schedule A's in certain states that require full disclosure now to keep APRs lower.

[Karen37a]

Well, this business went 18 years or so without regulation. Once any industry reaches a certain scale, the government gets involved. Co's going IPO and partnering with banks didn't help keep things under the radar either....Im curious if the first position funder's will redo their schedule A's in certain states that require full disclosure now to keep APRs lower.

The real problem is the 1st positions who give 1.25 (as an example) on the first mca ...lets just say 100k to pay back 125k

50k Renewal ...plus 50k = 100k = 125k

Thats means you paid 25k to get 50k which = 1.50 50%... not 20%

Which is what Carl was saying needs to be disclosed in the other posts to me

[Kevin Henry-Seacoast]

I gave this a quick read. Correct me if I am incorrect, but the disclosure being discussed is for business LOANS less than $100,000.

[jdlaw]

only a matter of time
for every state

need to look into a new industry other than MCA

That's the thing. I do commercial hard money and traditional LOC's, term loans.... Learned a long time ago depending on one source of income is just business suicide waiting to happen.

[Karen37a]

I gave this a quick read. Correct me if I am incorrect, but the disclosure being discussed is for business LOANS less than $100,000.

I didnt read it yet

What they also will start doing is mandating brick and mortar office locations ( a physical office)...like they did in Mortgages/Loans

or direct supervison by a brick and mortar

Which I do not think is a bad idea at this point

[jdlaw]

I didnt read it yet

What they also will start doing is mandating brick and mortar office locations ( a physical office)...like they did in Mortgages/Loans

or direct supervison by a brick and mortar

Which I do not think is a bad idea at this point

agreed

[Karen37a]

The worst part of this is that people haven't realized yet ... the "money source" also goes under increased regulation and scrutiny.

Everyone is regulated and looked at closer

Even the banks ..that's how credit lines get pulled

Bank lines are pulled first...hedge fund money last or never ( which Is why I conveniently aligned with certain funders over 2 years ago...especially those I can bring money into. So me doing or not doing busienss with people was never personal..i went where my future money could go)


or it will say " we do not lend to calif or NJ" ...etc

[Sean Cash]

I gave this a quick read. Correct me if I am incorrect, but the disclosure being discussed is for business LOANS less than $100,000.

NJ legislature is now proposing to amend the bill to define a merchant cash advance as a loan.

[Karen37a]

NJ legislature is now proposing to amend the bill to define a merchant cash advance as a loan.

yes...so I do not know how this helps most

[Kevin Henry-Seacoast]

NJ legislature is now proposing to amend the bill to define a merchant cash advance as a loan.

Thanks Sean. So the disclosures on the table are similar to CA.

[jdlaw]

Isn't it interesting that regulations intended to protect the people end up hurting the people. Perspectives are not realized

[J.Celifarco]

yes...so I do not know how this helps most

it doesnt help it means that our products would fall under this law and be required to meet the standards set forth in it.. Since an MCA by definition cant have an APR this bill would do what the original California bill would have essentially making MCA's illegal in the state of NJ

[Sean Cash]

They just amended the APR requirement out of the bill.

[Karen37a]

They just amended the APR requirement out of the bill.

Out of the Nj one?

Because Calif is a law.

I did ask in your opinion on how you feel that these regulations help??

[J.Celifarco]

that is a big win for us

[fundingsmbs]

change makes people nervous but if the spirit of all this is to have a more transparent industry, it's a start. self regulation has been very very tough to get this point across.

[Karen37a]

change makes people nervous but if the spirit of all this is to have a more transparent industry, it's a start. self regulation has been very very tough to get this point across.

Change doesnt make me nervous because I have been changing with the times and morphing and making a lot of money since the 80s

Different products...all different marketing ...mastering them

its regulations that are not vetted properly that cause more harm than good that makes me nervous