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  1. #1
    Karen37a
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    NJ Regulation Hearing Testimony

    This is the Testimony By Kate Fisher from Hudson Cook at the Hearng.

    https://debanked.com/2018/10/new-jer...s-and-brokers/


    Senator Pou and committee members: Thank you for the opportunity to present testimony today regarding business loan disclosures.

    My name is Kate Fisher and I am here today on behalf of the Commercial Finance Coalition, a group of responsible finance companies that provide capital to small and medium-sized businesses through innovative methods. I also am an attorney who helps providers of commercial financing comply with state and federal law.

    The Commercial Finance Coalition supports efforts to make business financing more transparent.

    The problem is the proposed amendment would define a merchant cash advance as a loan. A merchant cash advance is not a loan.

    We all know how a loan works – the lender advances money and the borrower promises to pay it back.

    A merchant cash advance is a factoring transaction, in which a business sells a percentage of its future receivables at a discount.

    Take for example, a pizza shop. The pizza oven breaks and the owner needs cash to replace it.

    In a loan, the pizza shop borrows the money and promises to pay the money back to the lender with interest.

    In a merchant cash advance, the pizza shop sells its future receivables to a merchant cash advance company. In exchange for the money to buy that pizza oven, the merchant cash advance company will take 10% of each dollar the pizza shop makes.

    If the pizza shop’s sales go down, it will pay less. If the pizza shop’s sales go up, it will pay more. And if the pizza shop is damaged by a hurricane and has to close for repairs, it will pay nothing until it can reopen its doors.

    This uncertainty of repayment is why a merchant cash advance is not a loan – the pizza shop in our example, only pays if it sells pizza. Courts have overwhelmingly agreed that a merchant cash advance is not a loan. To quote a recent court decision:

    “Receivables purchasing is an accepted form of business transaction, and is not a loan.”

    Because a merchant cash advance is not a loan, and there is no fixed payment term, requiring an APR or annual interest rate disclosure would be misleading. For a small business looking for financing, these types of disclosures would only add confusion.

    I’m very optimistic that New Jersey can lead the way in providing businesses with disclosures that are helpful – and not misleading.

    Thank you.

    Because a merchant cash advance is not a loan, and there is no fixed payment term, requiring an APR or annual interest rate disclosure would be misleading. For a small business looking for financing, these types of disclosures would only add confusion

    There is no APR on cash advances it is misleading. If you take that argument away you will not have cash advance transactions and lose in court each and every time- Stare Decicis- Karen

    You will be massively defaulted on by Shrewd lawyers and Debt Relief

    https://www.law.cornell.edu/wex/stare_decisis
    Last edited by Karen37a; 10-17-2018 at 08:04 AM.

  2. #2
    Karen37a
    Guest
    This was Karens rallying Cry Calling out to halt Calif illegal Regulations

    Just apply the same logic to NJ and every other state or Federal entity

    4400 posts later and harassment and threats...I am tired. Gl

    https://dailyfunder.com/showthread.p...highlight=veto

    __
    ( one week's rest and 2 pots of coffee ill be back on that horse in the front running forward Funding)

    https://www.youtube.com/watch?v=G4Ym9zokSZo


    Sons of Scotland, I am William Wallace…

    William Wallace is 7’ tall….

    Yes, I’ve heard, kills men by the hundreds, and if he were here he would consume the English with fireballs from his eyes and bolts of lightning from his ass. I am William Wallace, and I see a whole army of my countrymen, here in defiance of tyranny. You’ve come to fight as free men, and free men you are. What will you do without freedom? Will you fight?

    …against that? No, we will run, and we will live…

    Aye, fight and you may die, run and you’ll live. At least a while. And dying in your beds, many years from now, would you be willing to trade all the days from this day to that for one chance, just one chance to come back here and tell our enemies that they may take our lives, but they’ll never take our FREEDOM.
    Last edited by Karen37a; 10-17-2018 at 08:30 AM.

  3. #3
    Veteran Reputation points: 157541 J.Celifarco's Avatar
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    your rallying cry means nothing. You can say it over and over it doesn't change what is happening. Everyone would love for their to be no regulation but what we want and what reality is are 2 different things. If as an industry a few years ago we would have imposed some less invasive self regulation then maybe we wouldnt be here. Nobody wanted that everybody said this will never happen and now here we are. Me and everyone els eon here agree MCA is not a loan the problem is if regulators say it will be treated as one then we can scream it from the roof tops and it wont matter. Everyone needs to hold on because this is just the begining, you are going to see this over and over again in state after state. NY and Illinois are next with more to follow
    John Celifarco
    Managing Partner
    Horizon Funding Group

    3423 Ave S
    Brooklyn, NY 11234
    T: (347) 773-3990 | F: (718) 795-1990
    Linkedin: Profile
    Email: john@horizonfundinggroup.com

  4. #4
    Karen37a
    Guest
    Quote Originally Posted by J.Celifarco View Post
    your rallying cry means nothing. You can say it over and over it doesn't change what is happening. Everyone would love for their to be no regulation but what we want and what reality is are 2 different things. If as an industry a few years ago we would have imposed some less invasive self regulation then maybe we wouldnt be here. Nobody wanted that everybody said this will never happen and now here we are. Me and everyone els eon here agree MCA is not a loan the problem is if regulators say it will be treated as one then we can scream it from the roof tops and it wont matter. Everyone needs to hold on because this is just the begining, you are going to see this over and over again in state after state. NY and Illinois are next with more to follow
    Apr is illegal and people who wanted and want regulation this way are wrong

    I do not care about Regulation if it was done legally and sanely. I am probably one of a group of people who has the most regulated past background

    I am still amazed that people who have had 4-5 years in business or even 10 would debate an Ex Wall St compliance officer. With 30 years of Financial Experience and not ONE fine not even for $1...Me

    Also, they do not realize. Online applications that are automated will be the next thing they banish. Doesn't matter to me.Brokers/Isos will be left as "advisors"
    Last edited by Karen37a; 10-17-2018 at 09:43 AM.

  5. #5
    Veteran Reputation points: 157541 J.Celifarco's Avatar
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    APR is illegal? I would say it doesnt apply to MCA because there is no time frame but to use the word illegal, I dont know about that.
    John Celifarco
    Managing Partner
    Horizon Funding Group

    3423 Ave S
    Brooklyn, NY 11234
    T: (347) 773-3990 | F: (718) 795-1990
    Linkedin: Profile
    Email: john@horizonfundinggroup.com

  6. #6
    Karen37a
    Guest
    Quote Originally Posted by J.Celifarco View Post
    APR is illegal? I would say it doesnt apply to MCA because there is no time frame but to use the word illegal, I dont know about that.
    Want to bet?

    Watch what happens if you slap Apr on a mca

    you are not compliance nor regulation you do not understand the ramifications of it

    Since i have been right about everything including Bitcoin and Tether ...you will see

    I warned everyone..do what you will

    end of subject

  7. #7
    Veteran Reputation points: 157541 J.Celifarco's Avatar
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    I know the ramifications, it will essentially make mca's illegal in any state that they pass it in because you cant assign an APR to a product with no set time frame
    John Celifarco
    Managing Partner
    Horizon Funding Group

    3423 Ave S
    Brooklyn, NY 11234
    T: (347) 773-3990 | F: (718) 795-1990
    Linkedin: Profile
    Email: john@horizonfundinggroup.com

  8. #8
    Karen37a
    Guest
    Quote Originally Posted by J.Celifarco View Post
    APR is illegal? I would say it doesnt apply to MCA because there is no time frame but to use the word illegal, I dont know about that.
    I know the ramifications, it will essentially make mca's illegal in any state that they pass it in because you cant assign an APR to a product with no set time frame
    Goodbye

  9. #9
    Senior Member Reputation points: 301165
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    karen are you [art of any of the coalitions fighting all this ?

  10. #10
    Karen37a
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    Quote Originally Posted by Michael I View Post
    karen are you [art of any of the coalitions fighting all this ?
    I am part of a small investment backed hedge fund type coalition that only spoke up a bit...so its really me with them backing me

    they do not give a rats ass..I said "the industry" the other day and they laughed at me saying you are not an industry

    there a a few big companies the rest are a mess

  11. #11
    Senior Member Reputation points: 503040
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    Karen is the (wo)man in the arena!

  12. #12
    Karen37a
    Guest
    Quote Originally Posted by WestCoastFunding View Post
    Karen is the (wo)man in the arena!
    I went to this investment meeting a few months ago and met someoen from mca "loans" he was talking bad about mca brokers

    I was going to yell " i am Karen 37 a from the daily funder" but my friends were dragging me out lol

    anyway ...I am off to close deals

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