Quote Originally Posted by Rickinindy View Post
Thanks for inquiring, the property has to belong to the business. Many times we will quick claim that. There is other ways to this to where we have made them sign affidavits under a cross colladderal setting. I can tell you that I have never had a issue never had a question of legality of the secured advance space. There are several companies that have products like these. Liens record similer to a HELOC but like the old personal guarantee holding the lien to protect the advance against default
wouldn't a court look at the contract as a loan since it is secured by real estate? isn't that the reason that you funders can charge what you charge as far as factor rates? Because there is no collateral other than the accounts receivables of a specific Merchant. Sounds like there may be some issues here Rick, did you check with an attorney? If you can verify that it is legal, I have a couple of clients for you.