[Big Mack]

How can the AG make MCA loans illegal? The essence of MCA is that it is not a loan but rather the price a business owner would pay a company to risk buying future money off them. The way I look at it is: the high payback amount is the Fair valve/ market value of borrowing unsecured money. No different than any other transaction done in the free market.

If I were to sell a bike for a heavy profit in the free market (where there was no deception) It is perfectly allowed and acceptable. But in the MCA world, since we are comparing money to money, it gets a very negative connotation for making a profit (on a risky product)

I believe that the AG was using Richmond's "non-compliant" terminology against them. From what I understand, they were marketing MCA's as "loans" on their website, via email & verbally.

[RBcapital]

I believe that the AG was using Richmond's "non-compliant" terminology against them. From what I understand, they were marketing MCA's as "loans" on their website, via email & verbally.

Marketing as loans but really giving MCAs? Like a bait and switch?

[Big Mack]

Marketing as loans but really giving MCAs? Like a bait and switch?

I've actually met with Jon Braun and spent time in his office a few years ago (he was wearing an ankle bracelet and tried to hide it by wearing gigantic cowboy boots). It didn't seem like a bait and switch as I overheard a bunch of his "closing calls" to merchants. Standard MCA call. I don't think that they sourced any of their deals by marketing to merchants.

[Akanner]

I've actually met with Jon Braun and spent time in his office a few years ago (he was wearing an ankle bracelet and tried to hide it by wearing gigantic cowboy boots). It didn't seem like a bait and switch as I overheard a bunch of his "closing calls" to merchants. Standard MCA call. I don't think that they sourced any of their deals by marketing to merchants.

How did they source them? Via the backdoor??

[Big Mack]

How did they source them? Via the backdoor??

I'm not 100% sure, but he stressed to me multiple times that he HATED working with ISO's.

[Akanner]

I'm not 100% sure, but he stressed to me multiple times that he HATED working with ISO's.

explain please

[Big Mack]

explain please

It went something like this:

Me: What source do your deals come from? ISO's?

Him: F*ck ISO's! They're a bunch of f*cking scumbags.

[WestCoastFunding]

I believe that the AG was using Richmond's "non-compliant" terminology against them. From what I understand, they were marketing MCA's as "loans" on their website, via email & verbally.

True. But there is a possibility that she’s trying to paint all MCAs as illegal loans. I think there is a better than 0% possibility she charges MCA companies with usury or something and let itself play out in the courts. That could cost MCA companies a ton in legal fees and I’m not quite sure where the courts will land on it. Plus if the banks should launch a campaign against the MCA industry that will be a huge opponent to have.