Quote Originally Posted by Akanner View Post
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)
How could they make them illegal? They'll find a way. You can outlaw selling drugs, maybe you can outlaw selling future receivables (pre-work, to leave out factors from the mix) for more than the legal usury limits? You can force brokers to get licensed like in CA.

And IRS, direct "LENDER" (yeah, you should be careful there), there is such a thing as over-pricing a bike. They can make a law that it can't be charged more than "20% the average market range," or they could categorize selling of "future receivables" as a loan.....