Both the NY and CA disclosure laws require MCAs to calculate an APR based a disclosed guesstimated term. Given the historical performance of many MCA contracts, the guesstimated term is just that and the disclosed APR % required will in actuality be wildly inconsistent with the actual.

To ridextreme's point, these merchant are most typically relying on MCA's, because small business bank loans are not available to them. So requiring the same measuring stick for small business loans and MCAs is as likely to confuse merchants, as to educate them.

It does seem though one impact of these disclosures is that they will provide an unfair market advantage to the B/C lenders that are exporting rates to the extent they are competing against MCA providers for clients. It will be a challenge to educate clients on the differences between products and that they go well beyond guesstimates in a mandated disclosure and that the lenders expect a sum certain back over a certain term, regardless of the merchant's go forward cash flows-