[BROKER TIME]

Term loan is a specific interest rate and payment over a specific term.
MCA loan can be drawn from credit card deposits as a percentage of revenue so the payment is variable depending on revenue for the day.

that makes no sense because based on your definition of term loan than a funder offering 50k @1.50 120 payments would be considered a term loan as it has a specific interest rate payment and term

[Olderguy]

that makes no sense because based on your definition of term loan than a funder offering 50k @1.50 120 payments would be considered a term loan as it has a specific interest rate payment and term

a MCA can take a percentage of credit card deposits and an easier way to differentiate A term loan doesn't and it is an easy way to compare the difference. Legal differentiation MCA based on receivables.

[budlightboy]

that makes no sense because based on your definition of term loan than a funder offering 50k @1.50 120 payments would be considered a term loan as it has a specific interest rate payment and term

Ahhh but it doesn't. That 50k 1.5 deal still has a holdback % listed on the contract. Deep within the size 4 font of that contract there will be a clause stating how the merchant can adjust their payment to equal the proper hold back %. That ability to adjust means there is no set term, and thus it's not a loan.