Quote Originally Posted by ADiamond View Post
https://debanked.com/?s=california+license&x=0&y=0

https://dfpi.ca.gov/california-finan...law-about/#Who


1) You all really should be consulting legal professionals for clarity, but I would love for Sean & Debanked to update some current guidance for this as all of their articles are circa 2015-2016 when this was a problem.

2) A "MCA" is not a loan in CA, it appears, and as such is not subject to lending licenses. HOWEVER, it appears they are subject to APR disclosure laws and lending license or not, it appears that a BROKER OF ANY financial product or financial product marketing is required to be licensed in CA, from my interpretation of the Expansion Capital legal filing I found below. Correct me if I am wrong on that last part?

3) It appears as far as "MCAs" are concerned in CA, they are super strict on disclosure notice - although I've read in some places they admit that "APR" can technically not be calculated for a MCA, and if we're being honest "APR" theoretically does not even apply to a MCA product from a financial standpoint, but who knows? CA also appears to be super strict on MCA companies abiding by their specified percentage / reconciliation clauses in order for the contract to be valid.


https://dfpi.ca.gov/2020/04/06/advis...nce-contracts/

https://dfpi.ca.gov/wp-content/uploa...-Group-LLC.pdf

A lot of info in this, just search "merchant cash"
https://dfpi.ca.gov/wp-content/uploa...01-18-RBLC.pdf
Doesn't really matter what Sean and DeBanked say, it matters what the State of California says.

As far as I can decipher, sending to super broker doesn't add any benefit in this case. As of Friday, ALL OFFERS must be sent directly to the merchant, and the funder needs to receive a Received Receipt, before anything written can be sent to any broker, super or mortal. Penalties are far more severe than the other penalties mentioned to date.

In summary, when a Cali merchant is sent to funder, they will tell you "offer was sent" and that's about it until the merchant acknowledges receiving it. No details can be given.

I guess this also means the days of hiding the phone #'s and emails from the funder are over as well.