[CreditGuy]

Commercial banks cannot legally get involved directly in cash advance.

OnDeck isn't selling a cash advance. Its a loan. That's a distinction they have always made in the market.

Also, what legal mechanism is preventing banks from entering? Banks factor receivables all the time. Using the definition bandied about here that it is "a sale of future receivables", that is in essence a factoring relationship. The difference is that the bank underwrites existing A/R for quality and aging, sometimes employing a lockbox to ensure collection, but sometimes not; whereas an MCA is more about assessing the borrowers to consistently generate receivables and lending into that risk.