Required Licenses

**len@accfunding.com** · 12-23-2014, 09:41 AM

What states do most direct lenders have licenses in? Are licenses required at all? It seems as though everyone has a different opinion on it.

**len@accfunding.com** · 12-23-2014, 07:52 PM

Does anyone have any input on this?

**Sean Cash** · 12-23-2014, 09:03 PM

If you're just buying future sales, get a license to lend in California. That state is trouble. If you're doing loans, hire lawyers with experience to guide you here.

**cashguy** · 12-24-2014, 10:27 AM

MCC is still doing future receivable sales in CA without a license

**Drizzle** · 12-24-2014, 11:53 AM

Don't tell anyone CashGuy

**Jared_Weitz** · 12-24-2014, 11:54 AM

Originally Posted by cashguy

MCC is still doing future receivable sales in CA without a license

it's not fixed payment though......

**cashguy** · 12-25-2014, 03:38 AM

And why do you think it makes all that difference.

**Fundcali** · 01-29-2015, 01:17 AM

What license are required for ISO in Cali? Or becoming a broker?

**ERS** · 01-29-2015, 06:28 AM

Originally Posted by Fundcali

What license are required for ISO in Cali? Or becoming a broker?

Cali is picky for sure! I have a California Finance Lender License just to play it safe as my firm is based in California.

**J.Celifarco** · 01-29-2015, 11:27 AM

Originally Posted by cashguy

And why do you think it makes all that difference.

Because with out a fix payment it is based on a % and has no set timeframe. Essentially the same as a MCA.. Thats why it makes a difference

**Chambo** · 01-29-2015, 01:12 PM

Originally Posted by Fundcali

What license are required for ISO in Cali? Or becoming a broker?

the only reason why people are so picky with California is that there is legal precedent against Cash Advance companies in that state. For big dollars too.

**Chambo** · 01-29-2015, 01:13 PM

Originally Posted by J.Celifarco

Because with out a fix payment it is based on a % and has no set timeframe. Essentially the same as a MCA.. Thats why it makes a difference

The courts in Cali have stated that if it is a fixed payment, it is a loan. Doesn't matter what you call it, THEY call it a loan, and thus subject to their state usury laws

**J.Celifarco** · 01-29-2015, 02:10 PM

Originally Posted by Chambo

The courts in Cali have stated that if it is a fixed payment, it is a loan. Doesn't matter what you call it, THEY call it a loan, and thus subject to their state usury laws

AGREED, In Cali They do a % of gross deposits where the payment adjusts. It is not a fix payment

**ADiamond** · 01-29-2015, 05:56 PM

Originally Posted by cashguy

And why do you think it makes all that difference.

a set daily indicates a term which indicates a loan, derp

there are some companies using banks that have lending licenses in cali, sell them the factor agreement (debt) for maybe 5-10% and then they sell it back to you.

and i am sure thats exactly what MCC does, because thats exactly what a few other grade a's do.

**Fundcali** · 01-29-2015, 07:21 PM

So is it safe to assume it is a risky venture to be based of California. And would you advise against it?

And if one were to endeavor a business based in Cali what should one watch for?

Any advise is greatly appreciated. You may also PM your advise and suggestions

**Sean Cash** · 01-29-2015, 07:36 PM

Originally Posted by Fundcali

So is it safe to assume it is a risky venture to be based of California. And would you advise against it?

And if one were to endeavor a business based in Cali what should one watch for?

Any advise is greatly appreciated. You may also PM your advise and suggestions

It is safe to assume that you shouldn't do anything without a qualified lawyer to guide you in this area. Call Paul Rianda. He's an industry attorney licensed in California: 949-261-7895. Whatever he charges you will be worth it.

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