[diditevenfund]

https://debanked.com/2024/03/new-yor...cing-and-more/

What are people's thoughts on this? What direction are we really headed?

[Olderguy]

I think it's coming...like usury laws on real estate transactions...varies by state....

MCA's will probably be regulated and maybe brokers licensed like the mortgage industry was in 2008

Be prepared and learn how to be more of a loan officer.

Reach out if you want help on non MCA products.

[Yankeeman07]

Except a true MCA is NOT a Loan - nor will it ever be considered a Loan.

A true MCA is a business owner selling his/her future sales receipts without a specified repayment date.
A Factor rate is NOT Interest

And once that rate of interest is computed, “any rate exceeding twenty-five per centum per annum” in accordance with how the rate is allowed to be calculated, will be considered a Class E Felony of Criminal Usury.

[Olderguy]

Except a true MCA is NOT a Loan - nor will it ever be considered a Loan.

A true MCA is a business owner selling his/her future sales receipts without a specified repayment date.
A Factor rate is NOT Interest

And once that rate of interest is computed, “any rate exceeding twenty-five per centum per annum” in accordance with how the rate is allowed to be calculated, will be considered a Class E Felony of Criminal Usury.

And you don't think they will legislate it away anyways? Seems that way.

[Yankeeman07]

The industry may change to actually selling MCA's - not the 3 card Monty product many funders issue today.

[Olderguy]

The industry may change to actually selling MCA's - not the 3 card Monty product many funders issue today.

Yeah....maybe so and possibly make is illegal to have more than 2 positions?

[alexd12345]

Always the Non mca ppl so sure/ excited to announce "mca is done" . We have weathered many storms, coj ban , covid , terrible economy. Each and every time the same doom and gloom. But here we are. Yes theres an eye on the industry now. And lots of regulation already , and more to come. But businesses will always need money. May get a little harder to fund but well adjust.

[SendDocsPlox]

I cant wait for there to be a standardized broker's exam so I can say goodbye to 90% of the jackasses I've met in this space

[Olderguy]

I cant wait for there to be a standardized broker's exam so I can say goodbye to 90% of the jackasses I've met in this space

Yup...nmls licensing for mortgage brokers wiped out the mortgage industry.

[Chambo]

Except a true MCA is NOT a Loan - nor will it ever be considered a Loan.

A true MCA is a business owner selling his/her future sales receipts without a specified repayment date.
A Factor rate is NOT Interest

And once that rate of interest is computed, “any rate exceeding twenty-five per centum per annum” in accordance with how the rate is allowed to be calculated, will be considered a Class E Felony of Criminal Usury.

In theory you are correct. Unfortunately, too many in this space treat the fixed payment as etched in stone. This makes it a DeFacto usurious loan &attracts the wrath of the Attorney General