Quote Originally Posted by NotALoan View Post
If a merchant is "wary" of a funder including a PG as a way to protect themselves, since the funder takes on 100% of the risk, MCA may not be the right product for this merchant. Have you explained to him why PG is the norm on MCA contracts? Does the merchant understand what a PG is and why funders use it?
If MCA isn't the right product for him, what is? There are VERY little no-PG products out there. Factoring in many cases has a validity guarantee (which is basically only a PG in the case of fraud). Because an MCA isn't a loan, the PG on an MCA is structured differently than the standard PG.