[SamuelH]

I got 5 responses from qualified Loan Officers! Thanks

[Yankeeman07]

I got 5 responses from qualified Loan Officers! Thanks

An MCA is NOT a Loan

[SamuelH]

An MCA is NOT a Loan

Sure it is...... Definition of Loan is a thing that is borrowed, especially a sum of money that is expected to be paid back with interest: AKA MCA

[abfunders]

Sure it is...... Definition of Loan is a thing that is borrowed, especially a sum of money that is expected to be paid back with interest: AKA MCA

An MCA is not a loan, otherwise they would be illegal and usurious.
This has been the case law time and time again in NY.
Don't believe anyone on this board? Believe this lawyer:
https://www.thelangelfirm.com/debt-c...r-from-loans-/

There's no "borrowing" but it's "expected" to be paid back, but it's not technically guaranteed to be paid back. A loan carries with it a guaranteed set payback with real terms, not discount rates etc.

[SamuelH]

An MCA is not a loan, otherwise they would be illegal and usurious.
This has been the case law time and time again in NY.
Don't believe anyone on this board? Believe this lawyer:
https://www.thelangelfirm.com/debt-c...r-from-loans-/

There's no "borrowing" but it's "expected" to be paid back, but it's not technically guaranteed to be paid back. A loan carries with it a guaranteed set payback with real terms, not discount rates etc.

Okay sir, a loan is not guaranteed to be paid back either. Guarantee means a formal pledge to pay another person's debt or to perform another person's obligation in the case of default. You're using the wrong words to prove your point as default applies to MCA Loans as well and if they happen the only thing a lender or funder could do is sue but doesn't guarantee any compensation in return.

[abfunders]

Okay sir, a loan is not guaranteed to be paid back either. Guarantee means a formal pledge to pay another person's debt or to perform another person's obligation in the case of default. You're using the wrong words to prove your point as default applies to MCA Loans as well and if they happen the only thing a lender or funder could do is sue but doesn't guarantee any compensation in return.

You're still fighting case law, the trend on DF, and we can continue the conversation. BTW, there are plenty of people on here as-qualified or better-qualified than I am.
If it wasn't for bankruptcy law, then when someone doesn't pay back a loan, there's NOTHING stopping the lender from jumping into the bank account of the borrower and taking money from him, and garnishing wages.
An MCA default cannot garnish wages. If the business goes bankrupt, there's technically nothing that can be done. They bought the future income, and there turned out to be no future income.
Let's use the stock market as an example:
If I lend money to a farm, then if they don't pay me back, I have a lien on the farm. I don't care if their business does well or not. They could choose not to pay me, there's not "guarantees" in life, but I have tools through the courts to take it out from them.
If I buy futures on their cattle stock, if their cattle does well, I get a portion. If not, I'm out of my money. Nothing to do. No courts, no liens.
In most cases, to not be a loan, an MCA has to mimic a purchase of futures. Otherwise it would be usurious loan.

I dare you. Put my statement through ChatGPT and see if I'm mostly correct. I'm dumbing it down, and there are extra points to consider, but that's the basic gist.

[SamuelH]

You're still fighting case law, the trend on DF, and we can continue the conversation. BTW, there are plenty of people on here as-qualified or better-qualified than I am.
If it wasn't for bankruptcy law, then when someone doesn't pay back a loan, there's NOTHING stopping the lender from jumping into the bank account of the borrower and taking money from him, and garnishing wages.
An MCA default cannot garnish wages. If the business goes bankrupt, there's technically nothing that can be done. They bought the future income, and there turned out to be no future income.
Let's use the stock market as an example:
If I lend money to a farm, then if they don't pay me back, I have a lien on the farm. I don't care if their business does well or not. They could choose not to pay me, there's not "guarantees" in life, but I have tools through the courts to take it out from them.
If I buy futures on their cattle stock, if their cattle does well, I get a portion. If not, I'm out of my money. Nothing to do. No courts, no liens.
In most cases, to not be a loan, an MCA has to mimic a purchase of futures. Otherwise it would be usurious loan.

I dare you. Put my statement through ChatGPT and see if I'm mostly correct. I'm dumbing it down, and there are extra points to consider, but that's the basic gist.

WOW sir, you proved my point bankruptcy filing chapter 11 dissolves Unsecure Loans. Emerge Law considers MCA Loan a unsecure loan that can be dissolved under a chapter 11 filling. Please see source below.

Source
https://www.emerge.law/post/merchant...small-business

[Yankeeman07]

Sure it is...... Definition of Loan is a thing that is borrowed, especially a sum of money that is expected to be paid back with interest: AKA MCA

Two items a person learns very fast in the MCA Industry - Never use the words "loan" or "Interest"

A true MCA is the "purchase of future receivables" for upfront cash payment - An MCA has a "factor rate" not interest.

[SamuelH]

Two items a person learns very fast in the MCA Industry - Never use the words "loan" or "Interest"

A true MCA is the "purchase of future receivables" for upfront cash payment - An MCA has a "factor rate" not interest.

This is truth you don't use it, but it doesn't change the fact that's what it is just my take on things you don't have to agree.

[Olderguy]

I got 5 responses from qualified Loan Officers! Thanks

In all honesty, I doubt there are 5 real loans officers on this board.

[SamuelH]

In all honesty, I doubt there are 5 real loans officers on this board.

No disrespect intended, but they probably are saying the same thing about your business as well.

[Olderguy]

No disrespect intended, but they probably are saying the same thing about your business as well.

doubtful...if none of them requested financials other than tax returns they aren't loan officers.

You are new in this business and need to learn more about doing discovery and learn about loan options for clients. Talking to a bunch of a claimed loan officers on a MCA forum doesn't help you.

[SamuelH]

doubtful...if none of them requested financials other than tax returns they aren't loan officers.

You are new in this business and need to learn more about doing discovery and learn about loan options for clients. Talking to a bunch of a claimed loan officers on a MCA forum doesn't help you.

All do respect bashing other loan officers or funders doesn't help either.

[Olderguy]

All do respect bashing other loan officers or funders doesn't help either.

That's not bashing that's fact...if they don't ask for financials they aren't loan officers.

"Loan officers use a process called underwriting to assess whether applicants qualify for loans. After collecting and verifying all the required "financial documents", loan officers evaluate the information to determine an applicant's need for a loan and ability to repay it"

[SamuelH]

That's not bashing that's fact...if they don't ask for financials they aren't loan officers.

"Loan officers use a process called underwriting to assess whether applicants qualify for loans. After collecting and verifying all the required "financial documents", loan officers evaluate the information to determine an applicant's need for a loan and ability to repay it"

My loan officers are definitely asking for 3 months bank statements and a application so pretty legit sir.