[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.