Cashman....these MCA's take out business loans, or get lines of credit from Hedge Funds, just like any other business would do. Difference is, they have the credit and/or assets to back it up. Cash Ready used to co-sign loans to merchant from Citibank at 10% over 6 months, then add on 25% commission (thus making it a 1.35). That way they could charge the late fees, monthly fees, etc.

Banks are involved to the point that they lend the money. Federal Regulations keep them from getting directly involved.