[PatrickMTKT]

Is it legal for a direct funder to fund an MCA deal(not a loan) requiring the merchant's real estate as collateral as well? Can some direct funder shed some lights on the pro/con in this scenario? Is the contract enforceable under the law?

[PatrickMTKT]

I am surprised there is no activity in this discussion. Where are all the MCA gurus? It is not weekend yet. :-)

[Zach]

No one dares compete with me ;-)

[PatrickMTKT]

LoL. I love it Zach. I guess only WBL can pontificate about these asset based lending deals.

[HDF]

I am surprised there is no activity in this discussion. Where are all the MCA gurus? It is not weekend yet. :-)

They have all left the business this month or, of course, diligently prepping to concentrate on "A" paper which is the newest fairy tale.

[RichardGerard]

It is my limited understanding that if the Lender is licensed and registered in a State that does not have a Usury Law (say Nevada for example) they can charge what the market will bear.

[Cfairbank]

Small balance loans and MCAs collateralized by personal real estate face a completely different set of laws. We looked at it briefly as a lender (not MCA, and never had any intention of doing it), it's tricky and, based on my understanding, opens up a whole new can of worms. As an example, I'm pretty sure even WBL doesn't lend backed by RE in Texas, but I may be wrong.

WBL is likely your best bet...

[Chambo]

Is it legal for a direct funder to fund an MCA deal(not a loan) requiring the merchant's real estate as collateral as well? Can some direct funder shed some lights on the pro/con in this scenario? Is the contract enforceable under the law?

Ask Zach, or any other of the guys at WORLD BUSINESS LENDERS & they will explain it all to you. We were all just waiting for them to jump to attention

[Zach]

I am patiently waiting in the shadows