Results 1 to 25 of 77
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01-30-2017, 08:30 AM #1
- Join Date
- Nov 2014
- Location
- NYC
- Posts
- 187
Regulation for NY Funders and ISO's
David Obstfeld
Chief Executive Officer
SOS Capital
1330 Ave of the Americas, NY, NY 10019
212-235-5455
SOSCapital.com
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01-30-2017, 09:21 AM #2
The licensing and compliance process: http://www.dfs.ny.gov/banking/licensedlender.htm
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01-30-2017, 09:44 AM #3
- Join Date
- Aug 2015
- Location
- Boulder, CO
- Posts
- 755
Looks like it only applies for funding amounts of $50k or less.
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01-30-2017, 09:52 AM #4
- Join Date
- Oct 2016
- Posts
- 4,318
My first thoughts: this would be a boon for licensed "lenders" and brokers. But would this cap the interest rate at 16%? If so, then this would obviously end the NY market for cash advances.
But if cash advances aren't capped, a licensed broker will make a killing. Your competition will become a fraction. Also, you can just sit back and have unlicensed ISOs referring merchants to you all day and split the commission.
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01-30-2017, 09:55 AM #5
Last edited by Sean Cash; 01-30-2017 at 09:58 AM.
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01-30-2017, 09:55 AM #6
- Join Date
- Feb 2016
- Posts
- 242
Well, looks like we have about a year left to make this shmoney.
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01-30-2017, 10:02 AM #7
- Join Date
- Aug 2014
- Posts
- 194
Looks like there is gonna be a mass exodus to the miami-ft lauderdale area this year! Lucky for you guys there's a nice surplus of luxury apartments and seeking arrangement sugar babies!
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01-30-2017, 10:05 AM #8
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01-30-2017, 10:09 AM #9
this is only the first more states will follow and that is when this gets really confusing because each state will have its own individual laws and regulations.. this is why I hoped it would be 1 federal law that encompassed everything rather then risking 50 different laws and licenses needed for each state
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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01-30-2017, 10:11 AM #10
These regulations haven't passed yet. It was included in the NY State budget proposal.
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01-30-2017, 10:17 AM #11
Last edited by J.Celifarco; 01-30-2017 at 10:20 AM.
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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01-30-2017, 10:29 AM #12
- Join Date
- Sep 2014
- Posts
- 430
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01-30-2017, 10:38 AM #13
- Join Date
- Jun 2013
- Posts
- 351
Not sure this is something where we should wait and see, rather contact our representatives and let them know this is not ok.
Aside from this, New York is making it increasingly difficult to own and operate a business in. I expect to see a continued exodus of businesses in the future.
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01-30-2017, 10:39 AM #14
I wonder if more businesses will move over to Jersey City, like Yellowstone.
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01-30-2017, 10:44 AM #15
- Join Date
- Oct 2016
- Posts
- 4,318
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01-30-2017, 10:46 AM #16
- Join Date
- Jun 2013
- Posts
- 351
I understand this applies to where businesses are domiciled, but I'm not sure why NYC thinks increased regulations on business is going to help. Right now I can look out my office and see nearly a dozen commercial spaces that are for rent. I can look across the street and see vacant offices spaces. The new overtime law is flawed. This measurement will hurt a lot of business owners. It's almost as if Cuomo and Deblasio have an act first, think later approach.
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01-30-2017, 10:48 AM #17
from what I understand where the ISO/lender is located does not matter. If the business taking funding is located in or does business in NY then the lender needs the license. Has nothing to do with where the ISO is located from what I understand looking at this
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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01-30-2017, 10:54 AM #18
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01-30-2017, 11:47 AM #19
- Join Date
- Jun 2014
- Posts
- 541
Does this language apply to direct merchant cash advance funders? I believed the proposed language everyone seems to be focusing in on is "or other forms of financing" included within Sec.2. But that term is used in the context of:
"if it solicits loans in the amounts prescribed by this section [within this state] and, in connection with such solicitation, makes loans, purchases or otherwise acquires from others loans or other forms of financing, or arranges..."
The phrase "other forms of financing" is included within a parenthetical, which specifically addresses purchasing loan or other contracts after the point in time where financing has been originated. It seems likes its meant to address transaction formats commonly found in loan syndication and pooling arrangements. When we are talking about soliciting merchants directly, the proposal address licensing for soliciting for loans. A large part of this industry has based itself upon the legal distinction between a loan and an advance contract.
If this passes, will this reverse the trend towards loan products back to advance agreements in NY? Or will we end up like CA where everyone get's licensed, in a better safe than sorry compliance approach?
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01-30-2017, 01:29 PM #20
- Join Date
- Oct 2016
- Posts
- 4,318
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01-30-2017, 01:48 PM #21
- Join Date
- Jun 2015
- Posts
- 3,319
does having a California license help you in any way in regards to getting other states ? or are we going to go through each state one at a time ?
is anyone going to try applying to all states now?
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01-30-2017, 01:54 PM #22
one at a time.
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01-30-2017, 01:56 PM #23
each one seperately each with its own fees and legal costs.. This is an effing nightmare
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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01-30-2017, 01:58 PM #24
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01-30-2017, 01:58 PM #25
- Join Date
- Oct 2016
- Posts
- 4,318
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