[Nunya]

Projected Sales Volume - Therefore the funder needs to be a mind reader

Hardly a "mind reader". Everyone has an idea or estimate of sales volume when they underwrite, price and fund a deal. Estimates can be incorrect but they do exist. To deny that would be ignorant.

[Yankeeman07]

Hardly a "mind reader". Everyone has an idea or estimate of sales volume when they underwrite, price and fund a deal. Estimates can be incorrect but they do exist. To deny that would be ignorant.

An estimate that turns out to be incorrect will be an overestimate if the estimate exceeded the actual result, and an underestimate if the estimate fell short of the actual result.


This law, if signed, is meaningless for a merchant accepting MCA $$$

[Chambo]

An estimate that turns out to be incorrect will be an overestimate if the estimate exceeded the actual result, and an underestimate if the estimate fell short of the actual result.


This law, if signed, is meaningless for a merchant accepting MCA $$$

Unfortunately, that is not true. I don't think you want to be the example the AG uses to make a point.

You will simply be making estimations on APR, much like mutual fund companies talk about projected performance. there will be disclaimers that past performance doesn't guarantee....etc, etc.

Once his law passes however, that whiny argument "but there isn't APR on MCA" will get laughed out of court

[OC Funder]

Unfortunately, that is not true. I don't think you want to be the example the AG uses to make a point.

You will simply be making estimations on APR, much like mutual fund companies talk about projected performance. there will be disclaimers that past performance doesn't guarantee....etc, etc.

Once his law passes however, that whiny argument "but there isn't APR on MCA" will get laughed out of court

I agree with Chambo. Issuing MCAs at usurious "rates" without a CFL cost Advanceme a LOT of money in litigation... The "it's not a loan" defense did not hold up, and it set the precedent for why a lot of members here can't fund in California. Not exactly the same set of circumstances but I think it'll be the same result.