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By Chloe Harvey A growing number of regulators, attorneys, courts, and policymakers are beginning to ask a difficult question: At what point does a merchant cash advance stop functioning like a receivables purchase and start functioning like a loan? A recent legal white paper circulating within commercial finance and business law circles highlights just how serious this discussion has become. For years, merchant cash advance companies have generally operated under the positio

By Chloe Harvey A recently filed lawsuit in Texas may become one of the most important merchant cash advance cases in recent years. According to reporting surrounding the case, a San Antonio-based construction company has sued a merchant cash advance provider after allegedly receiving approximately $2.5 million through a series of stacked financing transactions. The lawsuit invokes Texas’ relatively new commercial financing disclosure laws and raises broader questions regardi

By Chloe Harvey According to the latest Small Business Credit Survey conducted by the Federal Reserve, merchant cash advance usage among small businesses continues to rise. The report found that 7% of businesses with fewer than 500 employees now use merchant cash advances on a regular basis, up from 6% the previous year. More notably, among businesses actively seeking financing, 12% reported applying for an MCA product, compared to 9% the year prior. Approval rates also incre