Articles & Advisories

Merchant Cash Advance (MCA) and Connecticut

MCAs Are Not Loans and Not Subject To Usury Laws

Introduction Revenue-based financing, commonly called merchant cash advance (MCA), is often compared to and considered synonymous with traditional loans. This comparison is incorrect, however, both factually and legally. MCAs and loans are fundamentally different financial products in structure, principle and function. An MCA is a form of commercial financing, where an MCA financing company purchases…