Category: Business Law, 1-Hour or Less Category: Business Law, 1-Hour or Less (show less)

Billed as an easy funding source, merchant cash advances are prevalent in small business bankruptcy cases. But how do you characterize a merchant cash advance transaction – is it a loan or a sale of receivables? The answer impacts many aspects of a bankruptcy case. This program will provide an overview of the history of MCA lending and the issues implicated by how you characterize a merchant cash advance, and provide practice pointers for the boots on the ground. According to the Wall Street Journal, the U.S. Consumer Financial Protection Bureau reports the use of merchant cash advances more than doubled in five years. Yet these alternative lending deal have threatened the existence of some of these mom-and-pop operations. Chapter 11 lawyers today need to know how to evaluate these financing arrangements and when to call on the courts to determine the issue.

MCA Lenders in Bankruptcy –
Is it the Wild West or a new Frontier?
Kathleen L. DiSanto, Buss Ross, P.A.
Mathew B. Hale, Stichter, Riedel, Blain & Postler, P.A.
Luis E. Rivera II, GrayRobinson, P.A.
Lynn Welter Sherman, Trenam Law

Program Outline
I. Introduction (5 Minutes)
II. History of MCA Lending (5 minutes)
III. Overview of Bankruptcy Issues (10 Minutes)
IV. Case Reviews (20 Minutes)
V. Practice Pointers/Boots on the Ground (10 Minutes)