are merchant cash advances illegal

There’s been a lot of talk about merchant cash advances, recently. Many people have even questioned whether or not they’re illegal. This question is interesting. It’s suspected that many banks and other lenders question the legality because they just seem too convenient to be legal. This article will explain what merchant cash advances are and whether or not they are indeed, legal.

Most people understand the term “cash advance” from using credit and charge cards. When we are short on cash, we simply go to an ATM or bank and withdraw funds as an instant loan against our credit. The process is simple and beneficial to many people who need cash for an emergency, unexpected expense, or simply just need cash in hand. The fees and interest rates with these advances vary from card to card. Some credit cards offer no fees and low interest rates for the service. Others cards offer interest rates and fees that are higher than what’s charged for a purchase. Customers who are conscious of interest and fees typically avoid using cash advances to save money. This is different than an optional overdraft allowance from a debit card. This is typically a very expensive service as banks are allowed to charge the customer non-sufficient funds fees. This can be quite expensive and most people try to avoid using the service unless absolutely necessary.

Merchant cash advances work in a different manner than these other services. They provide companies with cash flow if sales happen to be in a slump. The funds can be used for a variety of other reasons as well. Business upgrades and covering payroll sometimes make it necessary for business owners to seek out this type of service.

Merchant cash advances are technically not loans. They work by lending on future sales and income. They’re typically provided by credit card processing companies. Due to them not being a loan product, there isn’t much regulation of these products. The draw to them is that they’re able to provide a business owner with cash without having a lengthy underwriting process. Invoice factoring is a similar service that has recently become popular. This service uses outstanding invoices and receivables balances as the basis for the loan. Both services are typically able to be funded on very short notice. Many small business owners who need the cash immediately often will turn to this service due to its quick processing and funding time. Another benefit that small business owners enjoy with merchant cash advances is that the payments are simply deducted from their daily credit sales. The bulk of the loan becomes due at a future date. The daily credit deduction is a small amount that’s also applied to the balance.

Opponents of the services argue that these services should be considered loans. Some even go as far as to challenge the legality of the services. Obviously, at this time merchant cash advances are certainly legal. The opponents claim that the services are priced much higher than any loan product and should be subjected to usury laws. The problem with this is that while the fees may be higher than a typical loan, the services are highly sought out by small business owners. To take away the convenience factor could harm many businesses. Also, the fees and small payment amounts aren’t considered to be harmful to these customers. For this reason, this source of funding is critical to the small business community.

The problem with business owners seeking out other sources of funding is that often they’re often unable to qualify for a traditional loan. Even business lines of credit require a significant and well established business credit record. Many new small business owners wouldn’t be able to meet these requirements. Merchant cash advances offer these businesses the cash they need. Another point to consider is that many small business owners tend to experience unexpected events and emergencies. Getting a loan is simply not an option when an expense needs to be covered almost immediately. In summation, merchant cash advances provide small business owners with a valuable service. They’re able to easily qualify and are able to use the money to cover things that may be critical to the business’s survival. These options should continue to be a product that’s accessible to small business owners.

what does a personal injury lawyer do

Have you recently experienced a serious injury? If so, then you may be entitled to legal compensation. A personal injury is a legal term to describe trauma to the body, mind, or emotional wellbeing. This term is distinguished from damage to personal property. A San Diego personal injury lawyer works to provide legal representation to someone who is suffering from an injury. They tend to practice in tort law; a tort is a civil wrong that causes harm or loss to a victim.

Personal Injury Types

There are different types of negligent acts that could lead to a personal injury case. One of the most common causes is automotive accidents, which covers car collisions, truck accidents, and motorcycle accident. Transportation accidents can also occur from bike accidents, plane accidents, boating accidents, or pedestrian accidents. Some cases are concerned with the liability of a particular premise. A personal injury could also include falls, slips, animal attacks, construction accidents, nursing home abuse, and neglect. Medical malpractice may also be represented in a personal injury case.

If you are unsure about whether a personal injury attorney would cover your case, feel free to ask a legal firm. Personal injury attorneys can explain what types of injuries are able to be represented.

Types of Compensation

Legal compensation typically depends on the individual game and the kind of damages that the victim has suffered. When there is a significant loss or damage, the plaintiffs will likely be entitled to a high claim. A significant amount of damage may include:

  • Loss of income.
  • Medical expenses.
  • Loss of job capability.
  • Pain or suffering.
  • Loss of support.
  • Emotional distress.

What a Personal Injury Lawyer Does

The legal process usually depends on what kind of personal injury case the plaintiff has. Generally speaking, a personal injury lawyer will start by investigating claims and gathering evidence for the case. The lawyer might charge a contingency fee or screen the client for evaluation. The lawyer may decide to not take a case when there isn’t a viable win for that case. In the case of a personal injury, somebody must be legally responsible for the victim’s damages. For example, a doctor or medical practice would be liable if a personal injury occurred to a patient during surgery.

Once enough evidence is gathered go a case, the lawyer will move on to other matters. If insurance is involved, the lawyer will negotiate with the insurance company by sending letters and preparing pleadings for a fair settlement. At the height of a personal injury case, the attorney will represent the plaintiff in court.

The Benefits of a Personal Injury Case

A personal injury lawyer will ensure that all of the necessary steps are taken to follow the legal process in an accurate manner. Not only will the attorney help to walk the plaintiff through the legal process, but the attorney also will provide all the important information needed for the plaintiff to collect the benefits. If a personal injury case is successful in court, the person who has suffered damages will be fairly compensated.