On 3, 2020, Maryland State Senator Benjamin Kramer introduced a bill that would completely prohibit merchant cash advances (MCAs) in Maryland february.

Just Just Exactly What Occurred

MCAs are a kind of small-business funding in which a finance business acquisitions a percentage of a business’s future revenue at a discount. The business agrees to remit to the finance company a specified percentage of a defined future revenue stream (such as revenue from credit card payments for the business’s products and services) until the full amount purchased has been delivered in a typical MCA transaction.