Authors: Ryan Flewelling, Cindy Ho, Tristan Chheang Merchant cash advances (MCAs) have become an increasingly popular financing tool for small and medium-sized businesses seeking access to capital outside traditional lending channels. However, recent jurisprudence serves as an important reminder that the legal characterization of a MCA is not determined by its label. Rather, courts will examine the substance of the arrangement to determine whether it is a genuine purchase of
