What about Usury?

How can Merchant Cash Advance lenders charge corporate borrowers what they do? The Courts have held a Merchant Cash Advance (a real MCA) i.e. the purchase of future receivables is not a loan.

https://grantphillipslaw.com/n....ew-york-enacts-apr-d

Can S.B. 5470 Catch Up to Fiscal Invention?

Perhaps. Time will tell. With the advent of financial technology, providers and lenders of corporate finance have become more sophisticated and continually seek to “invent” new and complex lending structures that bad actors can use to engage in predatory and lending abuses. S.B 5470 seeks to govern these creations and inventions by requiring the disclosures delineated in more detail further into this article.

https://grantphillipslaw.com/n....ew-york-enacts-apr-d

How will the new law be governed and monitored?

The protocol and format of how lenders will issue, maintain and comply with the new law and the manner by which lenders will be monitored, will be prescribed by The New York Department of Financial Services (DFS). At the time of writing this article, the DFS has yet to issue guidance or provide instruction on Format and Compliance.

https://grantphillipslaw.com/n....ew-york-enacts-apr-d

What is the Intent of the New Law?

The intent of S.B 5470 is to provide corporate and small business borrowers with more transparency surrounding their taking of credit, in order to allow for better, more informed decisions, a clearer understanding of how much is being borrowed and under what terms and to provide a corporate borrower with the ability to compare different offers of credit.

https://grantphillipslaw.com/n....ew-york-enacts-apr-d

Whom does S.B 5470 Govern?

The Disclosure Law applies to non-exempt “providers” of “commercial financing.” This definition will be expanded upon further into this article.

https://grantphillipslaw.com/n....ew-york-enacts-apr-d