Legal Questions about Merchant Financing?

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law booksMany merchant advance agreements state that the sales agent can only send merchant advance contracts to the one merchant advance company. It is important to identify such exclusivity terms and make sure they are deleted from the agreement. Just to make sure, you would also want to add a provision that states unequivocally that the relationship is non-exclusive. Otherwise, if you send merchant advance contracts to a competitor, the merchant advance company that thinks you are exclusive could use that act as a reason to termination your compensation under the agreement.
– Paul A. Rianda

Whether you’re an agent, ISO, or funder, you will at some point need sound legal advice. There is very little information on the Internet and hiring an attorney is expensive (though we highly recommend it!). If you feel like you just need a little guidance, we recommend you check out the publications by Paul A. Rianda, an attorney that has worked extensively in the bankcard and merchant financing industry. Below are a few articles that everybody should read:

Important Merchant Cash Advance Contract Provisions (for ISOs)

Merchant Finance Basics

Terminating Agent Residuals

Protect your Residuals if your ISO sells out

Don’t Move That Merchant!

Last modified: April 20, 2019
Sean Murray

Category: ACH Advances, business cash advance, merchant cash advance, merchant financing, Merchant Processing, MPR Authored, Tips

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