Looking for owner-operators with cash advance business stories
The U.S. Federal Trade Commission and New York State filed similar lawsuits last week against three related companies accused of defrauding small businesses by providing cash advances to merchants.
MCA borrowers undertake to repay their advances with a share of the daily receivables. Stories abound of small businesses being taken advantage of by exorbitant interest rates, default penalties, and unclear or misleading terms.
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Analysis compiled by Overdrive sister company RigDig, a trucking industry data company, reports that thousands of fleets and other trucking-related businesses have used ACMs in recent years. OverdriveThe ongoing Cash Flow Crisis series will examine the MCA’s abuses in detail next week, including the charges laid out on June 10 by the FTC and New York.
The FTC’s summary of his lawsuit accuses the defendants of “allegedly using deception and threats to seize the personal and business assets of small businesses, nonprofits, religious organizations, and medical practices.” . FTC and New York filings seek restitution for customers and cancellation of loans.
The defendants are RCG Advances (formerly known as Richmond Capital Group), Viceroy Capital Funding and Ram Capital Funding. Also named are four individual officers associated with the companies: Jonathan Braun, Robert Giardina, Steve Reich and Michelle Gregg.
Overdrive seek to speak with operators who have dealt with these parties – or other questionable MCA suppliers. Contact [email protected] or comment below.