Legal Questions about Merchant Financing?
October 9, 2012By: Sean Murray
“Many 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:
Sean is the founder of Merchant Processing Resource, the co-founder of the Merchant Cash Advance forum, DailyFunder.com, the developer of the first Merchant Cash Advance industry iPhone app, and a moderator of both the Small Business and Entrepreneur communities on Google+. Learn more about his Merchant Cash Advance background on LinkedIn or follow him on Google+.
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