Ali Mayar, CEO of Platinum Rapid Funding Group, Shares Judge’s Recent Favorable Ruling about Company

A New York Supreme Court Justice Ruled that a Merchant Cash Advance is Not a Loan

LOS ANGELES, CA / ACCESSWIRE / June 22, 2016 / Ali Mayar, CEO of Platinum Rapid Funding Group, is pleased to announce that a New York Supreme Court judge just ruled that a purchase of future receivables is not a loan. The court ruling, which was covered by deBanked.com, is a big win for Ali Mayar and his company.

As the article on deBanked.com notes, The Honorable Jerome C. Murphy ruled in the decision in the case: Platinum Rapid Funding Group Ltd v. VIP Limousine Services, Inc. and Charles Cotton.

As a spokesperson for Platinum Rapid Funding Group noted, the corporate defendant agreed to sell their future receivables to the plaintiff in return for an upfront payment–this arrangement is commonly referred to as a merchant cash advance. After the defendants breached, the plaintiff filed a lawsuit.

“The defendants asserted twelve defenses including that plaintiff had committed civil and criminal usury. Plaintiff Platinum Rapid Funding Group then moved to dismiss their defenses,” noted the spokesperson.

In a nine-page decision, Justice Murphy dismissed nearly all of the defenses, including the one alleging usury, because as he put it, the agreement was not a loan, so there can be no usury. In fact, noted the company spokesperson, Justice Murphy said that the purchase of future receivables is not even close to being a loan, and that the defendants’ contentions that the agreements violation a General Obligation Law and Banking Law are “without merit.”

“The Agreement was for the purchase of future receivables in return for an upfront payment. The repayment was based upon a percentage of daily receipts, and the period over which such payment would take place was indeterminate,” Justice Murphy wrote in the court ruling. “Plaintiff took the risk that there could be no daily receipts, and defendants took the risk that, if receipts were substantially greater than anticipated, repayment of the obligation could occur over an abbreviated period, with the sum over and above the amount advanced being more than 25 percent.”

As the article on deBanked.com noted, the detailed explanation by Justice Murphy reaffirms the obvious distinctions that such a purchase has from a loan, even when such receivables purchased are future receivables.

About Platinum Rapid Funding Group:

Platinum Rapid Funding Group is a merchant cash advance company under the leadership of Chief Executive Officer, Ali Mayar. Learn more at: https://platinumrapidfunding.com/.

Contact:

Luke Curry
admin@rocketfactor.com
(949) 555-2861

SOURCE: Platinum Rapid Funding Group

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