NJ Bankruptcy Case Takes Aim at Small Business Financing — Merchant Cash Advances and Bank Partnerships

A complaint filed March 23 by the bankruptcy trustee for Lam Cloud Management, LLC in the United States Bankruptcy Court for the District of New Jersey challenges two small business financing models: (i) merchant cash advances (“MCAs”); and (ii) small business loans originated under bank partnerships.

Filed under:
USA, New Jersey, Insolvency & Restructuring, Litigation, Mayer Brown
Authors:
Steven M. Kaplan , Eric T. Mitzenmacher , Kevin J. Healy
Location:
USA
Firm:
Mayer Brown