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Texas Commercial Sales-Based Financing Bill Gets Last Minute ACH Ban Amendment
The Commercial Sales-Based Financing bill that passed through the Texas House of Representatives two weeks ago has now also passed through the Senate, but with a rather controversial amendment. In the Senate version, passed yesterday, and viewable on the right hand side of this document, sales-based financing providers would not be allowed to automatically debit a merchant’s account unless they have a “validly perfected security interest in the recipient’s account under Chapter 9, Business & Commerce Code, with a first priority against the claims of all other persons.” That means any sales-based funding (like an MCA or revenue-based financing loan) would be prohibited from debiting merchants automatically unless they were in true first position. And not just a first position MCA, but first position on all arrangements the merchant has altogether. AND it would have to be perfected in accordance with this statute.
The Senate Amendment:
CERTAIN AUTOMATIC DEBITS PROHIBITED.
A provider or commercial sales-based financing broker may not establish a mechanism for automatically debiting a recipient’s deposit account unless the provider or broker holds a validly perfected security interest in the recipient’s account under Chapter 9, Business & Commerce Code, with a first priority against the claims of all other persons.
Since the main difference between what the Senate and House passed is that one sentence prohibiting automatic debits, they have until June 2nd to decide which version of the passed bill is final.
Sales-based financing is broad. While the term encompasses sales-based purchase transactions (MCAs), firms like Walmart and PayPal engage in loan-based sales-based financing. Both firms, for example, are registered sales-based financing providers in the state of Virginia.
The Texas Senate amendment language is new. It does not resemble anything passed in a state commercial financing disclosure law to date.
An estimated 10% of all sales-based financing in the US takes place with Texas-based businesses.
View PostTurning Connections into Opportunities After Broker Fair 2025
David Roitblat is the founder and CEO of Better Accounting Solutions, an accounting firm based in New York City, and a leading authority in specialized accounting for merchant cash advance companies.To connect with David or schedule a call about working with Better Accounting Solutions, email david@betteraccountingsolutions.com.
“You never know who you’re going to meet.”
That’s the reason I continue to go to Broker Fair.
Once again, the merchant cash advance community showed up in full force this past Sunday and Monday. This year’s Broker Fair felt particularly energized. The sessions were packed, the conversations were substantive, and the networking opportunities were abundant.
As I watched hundreds of industry professionals network across the venue, I couldn’t help but reflect on my journey from skeptic to evangelist when it comes to these industry gatherings. As the founder of Better Accounting Solutions, I’ve now attended Broker Fair for years, and each time I walk away with renewed conviction that these events are not just beneficial—they’re essential for anyone serious about growing in this industry.
The real value of Broker Fair doesn’t end when the last panel concludes or when you check out of your hotel. In fact, the days and weeks following the event might be the most critical period for turning those brief conversations into meaningful business relationships.
Many of us left Tribeca 360 with pockets full of business cards and phones loaded with new contacts. Now comes the crucial part: following up. I’ve learned through experience that a simple “Great meeting you” email within 48 hours makes all the difference between a forgotten handshake and a productive business connection.
At this year’s event, I reconnected with clients who have become friends, met potential new partners, and had enlightening conversations with industry figures I’ve long admired.
One particular conversation with a broker could potentially open doors to a new service offering at Better Accounting Solutions. Another led to me introducing a potential syndicator to a funder, while other meetings inspired me to explore different angles to the business I hadn’t thought of before. These opportunities wouldn’t have materialized if I’d stayed back at the office, convinced that keeping my head down was more productive than engaging with the community.
Following Up Effectively
Having attended many of these events over the years, I’ve developed a system for effective follow-up:
- Act quickly: Send personalized follow-up emails within 48 hours while the conversation is still fresh.
- Be specific: Reference something unique about your conversation to jog their memory.
- Provide value first: Share an article, resource, or introduction that might help them before asking for anything in return.
- Suggest a concrete next step: Whether it’s a virtual coffee, lunch meeting, or specific business proposal, don’t leave the relationship hanging.
- Connect online: Add your new contacts on LinkedIn with a personalized connection request.
By doing this, Better Accounting Solutions has secured multiple major clients directly from connections made at Broker Fair over the years. The ROI isn’t always immediate, but the long-term value of being present, being known, and being engaged in the community is immeasurable.
“NETWORKING IS REAL WORK…”
This bears repeating. The conversations you have, the relationships you build, and the insights you gain at events like Broker Fair are as much a part of building your business as the hours you spend at your desk.
For those who missed this year’s event, I strongly encourage marking your calendars for next year. And for those who attended but haven’t yet followed up on those promising conversations—what are you waiting for? The window of opportunity is open right now.
Better Accounting Solutions was proud to partner with Broker Fair once again this year, not just as a business strategy but as a testament to our belief in the power of community in this industry. The connections made and strengthened at these events have been instrumental in our growth as leaders in specialized accounting for the merchant cash advance industry.
View PostThe Largest Sales-Based Financing Providers
Who are some of the largest sales-based financing providers in the US? The following companies are repaid as a percentage of sales or revenue, in which the payment amount may increase or decrease according to the volume of sales made or revenue received by the recipient:
| Sales-Based Financing Providers |
| Square |
| PayPal |
| Amazon (via Parafin) |
| Walmart (via Parafin) |
| Shopify |
| Intuit |
| Stripe |
| DoorDash (via Parafin) |
The State of Washington has also recently announced it will be offering sales-based financing through a Department of Commerce initiative.
Among those listed above, Square recently published a White Paper on the impact of its sales-based financing.
“Square Loans has opened credit to populations who traditionally have had less access to business loans. As of the third quarter of 2024, approximately 58% of Square Loan customers are women-owned businesses, compared to the industry average of 19%.38 And 15% of Square Loans go to Black/African-owned businesses compared to an industry average of 6.6%, while 14% of loans go to Hispanic/Latinx-owned businesses compared to the industry average of 11.3%.”
View PostThe State of Washington Launches a Revenue Based Financing Business
The State of Washington is getting in to the revenue based financing business. Coinciding with Broker Fair 2025 on May 19th, the Washington State Department of Commerce announced it was launching the Revenue-Based Financing Fund (RBF) loan program for small businesses. Its administered by Grow America.
“This is one of the most innovative loan programs we’ve ever launched,” said Commerce Director Joe Nguyễn. “It’s not a typical business loan. It’s a Pay-As-You-Earn loan that works with the reality of running a small business. Instead of fixed monthly payments, businesses repay based on what they actually make. So if sales slow down, payments stay low. If business picks up, payments adjust. It’s flexible, it’s fair, and it’s the kind of practical solution we need to support small businesses across Washington.”
$13M in funding has been allocated to this program so far. Funding works similar to a business loan from Square or PayPal where there is technically a term and minimum monthly payment required, but the repayment system is based on a percentage of sales, namely 20% of them.
“At Grow America, we’re excited to launch the Washington Revenue-Based Financing Fund,” said Daniel Marsh III, Grow America president. “This program offers flexible capital, empowering Washington’s small businesses, especially entrepreneurs, to scale operations and achieve sustainable success.”
“Revenue-based financing provides you with flexible upfront capital, and its payback terms are customized to your cash flow and fluctuate based on your revenue,” the marketing materials state. “It’s ideal for small businesses that are seasonal, may not have a consistent income, or require an alternative to a traditional loan.”
View PostAnother Arrest Made in Advance Fee Business Loan Scheme
Federal agents have arrested a third individual in connection with an advance fee business loan scheme that was busted last year. In the original scheme, two defendants were alleged to have induced merchants to make payments towards large lines of credit that never actually materialized. One of the defendants pleaded guilty last July. More recently, however, a third member of the scheme, Samuel Selmar, has been arrested for his role in it. Selmar has pleaded guilty to one count of Conspiracy to Commit Wire Fraud. The US Attorney for the Southern District of New York stated that the unlawfully obtained funds from the scheme were wired to a bank account that Selmar’s name was on.
In a public statement, Secret Service Special Agent in Charge Patrick J. Freaney said: “The deliberate chicanery allegedly carried out by this defendant has had a dire impact on the lives of his victims. By-and-large, these are private citizens who cannot afford to lose a few thousand dollars each. I want to commend the dedication of our Secret Service investigators and the prosecutors at the Southern District of New York for disrupting this insidious operation, and building a strong case that goes a long way toward delivering accountability.”
View PostEquipment Lease Demand & MCA Demand The Same After Eight Years
For firms with less than 500 employees that sought out financing in the last year, 10% applied for a lease while just 7% applied for a merchant cash advance, according to the latest data published annually by the Federal Reserve. Though each figure has varied slightly by year, the 10% seeking leases and 7% seeking MCAs match the survey results that compared the two back in 2017. So virtually nothing has changed since then.
Notably, 87% of financing applicants applied for a loan or a line of credit in 2017 while the 2025 report found that only 25% applied for a loan and only 22% applied for a line of credit in the last year. Meanwhile, interest in factoring has gone down. Roughly 4% of financing applicants used to seek out factoring specifically but that number has since dropped to 2%.
View PostRegister for The 7th Annual Alternative Finance Bar Association Conference
The AFBA Conference is BACK.
If you are an attorney in this industry, you won’t want to miss the Alternative Finance Bar Association’s (AFBA) 7th Annual Conference, here in NYC June 9-10. They will be covering current events in the legal world of alternative finance, including the latest regulatory and caselaw developments, upcoming CA collections requirements, rapidly changing NY law, bankruptcy strategies and a lot more. This is an extremely reputable bar association with top notch attorneys in the field.
For more detailed agenda information & a registration link, click here: https://www.eventbrite.com/e/afba-7th-annual-conference-tickets-1317879616409
View PostCS Lend 4.0 Fuji Release Unveiled: Cloudsquare Launches AI-Driven Enhancements to Modernize Loan Management
LOS ANGELES, CA – May 20, 2025 – Cloudsquare, the leading Salesforce-powered lending platform, proudly announces the release of CS Lend Spring 2025—a major evolution in lending automation that equips brokers and lenders with powerful AI-driven tools to streamline operations, speed up decision-making, and scale with precision.
What’s New in CS Lend Spring 2025?
IntelliParse: AI-Powered Document Processing
Automate the parsing of ISO applications and bank statements. Extract borrower data directly from PDFs and sync structured records into Salesforce—faster, more accurately, and with no manual entry.
DataMerch Integration: Fraud Prevention Built In
Verify merchants instantly with native access to DataMerch inside CS Lend. Search, tag, and manage merchant risk without switching platforms.
Commission Module: Streamlined ISO Payouts
Set flexible commission rules, automate payouts, and generate ACH-ready files. Gain complete visibility into earnings and eliminate spreadsheet-based tracking.
File Management Enhancements
Classify, organize, and retrieve files with smart attribution and improved metadata. Spend less time searching and more time closing.
The Spring ’25 Release gives lenders the edge they need to succeed in today’s fast-paced MCA and lending markets. From reducing underwriting time to preventing risk and automating ISO payments, Cloudsquare continues to lead in delivering technology that drives speed, scale, and smarter lending decisions. Find out more on our blog: https://link.cloudsquare.io/8oLA
About Cloudsquare
Cloudsquare is the leading end-to-end lending platform, uniquely powered by Salesforce to deliver unparalleled flexibility and innovation for lenders and brokers. With a commitment to optimizing lending processes through cutting-edge technology, Cloudsquare provides robust, scalable solutions that empower merchants to achieve greater efficiency and growth. Celebrated by industry leaders, Cloudsquare has earned a place on the Inc. 5000 list as one of America’s fastest-growing companies and is consistently rated a top service provider on platforms like Salesforce AppExchange, G2, Clutch, and Manifest.
For media inquiries, please contact:
Cloudsquare Marketing Email: marketing@cloudsquare.io
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