The year 2024 is officially behind us, but we’re not done sharing the highlights!
As always, it’s time for our quarterly roundup of the biggest stories shaping the merchant cash advance industry.
In this edition, we dive into the most talked-about headlines from the final months of 2024.
From multi-million-dollar MCA lawsuits (and countersuits) to New Jersey’s ongoing reform efforts, plus a new federal advisory council, these are the stories that made an impact in the MCA world as the year wrapped up.
Need to catch up on all the biggest MCA happenings from the last few years? Onyx IQ has you covered via our regular news series:
- Quarterly reviews: Q3 2024, Q2 2024, Q1 2024, Q4 2023, Q3 2023, Q2 2023, Q1 2023
- The 5 Biggest Merchant Cash Advance Stories of 2023
- The Biggest Merchant Cash Advance Stories of 2022
Thirsting for more exciting MCA industry updates? Be sure to keep an eye out for our 2024 annual recap, coming soon!
1. Lindell vs. MCA Funders: Allegations, Lawsuits, and Industry Impact
Mike Lindell, the infamous CEO and owner of MyPillow, made quite a raucous last quarter by filing multiple lawsuits against several MCA companies.
More specifically:
- In October 2024, Lindell and MyPillow sued Lifetime Funding, CapSpot Financial, and FunderZ after receiving (and failing to repay) a $600,000 merchant cash advance. In his lawsuit, he accused the funders of wire fraud, conspiracy, and violating the RICO Act.
- Then, in December 2024, Lindell filed another lawsuit—this time, against Cobalt Funding Solutions and Streamline Advance—alleging they duped him and his company into borrowing $1.6 million at a 409% annual interest rate.
Lindell’s overall argument is that MCA agreements are essentially high-interest loans designed to bypass usury laws—a common misconception against MCAs.
It’s no secret that MyPillow has struggled financially in recent years due to Lindell’s political controversies, including his false election fraud claims.
Retailers have distanced themselves, and the company has faced multiple legal battles, evictions, and massive losses. Last year, Lindell was also ordered to pay a $5 million penalty to a computer programmer who disproved his claims about voter fraud.
And recently, Lindell’s woes got even worse.
By the end of 2024, both Lifetime and Cobalt countersued, claiming that Lindell refused to repay his debt and blocked efforts to collect it. They also argue that MCA agreements are not loans but purchases of future receivables.
So, what does all of this mean for providers of merchant cash advances?
First off, the MCA industry operates within a legal framework that Lindell willingly entered. His efforts to void these contracts may be seen by some as an attempt to shift blame for his financial mismanagement.
Secondly, while Lindell’s accusations raise important concerns about transparency and fairness, they also highlight the legal validity of MCA agreements.
Note: More quarterly updates on Lindell’s lawsuits are on the way—just as we were publishing this article, we learned he filed yet another lawsuit in January 2025.
2. New Jersey Reignites Commercial Financing Reform Efforts
There’s simply no stopping the Garden State.
For more than seven (!) years now, New Jersey has been trying to pass a commercial financing disclosure law—focusing on enhancing transparency and protecting small enterprises in the commercial financing space.
As you may recall, in 2022 Senate Majority Whip Troy Singleton failed to move Senate Bill 819 past committee. Undeterred, he then made a comeback in January 2024 with Senate Bill 1397.
Last amended in December 2024, this latest iteration aims to push for greater clarity over its predecessors.
Among the bill’s changes, providers of sales-based financing will no longer have the option to disclose either the total dollar cost of a transaction or the annual percentage rate. Rather, they will now be required to disclose the APR.
Like all other commercial financing disclosure laws, the New Jersey bill seeks to ensure that SMEs understand the full details—especially when it comes to sales-based transactions like MCAs, where repayments fluctuate based on sales volume.
Although the future of Bill 1397 remains uncertain, it’s clear that New Jersey’s political leaders are determined to continue pushing for commercial financing reform.
We’ll be sure to keep you updated on this bill and other upcoming state commercial financing laws as they develop each quarter.
In the meantime, check out the Onyx IQ MCA Disclosure Laws Map for updates and resources regarding all U.S. state-level disclosure requirements.
3. Members of New SBA Lending Advisory Council Announced
In April 2024, the Small Business Administration (SBA) announced the launch of its first-ever federal-level Small Business Lending Advisory Council—and opened nominations for council members.
Then, in December, the SBA revealed the Council’s official members, representing a solid mix of small business advocates and big players from traditional banks including JPMorgan Chase, Wells Fargo, and TD Bank.
Most notably, the Council also includes representation from leaders across the fintech landscape—reflecting the SBA’s push to integrate innovative solutions into the small business funding process.
According to the Council webpage, the group will advise the SBA on several key topics including:
- Enhance access to capital for underserved communities.
- Identify barriers to small-dollar financing and SBA loan programs.
- Recommend policy changes and private sector innovations to improve access to small business funding.
While the Council has not yet met, its work could dramatically increase funding opportunities for SMEs—especially those in rural and economically disadvantaged areas, where access to capital is often limited.
Moreover, for MCA funders, the inclusion of alternative funding leaders is a powerful signal that the SBA is embracing new ways of thinking about SME financing.
As the Council moves to streamline funding processes for smaller businesses, its recommendations may reshape how merchant cash advances are regulated and integrated—leading to new opportunities for collaboration.
4. MCA Market Reports Paint a Promising (and Profitable) Future
The global MCA market continues to grow rapidly, and two recent reports highlight its promising future—albeit with slightly different projections.
Research And Markets expects the MCA market to hit over $24 billion by 2028, while Allied Market Research predicts a more substantial $32.7 billion by 2032.
No matter the exact numbers, though, both reports agree on the following:
- North America led MCA activity in 2023, and Asia-Pacific is expected to experience the fastest growth in the coming years.
- Digital payments and the expansion of SMEs continue to be the key growth drivers. Both reports also highlight additional factors including post-recession recovery, rising e-commerce, and AI use in underwriting and risk assessment.
Both reports also point to challenges, with high fees and a general lack of MCA awareness being common concerns. Allied Market Research also warns about existing regulatory gaps that, if left unaddressed, could expose small enterprises to higher retrieval rates and unfavorable terms.
But despite any current industry barriers, the opportunity for MCA funders to make a real impact is clear. And those who stay ahead of merchant cash advance trends and proactively address these challenges will not only secure a stake in this fast-growing market—they’ll also shape the future of SME funding.In other words? Now is the time for merchant cash advance providers to lean in and capitalize on all the massive potential ahead!
MCA Growth Brings Opportunity: Stay Prepared With Onyx IQ
As we saw yet again in Q4, the MCA industry is still on the rise.
That said, industry growth can lead to new opportunities as well as new risks, especially around legal challenges.
Therefore, the key is staying adaptable and informed.
At Onyx IQ we help MCA providers stay ahead of the curve with industry updates, as well as an automated tool to streamline workflows and make smarter decisions.
With the Onyx IQ platform, your merchant cash advance funding operation can confidently navigate regulatory shifts, disclosure requirements, and market changes— ensuring your continued success, no matter what challenges come your way.
Book your demo today to see how Onyx IQ can help simplify your future-ready funding.
