Surprisingly, this is a totally unregulated industry on the federal level. Legally, they aren't loans; it's a purchase of future receivables. Google "merchant c

Surprisingly, this is a totally unregulated industry on the federal level. Legally, they aren't loans; it's a purchase of future receivables. Google "merchant cash advance regulation" and have your mind blown. California has light regulation in the form of disclosures similar to those for consumer credit. CA is also the only state that requires any licensing but the license is for the company, not for any of the brokers, and is super easy to obtain.