- 1Texas now bars sales-based financing providers from making ACH debits.
- 2Bitty, CFG Merchant Solutions and Spartan Capital are offering fixed-term installment loans.
- 3Merit Business Funding says it is exempt as a Meridian Bank subsidiary; Backd offers term loans with FinWise Bank.
Texas has begun implementing its prohibition on ACH debits by sales-based financing providers, and funders are choosing different paths to keep serving the state. Here is a working list of how six are responding.
Moving to installment loans
- Bitty: offering a fixed-term installment loan (announcement).
- CFG Merchant Solutions: offering a fixed-term installment loan (announcement).
- Spartan Capital: offering a fixed-term installment loan (announcement).
- LCF Group: offering small business loans (announcement).
Exemption and bank partnership
- Merit Business Funding: says it is exempt from the law because it is a subsidiary of Meridian Bank (announcement).
- Backd Business Funding: offering term loans through its partnership with FinWise Bank.
Get listed
The list is a work in progress. Sales-based or revenue-based financing providers that are continuing to fund in Texas can email sean@debanked.com to be added.
Source reporting: deBanked.
