Daily News: June 30, 2014

New IFA/AFA Guidelines Preclude MCAs

The International Factoring Association (IFA) and the American Factoring Association (AFA) recently announced new membership guidelines.

Effectively immediately, Merchant Cash Advance (MCA) companies will not be eligible to join the IFA or the AFA. Factors, asset based lenders and purchase order finance companies will remain the organizations’ core focus.

The IFA provides a forum for member organizations to meet and discuss issues and concerns, share best practices, disseminate information and promote a single voice to the marketplace while the AFA’s purpose is to educate the public and policy makers on the availability of working capital financing.

“In recent years, our membership grew to include merchant cash advance companies which are outside our traditional member base and have distinct characteristics and needs,” said Bert Goldberg, executive director for the IFA and AFA. “Based on discussions with board members on industry trends and our desire to provide meaningful experiences for our membership, the decision was made to return to our roots, and re-focus on the needs of factors, asset based lenders and purchase order finance companies.”