As Covid-19 continues to ravage the world, it has been having a severe impact on small businesses all across America. Many businesses have had to go out of business, and people have fallen into financial ruins.
There has been one company that stood by these businesses through thick and thin, and provided a valuable shoulder to lean on for financial help.
This company is Par Funding, a merchant cash advance business that has been operating for 8 years. They have been providing quick access to capital to small and large businesses, in exchange for commercial factoring. They have funded over 6,000 businesses, building lasting relat
ionships where business owners weren’t just one-time clients, but knew they could always count on Par Funding, especially during critical times of Covid-19. The MCA business has been of tremendous help to people who could not get a traditional bank loan, as the banking guidelines are very stringent in regards to loans.
Par Funding was running smoothly since 2012, with 15 accountants, numerous legal experts, a CFO, a controller, a CPA firm, and a compliance officer, and all required documents were prepared by experts to ensure compliance with all necessary regulatory entities. Since the company was created, Par Funding only approached accredited investors, and made it a priority to provide transparent business operations by providing the required disclosures and agreements to these investors.
Investors were happy as Par Funding never missed a single payment until a moratorium was set in place by the SEC. Par Funding received a sealed complaint from the SEC alleging that Par Funding engaged in a business of making “opportunistic” loans to small business owners across America and that they have funded these loans through a “web of unregistered, fraudulent securities offerings.”
The sealed complaint left everyone at Par Funding confused, and only a day later a court appointed receiver was put in charge of running the business. Par Funding made requests that the receiver keep its professional employees on board, as business would continue to run smoothly as the investigation unfolded. However, contrary to Par Funding’s requests, the exact opposite was done.
Par Funding continues to fight their case to prove their innocence.
When looking at the procedural posture of the case, it seems that a verdict has already been reached. Many investors lost their money, Par Funding’s employees lost their jobs, and the many businesses that are the backbone of the American economy lost a trusted source of funding.
Par Funding’s continues to battle in court to vindicate their name and at the very least conduct the proper due process all companies should be entitled to.