[patrickw]

accel capital

[Karen37a]

I've always wondered just how much Funders keep in reserves in case something like this happens? Or do Funders just keep funding their account to $0 to keep flipping their money?

I saw the reserves on one Mca company...the public records....they moved the reserve money from left to right to make better numbers or appear to be better numbers. I just sit silent. ( and it is legal the way it was done, not cooking the books)

it should cover defaults...at a % based on the grade of paper

These numbers are part of investment banking "algorithms"...to get a true value on a company then price/earnings ratio...book value , risk grade paper etc

One funder told me to go to underwriting school once... I did ( computer science, quantitive analysis)

[Karen37a]

This why I do not think new "funders" "lenders" coming in at 9% -15% have any chance of making it...none. Unless you run at a complete loss to get processing or do mico or mini loans...but you will still have brokers attacking the prosessing ...to get the accounts.

Most of us are sailing thru regulation too

We shall see

[showtime44]

he signed 400k docs 1.499 at 80 days at the end of june. fastest I ever got docs back. Killed on funding call....it was another account which only had 2 positions. I know at least 5 other lenders in this deal that are not mentioned above. Crazy!

[funding pro]

its a terrible story. it hurts me to see people loss money. I tell all my ISO who claim they are turning funders they need to remember what they remind people at the circus "DO NOT TRY THIS AT HOME" ... deals on paper look good and then comes the ISO begging you to fund and its probably my hardest part of the day when we KILL-A-DEAL ... I want to fund it all but i also want to remain in business.

I know you are trying to be a mensch, but its not a terrible story for the funders. It's called greed. If not greed, then its a case of bad underwriting. Either way, their investors have been either sold a lie or have these companies breaking covenants in some capacity.

[mcaguru]

I am not certain its greed in this specific case.