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  1. #1
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    Lightbulb Length of Deals are Getting CRAZY!

    So this Industry went from terms of 2,4,6,8,12,18, and now 24 MONTHS! How are we suppose to make money now?! Forget that I think a lot of Stacking is going to start happening and buy out will be hard without double dipping from the original companies themselves, what do you guys think of the lengths of these deals?

  2. #2
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    I agree with you. Also I have noticed with our portfolio, the merchants that take the longer terms ALWAYS come back asking for more money way before they qualify for more. In my experience, 95% of merchants either A. takes funding one time and will never touch a cash advance again, or B. are serial cash advance takers, they want to renew at least once or twice a year. 6-12 month terms are the best for them, anything past 12 months and they cannot get the funding as often as they need it. This makes them stack, which is basically a death blow to the merchant.

  3. #3
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    You could offer our Fast Funding Equity Program- which is a 12 month contract but the disbursements are every 6 1/2 weeks to 8 weeks so they keep getting the cash infusion they need but their contract is for the big amount that they usually want. Obviously this is not for all merchants but we have found those looking to use funds for advertising, payroll management, or to offset the cost of growth it works quiet well because they actually have a set date that they know funds will be hitting. Another benefit to the agent and the merchant is they do not have to resign a contract as it is built into the initial. .................. oh and yeah we pay 20% commission

  4. #4
    the higher credit, larger funding request deals, all want longer terms and only a few funders have the capacity to fund them on 12-24 month terms. Alot of these longer offers are on the loan platform, where there is a PG and more protection in case of a default. The longer terms req their own special credit req to qualify as well. There is an underserved marketplace for merchants who needed to borrow, but refused to repay in 5-8 months like so many funders like to keep their deals at.

  5. #5
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    Heather this is exactly what i did with one of my merchants and it worked out great! The only thing that annoyed me was the under writter constanly every single time wanting updated paper work everytime it was up for its rounds and payback months as well. it was fustrating but great at the same time for the pocket.

  6. #6
    Veteran Reputation points: 134971 Chambo's Avatar
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    Or youo can go use a funder that does add ons instead of refi's everytime

  7. #7
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    I do that too.

  8. #8
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    On our Equity program we do not request documentation from the merchant to release their scheduled disbursement. On the date the agreement states funds are released unless they are considered in default ( verified diversion of funds or stacking of advance)

  9. #9
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    Ok, Thats great to know! Maybe when something comes up. I will use. . . .
    & you guys are. . .

  10. #10
    Administrator Reputation points: 55342 admin's Avatar
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    You may be interested to read Jeremy Brown's latest post that covers this topic and references this thread specifically: http://dailyfunder.com/content.php/1...manent-Capital

  11. #11
    Senior Member Reputation points: 30475 Zach's Avatar
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    And now 36-month terms, Dealstrucks, Fundingcircles and Fundations are available and prevalent within the space. LoanMe is offering 10-year terms on almost all their deals.

    I am eager to see how all this unfolds.
    Zachary Ramirez – CEO
    Phone: 562-391-7099
    Email: zach@zacharyjosephramirez.com

    1661 N. Raymond Ave #265
    Anaheim CA 92801

  12. #12
    Veteran Reputation points: 134971 Chambo's Avatar
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    Quote Originally Posted by HeatherF View Post
    You could offer our Fast Funding Equity Program- which is a 12 month contract but the disbursements are every 6 1/2 weeks to 8 weeks so they keep getting the cash infusion they need but their contract is for the big amount that they usually want. Obviously this is not for all merchants but we have found those looking to use funds for advertising, payroll management, or to offset the cost of growth it works quiet well because they actually have a set date that they know funds will be hitting. Another benefit to the agent and the merchant is they do not have to resign a contract as it is built into the initial. .................. oh and yeah we pay 20% commission
    Sounds like MFS....Approved for $20,000, which is actually 5 installments of $4000 at 45 day 1.49's

  13. #13
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    20% commission for every funding? Or is it 20% on the funded for the first installment? which would end up being 5% total if it was over 4 installments etc etc.

  14. #14
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    Did anyone else notice this thread is from 2013?

  15. #15
    Senior Member Reputation points: 30475 Zach's Avatar
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    Quote Originally Posted by FUNd View Post
    Did anyone else notice this thread is from 2013?
    Call me Lazarus... I'll bring 'em back from the dead.

  16. #16
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    people often ask why merchants feel the need to stack but when they cant access cash till the 15th month deal hits month 10. Deals are now getting longer and longer as cash pours into the industry and companies continue to go longer and longer out to compete



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