[jotucker1983]

Can anyone help me understand why would a lender fund a company past position #3? I may be missing out on something that the specialists in the industry can share

It's for a number of reasons:

- They are looking to acquire market share, in this business you can acquire said share in a 1st position, 2nd position, 3rd position, 4th position, 5th position,....10th position or maybe even an 11th position.

- The cost of acquisition is very high to market to generic business SICs and peel off a sales pipeline from said generic listings, thus, they will use UCC lists to acquire market share using the "stacked positions" as I mentioned above.

- They are "me-too lenders", which means they refuse to use the capital they have raised and underwriting platform they have built, to do something different in the industry such as create a niche product. Instead, they would rather acquire market share using the "stacked positions" as I mentioned above.

Overall, it comes down to a lack of ingenuity and the high cost of new acquisition.

[FUNd]

^what John said.

Most deals I fund are 1st position and about 5-10% are 2nds or 3rds. But for those of you pegging the stackers as some sort of criminals, think before you speak. Your holier than thou 1st position at an effective 70-80% APR (plus junk fees and 'origination') isn't exactly a gift.

These merchants are very aware of what they are borrowing and the costs. Some are just poor businesspeople.

[Cfairbank]

I thought I remembered a thread discussing 13 or 14 positions on this forum a couple of years ago, but may be mistaken. We saw 11 positions a couple of weeks ago, but didn't fund it -- the most we have consolidated is 7 positions (no net, and the deal has repaid perfectly). Actually a decent company other than how much they were paying in daily payments -- they were paying around $17.5K per week drawn on a daily basis, we lowered weekly payments to $5.3K.

Dan, consolidating a few deals 8 deep and not getting stacked is quite impressive!

[Michael I]

18 I believe I saw the record . I funded the merchant two years ago a first or so I believed . The merchant made a couple of tax id and is taking out cash from one depositing in the other and so forth for 6 different business\ bank accounts (can't produce tax returns for 5 of them because they don't really exist ) he is taking the whole industry for a ride . Only now a second position lender connected it all and saw the ucc and filled a ucc on all 6 and everything went to hell for the merchant . Because now no one will renew in till they understand the ucc .

Disclaimer I said 18 to have the higher number but 3 are with on deck

[Michael I]

FYI I believe there is more those are just what was found .

[anonymous]

Anyone ever come across the CA file with 8 positions, debiting $25K... Daily...?

[Cfairbank]

Any of you guys come across the Cali file with 8 positions, debiting $25K... Per day... Lol

That is crazy. What was the total balance?

[anonymous]

Constantly fluctuated. $500K-$1.5MM. All 8 were a sizable positions, with an average term of about 80 payments across the board, and they liked to renew all of them as quickly as possible. Most seem to originate from same broker as well. Decent account lol.

[bsmith]

Would it be wrong to assume this forum can handle a little bit of sarcasm at times

This guy is hilarious, I'm surprised so many people failed to see the sarcasm. He might give FUNd and anonymous a run for their money

[fundgorilla]

I've been keeping a file on the frequent fliers, and when I get an app where the guy has like five positions I always say "that guy is paying someone five fat commissions a year and that someone should be me" so I have rather extensive breakouts of my files and when I get a new ucc I can filter that too and be in the right time at the right place.

[anonymous]

This guy is hilarious, I'm surprised so many people failed to see the sarcasm. He might give FUNd and anonymous a run for their money

BelowDeck
100% Comm

Should add a gmail address, would probably get some free docs.

[TStein]

BelowDeck
100% Comm

Should add a gmail address, would probably get some free docs.

TRIPLE DIGIT COMMISSION. MODEST 300% FACTOR RATE. SAME DAY APPROVAL. ITS GOING TO BE HUUUUUUUUGE!

(can you see where I get my inspiration?)

[Funder Mark]

TRIPLE DIGIT COMMISSION. MODEST 300% FACTOR RATE. SAME DAY APPROVAL. ITS GOING TO BE HUUUUUUUUGE!

(can you see where I get my inspiration?)

You misspelled it, it should be 'YUUUUUUGE!'