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  1. #1

  2. #2
    "The entire industry is already smarting from weakening investor appetite for their loans as defaults rise."

    Default rates on the rise? Recession???

  3. #3
    Veteran Reputation points: 157541 J.Celifarco's Avatar
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    everyone knows regualtion is coming it is just a matter in what form and how much of the industry it will affect
    John Celifarco
    Managing Partner
    Horizon Funding Group

    3423 Ave S
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  4. #4
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    Thank god America has dozens of states
    Last edited by mcaguru; 05-27-2016 at 12:18 PM.
    Marcus Clapman | Business Development | Cresthill Capital
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  5. #5
    Veteran Reputation points: 134971 Chambo's Avatar
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    Quote Originally Posted by Intermediary23 View Post
    "The entire industry is already smarting from weakening investor appetite for their loans as defaults rise."

    Default rates on the rise? Recession???
    I am not sure that defaults are rising, but that more diligent eyes are reviewing the financials and determining the TRUE default rate, as opposed to what their press releases state

  6. #6
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    For us seasoned funding houses default rates for MCA are right in line.
    Marcus Clapman | Business Development | Cresthill Capital
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  7. #7
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    3 years constitutes as "seasoned". Interesting
    Second place? Set of steak knives.

  8. #8
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    Its not so interesting, I'm in this business for almost a decade. Seasoned.

    Quote Originally Posted by Credibly1 View Post
    3 years constitutes as "seasoned". Interesting

  9. #9
    Quote Originally Posted by Chambo View Post
    I am not sure that defaults are rising, but that more diligent eyes are reviewing the financials and determining the TRUE default rate, as opposed to what their press releases state
    Yellowstone prides itself with a 6% default rate (according to a private source there, that I spoke to).
    With the king of D paper only having a 6% default....... we can only imagine what the others will say..

  10. #10
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    Quote Originally Posted by Credibly1 View Post
    3 years constitutes as "seasoned". Interesting
    I used season purposely based on Cambridge University Press
    (and i quote) "One can have had plenty of experience but if nothing has been learned as a result, one would not be considered seasoned"
    Exactly why i choose the term "Seasoned"
    Marcus Clapman | Business Development | Cresthill Capital
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  11. #11
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    Quote Originally Posted by NewWay ISO View Post
    Yellowstone prides itself with a 6% default rate
    stop it, just STOP! that is just grossly untrue. you can't convince me that YSC has better default rates than some of the bigger A paper lenders in the space

  12. #12
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    less than 10% default rates.... you guys are funny!
    Hedley Lamarr......That's Hedley

  13. #13
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    What do you mean Kevin>? Whats funny what did i miss ? !
    Marcus Clapman | Business Development | Cresthill Capital
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  14. #14

    Bingo

    Guys we never have said we have a 6 percent default rate. Most people won't admit this publicly but we are an open book. We have an average over 7 years of funding a 13 percent default rate....not sure if people think this is high or low but it's what we are at.

  15. #15

    Just Wondering?

    Quote Originally Posted by isaacdstern View Post
    Guys we never have said we have a 6 percent default rate. Most people won't admit this publicly but we are an open book. We have an average over 7 years of funding a 13 percent default rate....not sure if people think this is high or low but it's what we are at.
    When you say 13 % default rate, is that on the funded amount? or is that 13% on the payback amount?

  16. #16
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    Quote Originally Posted by NoBigDeal View Post
    stop it, just STOP! that is just grossly untrue. you can't convince me that YSC has better default rates than some of the bigger A paper lenders in the space
    A lenders took big hits from fraud as you can see now with half of them now requiring log in .
    But Isaac 13% does make sense for that paper

  17. #17

    Bingo

    Payback

  18. #18
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    Quote Originally Posted by isaacdstern View Post
    Payback
    Isaac, appreciate your candor. Would you be willing to share how you calculate it? Is it off total returned dollars or on a GAAP basis (split between revenue and funded amt payback)?
    Carl Fairbank
    Founder & CEO boldMODE
    www.boldmode.com
    Carl@boldmode.com
    Founder & former CEO of Breakout Capital (sold to SecurCapital in 2019)
    www.breakoutfinance.com

  19. #19

    Bingo

    13 percent of the total payback is never recovered...that's average over 7 years...we have lower quarters and higher ones but we are holding steady at 13

  20. #20

    Bingo

    With 87 percent collect of rtr and let's say under 7 month paper with daily compounded it should be north of 40 percent irr

  21. #21
    13% of each payback would mean 26% a year if you do two funding circles with 6 month terms, no?
    Last edited by NewWay ISO; 05-30-2016 at 12:23 PM.

  22. #22
    Issac, appreciate your response. Just was wondering, you say 13% the last 7 years. What would be that number over the last 2 years with stacking completely out of control. ..with the increase in bankruptcies. ..with corporate turnaround doing their thing. ..i would have to guess that number is much higher than 13%. I would guess that number to be more like 18%....

  23. #23

    Bingo

    Actually not, our number for the first 5 years was around 10. We have seen a jump in defaults because of all the reasons you laid out...additionally our volume for the last 2 years has quadrupled. Sure we have months that are higher than 13 but not often.

  24. #24
    10% average over first 5 years is what i figured, but to get it to 13% avg over the 7 years, that would require the defaults over the last 2 years to be far greater then 13%....to bring up the average from 10% over first 5 years to 13% over 7 years, would need to be a default rate at 17% plus nowadays...

  25. #25

    Bingo

    If the volume over the 7 years was even but in the last 2 years we funded 2 times the amount we funded in the first 5



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