[isaacdstern]

http://debanked.com/2016/09/commerci...-capitol-hill/

[isaacdstern]

last week was the 2nd trip our group has done to Washington DC.

If you would like to learn more or get involved please contact myself or any of our group members.

[Cfairbank]

All -- As most of you know, lots more going on in the space from a trade group / coalition standpoint than the CFC -- if you are a stacker, contact Isaac. Otherwise, if you believe like I do that there should be a clear disintermediation between these products which represent a sliver of the market and the rest of SME alternative/"online" finance, contact me about our involvement in other initiatives (or, while we aren't a member, you can also contact Steve Denis about the SBFA). In my opinion, it behoves everyone (frankly, including the stackers) to make this differentiation absolutely crystal clear.

[isaacdstern]

Thanks for your feedback Carl.

Do you speak for the SBFA or just for yourself? I only ask because on our trip to DC we met with Steve Denis and spoke at length about the best ways to work together and about sharing the same goals.

[Sean Cash]

It's great to see that there are several groups advocating on the industry's behalf with policymakers these days. Two years ago, nobody was. We have come a long way for sure. Yes, there are philosophical differences that keep some companies apart and there probably always will be.

I did have the privilege of joining the CFC on their most recent trip and I can say that topics covered in the meetings are fairly straightforward.

• Why aren't banks lending to small business?
• Job preservation and creation
• Distinguishing "lenders" using chartered bank partnerships from alternative methods
• Dodd-Frank's impact on the industry at present and potentially in the future
• Distinguishing commercial transactions from consumer transactions

It's all about education at a macro level. It's not about whose rate is the best, etc. at least it shouldn't be.

Steve Denis and the SBFA are a great group as is the CRBF that Carl is part of. But so is the CFC as far as the ability to communicate the underlying issues of our time, which is why banks aren't lending to many small businesses and the role that private companies are playing to fill that void.

[isaacdstern]

Well said Sean!

[J_B]

last week was the 2nd trip our group has done to Washington DC.

If you would like to learn more or get involved please contact myself or any of our group members.

Thanks Issac. I found your coalition site through the link on the debanked article. Thanks for sharing some of the details. In searching through other coalition sites like SBFA, CRBF, and the small business borrowers one, it's a little tough to understand what CFC is advocating for in specifics. Are there other materials or things to read up on to learn more?

[Cfairbank]

Issac, as I said, I am not a member of the sbfa but Have a good relationship with Steve -- just highlighting the other options. My company is a steering committee member of the CRBF, but any views I make on this site are my own, not my coalition's. If I have the wrong idea about cfc or your company, I'm happy to chat - I'm in New York until Thursday this week. Shoot me an email, because as many know, I view "high risk" stacking as one of the bigger threats to the broader market.

[mcaguru]

I heard DC was very successful!

[CreditGuy]

That Isaac is the president of CFC, and runs one of the most stack happy shops in the space, tells me all I need to know about CFC's commitment to this industry. The other members noted in the article are also mostly high risk shops (Platinum Rapid, Cresthill, Everest, etc.) that don't originate first positions further solidifies it. Carl is far more diplomatic than I am, but we are very much aligned on the risk stacking poses to our industry. Generate all the press and photo ops you want, but those of us in the know see behind the curtain.

There is still a large and unaddressed market for quality, first position deals, yet many prefer to draft off the hard work and UW for the first position shops and put merchants into risky products to line their pockets. It is not a good look for the industry and needs to go away sooner than later. If that means legislating them out of the space, I'm okay with a little regulatory capture to clean up our industry.

[mcaguru]

That Isaac is the president of CFC, and runs one of the most stack happy shops in the space, tells me all I need to know about CFC's commitment to this industry. The other members noted in the article are also mostly high risk shops (Platinum Rapid, Cresthill, Everest, etc.) that don't originate first positions further solidifies it. Carl is far more diplomatic than I am, but we are very much aligned on the risk stacking poses to our industry. Generate all the press and photo ops you want, but those of us in the know see behind the curtain.

There is still a large and unaddressed market for quality, first position deals, yet many prefer to draft off the hard work and UW for the first position shops and put merchants into risky products to line their pockets. It is not a good look for the industry and needs to go away sooner than later. If that means legislating them out of the space, I'm okay with a little regulatory capture to clean up our industry.

I think many more will join.

[CreditGuy]

Go away, Marcus.

[mcaguru]

Go away, Marcus.

I will... lots to fund.

[J.Celifarco]

I had deep conversation with several large high risk funders, let me be clear if High risk was regulated overnight they would become A paper funders and of course being that they control the relationships with Every ISO in America overnight they would corner the A paper space (I know Cresthill would!!! perhaps even without regulations )....

there is zero chance this is going to happen.. Companies that are used to making 45% over 4 months or less + fees + coj are not going to just jump to 12 month affordable programs with no fees and no coj's. Just wont happen. These companies have agreements in place with wherever there funding came from do you think doubling the term and halving the return is just going to happen over night? Do you think these companies have underwriting guidelines in place to just make this switch or the personal to implement them? The majority of the high risk funders are gone the minute regulation comes in to play..

That said Marcus as usual you point has zero to do with the thread so why you are bringing it up makes even less sense to me

[HDF]

I had deep conversation with several large high risk funders, let me be clear if High risk was regulated overnight they would become A paper funders and of course being that they control the relationships with Every ISO in America overnight they would corner the A paper space (I know Cresthill would!!! perhaps even without regulations )....

The entire ISO channel that you describe as being "controlled" by the several large high risk funders are the ones that have the gun pointed directly at them right now. Without a migration (or sprint) to more sensible standards etc, that particular herd is poised to be thinned out drastically.

Mainly because of greed and lack of support, training and ethics from so called funders/co-brokers and back-door specialists.

Guys like you Marcus who come on here and lie, exaggerate and beg for business like a carnival barker are at risk too. And I love that you don't see it coming...

[Funder Mark]

Guys like you Marcus who come on here and lie, exaggerate and beg for business like a carnival barker are at risk too. And I love that you don't see it coming...

He CANT see it coming, his head is buried in the sand

[J_B]

Surely the conversations on The Hill are not just about stacking, regardless of what the CFC's stance is on it. I'm sure there are other topics they discussed that also align with the other coalitions. Like Sean said, there are multiple voices out there and while there is a different stance within each, learning and understanding those differences will help understand what the similarities are, no?

Marcus - if there is a possibility to become an 'A-Lender' overnight, what's the advantage for not doing that now? If the risk is lower, wouldn't that be better suited for your business?

[Michael I]

Surely the conversations on The Hill are not just about stacking, regardless of what the CFC's stance is on it. I'm sure there are other topics they discussed that also align with the other coalitions. Like Sean said, there are multiple voices out there and while there is a different stance within each, learning and understanding those differences will help understand what the similarities are, no?

Marcus - if there is a possibility to become an 'A-Lender' overnight, what's the advantage for not doing that now? If the risk is lower, wouldn't that be better suited for your business?

because marcus is allergic to the truth .

[mcaguru]

Surely the conversations on The Hill are not just about stacking, regardless of what the CFC's stance is on it. I'm sure there are other topics they discussed that also align with the other coalitions. Like Sean said, there are multiple voices out there and while there is a different stance within each, learning and understanding those differences will help understand what the similarities are, no?

Marcus - if there is a possibility to become an 'A-Lender' overnight, what's the advantage for not doing that now? If the risk is lower, wouldn't that be better suited for your business?

Like Trump said yesterday "this is a business". On weekends enjoy taking the kids to feed the seniors. (its important for the kids).
Regarding A paper perhaps you will see our names shortly on more and more deals in that space.

[J.Celifarco]

Like Trump said yesterday "this is a business". On weekends enjoy taking the kids to feed the seniors. (its important for the kids).
Regarding A paper perhaps you will see our names shortly on more and more deals in that space.

perhaps being the key word.. I promise you nobody is holding their breath for no other reason that most of what you say is nonsense so I will just believe this is also

[mcaguru]

perhaps being the key work.. I promise you nobody is holding their breath for no other reason that most of what you say is nonsense so I will just believe this is also

word you mean.

[J_B]

I'm not sure I follow, is it no longer a business if you became an 'A-Lender'?

[mcaguru]

I'm not sure I follow, is it no longer a business if you became an 'A-Lender'?

Right now we fund the High Risk arena.

[J.Celifarco]

word you mean.

and well done finding that typo was the first thing you said today that anyone will agree with

[WhoisKingsley]

There are different perceptions of this industry from a Broker standpoint as well as your direct lender/funder - whether it's "A" paper or high risk, stacking, etc.

This is all going back to the subprime mortgage crisis. You can compare our high risk product to an adjustable rate mortgage. You had a product that lowered it's lending standards to be accessible to consumers. There were multiple options when it came to paying back- but overall introductory prices and the ease of getting it was the main "selling" point. Rates were based on the market and the base rate depended on the cost of the lenders capital. The Mortgage Broker is the icing on the cake and ladder originator in the market and even though they have nothing to do with the fact that the consumer is responsible for their decision (research and agreeing to the terms)- they were puppets of the industry to flood the market with the overall understanding of "how easy" it was to own your own home and afford it "now". The predatory practices are obvious there.

Fast forward a few years later but take the consumer and match them to a business owner. You have "A" paper lender/funders (banks or non-banking institutions) and the "Subprime" Paper going down the same road. You have Merchants taking out advances/loan products that are not broken down/explained correctly for what they are. Our industry is not advancing logically. We went from taking a % of credit card receivables, to saying sh*t- they don't take credit cards so an ACH payment product was created, to now figuring out how to appease investors and at the same time adhere to Main Street's needs of transparency and better qualifying of the many products that are "invented" by those who are trying to put a number on future receivables (key word:Future) and offered by those who don't understand the ins and outs of finance and/or business or overall how to qualify.

This isn't all about stacking- there are a lot of factors that play into the different coalitions getting together with gov. and regulators to put the pieces together to omit another crisis. You can't really point a finger. You can be an example of positive future changes but enable at the same time