[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.