[MCAFunds]

The largest funders are failing because their operations were too massive to support any type of downturn in the business. They were under pressure to originate deals just to keep paying their overhead, which is a recipe for disaster. The next iteration in this industry will result in boutique funders who are much smaller and leaner and much more selective with their deals. The 1.20s and 1.30s can still be profitable as long as expenses are kept in check and cost of money and client acquisition costs are minimized.

A 1.20 will never be profitable, a 1.20 can never break even. 1.30? Maybe, at best break even. Why does AMEX charge 27% to 55 Million businesses annually. Why do banks not lend to anyone with a heart beat, same reason why a 1.20 or even a 1.30 do not work. Put 100 Funded deals in a hat at a 1.20 and 1.45 and I will take the 1.45 all day. The ONLY way a 1.20 or 1.30 can work is IF and only IF, they have an exclusive no stacking etc etc etc clause.