[MCNetwork]

If a funder can incorporate 1.20-1.30s in their portfolio mix to broaden their customer base and increase market share while maintaining profitability then it makes sense to offer them. Keep in mind that the 1.20s are typically A+ paper and represent a small percentage (10-15%) of the client portfolio. These are your outlier clients unless you specialize in A+ paper. The remaining 85%+ should be the 1.35 and up, 6 to 8 month clients.

On an individual basis, a 1.20/12 month client might not make much sense but as long as the blended rate of your portfolio is healthy then these merchants will still count towards your firm's overall profits. The key is to keep expenses and client acquisition costs under control.

[MCAFunds]

If a funder can incorporate 1.20-1.30s in their portfolio mix to broaden their customer base and increase market share while maintaining profitability then it makes sense to offer them. Keep in mind that the 1.20s are typically A+ paper and represent a small percentage (10-15%) of the client portfolio. These are your outlier clients unless you specialize in A+ paper. The remaining 85%+ should be the 1.35 and up, 6 to 8 month clients.

On an individual basis, a 1.20/12 month client might not make much sense but as long as the blended rate of your portfolio is healthy then these merchants will still count towards your firm's overall profits. The key is to keep expenses and client acquisition costs under control.

If you can own any business and have 100 customers purchasing a product every day creating profits with guaranteed data to show and prove the trend. Why on Earth would you also sell a product that a customer will default and/or stack on. Once again, Profits vs. Risk. Take out the risk and follow the trends and data that creates PROFITS.

Agree to disagree. Have a great Friday!