[LoanShark714]

Which lenders are the most lenient on NSFs ?

[MCNetwork]

The ones that are out of business.

[LoanShark714]

Lol nice one. but believe it or not but in some cases, NSF' are part of their business on how they collect payments. I funded a merchants with over 20 nsf' a month with no problems.

[Chambo]

The question is are they NSF/OD fees? Are the items being returned? If not,t hey have OD protection (and whether or not ACH payments will be rejected is all anyone cares about)

[businessgrowthcapital]

We will fund a Merchant with up to 5 NSF's a month.

[mfs01]

The ones that are out of business.

lol. Good one...

[mfs01]

MFS Global will accept up to 5 NSF's per month.

[L_LOTT_ARF]

We are lenient on NSF fees because of our weekly payment. We're also not concerned with a merchant's daily balance since we're collecting once a week.

[funding pro]

We are lenient on NSF fees because of our weekly payment. We're also not concerned with a merchant's daily balance since we're collecting once a week.

Lauren, I'm curious why you think it makes a difference weekly vs daily. If anything there would be a higher chance of a larger weekly payment bouncing than a smaller daily payment.

When reviewing an account with NSF issues, and the capital is being used in a way that may not necessarily drive sales or boost profit margins, shouldn't the logical fear be that the business will simply have exponentially more NSFs now that they are operating on the same margins however they now have a new cost?

[MCNetwork]

True. Whether the loan payment is daily, weekly, bi-weekly or monthly, a high number of NSF's is indicative of a merchant who has cash flow problems and his ability to take on significant debt is very questionable.

[L_LOTT_ARF]

We like to look into WHY the merchant may have these cash flow problems... Whenever WE see a high number of NSFs, it's typically due to their current cash provider sucking them dry. We'll look at every deal in that case regardless of their 5-10 NSF fees (which seems to be the norm for a decline) because we're usually able to help a merchant's cash flow problems by putting them on a lower rate, longer term loan. Sometimes the traditional MCAs and/or a daily payment ACH program do not work well for a merchant's cash flow.
Obviously, if a merchant has put themselves in a ton of debt without the help of an MCA and has excessive NSF fees then the deal does become more risky (regardless of the way we're paid back). We will take a look at the merchant's situation before we just decline them.

[@jeannette]

For an ACH deal Retail Capital caps the Negative Days to 3-5 days depending on the month that the Negative days happened. A merchant can experience 5 NSF's in one day, so we look at Negative Days. For the most recent statement we would like the Negative days to be no more than 3, but in older statements if they have 5 we will not decline for negative days.
For a MCA deal the negative days can extend past the 5 days, but we will cap the term to a shorter term to alleviate the risk.

[Regium]

We request statement of overdraft limit letters from the merchants bank sometimes, good to have

Although you can figure out the overdraft limit yourself