[FlashGordon]

I have about 20 files that we funded last year with CAN Capital that are now nearing being eligible for renewals. Most of these files were sold the CAN Capital retention rates (1.20-1.25%) between 12-24 month terms.

Since CAN capital is no longer funding, i'm looking for a 1st position lender that can buy out some of these balances and offer similar terms for these merchants. Does anyone have any suggestions?

[SBF]

I would place some with Fundations micro-ticket program... 1-3 years and better rates than CAN.... however, max funding is $75K.. Much less info needed to qualify for micro-ticket program than the larger loan program.
Loan Amount: $20,000 - $75,000
Term Length: 1 - 3 years
Payment Frequency: fixed, bi-weekly
Documents Required: Only most recent 3 months bank statements
Origination Fee:*2-5% (typically 2%)
Interest Rates: *5% - 24% APR (True APR)
No Prepayment Penalties*
* This program requires a 660 fico min, minimal negative days and nsfs is any, $1,000+ balance in the banks at all times, and that the client does not have excessive inquiries over the last few months - particularly from cash advance companies

[golf2014]

Pm sent

[Davincinc]

fundnation only pay 1%of what they net. fundation is a referral program, may have to psf merchant to get paid...

[Cfairbank]

I know many ISOs have used us as their primary lender to place their CAN merchants, especially the higher credit quality / rate sensitive merchants -- not sure if you are signed up with us or not, but the closer the merchant is to prime, the more aggressive we are with our offers -- most of our competitors have cut back on term or raised rates due to what's been going on in the industry (increased stacking, increased sub-prime defaults, debt settlement companies, etc.); conversely, we've taken a different approach and have made a concerted effort to acquire higher credit customers and are willing to offer longer terms/lower rates to acquire that type of merchant. Our pricing starts at 1.25% per month and we go out to two years.

Just a heads up for you (that u may already know) so you don't over promise your merchants: the problem you will find is that CAN gave low rates and long terms more liberally to merchants that really shouldn't have qualified for those terms, so someone that qualified for the 1.25% through CAN's retention program, doesn't mean they were properly priced properly on a risk-adjusted basis. I also agree with other posters, Fundation is a great firm offering true amortizing term loans with APRs less than 30% -- since their rates are so low, they can't pay cash advance commissions obviously, but their product is, in my opinion, the best in the space for those that qualify. Another option to think about: since CAN was quite focused on tax returns (and therefore, i assume, net income on a tax basis), I imagine that you may actually have some firms that can qualify for an SBA loan via SMART Biz, Celtic, etc.

While we have a variety of products, our current focus is on prime/near prime customers and that's where we are most aggressive (which seems to be what you are looking for). Our standard product is a weekly pay term loan (not a cash advance) with terms from 6 months to 24 months with base rates (as of today) between 1.25% and 4% per month (we like to offer the 1.25% much more than the 4%! 4% would be a stretch for us...). For true prime/near prime merchants, we offer a monthly pay term loan product with terms from 12 months to 24 months with base rates (as of today) between 1.25% and 2.5% per month. And as always, we have no net requirement which can be very useful for transferring out CAN merchants (most other firms require at least 50% paid down -- we can refinance anytime, including a straight balance transfer). Our commissions vary by product, but we are competitive (especially on the prime side relative to our competition that offers monthly pay); up to 12 pts on daily/weekly products (the up-sell is determined by the credit quality of merchant, the net amount, and the base rate (e.g. we offer 1.08x base rate quite frequently for eligible folks that want true, low dollar cost deals, and if it's that low, we can't pay 12 points. But a 1.18x can have a 10 or 12 pt up-sell depending on the first two points); for our monthly product and "consolidations"/"balance transfers" (meaning the merchant nets less than 50%) we pay FIVE points -- which again, for a monthly pay product at lower rates, is likely the highest commission you'll find.

If interested, contact Steve Safirstein is our Head of Sales -- ssafirstein@breakoutfinance.com or 703.852.6013 -- again, the prime/near prime merchant is our primary current focus and if you bring us merchants that qualify, we will be aggressive and pay you quite a bit more than our monthly pay competitors for those customers. For example, we would prefer to offer a 1.30x, two year loan to a high credit customer, than a 1.25x nine month product to a lower credit customer.

[Jess]

I would place some with Fundations micro-ticket program... 1-3 years and better rates than CAN.... however, max funding is $75K.. Much less info needed to qualify for micro-ticket program than the larger loan program.
Loan Amount: $20,000 - $75,000
Term Length: 1 - 3 years
Payment Frequency: fixed, bi-weekly
Documents Required: Only most recent 3 months bank statements
Origination Fee:*2-5% (typically 2%)
Interest Rates: *5% - 24% APR (True APR)
No Prepayment Penalties*
* This program requires a 660 fico min, minimal negative days and nsfs is any, $1,000+ balance in the banks at all times, and that the client does not have excessive inquiries over the last few months - particularly from cash advance companies

Does anyone know how this is performing? I have to think that they are going to get crushed:

1. Can's Book during their failed sales process showed how poor the performance of deals >1 year was
2. Ondeck's products are have higher rates and shorter duration and we all know what happened there.
3. This product just begs to be stacked

They just received a couple of new credit lines from GS and Midcap so it appears they want to slam to cash out the door. Good UCC hunting ground. They will be subsidizing marketing costs for a bunch of ISOS. The more things change the more they stay the same.

[Michael I]

How can anyone use fundation and survive. The 1% and not being able to charge any fees is not feasible to survive in business. At least when you do an sba or the such the 1% holds more value because you can sometimes get someone 10 times the amount you would have for an mca.

[Han Solo]

You can send them in to SOS we can offer rates competitive to that. We can go out to 12 months. Give us a call at 212-235-5455 we would be happy to go over our ISO program with you. But we should definitely be able to help with that.

[shieldfunding]

welcome to my pain..sold millions of that product with CAN and CAN deals have been a nightmare trying to convert though the one silver lining is that most the deals i was competing against on deck ,which from what i hear would not be much of a competitor lately ..as far as those rates. (and have similar angst with Swift, have about 7 months lifeline with swift until doomsday and after that there is no way i would find anyone to compete with swift.. so goodby to that portfolio.. )

I have about 20 files that we funded last year with CAN Capital that are now nearing being eligible for renewals. Most of these files were sold the CAN Capital retention rates (1.20-1.25%) between 12-24 month terms.

Since CAN capital is no longer funding, i'm looking for a 1st position lender that can buy out some of these balances and offer similar terms for these merchants. Does anyone have any suggestions?

[dpFund]

I think Carl Fairbank's post is spot on.

If any of these merchants own real estate (non-primary residence), I can provide rates in the 6% - 12% range with 3-8 year terms.

Feel free to reach out and discuss.

Best,

Dan Page
direct: (303) 938-8280
dan@fundingstrategypartners.com