[AERO2020]

I have a On Deck loan that is reaching the 6 month period, and I have been bombarded with phone calls and letters from lenders asking me to renew my loan,
and/or payoff my existing balance with OnDeck and provide additional working capital. I was seriously considering renewing my On Deck Loan with On Deck
however, the promise of a lower rate and more capital definitely got my attention. My sales were 1.3 Mil in 2013 and we are headed to topping that this year.

The On Deck loan allowed us to increase our sales team, and inventory, now we are ready to add additional offices in Miami and North Carolina.
We are seeking funding for the expansion so I thought it was ironic when I received a call from: Business Capital llc and Fast Capital 360 llc, 2 days apart.
It was even more ironic that they both had the same sales pitch, but different motives.... 1 wanted to do a 2nd position deal, and the other payoff On Deck and
get the working capital I needed. Of course this sounded too good to be true so I researched the creditability of the companies. and here is what I found,

Fast Capital 360, LLC 
2 Rector Street, Suite 2104, New York, New York 10006

Business Capital LLC 2 Rector Street, Suite 2104, New York, NY 10006

The companies have the same address. This immediately made me put up a RED FLAG, and that is how I found your forum.
I searched for second position merchant funding, because I had no idea what the representative was referring too when it was offered.
The conversations and information I've read here are refreshing, and some of it quite transparent. So the term is "Stacking"

As a merchant, I quickly learned that I have to be just as leery as the funding/finance companies a.k.a. brokers or ISO's
as many of you do of unreliable merchants. And not everyone that doesn't want a loan company to have access to login
into their bank account is a scammer or fraud. On Deck never asked for anything other then our statements. We applied at 10:00am
and by the end of the day we had our contract signed and our funding the next day.

So far from what I've read there are a couple of companies that I'll be contacting United Capital, and Business Capital Growth, they
seem to be as seamless as On Deck and maybe I can get a 24 month term loan or a better daily merchant rate.

Just thought I'd share my experience and see if there is another loan product being offered that fits our needs.

[GRP Funding]

I have a On Deck loan that is reaching the 6 month period, and I have been bombarded with phone calls and letters from lenders asking me to renew my loan,
and/or payoff my existing balance with OnDeck and provide additional working capital. I was seriously considering renewing my On Deck Loan with On Deck
however, the promise of a lower rate and more capital definitely got my attention. My sales were 1.3 Mil in 2013 and we are headed to topping that this year.

The On Deck loan allowed us to increase our sales team, and inventory, now we are ready to add additional offices in Miami and North Carolina.
We are seeking funding for the expansion so I thought it was ironic when I received a call from: Business Capital llc and Fast Capital 360 llc, 2 days apart.
It was even more ironic that they both had the same sales pitch, but different motives.... 1 wanted to do a 2nd position deal, and the other payoff On Deck and
get the working capital I needed. Of course this sounded too good to be true so I researched the creditability of the companies. and here is what I found,

Fast Capital 360, LLC 
2 Rector Street, Suite 2104, New York, New York 10006

Business Capital LLC 2 Rector Street, Suite 2104, New York, NY 10006

The companies have the same address. This immediately made me put up a RED FLAG, and that is how I found your forum.
I searched for second position merchant funding, because I had no idea what the representative was referring too when it was offered.
The conversations and information I've read here are refreshing, and some of it quite transparent. So the term is "Stacking"

As a merchant, I quickly learned that I have to be just as leery as the funding/finance companies a.k.a. brokers or ISO's
as many of you do of unreliable merchants. And not everyone that doesn't want a loan company to have access to login
into their bank account is a scammer or fraud. On Deck never asked for anything other then our statements. We applied at 10:00am
and by the end of the day we had our contract signed and our funding the next day.

So far from what I've read there are a couple of companies that I'll be contacting United Capital, and Business Capital Growth, they
seem to be as seamless as On Deck and maybe I can get a 24 month term loan or a better daily merchant rate.

Just thought I'd share my experience and see if there is another loan product being offered that fits our needs.

"Stacking" on top of On Deck could hurt your chances at a future renewal with them. I'm not 100% on what their policy is, but I am pretty sure that stacking would be a violation of the agreement you signed with them. You'll get mixed opinions about stacking on this forum.

[AERO2020]

Thank you for the advice Brian, I don't want to "Stack" had no idea what that even was. Thank God I found this forum,
and learned a great deal about the in's and out's of Stacking. I'm looking for funding to Payoff the OnDeck Balance,
and get a lower rate on additional working capital. I like On Deck and I can renew with them, but If I can pay them off
and get a better rate, it'll save me a healthy amount of money for my new project.

[MCNetwork]

You can renew with On Deck and have the interest on your remaining balance waived or you can refinance your On Deck loan but will have to pay interest on top of interest. You need to weigh the pros and cons of both approaches and ask yourself the following: 1) How much money will I NET and will that amount satisfy my working capital needs? On Deck only goes up to $150k and other lenders can do much more depending on your business profile. 2) How much is the interest on interest that I will pay to refinance my balance and can I utilize the additional funds in a way to offset this cost? 3) Who is the new lender that I will be working with (if applicable) and are they a reputable company?

On Deck has the least documentation requirements of all the lenders out there so that makes working with them a breeze. Some of the other lenders have onerous documentation requirements that makes it feel like you're having your prostate examined and the rest are somewhere in between. You need to realize this before you start shopping around. If you don't mind jumping through a lot more hoops to get the amount of money and the rates you want, then it's worth exploring your options.

But by all means, do NOT stack. On Deck will not work with you until the second position is paid in full and you will become persona non grata to many of the reputable lenders out there.

[businessgrowthcapital]

I sent you a pm

[AERO2020]

Wow! That's really great advise. I'll have to do the math. And forgive me if I sound naive, is "Stacking" legal or ethical?
And how does one find the right fit, I never knew this was such a explosive industry. The last thing I want is to apply with
what I believe to be a direct lender and end up with a broker that kills my credit ruined with inquiries.

This has suddenly become very perplexing. Is there a way to get quotes with review of the business credit and bank statements, and
when we find the right situation provide the personal credit info to prevent my personal credit getting multiple inquires. On Deck did
a soft inquiry and had no effect on my score. My personal score is 720 and I'd like to keep it there

[MCNetwork]

Since the merchant cash advance industry is unregulated, stacking is technically legal although many lenders frown upon it. Some of their contracts state it to be a breach of contract. As far as ethical? That's also a gray area. It really depends on who you ask. I've helped some merchants get stacked advances because it fit their immediate needs and I've discouraged many merchants from doing it. It all depends on your situation.

[GRP Funding]

I see On Deck credit inquiries show on people's reports all the the time. The reason it probably didn't impact your score much or at all is because you have enough established trade history to balance the inquiry.

[rld]

I think your best bet would be to find a good broker that you can trust. Then let him or her do the work for you when you're ready to get more cash.

I personally have known the majority of my clients since the '90's and they work with me because they can trust me to find them the best deal out there. Brokers are paid commission by the lender and can shop your deal to a couple different lenders to get you the best factor possible. So it isn't like you are going to be charged any more for using a broker.. in fact.. many times a broker may get you a better offer than going to a lender on your own.

[Chambo]

Thank you for the advice Brian, I don't want to "Stack" had no idea what that even was. Thank God I found this forum,
and learned a great deal about the in's and out's of Stacking. I'm looking for funding to Payoff the OnDeck Balance,
and get a lower rate on additional working capital. I like On Deck and I can renew with them, but If I can pay them off
and get a better rate, it'll save me a healthy amount of money for my new project.

None of the companies you mentioned above will give you a better rate than you are already getting in house with ODC

[MCNetwork]

Brokers are paid commission by the lender and can shop your deal to a couple different lenders to get you the best factor possible. So it isn't like you are going to be charged any more for using a broker.. in fact.. many times a broker may get you a better offer than going to a lender on your own.

Absolutely true. Lenders like to use the phrase "deal directly with the lender and eliminate the middleman (i.e. the broker) so you can get the wholesale rate." While it sounds logical, it's just a sales pitch. Lenders have high overhead to support armies of employees and fancy office space so they will try to maximize the rates that they sell to a merchant. The in-house sales rep is trying to earn the best commission for himself. I've worked as an in-house sales rep for a large firm and the rates I've sold are no different than the ones I currently sell as a broker. Many of the brokers are hungrier, have less overhead and are willing to cut rates to win the business. A good broker can navigate through the maze of lenders and find the best option for a client. Dealing directly with the lender gives you a limited set of options and it's easy for one merchant to get lost in the shuffle. At the end of the day, the merchant should let the quotes do the talking.

[channin19]

None of the companies you mentioned above will give you a better rate than you are already getting in house with ODC

I think this is one of the clear instances where a broker or advisor earns his pay. ODC does have great rates but may cap the term to 6 or 9 months. The deal may not qualify for premium pricing at ODC but may at another shop.

[MOVEAHEADNOW]

Read your post! Give me a call Richard Maxwell...516.324.4268. I can help with your need! Look forward to hearing from you!

[JSL23]

I will agree with MCN that going with a good Broker/ISO is the smart move. When dealing with an in-house sales rep, that sales rep is trying to sell their product, and their product alone. With a good, experienced Broker you get an objective Expert's opinion. The Broker basically plays Matchmaker, pairing the Business Owner with the right Lender. They will know every Lender's Underwriting requirements, which industries they prefer and how to navigate all of these areas for you. There are also, unfortunately, the bad brokers who just send an application to every Lender out there and devalue the file (not to mention your Credit score). You should look them up online before working with them and make sure they do not charge any type of "Application Fee" or anything of that nature. ISOs/Brokers get paid by the Lender only.

Regarding Stacking, it is simply when you take a loan/cash advance on top of an existing one. It can be a 2nd position, 3rd, 4th, etc. Like others have said, you will get a wide range of opinions regarding stacking. I personally think 2nd positions are okay, depending on the situation. If it is manageable for you to pay two Lenders at once and you have a use for the funds that will improve your business than go for it.
Example: you have $8,000 remaining on a $25,000 advance. A Direct lender offers you $20,000 at a 1.40($24,000 total payback), but you have to pay off your balance. So you are ONLY netting $12,000 and paying back $24,000. Interest on top of Interest. The other choice is an ISO or Lender that "stacks" or offers 2nd positions offering you $15,000, at a slightly higher 1.42($21,300 total payback) but you net the full $15,000. You net $3,000 more and PAY $5700 LESS. Which would you rather do?

I do agree with most that anything beyond a second position (I have seen 4 or 5 Lenders on people's Bank Statements) is excessive and can do more harm than good for you in the long run.

[rld]

I have a client right now that didn't take my advice and has 5 loans he is trying to pay.

He is going to have to file chapter 11. You want to avoid stacking beyond a short term 2nd like the plague.

I am sure you have had a million PM's from brokers and lenders trying to get your business by now.. If you haven't found the right one yet send me a PM and I would be willing to run the numbers for you and give you my advice whether to pay off ODC or get a 2nd or just ride it out. Sometimes not making a move at all is the best course of action.

[Travis MSG]

I'm a broker as well as a private funding source for my clients that don't meet my own standards. I work with OnDeck and I know that stacking on them is bad for your relationship. OnDeck will build your business credit and you don't want them also reporting you stacked on them. In regards to you being called and promised better rates, it's only a pitch to get your documents 99% of the time.
There are two lenders who compete with OnDeck. I work with them as well. The companies you mentioned are "ISOs" (brokers). Nomatter what you do, make sure you pay ODC off. No second position, plus 2nd position is more expensive. I would like to speak with you if you are back in the market for capital. I can provide as much as your seeking. I do the traditional advances, I will buy and lease property for additional locations, and I will provide asses based funding. Based on what I see here, I believe you may qualify for my "in-house" funding.
Please contact me if you have not signed a contract yet.
Travis
O- 646-561-3072

PS, watch JSL. The math I see in his post is incorrect. 20K at 1.40 is 28k, not 24k

[JSL23]

You're right-should not do math quickly in my head. But really, who cares?! The point remains the same: Paying a slightly more expensive 2nd position, in certain situations makes a lot more sense than a Refi (okay so he is paying back $28,000 even better).

PS-watch Travis MSG "you may qualify for my in-house funding" is code for "I'm a broker that is going to send your application to every Lender on the block! And if you would like something quasi asset based I can offer the WBL product!" And Travis, it is A-S-S-E-T based, not A-S-S-E-S based, although Asses based funding is something I'd love to see!

[MCNetwork]

Lol a lot of nitpicking going on here!

[JSL23]

Lol a lot of nitpicking going on here!

Yea, guilty as charged. The only thing as annoying as the "Grammar Police" is the "Math Police" and while I should have taken 5 extra seconds to use my calculator, I think the initial point I made was understood. There was no need to take an unprovoked shot at me, especially when I wasn't even trying to get the guy to send me an app, but he is using cheesy sales tactics from 1989!

[FastCapital360]

Hello,

I just want to be clear that Fast Capital 360, LLC 
2 Rector Street, Suite 2104, New York, New York 10006 is not where we are located. We are located at:
Address: 95 James Way #113, Southampton, PA 18966 - We are not the same company as originally discussed above.

[Christian]

Get the new capital from OD and ask for a "top up". It will yield the lowest payment, cheapest cost of money, and be easy. It's simple.