[Sean Cash]

from what i'm told, YellowStone reps are being less than reputable on the phone. A few YSC deals have apparently gotten funded by ODC and defaulted after a little more than a month.

Everyone has had deals go bad right out of the gate. That'd be weird if yellowstone would say something to mislead merchants on the phone considering I think they fund or co-fund most of their deals.

I had clients who had been in biz for 10 years with 750+ credit tell me within weeks of getting funded, "I'm not paying this back. I dare you to try and do something about it." They weren't financially distressed, it wasn't that they hated me, and it wasn't because of something I said on the phone. They just made a judgment call or heard from a friend that if they took money from a company over the phone, that they could get away with not paying it back. One guy actually told me it was his lawyer's "theory" that he could steal from MCAs companies legally and he was testing it out on us and that he was sorry I was the account rep that had to deal with any misfortune from it.

I've seen merchants try to employ all of these strategies:

*Get funded, default, and immediately settle out of court for a lower amount

*Get funded, default, and wait for the company to write it off and then you don't have to pay

*Get funded and change your phone # because the company that claims to be in New York is probably in the Cayman Islands somewhere in reality and will never be able to do anything about it.

The amount of merchant fraud is astounding. The brazenness of some of the things these people try can be really discouraging when you are trying to help.

They're part of the reason why rates are high in this industry.