[WestCoastFunding]

Ha thank you, Karen, for the very unexpected plug!

Kiss of death. Carl will now start wearing zoot suits and pinky rings.

[Karen37a]

Kiss of death. Carl will now start wearing zoot suits and pinky rings.

I'm not from pinky ring, zoot suit land...I am from Long island.

Id like to see him wear it though

lol

You mean Rolex and Hermes purse / Louie Vuitton.

You need to take a tour of NY..singing " in NY concrete jungle where dreams are made of there's nothing you cant do"

https://www.youtube.com/watch?v=BT4RlDl7z3w

Alicia Keys ...baby im from NY, lets hear it for NY NY NY

[Cfairbank]

Ha!

Note: we are actually funding 18 month to 24 month deals every week. And yes, most have a monthly payback option, no double dip, draw repaid principal if in good standing, etc.

[MCAVeteran]

How are throughputs on those terms? Out of sample 100 iso deals for example? With all the stacking and bank statement health just curious how it looks . Do you see stacking behind those 18-24 post funding?

[Cfairbank]

How are throughputs on those terms? Out of sample 100 iso deals for example? With all the stacking and bank statement health just curious how it looks . Do you see stacking behind those 18-24 post funding?

We have various ways we mitigate stacking, one of which is that our products allow merchants to draw repaid principal in as little as a month following funding (essentially, acts like a revolving line of credit). But that is just the start; we have a variety of other ways we protect our loan, and in certain circumstances (depending on business and whether our interest is truly perfected -- no i'm not talking about filing a UCC), risk is negligible on that product. But we do unsecured (other than UCC) up to 24 months as well. And the performance is strong; but yes, this is a near prime product, so many folks in MCAs won't qualify.

Are you asking 100 random deals? or 100 deals that at least make it to offer stage? I'm not going to try to state we make offers on even more than 50% of ISO deals; we have been trimming folks that can't close out or just send crap. Our biggest partners can sell it quite easily, but the pull through rate throughout the ISO channel is very hard to quantify on an apples to apples basis since we don't always know why we lost a deal -- I know many deals outside our top partners are probably lost because of commission (monthly is fixed 5% -- but again, the MINIMUM term is 12 months for that product) or if they "down-sell" to a weekly product where we still offer an industry standard commission structure. Or they (meaning our less active partners) shop our offer if they don't like a 24 month 1.31x with 5pts -- but those 5 pts are double what the other monthly payment lenders offer.

We are very comfortable with 18 or 24 months the way we do it -- but if it was an industry standard product (MCA is impossible to succeed there), I would be more concerned about those lengths -- but when our longer term product(s) that reach the right borrower I like a lot more than a high risk 9 month 1.25x. Again, we offer only term loans and that allows us to be more creative on evaluating risk and/or de-risking the customer, and our scoring system looks quite a bit different than most of the space. If a firm truly understands our product and what we are looking for, they have been very successful with not just monthly, but some of the other benefits we offer.

Pretty sure one of the deals funded today was a $250K at 1.31x paid MONTHLY over 2 years.

[MCAVeteran]

Good stuff! In the words of a bob dylan song, the times they are a changin'