[jbrown]

http://debanked.com/2017/10/stacking...d-go-to-trial/

[mcaguru]

In the court of opinion one can argue anytime someone funds a merchant (first position!) that has ongoing obligations such as suppliers / landlord /employees/payroll in one way or another they are interfering with his cash flow and perhaps risking (to some degree) the merchants prior obligations with new debt.

[funding pro]

In the court of opinion one can argue anytime someone funds a merchant (first position!) that has ongoing obligations such as suppliers / landlord /employees/payroll in one way or another they are interfering with his cash flow and perhaps risking (to some degree) the merchants prior obligations with new debt.

You can, but you'd be wrong. The only argument I think you have that is valid is if someone has an SBA loan and then takes an MCA.

[mcaguru]

??

[funding pro]

You're trying to say that a 2nd position to the 1st position is the same impact as a 1st position is to their rent or their payroll. I'm saying, no, that's wrong.

You could make an argument if you were to say that the effect a 2nd has on the 1st position is similar to the impact a 1st position has on say an SBA or bank loan, but that's not what you are saying.

[cappy]

Rapids stance is funny given the fact they have a broker division of their own and stack on other lenders.....

[mcaguru]

I hear ...there may be a list out there of just about every A paper funder doing a 2nd and third ... maybe they will claim it was in error but some have it to many times....

[J.Celifarco]

I hear ...there may be a list out there of just about every A paper funder doing a 2nd and third ... maybe they will claim it was in error but some have it to many times....

are we just making stuff up now.. a list of A paper banks doing 3rd's. Where do you hear stuff like this the voices in your head?

[Michael I]

are we just making stuff up now.. a list of A paper banks doing 3rd's. Where do you hear stuff like this the voices in your head?

keep in mind he thinks he is an A lender lol

[Michael I]

you all do realize that jbrown is the ceo of rapid advance. so making up stupidity is ill advised

[MCAVeteran]

image.gif

[Lendvo]

Couple things to keep in mind on this case:

1) Tort laws rely on the UCC but are also very state by state. Each state court system will have different case law and potentially statutory issues dealing with proving a TI claim or a UCC claim. NY is virtually impossible to prove a TI claim in this space it seems for example.

2) Pearl will fight to the death here to defend its business model....expect this to take awhile in the court system...

3) The UCC claim. This could be the real real killer for stackers going forward. The court found here that Pearl and the Borrower likely colluded to interfere with Rapid's contract. It could very well shake out that senior UCC claimants will be able to collect from whatever the stackers collected once a merchant defaulted.

This is definitely the most interesting case to watch IMO.

[Chambo]

Couple things to keep in mind on this case:

1) Tort laws rely on the UCC but are also very state by state. Each state court system will have different case law and potentially statutory issues dealing with proving a TI claim or a UCC claim. NY is virtually impossible to prove a TI claim in this space it seems for example.

2) Pearl will fight to the death here to defend its business model....expect this to take awhile in the court system...

3) The UCC claim. This could be the real real killer for stackers going forward. The court found here that Pearl and the Borrower likely colluded to interfere with Rapid's contract. It could very well shake out that senior UCC claimants will be able to collect from whatever the stackers collected once a merchant defaulted.

This is definitely the most interesting case to watch IMO.

Pearl will put up a big fight, for sure. ALL the stacking companies will be behind them as well.....but can they go up against GILBERT money? That man has some serious coin

[WestCoastFunding]

This ends with YSC suing Mantis. Or vice versa.

[Chambo]

Everyone has been poo-poo'ing on this lawsuit, and making light of the dismissal on the previous Rapid suit against Everest. I've known Jeremy for a long ass time, and one thing I can tell you, he is patient and persistent. Rapid has no issue waiting this out a couple years. I've seen him go three to four years out collecting on a merchant, so why would this suit be any different. Rapid is in this for the long haul, not what is happening this month.

Plus, as I mentioned previously, he had Gilbert money behind him. Don't think anyone here has a couple billion in the coffers

[WestCoastFunding]

Are we sure Marcus isn't a Russian troll/bot?

[Eagle Funding]

Are we sure Marcus isn't a Russian troll/bot?

Why does he have to be Russian

[RickyR3712]

Are we sure Marcus isn't a Russian troll/bot?

One thing is for sure, he has huge ball of steel.To pretty much instigate rapid advance to sue them is crazy(regardless what you think you have on them).
Any chance the broker will get tied in to this lawsuit?

[Chambo]

Should they win, they will probably go after the deeper pockets...the other funders. then, knowing Jeremy and his vindictive streak, might go after a couple choice ISOs just to make a point.

Of course, this all depends on them winning this case. what I wonder is....what if Pearl buckles and settles? Will that still be considered a win?

[Lendvo]

Should they win, they will probably go after the deeper pockets...the other funders. then, knowing Jeremy and his vindictive streak, might go after a couple choice ISOs just to make a point.

Of course, this all depends on them winning this case. what I wonder is....what if Pearl buckles and settles? Will that still be considered a win?

Honestly I doubt Rapid would ever settle this. This case is to make an example to the other stackers out there and finally it looks like a 1st position shop is going to win [if you read the decision I think Rapid has them dead to rights on the UCC claim, but debatable on TI].

For Rapid winning might mean 50%+ of stackers steer clear of their files in most states. In their minds that might be worth millions a year in value.

[Chambo]

the only executive in this business that I have ever found to be more vindictive than Jeremy....was Cathy Bass. That woman can hold a grudge for eternity

[mcaguru]

the only executive in this business that I have ever found to be more vindictive than Jeremy....was Cathy Bass. That woman can hold a grudge for eternity

vindictive streak, ?? (having or showing a strong or unreasoning desire for revenge). I disagree my opinion of him was very favorable probably has the human capital ability to one day lead a CIT or a Capital One...

[mcaguru]

the only executive in this business that I have ever found to be more vindictive than Jeremy....was Cathy Bass. That woman can hold a grudge for eternity

Chambo I believe your trying to give a compliment but you can actually be harming Cathy's great image (by someone that does not know her and only sees your post) ...

[mcaguru]

Rapid is a strong force but lets not forget In 2015, Capital Z acquired Pearl Capital, Capital Z invested approximately $2.8 billion in over 40 transactions when you count the REALIZED gains they may () have a chest of 5 Billion> (maybe more maybe less)? I just don't want anyone thinking that we have a David and Goliath situation...we talking about 2 MEGA FORCES and each can hold their own!

[Cfairbank]

Rapid is a strong force but lets not forget In 2015, Capital Z acquired Pearl Capital, Capital Z invested approximately $2.8 billion in over 40 transactions when you count the REALIZED gains they may () have a chest of 5 Billion> (maybe more maybe less)? I just don't want anyone thinking that we have a David and Goliath situation...we talking about 2 MEGA FORCES and each can hold their own!

Marcus: the first two and most important rules of investing (or lending for that matter):
(1) the first loss is always the best loss
(2) never use good capital to chase bad