I don't disagree with you Nathan but I think I see the industry differently. CAN basically owned it before and during the credit crisis. But all that changed from competition. I think the longer terms and lower rates were by force and not by choice. New Logic was born because of market share loss to OnDeck. Those 2 have been fighting each other for years. Terms keep getting longer and rates keep getting shaved. Other big companies like MCC were forced to roll out premium programs with longer terms to protect market share. I'm sure none of them like it but they had to do it or shrink. The big question mark is the effect on margins for companies offering longer terms/premium rates. They definitely don't like to talk about it so we'll never know until someone goes public.

I'm not sure I agree with top 20% making 80% of revenue. I think it's the other way around. 80% of accounts perform well and 20% will have some sort of issue including slow pays and defaults. At least in our portfolio that's typically the case.

As I said before i don't think the alternative long players are in much competition with the MCA/ACH world at all. I also think they may have a hard time finding enough in between bank/mca quality to fill their portfolios. I've been doing this for over 4 years and run into very few who would qualify for the new players. Definitely some viable candidates but not many and not often.

As far as stacking goes, anybody will stack when they need money. Including the premium type clients. I've seen it plenty as I'm sure everyone else on here has. Those 12-18/mo deals with NL and OD are quite ripe for it. And these are high 600 to low 700 score clients. Just ask IOU. OnDeck may end up having to buy IOU to protect their own paper. 2-5 year deals are even more ripe IMO. I think it's good that these products are re-entering the market because they are very much needed but I don't think they will be insulated as much as you do from what we are already seeing.

BTW- the 2 firms I talked to about longer terms paid 1-1.5 pts max. PM me the one who pays 3.5. That's a workable #.