[MCNetwork]

Nathan - your case of the client who can get the new furniture is a great example of someone with a legitimate need for "quick cash" and there is a strong business case that he will make the money back and then some. A year ago, we would have referred this client straight to an MCA or daily debit product. Today, we would encourage the client to go to a longer term alternative lender with no pre-payment penalties. If things work out as planned for the client, his finance costs will be a 1/3 to a 1/2 and his effort will be just about the same. He will also get the money quickly. Based on this, is there any reason in the world (other then lower commission) that anyone in good faith wouldn't recommend our path to the client.

That's not to say that if they aren't eligible for the longer term product, we wouldn't recommend an MCA or a daily debit as a Plan B in this situation. But our first choice would be the longer amm.

Why would you use a long term lender to buy some furniture?? You would only use long term lenders for the high priced fixed cost expenditures. There's no need to carry a 3 year note on furniture purchases when you can have it paid in 6 months with an MCA. Based on your thinking, a business owner would accumulate several long term notes whenever he had relatively small purchases that needed to be financed. And then when he needed to finance a bigger project, he'd be overextended by the small loans that should have been taken cared of sooner rather than later and he wouldn't qualify for the bigger loan. Doesn't make sense to me. MCAs are meant to be used as short term band aids, not long term crutches. When deployed properly, they can work well in conjunction with bank loans. In order to decide between short term and long term money, you have to look at the amount required and calculate the ROI.