Reverse consolidation breach of contract?
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  1. #1
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    Reverse consolidation breach of contract?

    Can a merchant request to have the deployment of capital stop and just pay whatever has been deployed? Is that a brerach of contract?

    Can a broker legally advise him to do that?

  2. #2
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    interesting question

  3. #3
    No broker should advise that unless they've read the agreement. It all depends on the contract language. Theoretically, if the funder doesn't deploy all the distributions owed to the merchant than the contract hasn't been fulfilled yet. So if the merchant wanted to adjust from the original terms and stop the distributions they'd need to work that out with the funder. As someone who has done a few, I'd be very happy if one of my customers on a reverse said they didn't need my distributions anymore. I would work out a settlement amount and new payment structure to support the remaining balance.

  4. #4
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    Quote Originally Posted by mikem View Post
    Can a merchant request to have the deployment of capital stop and just pay whatever has been deployed? Is that a brerach of contract?

    Can a broker legally advise him to do that?
    That is a default and breech of agreement!!!
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  5. #5
    I've done it before with ML but got their permission before doing anything. They stopped the disbursements and the merchant paid back what he receieved plus payback. Dave is great to work with!

  6. #6
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    Quote Originally Posted by SFllc View Post
    I've done it before with ML but got their permission before doing anything. They stopped the disbursements and the merchant paid back what he receieved plus payback. Dave is great to work with!
    Thanks. I appreciate the shout-out. Most important thing is communication with the funder.

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