[CashCat]

Merchant has 5 balances...and over the Christmas holiday he is now negative.

Any hope for this merchant?

Has a home equity line closing at the end of the week....

Any advice on what he can do? Call the lenders?

PS. Merchant is a Victim of fraud..(debanked) had an article on it that described exactly what happened to this merchant...

A Broker promised him if he "took the 5 advances" they had a company that would consolidate them into a "Monthly payment" over 5 years. Since July he has been on the Cash Advance Cycle of hell...borrowing to pay back...and he keeps digging himself in and is now negative...

What to do?

[RickyR3712]

PS. Merchant is a Victim of fraud..(debanked) had an article on it that described exactly what happened to this merchant...

A Broker promised him if he "took the 5 advances" they had a company that would consolidate them into a "Monthly payment" over 5 years. Since July he has been on the Cash Advance Cycle of hell...borrowing to pay back...and he keeps digging himself in and is now negative...

What to do?

Why is this called fraud? I get that he was lied to but my rule is if they is no police report than there was no fraud.I have every week people claiming fraud for this for that but rarely can provide any proof that it was fraud.People use the fraud word to lightly,
Recent merchant I had claimed his sectary stole over 30k from him,yet he did not file a police report.
In your case if someone wrote a letter of intent or put in writing that they were giving him the 5 year and he needed to take these first,suing that person will be your merchant best bet.

[CashCat]

HI Ricky,

What can the police to about it?

Also...the merchant was told he had to pay on time for 30 days to get the 5 year deal. By then the Conman was gone.

The merchant has borrowed from family, sold assets, prayed, begged and has worked his butt off to get out of the Cash Advance Cycle of hell...but is now negative.

However the daily payments are sitting at $3700 a day. He has run out of solutions...and I have nothing to offer the poor guy.

[WestCoastFunding]

HI Ricky,

What can the police to about it?

Also...the merchant was told he had to pay on time for 30 days to get the 5 year deal. By then the Conman was gone.

The merchant has borrowed from family, sold assets, prayed, begged and has worked his butt off to get out of the Cash Advance Cycle of hell...but is now negative.

However the daily payments are sitting at $3700 a day. He has run out of solutions...and I have nothing to offer the poor guy.

Stop. The merchant is not a victim. When he stacked those 5 advances I’m sure he lied to some of those funders.

[RickyR3712]

HI Ricky,

What can the police to about it?

Also...the merchant was told he had to pay on time for 30 days to get the 5 year deal. By then the Conman was gone.

The merchant has borrowed from family, sold assets, prayed, begged and has worked his butt off to get out of the Cash Advance Cycle of hell...but is now negative.

However the daily payments are sitting at $3700 a day. He has run out of solutions...and I have nothing to offer the poor guy.

If the conman put it in writing there is what to do.
Have you tried one of the reverse consolidators?

[ryan $]

If the conman put it in writing there is what to do.
Have you tried one of the reverse consolidators?

Hes Neg. Im assuming bouncing payments. Not gonna happen.

[CashCat]

Ricky,

Yea...conman didn't put it in writing.

We had a Good offer for the Reverse but the merchant needed Upfront Capital and Reverse Combo.

We submitted the deal to a lender that does both the (upfront/reverse combo) and the lender took TWO whole days to underwrite then turned it down. When I called the lender he said "he ran it through underwriting twice" to try to make it work. and ultimately said to me "I just don't like the deal"....

THEN....

1.5 weeks later the Lender ended up "Backdooring" the deal through another company of his.

The customer did not want to work with them after that. and besides the rate was the highest in the industry at 1.50 and overall just a bad deal.

So we've tried everything....I just don't know what he should do? or call? or???

He's 10k negative today.

[WestCoastFunding]

1.5 weeks later the Lender ended up "Backdooring" the deal through another company of his.

What lender?

[WestCoastFunding]

He's 10k negative today.

He's effectively out of business.

[WestCoastFunding]

Hopefully that home equity line will save him. While I’m sure the broker did tell him they would consolidate the 5 advances, the merchant knew what he was doing.

I love the line about having a lender that will provide them a 5 year term to consolidate the advances. Why not just go to them in the first place. Because they don’t exist. And deep down the merchant knows it, too. They just want to have someone to blame when everything crumbles.

[CashCat]

HI..WCF..

I did believe that too BUT after dealing with this merchant for a few months I do believe he is the victim of fraud. He has almost killed himself to pay them off. He also tells me of the Scathing messages he sends the guy that did this. He is determined to get back on the right track ...he said he used to get on deck deals for $250k and wants to be that customer again...but the guy who defrauded him lied very well...not only that charged $15k separate broker fee...

[ryan $]

We can get him a bank loan - 5-10 year term, low rates - monthly payments.

in the meantime well give him a cash advance (the closing process is long)

[fundyoutoo]

Cash Cat, rule #1 in this industry: DON'T EVER BELIEVE A WORD THE MERCHANT SAYS

rule #2: DON'T FORGET RULE #1

[CashCat]

What the hell are you talking about?

[Karen37a]

What the hell are you talking about?

Groundhogs day


This is unsecured money ...no lien. If it was a Mortgage someone would foreclose.

Why did he take the first cash advance? Wasnt making enough money?


Where did all the money go that he received?

why is it wrong for cash advance companies to want the money they gave to someone back?

Who signed the documents? If he received excess money why did ht not return it immediately?

Why can't he make payments anymore and more importantly....why would anyone want to give more money to someone who is overextended?


What is it that you want to do. Help him get more money? throw more money at this merchant so he can default a few more months down the line? Jpow do you know he is making enough money to survive.

50% of business go under with our without a cash advance in the first 2-5 years


Its the rate right?...follow the rate droppers advice. Gl in cash advances

[CashCat]

Karen,

You did not read the first post...go back and read it.

If you have something that can help please do...but all of this "chatter" without any "relevance" is annoying.

[Karen37a]

Karen,

You did not read the first post...go back and read it.

If you have something that can help please do...but all of this "chatter" without any "relevance" is annoying.

I read this post and many like it same scenario 30 years.....you reread

your deal is dead...go find another.

You are on ignore now.

[CashCat]

Thank you! Whew!!!

[Karen37a]

Ps. Some of you have no clue as to what you looked like to me the day I entered MCA. Dropping rate INTO a crash on defaulted merchants to make a sale.

trying to preach the drop rate to 2-5%

Like some crazy bizarro world. You swore you were the bee's knees though...didn't ya

[CashCat]

Again...another weird conversation that does not make any sense.

Please do not comment on my threads anymore.

[Karen37a]

Big Money needs to show mercy to the old timers who hear the same convos over and over new face new seat, new headset.

Advice to newbies***

absorb what someone just told you. Until you can close 1 million a month personally....shhh ( repeat convo again)


I wish all the newbies well, including newbie traders and funders...no more advice for the new year from me.


Happy New Year everyone !!

[CashCat]

shhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh hhhhhhhhhh...
stop talking

[RickyR3712]

Best advice I can give newbies is ignore the crazy lady.I do not need to say names ,you will figure it out yourself rather quickly

[CashCat]

Thanks!