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  1. #1

    5 Stacked- Negative days

    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?

  2. #2
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    Quote Originally Posted by CashCat View Post

    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.

  3. #3
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    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.

  4. #4
    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...

  5. #5
    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.

  6. #6
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    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)


  7. #7
    Cash Cat, rule #1 in this industry: DON'T EVER BELIEVE A WORD THE MERCHANT SAYS

    rule #2: DON'T FORGET RULE #1

  8. #8
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    Quote Originally Posted by CashCat View Post
    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.

  9. #9
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    Quote Originally Posted by CashCat View Post
    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?

  10. #10
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    Quote Originally Posted by RickyR3712 View Post
    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.

  11. #11
    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.

  12. #12
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    Quote Originally Posted by CashCat View Post
    1.5 weeks later the Lender ended up "Backdooring" the deal through another company of his.
    What lender?

  13. #13
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    Quote Originally Posted by CashCat View Post
    He's 10k negative today.
    He's effectively out of business.

  14. #14
    Hi WCF,

    I think if I say something here another ISO/Broker will cut and paste it and send it to the "Lying Lender" and I don't want the drama......sooo I can tell you this....

    Who it is NOT:

    Not Fundkite
    Not Arcarius
    Not Mesa
    Not ML

    The "Lying Lender" always charges the same flat rate.

  15. #15
    Karen37a
    Guest
    Quote Originally Posted by WestCoastFunding View Post
    He's effectively out of business.

    No. He just defaulted on monies. He can still be in business or just change the name of his LLC and ein number; From Xyz cleaning to ABC Cleaners. e.g.


    What you do is this. You take a hard hard look at the guy's bank statements, cash flow etc . Then you scratch your head thinking...where did the money go?

    Then retrace the steps...first 250k ...spent paid back? Another 150k, 100k? paid back That's one-quarter of a million dollars, then another
    ( we get immune or lose internal shock value over numbers after doing business awhile thinking...ugg he only wants 40k...small deal)
    . I have to slap myself back into reality at times...that's half a million...million...etc).

    So sit down and trace the money. Where did it go? How was it spent? If the merchant has a bottomless pit of negative cash flow sucking up money...that's that. Something went wrong SOMEWHERE for him to come for the first ...then second.

    I do not know how this merchant got 5 or 15 advances but it went thru underwriting and someone funded it....and he accepted it. ( he didn't say omg how did 100k wind up in my bank account then 50k..let me send this back)

    People cant play the "disadvantaged merchant who got forced to take 500k and doesn't know where he put it bit" now that some of the money has to be returned.If I say "no one will consolidate that" some people will come out of the woodwork to give you fake offers to prove me wrong....OR maybe fund him. This isn't a shell game.

  16. #16
    Karen37a
    Guest
    Everyone feels guilty after returning to the casino and losing their arse. You cant blame it on the fact that you got mailed a free lunch at the casino buffet and somehow wandered over the card tables and bet the house farm and your first born grandkids.

    No one should have given him that many chips or markers.But its done now.

    Live and learn

  17. #17
    What the hell are you talking about?

  18. #18
    Karen37a
    Guest
    Quote Originally Posted by CashCat View Post
    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
    Last edited by Karen37a; 12-26-2017 at 06:01 PM.

  19. #19
    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.

  20. #20
    Karen37a
    Guest
    Quote Originally Posted by CashCat View Post
    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.

  21. #21
    Thank you! Whew!!!

  22. #22
    Karen37a
    Guest
    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

  23. #23
    Again...another weird conversation that does not make any sense.

    Please do not comment on my threads anymore.

  24. #24
    Karen37a
    Guest
    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 !!
    Last edited by Karen37a; 12-26-2017 at 07:01 PM. Reason: waving **

  25. #25
    shhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh hhhhhhhhhh...
    stop talking

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