[TheShitzuofMCA]

Hello my MCA professionals,



I have been getting calls to the office about reverse consolidations? Is this something new, how does it work exactly? Sounds like they are white labeling this product based on my experience. I'm curious to know who is the originator of this product..

[rockingfunder]

Hello my MCA professionals,



I have been getting calls to the office about reverse consolidations? Is this something new, how does it work exactly? Sounds like they are white labeling this product based on my experience. I'm curious to know who is the originator of this product..

ML, Fundkite, Arcarius

[nrh1lp]

Not sure if ML was the original doing the reverse, but they were one of the first I know of. Basically for people that are stacked out and near the tail end of the advances the funder doing a reverse will give weekly disbursements into the chk acct to help float the merchant a little bit while they are struggling. It usually helped reduce the obligations by about 20-30% ish depending on the specific. Ex merchant is paying $500/day ($2500/wk) reverse funder will wire 2500 per week and will pull $350 day to try and give the merchant a little breathing room.

[CraaaCraaa Radio]

Hello my MCA professionals,



I have been getting calls to the office about reverse consolidations? Is this something new, how does it work exactly? Sounds like they are white labeling this product based on my experience. I'm curious to know who is the originator of this product..

You just don't know the product and how it works to say something like that... Ha aha Ana

Premier Capital and Par Funding also do reverse consolidations

[CraaaCraaa Radio]

What does fund kite pay on reverse consolidations

[MidnightAdvance]

Midnight does reverse consolidations as of late.

[Sachip24]

Midnight does reverse consolidations as of late.

how much does Midnight pay on there reverses? Is it paid upfront on full amount or as deposits are made to merchant?

[HumbleDBAD]

FundKite has been doing them also , it helps the merchant out ,gives them some breathable room to stay current with their obligations to lenders. I know this because they did one for me this week. I’ve been working with the merchant for years , when I presented him the Rev/consolidation he was blown away with how it works. This product as long as it’s done with good intentions can be a great thing for merchants and the industry

[CraaaCraaa Radio]

FundRite has been doing them also , it helps the merchant out ,gives them some breathable room to stay current with their obligations to lenders. I know this because they did one for me this week. I’ve been working with the merchant for years , when I presented him the Rev/consolidation he was blown away with how it works. This product as long as it’s done with good intentions can be a great thing for merchants and the industry

Premier Capital Funding has some solid reverse consolidations they offer merchants.

Par Funding is another funder as well that does great consolidations too
.

I've funded reverse consolidations with both Par & Premier. Hence i know the commission structure.

With Fundkite i dont know or remember what they offer?

I have a nice large file and im waiting for the mtd on both accounts, before I submit it.

[HumbleDBAD]

Yes I agree with you Par is a top notch house especially with consolidations , definitely they deserve credit there , however I definitely reccomend testing the waters with FundKite , it’s worth it and can be a great addition to your relations. Pm me at anytime I would be happy to discuss it further if you would like and explain more.

[CraaaCraaa Radio]

Yes I agree with you Par is a top notch house especially with consolidations , definitely they deserve credit there , however I definitely reccomend testing the waters with FundRite , it’s worth it and can be a great addition to your relations. Pm me at anytime I would be happy to discuss it further if you would like and explain more.

i heard from some of my colleagues that FundKite doesnt pay as much as Premier Capital Funding or Par Funding on reverse consolidations. Is that correct? Can you confirm? As I want to know, and called but they are closed I guess for now and the shabbot!!!!

[Lendvo]

The term 'reverse consolidation' is a misnomer, there is nothing 'reverse' about it.

It should be called either a 'tranched consolidation' since consolidation funds are disbursed in tranches- or perhaps 'perverse consolidation' is maybe the better name of any?

The problem with this product is that from an underwriting standpoint you are playing with fire and nothing is stopping client from stacking on top of the consolidation. With higher defaults and low disbursements your commission is looking to be tight. I can't tell you how many deals we've seen that had a perverse consolidation, a stack on top of that, and/or has done a debt settlement deal on the perverse consolidation. Don't plan on this product being around forever, once enough funders get burned the supply of this product will be very limited going forward. Look for funders with traditional consolidation programs first.

plug time: We do a regular zero-net consolidation @Lendvo to reduce payments by 50%+, full commission, high renewal rates too. Granted it's hard to qualify for this product, but when your customer does it works gangbusters. Most importantly it actually saves businesses via a pathway to exiting their screwed-up situation.

[Funder Mark]

A reverse consolidation is set up in order to save the merchant on their cash flow, and not for them to net additional working capital. Therefore, Fundkite gives a very low buy rate, 1.27, and we only allow an upsell of Five Points in order to make sure that the merchant is paying as little as possible, and that our rate will be lower than the overall Blended rate of the merchants other positions. I just declined a deal for an iso this week before submitting it, because our rate would have been higher than the merchants Blended rate on his three existing positions. If anyone would like more details, please PM me.

[Funder Mark]

i heard from some of my colleagues that FundKite doesnt pay as much as Premier Capital Funding or Par Funding on reverse consolidations. Is that correct? Can you confirm? As I want to know, and called but they are closed I guess for now and the shabbot!!!!

I do not know how much par funding pays. What I do know is that in another post, an underwriter from Premier Capital funding wrote that their buyrates come out at 140 with 10 points up sell to a 150. We are much cheaper, more sellable, the lower rates make,it easier to save the clients as much as 30%, and have no Max size for our consolidations.

[RichardGerard]

The term 'reverse consolidation' is a misnomer, there is nothing 'reverse' about it.

It should be called either a 'tranched consolidation' since consolidation funds are disbursed in tranches- or perhaps 'perverse consolidation' is maybe the better name of any?

The problem with this product is that from an underwriting standpoint you are playing with fire and nothing is stopping client from stacking on top of the consolidation. With higher defaults and low disbursements your commission is looking to be tight. I can't tell you how many deals we've seen that had a perverse consolidation, a stack on top of that, and/or has done a debt settlement deal on the perverse consolidation. Don't plan on this product being around forever, once enough funders get burned the supply of this product will be very limited going forward. Look for funders with traditional consolidation programs first.

plug time: We do a regular zero-net consolidation @Lendvo to reduce payments by 50%+, full commission, high renewal rates too. Granted it's hard to qualify for this product, but when your customer does it works gangbusters. Most importantly it actually saves businesses via a pathway to exiting their screwed-up situation.

The reality is that these reverse consolidations should be Underwritten mindful of the ability to finding a global solution to the file. The "funder' is writing weekly checks to cover the existing advances, and receiving an amount lesser than that- providing a cash flow savings.

We have been doing that with clients for quite some time- once we get a Letter of Intent- or we know that there are assets that are unencumbered- we provide liquidity by purchasing future receivables- knowing we have the exit strategy lined up. It's a win for all involved. Brokers/ISO's get commission on what we call Bridge Funding, then also earn on the larger solution.

[MidnightAdvance]

The reality is that these reverse consolidations should be Underwritten mindful of the ability to finding a global solution to the file. The "funder' is writing weekly checks to cover the existing advances, and receiving an amount lesser than that- providing a cash flow savings.

We have been doing that with clients for quite some time- once we get a Letter of Intent- or we know that there are assets that are unencumbered- we provide liquidity by purchasing future receivables- knowing we have the exit strategy lined up. It's a win for all involved. Brokers/ISO's get commission on what we call Bridge Funding, then also earn on the larger solution.

Impressive English Richard!

[CraaaCraaa Radio]

I do not know how much par funding pays. What I do know is that in another post, an underwriter from Premier Capital funding wrote that their buyrates come out at 140 with 10 points up sell to a 150. We are much cheaper, more sellable, the lower rates make,it easier to save the clients as much as 30%, and have no Max size for our consolidations.

OK so Fund-kite pays up to 5 point upsell and Premier Capital Funding pays up to 10 point upsell. I understand now totally on the commission capacity of each funder mentioned for reverse consolidations.

It's funny because on Saturday Night one of my good friends mentioned to me that files that Fundkite declines for reverse consolidations, he sends to Premier Capital Funding and the file is approved.

Something to think about I guess, as it shows me just totally different underwriting guidelines and qualifications process. All in All just because you get a decline doesn't mean it truly is a decline?

Your thoughts 💭 DF Family

[Funder Mark]

OK so Fund-kite pays up to 5 point upsell and Premier Capital Funding pays up to 10 point upsell. I understand now totally on the commission capacity of each funder mentioned for reverse consolidations.

It's funny because on Saturday Night one of my good friends mentioned to me that files that Fundkite declines for reverse consolidations, he sends to Premier Capital Funding and the file is approved.

Something to think about I guess, as it shows me just totally different underwriting guidelines and qualifications process. All in All just because you get a decline doesn't mean it truly is a decline?

Your thoughts �� DF Family

Our buy rate for this program is a 1.27, theirs is a 1.40. Naturally ours is a easier program to sell, so people come to first. I'd we we decline the file, then feel free to take it so a more expensive alternative funder.

[CraaaCraaa Radio]

Our buy rate for this program is a 1.27, theirs is a 1.40. Naturally ours is a easier program to sell, so people come to first. I'd we we decline the file, then feel free to take it so a more expensive alternative funder.

Gratitude Funder Mark on the buy rate from Fundkite regarding these reverse consolidations. I'm sure the buy rate starts at 1.27 but it's not that buy rate standard for each reverse consolidation file?

[Funder Mark]

Gratitude Funder Mark on the buy rate from Fundkite regarding these reverse consolidations. I'm sure the buy rate starts at 1.27 but it's not that buy rate standard for each reverse consolidation file?

Every reverse consolidation offer comes with a 1.27 buy rate, and around 130 days.

[CraaaCraaa Radio]

Every reverse consolidation offer comes with a 1.27 buy rate, and around 130 days.

Hhhhmmmmmmmm

[Sachip24]

Every reverse consolidation offer comes with a 1.27 buy rate, and around 130 days.

is there any instance where you can go past 6 months? 9-12 maybe or all offers are 6 months max?

[Funder Mark]

Hhhhmmmmmmmm

No games, no white-labeling, no last minute price changes. If you want to try us out, sign up!! https://fundkite.com/iso5

[Funder Mark]

is there any instance where you can go past 6 months? 9-12 maybe or all offers are 6 months max?

Coming soon!!

[Sachip24]

Coming soon!!

OK keep us posted, ive spoken with Joe couple times in the past over some possible prospects but they were just into deep. Have another im thinking of sending so wanted to know about term length. Thanks.