[Scott Williams]

Anyone else notice American Express popping up more and more with funding to MCA/Loan Program merchants? Seems like i have seen a lot more merchants with open funding to American Express the last 6 months. I feel like they are targeting merchant's with MCA UCC's.

[miked]

do you think maybe they reduced the requirements and are targeting smaller merchants?

[Scott Williams]

Most of the merchants i have seen still are doing over 10k a month in American Express so not sure if they have changed any requirements.

[J.Celifarco]

I have definitely seen more of them, but I still dont know anything about what they offer or what their requirements are. If anyone knows any specifics of what they do exactly and how they do it I would appreciate it.. Its hard to pitch against something when you dont know what exactly it is that they do

[MCNetwork]

AMEX requires merchants to do 100K+ annually in AMEX cards and have been with them at least 2 years and have good credit. They will advance 25% of their annual AMEX volume up to 750K for a 12 month term at an APR of 6%. The holdback is only against AMEX cards, not VISA or Mastercard.

[MCNetwork]

I heard that Capital One is starting to get into the MCA space, along with AMEX. I foresee all the MCA providers going out of business within 2-3 years unless they can offer business loans in all 50 states. Right now, only On Deck and New Logic are well positioned to ride the next wave in business financing. The days of 1.38 factor MCAs will be a thing of the past. Funders need to evolve or perish.

[Capital Stack]

I heard that Capital One is starting to get into the MCA space, along with AMEX. I foresee all the MCA providers going out of business within 2-3 years unless they can offer business loans in all 50 states. Right now, only On Deck and New Logic are well positioned to ride the next wave in business financing. The days of 1.38 factor MCAs will be a thing of the past. Funders need to evolve or perish.

that's interesting on capone I know they have two senior debt facility's to newtek and strategic, but direct competition this is a first. as far as cleaning up the market i assure you they will only target A and b- markets and wont truly understand MCA. It is a good thing that other institutions are jumping in to this growing segment though, more options and liquidity.

[Chambo]

I heard that Capital One is starting to get into the MCA space, along with AMEX. I foresee all the MCA providers going out of business within 2-3 years unless they can offer business loans in all 50 states. Right now, only On Deck and New Logic are well positioned to ride the next wave in business financing. The days of 1.38 factor MCAs will be a thing of the past. Funders need to evolve or perish.

I would agree with this, except that these entities will still be declining merchants. Those merchants will still look elsewhere for funds. There will be a need for the old 1.30's and higher. Issue is, the "Premium", "Platinum" or whatever deals will go away, because that quality of merchants will take the deals the other guys just cannot afford to offer.

You are still only talking about 15-20% of the marketplace right now, so no need to start boarding up windows just yet. What WILL happen though is "the other guys" will have to start speeding up their proc esses, open up on SIC codes, or do something to stand out from the crowd to get folks to send them business.

[MCNetwork]

It only takes one overzealous senator to pass legislation that seriously prohibits MCAs as we know it. The MCA lawsuit in California is just a harbinger of things to come. The writing is on the wall and funders who are proactive to the changing landscape will be able to reinvent themselves and prosper in the coming years.

[MCAVeteran]

the reinvent period began a few years ago. hence why some of the funders formed loan companies selling loans not advances. or some other variation of a bank only ach program. as far as a true loan however, few have it down on a compliance level nationwide in all states. costly and difficult.

[funds999]

Anyone else notice American Express popping up more and more with funding to MCA/Loan Program merchants? Seems like i have seen a lot more merchants with open funding to American Express the last 6 months. I feel like they are targeting merchant's with MCA UCC's.

I had 5 in the last week

[GoldStandard]

Anyone else notice American Express popping up more and more with funding to MCA/Loan Program merchants? Seems like i have seen a lot more merchants with open funding to American Express the last 6 months. I feel like they are targeting merchant's with MCA UCC's.

It is Kabbage I do them all day, help customers get AMex and do Kabbage if good cash flow and credit. the Platinum / Gold cards are charge cards.
Kbbage is their Funding unless it is merchant processing related than it is actually AMex but Amex bought kabbage so all the same except for different terms depending on ACH or Remit. Kabbage is mainly a line but Amex also does MCA as low as 5-10%.

[mca2150]

It is Kabbage I do them all day, help customers get AMex and do Kabbage if good cash flow and credit. the Platinum / Gold cards are charge cards.
Kbbage is their Funding unless it is merchant processing related than it is actually AMex but Amex bought kabbage so all the same except for different terms depending on ACH or Remit. Kabbage is mainly a line but Amex also does MCA as low as 5-10%.

Amex bought Kabbage in 2021. This thread is from 2013.

[GoldStandard]

Amex bought Kabbage in 2021. This thread is from 2013.

They still operate as Kabbage internally with their line of credit have 1 funded from 2 weeks ago.

[Thegoodbroker]

Anyone else notice American Express popping up more and more with funding to MCA/Loan Program merchants? Seems like i have seen a lot more merchants with open funding to American Express the last 6 months. I feel like they are targeting merchant's with MCA UCC's.

nah, just $millions a month in marketing. they are murdering the LOC game. my closers are doing it for free to all our merchants.

[Thegoodbroker]

They still operate as Kabbage internally with their line of credit have 1 funded from 2 weeks ago.

I agree.

[abfunders]

I heard that Capital One is starting to get into the MCA space, along with AMEX. I foresee all the MCA providers going out of business within 2-3 years unless they can offer business loans in all 50 states. Right now, only On Deck and New Logic are well positioned to ride the next wave in business financing. The days of 1.38 factor MCAs will be a thing of the past. Funders need to evolve or perish.

I just noticed this thread from the activity stream. Please read this very poor prophecy from back in 2013 that I'm quoting (click the message from the activity stream).