[jotucker1983]

I am only few years into this industry so forgive naive question. I know there is no barrier for entry but don't lenders need proven platforms to stay organized syndicate, have some type of capital minimum requirement even before calling themselves a lender? How do new lenders literally just pop up by the hundreds daily? I don't get it. No history or experience in the business and just say yea they are a lender now. I am stating this question because I just had a conversation with lender trying to sign us up...I will keep their name off this not trying to drag them but had no lending experience 3 guys not one of them with MCA experience but were they were very successful in their respective fields according to them and decided to say ok lets join our money together and start lending? is it really that easy?

In a way yes, because there's no real barrier to entry "per say". Now it also depends upon how the funder categorizes themselves, because if they are doing actual "loans" that might require additional regulatory procedures.

But in general, it would be great if this industry had a real barrier, where individuals can't just walk in here and open up a shop as either a broker or a funder.

I just think with the mass amount of personal and commercial sensitive data we collect, that in and of itself should warrant real regulatory barriers that require various testing/licensure/certifications to get in and stay in.

It would help clean up the industry, help protect profit margins, and help protect portfolios.