[kingcash555]

With all this stacking i have seen on statements lately its getting me in the mood for pancakes !!!! When will it end

[abfunders]

It will only end when the funders/lenders who have no-stacking agreements will sue other lenders/funders brokers for tortuous interference.

If it happens in the MCA industry, that will make them more vicious than the banks with their SBAs that there's probably not a single person on this board that hasn't stacked on top.

[J.Celifarco]

With all this stacking i have seen on statements lately its getting me in the mood for pancakes !!!! When will it end

I wish I knew because it has killed my renewal book

[Ktolbert85]

It will only end when the funders/lenders who have no-stacking agreements will sue other lenders/funders brokers for tortuous interference.

If it happens in the MCA industry, that will make them more vicious than the banks with their SBAs that there's probably not a single person on this board that hasn't stacked on top.

Why sue the lenders and not the borrowers? The borrower is the one under contract and is breaching the contract by stacking.

[MCNetwork]

He's got a point. The merchant is the one making the choices. It's our job as brokers to educate our clients about stacking and its perils and consequences. At the very least we should be the ones arranging the stacks for them. Within reason of course.

[J.Celifarco]

Why sue the lenders and not the borrowers? The borrower is the one under contract and is breaching the contract by stacking.

because the bank is facilitating it. Its both parties that would be subject to a lawsuit if anyone ever decided to really start suing for this

[MidnightAdvance]

With all this stacking i have seen on statements lately its getting me in the mood for pancakes !!!! When will it end

Every day something else, negative energy.

[WestCoastFunding]

I don't even know if a no stacking clause is even enforceable when selling future receivables.

[J.Celifarco]

I don't even know if a no stacking clause is even enforceable when selling future receivables.

I am not sure what the status is of any lawsuits that have arisen from this so I really dont know..

[StipMeBabyOneMoreTime]

Why sue the lenders and not the borrowers? The borrower is the one under contract and is breaching the contract by stacking.

It's more cost effective and sends a bigger message if you can scare away the competition. Letting the market know you're serious means you get more bang for your litigation buck.

[Karen37a]

I don't even know if a no stacking clause is even enforceable when selling future receivables.

this


Also Ive said this before "low hanging fruit" speech

The better you get in sales and the more knowledgeable about your products the better clients/merchants you get.

If you cant get past a secretary who makes 50k you cant get past the 100k one to the merchants CEOs who make big bucks $$ and if you do you have 30 seconds to impress them before then hang up on you.

Most brokers are only reaching the people without secretaries or the ones who have a secretary who makes 20k...therefore they do not make 500k-1 million a month etc etc with a 700 credit score.

I used to get yelled at when I worked for someone from my coworkers...they wanted to know where I got the special leads from..no matter what I said or did they couldn't understand that I was calling the same leads just with better sales and phone skills.

Day in day out *****ing at me until i made up a story that the manager was feeding me special leads as a beta test LOL they yelled at him for a few weeks instead of me( even though I retracted the story the same day)....why does she get all the good leads LOOL

Just like some brokers think sales is blind luck. It isnt.add ** Either get with an independent iso/mentor so you can be coached thru it ...or try to get your 10 points and go out with a a bang/meltdown like most of the catfish brokers or resort to stealing/backdooring like a piker.

[WestCoastFunding]

It's more cost effective and sends a bigger message if you can scare away the competition. Letting the market know you're serious means you get more bang for your litigation buck.

This is true. Although, this strategy didn't save Dealstruck from collapsing.

[Karen37a]

This is true. Although, this strategy didn't save Dealstruck from collapsing.

I thought they couldnt raise 3 million in investment capital for new advances?

I wont laugh

[fundingsmbs]

didn't rapidadvance sue pearl with a trial date of june 25th? or did that settle?

small business financial solutions llc (rapid) vs Pearl beta Funding LLC

at this stage, stacking is neither illegal, nor, has there been any case law setting precedent against it. A bulk of today's business layers with multiple companies. Stacking also changed the industry, as, the prior model was, first position only, and, if the merchant wanted another round of advances, the competitor had to pay off first positon. That accelerated the repayment of the advance and kept investor very happy. Now, merchants do not need to payoff balances or renew with first position funders. They can simply go online or call their broker and get a second position + with ease.

The trial, if it continues, should bring up some very interesting topics. I would assume anyone that has Pearl's model, will be assisting them with a war chest to fight this lawsuit as it challenges the very model many have created to fund business today.

renewals- stacking has had a deep impact on them. The question remains, can any one company have a monopoly of funding business and if not, at what point is stacking acceptable and with what parameters.

[Karen37a]

https://www.crowdfundinsider.com/201...ts-operations/

You cant drag rates down to no profit level

** i have been saying its not even my money and i know rates cant go below certain costs

[Karen37a]

renewals- stacking has had a deep impact on them. The question remains, can any one company have a monopoly of funding business and if not, at what point is stacking acceptable and with what parameters

I agree with this.I tried to solve this puzzle years ago...good luck getting people to agree

[fundingsmbs]

the same could be said about refinancing merchants on renewals. taking an existing balance and compounding that with new funding. what is better economically for a merchant, a refi or a second positon when you crunch the #s. if the goal is to really clean things up, it has to be applied all around.

[MCNetwork]

Years ago I used to view stackers with outrage and disdain and treated them like pariahs and the scourge of the industry. Now I realize they serve an important role in the MCA ecosystem to keep it healthy and thriving, Stackers and first position funders share a symbiotic relationship, like barnacles and whales. They can't live without each another.

Now I view stacks as just another product offering. You learn to adapt to changes in the competitive climate or you perish.

[StipMeBabyOneMoreTime]

Years ago I used to view stackers with outrage and disdain and treated them like pariahs and the scourge of the industry. Now I realize they serve an important role in the MCA ecosystem to keep it healthy and thriving, Stackers and first position funders share a symbiotic relationship, like barnacles and whales. They can't live without each another.

Now I view stacks as just another product offering. You learn to adapt to changes in the competitive climate or you perish.

Can you elaborate on the symbiotic relationship? I always likened it to a leach on a host rather than a barnacle on a whale.

[Karen37a]

the same could be said about refinancing merchants on renewals. taking an existing balance and compounding that with new funding. what is better economically for a merchant, a refi or a second positon when you crunch the #s. if the goal is to really clean things up, it has to be applied all around.

There is a healthy second vs a double dip

In the end I do not stack myself/ my funder once I get the merchant into 1st position which is my goal

And that all she wrote...everyone can keep stacking so I run behind them and mop it up

Brokers will stack to get 1k now vs wait for 10 k in 3 weeks...and as you know funders go to steal $1500 or 2 % from a ruthless ex-stockbroker vs get millions in deals in the future and renewals and low defaults

This is my marketing strategy...always has been always will be ...best advice

And you are never going to change them...5% are good. You have to change human nature, people are what they are. That's that.

[WestCoastFunding]

I thought they couldnt raise 3 million in investment capital for new advances?

I wont laugh

Their problem was taking merchants with multiple cash advances, and refinancing them into 3 year term loans — thinking the merchant would never stack them again.

[J.Celifarco]

Years ago I used to view stackers with outrage and disdain and treated them like pariahs and the scourge of the industry. Now I realize they serve an important role in the MCA ecosystem to keep it healthy and thriving, Stackers and first position funders share a symbiotic relationship, like barnacles and whales. They can't live without each another.

Now I view stacks as just another product offering. You learn to adapt to changes in the competitive climate or you perish.

I agree with this statement completely when you are talking about seconds and maybe even a small % of 3rds. That said the majority of stacks that go out further then a second position kill the merchant and completely screw over whoever the first position funder is. If I was the first position bank I would be suing everyone I could that put my money at risk

[MCNetwork]

Stackers plug the gaps in the original funders programs. They meet a need that can't be filled by the original provider. One can argue that the stackers even keep problematic merchants afloat longer so he can repay the original advance and for that, the first position companies should be eternally grateful.

[WestCoastFunding]

I don’t have a problem with stacking 7 advances. It’s the 8th one that I find obscene.

[Karen37a]

Their problem was taking merchants with multiple cash advances, and refinancing them into 3 year term loans — thinking the merchant would never stack them again.

Almost all of my merchants dont stack me again ...they made the wrong choices because you cant just be book smart in Finance. You must be street smart as well and not fall for someones bs.

You cant just learn as you go with other peoples money...make your bones.