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05-03-2018, 11:05 AM #1
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Stacking !!!!!!
With all this stacking i have seen on statements lately its getting me in the mood for pancakes !!!! When will it end
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05-03-2018, 11:29 AM #2
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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.
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05-03-2018, 11:44 AM #3
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05-03-2018, 11:48 AM #4John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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05-03-2018, 12:13 PM #5
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05-03-2018, 12:21 PM #6
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05-03-2018, 12:24 PM #7Karen37aGuest
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05-03-2018, 11:34 AM #8John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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05-03-2018, 11:48 AM #9
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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.
Last edited by MCNetwork; 05-03-2018 at 11:50 AM.
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05-03-2018, 11:52 AM #10
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05-03-2018, 12:00 PM #11
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- Oct 2016
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I don't even know if a no stacking clause is even enforceable when selling future receivables.
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05-03-2018, 12:09 PM #12John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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05-03-2018, 12:14 PM #13Karen37aGuest
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.Last edited by Karen37a; 05-03-2018 at 12:41 PM. Reason: add*
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05-03-2018, 12:53 PM #14
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- Feb 2018
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- 1,349
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.
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05-03-2018, 12:55 PM #15Karen37aGuest
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
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05-03-2018, 12:59 PM #16Karen37aGuestrenewals- 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
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05-03-2018, 01:12 PM #17
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- Feb 2018
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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.
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05-03-2018, 01:24 PM #18Karen37aGuest
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.
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05-03-2018, 01:14 PM #19
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- Sep 2012
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- New York, NY
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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.
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05-03-2018, 01:18 PM #20
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- Apr 2018
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- 104
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05-03-2018, 01:28 PM #21
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
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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05-03-2018, 01:29 PM #22
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- Sep 2012
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- New York, NY
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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.
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05-03-2018, 02:52 PM #23
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Amanda Kingsley
DailyFunder: WhoisKingsley
This is me. https://www.facebook.com/whoiskingsley
I am Here too. https://www.facebook.com/groups/TheClosersGroup
Always Live and Lead with Integrity.
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05-03-2018, 01:30 PM #24
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- Oct 2016
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I don’t have a problem with stacking 7 advances. It’s the 8th one that I find obscene.
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05-03-2018, 01:35 PM #25
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if a merchant is desperate enough to take 3rd and 4th positions, then the original funder would have been screwed anyway. At least he gets the benefit of lasting a little longer than if the merchant didn't take a stack.
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