[1StopFunding]

Have a physician with 8 locations. He has 3 advances (IOU, CAN and On Deck). Based on the deposits showing on the statements, his advances were considerably more than what these statements show he actually averages in revenue. I've been trying to figure out if there is another account or am I totally missing something.

I get a call just now from him stating that his statements from the bank are showing his NET deposits, that he actually makes considerable more, however, it is paid out before it gets to him. He has offered to send me his expense reports that show these payouts. I told him I need something verifiable that show his credits.

What do you make of this? It sounds as if his money is deposited somewhere else before it gets to him. In this case, wouldn't a funding platform still only use his bank statements which show the net revenue to determine if they will fund him?

[omegafund]

Some lenders and invoice factors will "split" with the insurance deposits before it even hits the bank. Some of the lenders above have another lender service the advances. Or they will sweep the account to collect.
So you need to verify with the AR schedule to see what is billed and actually collected.
But was unaware that the companies above actually use this method

www.omegafund.com
720-279-4345

[GMFunding]

franchise? I know ODC and IOU won't use sweep accounts anymore.

[nwarshaw]

There are re-sellers in certain industries that this can happen with - not sure what type of business this is

For example - I am selling washing machines. I buy a washing machine from the washing machine company for $2,000 and I sell them for $3,000, I never take possession of the machine, when I sell it, the $3,000 goes into my account and the washing machine company based on me placing the order sweeps my account for the $2,000, leaving me with $1,000, but my net is $3,000. The account is not my operating account, it is a resell commission account, once the $1,000 is left, I sweep it into my operating account.

[GRP Funding]

Have a physician with 8 locations. He has 3 advances (IOU, CAN and On Deck). Based on the deposits showing on the statements, his advances were considerably more than what these statements show he actually averages in revenue. I've been trying to figure out if there is another account or am I totally missing something.

I get a call just now from him stating that his statements from the bank are showing his NET deposits, that he actually makes considerable more, however, it is paid out before it gets to him. He has offered to send me his expense reports that show these payouts. I told him I need something verifiable that show his credits.

What do you make of this? It sounds as if his money is deposited somewhere else before it gets to him. In this case, wouldn't a funding platform still only use his bank statements which show the net revenue to determine if they will fund him?

Do all 8 locations operate under the same legal entity? Are IOU, CAN, and On Deck all pulling from the same bank account?

[1StopFunding]

Brian,

Yes and yes.

[GRP Funding]

Something doesn't seem right. I wonder if ODC and CAN both funded them right around the same time and didn't see each other's payments or UCC's. They aren't companies we usually see going side-by-side with each other on the same deal.

Any transfers to/from other accounts? Or does it seem like anything important is missing (insurance deposits, CC processing, checks out, etc) ?

[SuperFunds]

Something doesn't seem right. I wonder if ODC and CAN both funded them right around the same time and didn't see each other's payments or UCC's. They aren't companies we usually see going side-by-side with each other on the same deal.

That is what I was thinking as well, I've seen that happen before usually because OnDeck doesn't check the most recent transactions and may not see it.