[MidnightAdvance]

Coming next week: F.R.E.S.H. Start program for merchants that defaulted on Mudnight’s default program.

LOL.. We have some of them if you need.. It's definitely a high risk play, no question about that, but if we manage to price them right and bring something to the MCA market that no one else is doing, it's worthwhile.

[JMB]

I dont see why there would be complaints about Midnight fitting into a niche noone else will touch lol 5% of something is better then 0 of nothin , theres a place for every file lol

[Michael I]

i never understood why people in this industry take it so personal when he defaults .
Merchant 1 pays all his bills always got hit by hurrican harvey and lower payments on his loan or stopped for a month or two . no one touches him
merchant 2 never paid anything in his life , is 25 years old and already has 520 credit - can get a bunch of offers

now if someone took the money and ran 100% never fund the guy again but i do not see how it is higher risk than someone who never pays anything to fund someone that had some sort of story of what happened .

[MidnightAdvance]

I dont see why there would be complaints about Midnight fitting into a niche noone else will touch lol 5% of something is better then 0 of nothin , theres a place for every file lol

Thanks Joseph. Pm me for more info. John is too ethical to fund defaults (ahemm) but you can join all the others who don't think like that.

We literally give merchants a second chance, when others say no.

[J.Celifarco]

Thanks Joseph. Pm me for more info. John is too ethical to fund defaults (ahemm) but you can join all the others who don't think like that.

We literally give merchants a second chance, when others say no.

hey everyone looks at things differently, I have made it this far doing things a certain way and Im going to continue to. The Relationships a company has with the different funders can make or break them. I don't think risking a relationship where I fund a ton of business is worth funding the occasional defaulted merchant. Also it comes down to the leads you are calling and the deals you are getting in. If you are pounding only ucc's all day and that is your only lead source, you are going to come across a lot of default merchants and may think the risk is worth it. For me I only see a small amount of these types of files so to me its not worth it. Like I said everyone looks at things differently based on their individual situation, this is how I see it

[MidnightAdvance]

Interesting stat: about 10% of the deals that were funded through “second chance funding” on the default program, are now getting offers by other funding shops after rebuilding their payment history.

[ryan $]

hey everyone looks at things differently, I have made it this far doing things a certain way and Im going to continue to. The Relationships a company has with the different funders can make or break them. I don't think risking a relationship where I fund a ton of business is worth funding the occasional defaulted merchant. Also it comes down to the leads you are calling and the deals you are getting in. If you are pounding only ucc's all day and that is your only lead source, you are going to come across a lot of default merchants and may think the risk is worth it. For me I only see a small amount of these types of files so to me its not worth it. Like I said everyone looks at things differently based on their individual situation, this is how I see it

To Play Devils Advocate...

When the Hurricaine hit and ruined businesses.... it caused defaults.

Should these merchants never be funded again?

YS files defaults on slow pay merchants, if business slows.... should they never get funded again?

Your talking about ruining relationships by funding a merchant that defaulted in the past and i just dont get that.

[WestCoastFunding]

I guess it all comes down to the circumstances. It’s one thing if a merchant defaults straight out the gate, including blocked payments. But it is another if the merchant got hit by some unforeseen circumstance, and the merchant stayed in communication with the funder without stacking, but still couldn’t meet his/her obligations, but eventually made good. I think the main thing for me is, did they eventually payoff the advance or not?

[Hedley Lamarr]

My two cents..... Everyone has their own personal preference on who they will do business with....we are a free market society and there is a buyer and seller for everything....it all comes down to situation and price. Bad things happen to good businesses large and small. It is up to the capital source to determine what they are willing to do for the business owner. Personally, I will finance a company that defaulted with another institution if I have a clear understanding of why and know that it will likely not happen on my watch. If someone personally defaulted on an obligation because it benefited them without good business reasons or was advised to do so by someone who benefited economically, I would not to do business with that person.

You don't make money by signing ISO agreements, signing NDSa, getting terms sheets, getting signed proposals, or closing deals. You make money when the capital you deployed comes back ....period.

[J.Celifarco]

My two cents..... Everyone has their own personal preference on who they will do business with....we are a free market society and there is a buyer and seller for everything....it all comes down to situation and price. Bad things happen to good businesses large and small. It is up to the capital source to determine what they are willing to do for the business owner. Personally, I will finance a company that defaulted with another institution if I have a clear understanding of why and know that it will likely not happen on my watch. If someone personally defaulted on an obligation because it benefited them without good business reasons or was advised to do so by someone who benefited economically, I would not to do business with that person.

You don't make money by signing ISO agreements, signing NDSa, getting terms sheets, getting signed proposals, or closing deals. You make money when the capital you deployed comes back ....period.

True and fair point

I guess it all comes down to the circumstances. It’s one thing if a merchant defaults straight out the gate, including blocked payments. But it is another if the merchant got hit by some unforeseen circumstance, and the merchant stayed in communication with the funder without stacking, but still couldn’t meet his/her obligations, but eventually made good. I think the main thing for me is, did they eventually payoff the advance or not?

I agree with this completely but the guy you are describing here is not someone I consider a default. To me a default is stopped or block payments, did not stay in communication with the bank and did not make good on the advance.

[ryan $]

I guess it all comes down to the circumstances. It’s one thing if a merchant defaults straight out the gate, including blocked payments. But it is another if the merchant got hit by some unforeseen circumstance, and the merchant stayed in communication with the funder without stacking, but still couldn’t meet his/her obligations, but eventually made good. I think the main thing for me is, did they eventually payoff the advance or not?

I agree w/ this - and I believe this is Midnights stance as well

[ryan $]

True and fair point



I agree with this completely but the guy you are describing here is not someone I consider a default. To me a default is stopped or block payments, did not stay in communication with the bank and did not make good on the advance.

TO YOU that may be True. But the court systems and DataMerch is filled with "Defaults" like these

[NoBigDeal]

Interesting stat: about 10% of the deals that were funded through “second chance funding” on the default program, are now getting offers by other funding shops after rebuilding their payment history.

Merchant's get approved all the time. Do the funding shops actually Fund after finding out about the default? Also, are you in touch with these funding shops and actually fighting to push those deals through for funding?
Not arguing your stats, just curious to know what makes you think it's a result of your default program as opposed to simply bad underwriting on the funding shops part?

[Karen37a]

I guess it all comes down to the circumstances. It’s one thing if a merchant defaults straight out the gate, including blocked payments. But it is another if the merchant got hit by some unforeseen circumstance, and the merchant stayed in communication with the funder without stacking, but still couldn’t meet his/her obligations, but eventually made good. I think the main thing for me is, did they eventually payoff the advance or not?

Coming next week: F.R.E.S.H. Start program for merchants that defaulted on Midnight’s default program.

lol

I think the main thing for me is, did they eventually payoff the advance or not?

Another consideration is why they paid it back and how ( and you cant tell most of the time) ...were they forced to because vito showed up? Or someone took them to the mat and chased them down for it and had to wrestle it out of them. I have told numerous people who defaulted and paid it back under those circumstances to "kick rocks" the others I am slightly nicer to ...i just explain that we do not help defaulted merchants, they need to contact the Funder they defaulted on.

( I can promise you when you say no 90% say..." I was going to default on you too" or " I am closing the business down anyway" etc )

[MidnightAdvance]

I was once told by a smart underwriter, every C and D paper file is a default (meaning they defaulted / lowered payments on someone in the past) you just don't see it..

The point is, a lot of our merchants come around, pay off, slow pay, pay off, and need more funds, all the time.
Once a merchant is paying us, others will also fund after us.

[Karen37a]

I was once told by a smart underwriter, every C and D paper file is a default (meaning they defaulted / lowered payments on someone in the past) you just don't see it..

The point is, a lot of our merchants come around, pay off, struggle, pay off, and need more funds, all the time.
Once a merchant is paying us, others will also fund after us.

I can see it...and judge people based on what happened on the credit

Medical Collections is not the same as closing down 10 credit cards and skipping off with the money...

I can tell they are one step away from debt relief and bankruptcy

So to each their own...everyone learns and does business the way they want to

[Karen37a]

I can also see the yacht they purchased and the 3 Mercedes...one for him one for the wife one for the mistress

again to each their own

[Karen37a]

I can also see the yacht they purchased and the 3 Mercedes...one for him one for the wife one for the mistress

again to each their own

this is a real example....they went 7 wide on cash advances then someone gave them more money after they defaulted on the 7