[jotucker1983]

Don’t feel sorry for them. They’re most likely “stacking” on a bank, SBA lender or asset based lender. In fact, I believe they’d prefer to stack those guys at times.

Got it, but the only difference is that the conventional loans like the SBA programs are at conventional terms. We are talking less than 10% in interest with terms that are 5 years to 10 years. We are also talking about an approval amount that's of reasonable means and a payment schedule of very reasonable means.

So a 1st position A/B funder going in there with that SBA loan already in place for example, still gives the merchant a lot of breathing room, despite the fact that the payback cycle is 6 to 15 months give or take.

But when you throw 6 positions on top of that, with terms from 4 to 7 months each, that is where we start to potentially get into trouble here.