[fundingsmbs]

No merchant does 100k a month (1.2 million a year) they approved him for 185k where payments were 40k a month on the 6 month approval. I actually funded him 200k on a 12 month to be honest but the approval was there on the 6 month

Without knowing what type of business this is, most retailers and mom pops could not afford to have 40% of their monthly sales used to repay a debt after taxes and overhead. Most are lucky if they operate on a 20% profit margin and some operate <10%. Hopefully they used that money for the right ROI and it gets paid back, but, ODC can sell off large chunks of loans through securitization as evidenced through their historical off loading of loans. This works out well for the broker if they are funding everything and making it easy. That places a lot of pressure on the rest of the competition that may not be able to do this model. What usually happens is the merchant that didn't add addtl revenues with the loan, they borrow from other companies to repay the debt and the cycle begins of endless borrowing. The ADBs must have been very strong