[JSL23]

YAAAWWWNNN.......aren't a large percentage of your deals stacks? You work at YS, don't you? Let's be honest here, you guys aren't the first (or 8th) Lender that one sends their A paper to, now are you?

Going back to what initially said about Funders consolidating more deals, it was just a thought, and I prefaced it by saying I don't know if it would be worth the risk. It is something that is worth exploring. Are the leaders of this industry not innovative or savvy enough to come up with some feasible solutions that could potentially make that type of arraignment work? If someone could successfully do it(and I am not talking about Merchants with 4 or 5 advances at once) they would do quite well(potentially). Whatever, it was just an idea. I don't see you coming up with anything that could decrease multi stacked deals. Instead, we get the same exact conversation, same arguments, same talking points and the same annoying comparisons to JP Morgan and BOA.

[J.Celifarco]

There is no way consolidating multiple balances makes any sense for a bank because as soon as that was done another sales office will call and sell a stack.. Until people realize that all this stacking is going to be what leads to this industry being regulated this is just going to get more and more out of control

[Chambo]

nothing will happen until one fund sues another for tortuous interference....or one of these merchants in the heartland gets on TV, or cries in the arms of their local councilman...who then goes and calls the governor, who then....

[channin19]

YAAAWWWNNN.......aren't a large percentage of your deals stacks? You work at YS, don't you? Let's be honest here, you guys aren't the first (or 8th) Lender that one sends their A paper to, now are you?

Going back to what initially said about Funders consolidating more deals, it was just a thought, and I prefaced it by saying I don't know if it would be worth the risk. It is something that is worth exploring. Are the leaders of this industry not innovative or savvy enough to come up with some feasible solutions that could potentially make that type of arraignment work? If someone could successfully do it(and I am not talking about Merchants with 4 or 5 advances at once) they would do quite well(potentially). Whatever, it was just an idea. I don't see you coming up with anything that could decrease multi stacked deals. Instead, we get the same exact conversation, same arguments, same talking points and the same annoying comparisons to JP Morgan and BOA.

One possible solution: Lenders requiring sales partners to participate on a stack deal.

[J.Celifarco]

How would participation fix this.. We have an underwriter in this thread saying that taking 25%-33% of a companies gross sales is ok.. Do you expect a sales office to have a better grasp of underwriting and be able to tell a good deal from a bad one???

[JSL23]

I think stacking would decline if a few of the bigger banks sued some of the ISOs and sales agents that facilitate stacking.

Yea, forget about finding a way to facilitate more consolidations, let's just sue......brilliant. The only thing that would decline is the Broker/Lender relationship industry wide.

Ways to stop (or greatly reduce at least) stacking:

1)Add-ons. If a Merchant is less than 50% paid off(let's say 30%-35%) and in good standing, no missed payments and balances are good do an add-on. Increase the holdback or daily(slightly) and extend their term. There are Lenders that do this, but should be more proactive, same with Brokers.
2) Stop nickel and diming Brokers on renewals. Why is someone going to accept half the commission when they can get the whole thing?! 80% of the original commission is reasonable and would prevent many Brokers from shopping their clients out or stacking once renewal time is near.
3) CONSOLIDATION!! Sorry if I sound like a broken record, but there must be some way to mitigate the risk. If a Merchant is triple stacked and paying 30%+ of their gross and you find a way to reduce that AND get them additional funds it will inspire loyalty (in many cases at least). If they stack, even one time they go on that black list from NAAMA.
4) Lenders have their association(NAAMA), Brokers/ISOS should really start their own. A big problem would be the indifference among some of the fly-by-night broker shops, but it's probably best for all if they fade into the background. Let both groups negotiate and find common ground regarding all of this. What's the alternative-the Government getting involved?! No thanks.

Someone mentioned earlier 99% of the Small Business market is untouched. I don't know about that, but am sure it is way over 50%, mainly because many of us are chasing the same Merchants over and over again. There is plenty of money to be made out there for Lenders and Brokers. Why risk ruining a great thing, when we can put our heads together and solve some very fixable problems.....just my thoughts

[WhoisKingsley]

You know what would cut stacking all together? Getting a 1st position that takes care of the merchants needs. I understand that if a merchant wants a larger amount that you feel their balances would suffice the payback- BUT there are other factors. If you got low balled, maybe your not doing your due diligence correctly and not know where to send it or keep up with the industry to know what programs you can offer. You don't make promises, you don't start burying a business in a hole for greed. *by me stating "you" or "your" I am not singling anyone out.

[BCC DC]

At Business Credit and Capital we only fund first positions. Apparently we are one of the only responsible Funders out there. Frankly, we believe that Funders who stack are reckless and have nerve to put my funds in jeopardy because they are basically digging the merchant into the grave. Prior to funding a merchant we explain that they will never see additional funds from us if they stack. We are the best lender out there for renewals as our average renewal time is under 2 hours from receipt of signed agreement. If we discover a stacking we refuse to renew.

You may say that we are nuts and to conservative for this industry however we have come up with the answer to combat stacking. The Isos who work with us attest to how it works and is the best situation for the merchant and iso. All the iso and merchant has to do is remain true and honest to us.

If you are a straightforward iso and want to hear more just give us a call and sign up with us. Call Freddy Zalta our iso director at 347-274-0907 ext 128.