[ADiamond]

I did.

A 2nd, 3rd, 4th position whatever position lender charges more over a shorter time frame to account for this additional risk.

So then obviously you understand this thread wasn't made to say I am against stacking, I said someone double funded her for their own interest a 3rd and 4th position, making payments in excess of 50% of gross revenue. THAT IS THE PROBLEM WITH STACKING, I AM NOT AGAINST STACKING. Let's be real, the only deals left floating around this industry are mostly deals that have been funded already.

[funding pro]

But you are missing his point that you cant say stacking is ok in some situations. That's like saying drunk driving is ok, so long as you are not driving very far OR you have on eye closed OR you drank a red bull OR you are following your friend and so on and so on.

[channin19]

Let's be real, the only deals left floating around this industry are mostly deals that have been funded already.

That is ridiculous.



Plenty of opportunities available. If you market for second position deals you will fund second position deals.

Are there opportunities where a second position makes sense? Sure. On a business with annual revenue of $100K? Probably not. And who wants to deal with the headache? Those are the business owners that will give the most trouble. Not worth the <$300.

[ADiamond]

Are there opportunities where a second position makes sense? Sure. On a business with annual revenue of $100K? Probably not. And who wants to deal with the headache? Those are the business owners that will give the most trouble. Not worth the <$300.

Sorry, I disagree. You're entitled to your opinion though.

[Sean Cash]

Let's be real, the only deals left floating around this industry are mostly deals that have been funded already.

Hmmm and just yesterday a big alternative lender concluded that the industry had only reached 1% of its potential annual volume. That means 99% of the deal opportunities out there have never been funded by an MCA company or alternative business lender.

[HeatherF]

Hmmm and just yesterday a big alternative lender concluded that the industry had only reached 1% of its potential annual volume. That means 99% of the deal opportunities out there have never been funded by an MCA company or alternative business lender.

I am probably going to make a lot of people mad with this statement... but Stacking is the lazy man's way of gaining market share... Hence the reason of 1% potential.. Very few new players(funders) are presenting anything to the market that requires a competitive nature which would drive new innovation and quality products. The last thing to come about was presenting fixed ACH products and still debatable the Algorithmic model.... All the growth is coming from Lead Gen companies not the actually funders.

[BSCI 504]

This industry does need some innovation from some of the major players but nobody is willing to fix a car that is already working in their favor. Most companies are already holding at least 12 to 25% in slow pays or bad debt. Surely the collections aspect of this industry is taking off...I am ready for some new products that will give an edge. The horror stories are too drastic on the merchant side for this industry to take much more before the Consumer Protection Agency or some other regulator steps in to blow everyone's mind.
Is there any way to move forward without brokering the stacked deals?

[Scott Williams]

I think brokers are looking to funders to protect their new merchants better too (ie UCC filings). Nothing is worse for a broker than to spend the money and educate a merchant that hasn't used this product before....then the funder files a UCC and every other broker starts calling your merchant daily. Hopefully funders can come up with something to secure their interest in the business and not have that information go public so marketing companies attack it.

[Jared_Weitz]

Hmmm and just yesterday a big alternative lender concluded that the industry had only reached 1% of its potential annual volume. That means 99% of the deal opportunities out there have never been funded by an MCA company or alternative business lender.

As living proof that there are a ton of new deals each month that fund I'd like to hop in here and say there are still PLENTY of new businesses that require financing.