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09-25-2018, 10:40 AM #1Karen37aGuest
Empirical Evidence. Veto SB 1235
Many have argued that regulation will be a benefit to the Merchant Cash Advance industry but there is little to no empirical evidence of this.No studies have been done and even if it was true what would be the economic cost of this? Hastily vetted regulation causes a chain reaction of unintended consequences that most people cannot foresee in the future. Fair Regulation, Conquering financial Bubbles, sound investment strategies, and economies have been something that people have seeking out for generations. As such people believe that regulation is a cure to all of these things but it is the exact opposite of the truth.
Regulation caused a stranglehold on the free market. Unintended consequences will arise. increased costs and insurmountable debt caused by fewer profits( lower rate) and increased litigation( increased costs). If anyone was to analyze the profit models of some of the top companies you can see that after all operating costs are factored in people have negative equity or negative to the low-level profit model. Some companies in the past have gone as far as to hide their actual losses. They hanged the risk grade of paper to not expose this failing business model. ( lending clubs ex CEO was forced to resign over this). The banking industry collapsed over this thru tranches and CDOs
Adding additional Regulation costs with the addition of a cap on rates, with the current default ratios will make it impossible for investors to allow their money to go into a losing proposition.
While the regulation attempts have been made with the consumer and business owner in mind. A certain portion of business owners will go under bankrupt with or without a cash advance. People choose to close there business for something as simple as them not wanting to have the responsibility of operations anymore. Or they sell it for a profit or loss. Anyone can check the Small business associations studies or any other valid organization. What some call "predatory lending" to disadvantage borrowers with low-grade profiles and low ability to repay ( with or without interest or costs). Is hope and opportunity to me.
Companies are giving money to people who have a very high chance of default. Regulation will cut out the possibility for the people in these categories to receive funding for their business.
There is a reason the banks turn them down for loans.
The # 1 reason why Loans and cash advance should not be automated thru black box underwriting, computer-generated algorithms is they are basing the data on the past performance of the business. Credit score, bank statements etc
Past performance is not indicative of future results.
People are taking cash advances because of Cash flow issues that may or may not be solved with a loan or cash advance. Just because the algorithms are suitable at this moment to get a cash advance or loan. You do not know what that business has in store for them in the future and you most certainly do not know what the merchants intent is ( to sell it, close it, change the menu, fire the chef, go to Vegas, get divorced from the wife who cheated , take on a mistress, a road or overpass is planned in construction so the exit to the restaurant or gas station will be passed by..no more traffic etc etc etc etc )
There is a difference between unsecured loans/ advances/bank loans/ venture capital/ hedge funds etc. People seem to never understand unless their personal money is involved.
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Before they are celebrating SB 1235 it still needs to be signed by the Governor. They have until the end of the month. Below is a template, an email postcard, phone numbers etc to say no to it.
Stand up and do something, ask to Veto it, send it to calif merchants clients, business that you know other isos. Merchant Cash Advance brokers are some of the strongest sales people I have ever met
You Bled with Wallace, Now Bleed with me
https://www.youtube.com/watch?v=eclbaC3q94k
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09-25-2018, 10:44 AM #2Karen37aGuest
You can use this as a templete
September 25th, 2018
The Honorable Edmund G. Brown Jr.
Governor, State of California
Sacramento, CA 95815
Via email: leg.unit@gov.ca.gov
RE: Please Veto SB 1235 because it will cause irreparable harm and cause more confusion rather than transparency
Dear Governor Brown,
We respectfully urge you to Veto SB 1235 [Description of you or your organization, e.g." I am in the business of helping merchants get much-needed capital when they are denied from tradtional soruces like the bank" “XYZ is…, I ” If you like, can add why your organization, in particular, cares about transparency standards but recognize this isnt the solution]
In response to widespread calls for small business financing, this bill as constructed would not help with transparency standards, it will add to the confusion.SB 1235 would make numerous changes to the lending landscape the most important one being that lending or funding to California Small to mid-size business can become a criminal offence with additional litigation costs and risks. This additional risk and cost cannot be taken on by most Lenders and Funders because opportunistic litigators and Debt Relief will envelop the industry to take advantage of this legal loophole to help out unethical consumers from paying back borrowed money. These are non-secured and that adds more risk. If the Funders and Lenders have to use a standardized credit card or loan metric; this metric adds to confusion to borrowers because it does not represent accurately the cost of finance on Lending or funding vehicles that use factoring and a daily method of accrual for accounting and billing.
The California legislature has taken the lead on Regulation by passing SB 1235 in an effort to protect California’s small businesses and economy, but passing this will have negative consequences in regards to the economy. Lenders and Funders cannot allow the consumers or merchants to sign an illegal contract, or classify Cash advances or Factoring as Loans. Numerous cases have been won in court that based the decision on the language of the contract; If it resembles a loan it is considered a loan, therefore usurious in nature.
SB 1235 does not create any limits on what kind of financing can be provided. But it requires finance companies to disclose the true costs of that financing. The bill provides the Department of Business Oversight the flexibility to set disclosure standards based on an open regulatory comment process that includes all stakeholders. If the DBO has not finalized the regulations and until that happens this bill or law must respectively be tabled or vetoed.
SB 1235 would not correct the so-called advantage of financing companies, and the difficulty small businesses face today in comparing their options. Small to mid-size business have additional problems and business loans are not personal loans. For this reason and many more banks have chosen not to lend to the majority of Small to mid-size hard working American businesses who are the backbone of this country. Merchant cash advance companies have stepped in to help fill the gap in spite of the increased risks and costs associated with struggling business and huge default ratios. Holding Merchant cash advance companies to the same standards as banks will not empower California small business it will cause a mass exodus of Funding companies who cannot legally or fiscally lend into that landscape. Just like the banks, only the top tier of merchants will have access to much-needed Business Capital and success
On behalf of California’s small business owners, please Veto this bill
Sincerely,
[Signature]
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California Residents Action Alert Veto Bill.jpgLast edited by Karen37a; 09-25-2018 at 11:52 AM. Reason: check for typos
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09-28-2018, 12:17 PM #3Karen37aGuest
https://www.youtube.com/watch?v=G4Ym9zokSZo
Sons of Scotland, I am William Wallace…
William Wallace is 7’ tall….
Yes, I’ve heard, kills men by the hundreds, and if he were here he would consume the English with fireballs from his eyes and bolts of lightning from his ass. I am William Wallace, and I see a whole army of my countrymen, here in defiance of tyranny. You’ve come to fight as free men, and free men you are. What will you do without freedom? Will you fight?
…against that? No, we will run, and we will live…
Aye, fight and you may die, run and you’ll live. At least a while. And dying in your beds, many years from now, would you be willing to trade all the days from this day to that for one chance, just one chance to come back here and tell our enemies that they may take our lives, but they’ll never take our FREEDOM.
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09-28-2018, 12:25 PM #4
- Join Date
- Mar 2015
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- Boynton Beach
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- 3,490
Admin,
Can we please get an updated Karen post count? I believe you are trailing YouTube at this point.....Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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09-28-2018, 12:28 PM #5Karen37aGuest
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09-28-2018, 12:30 PM #6
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- Mar 2015
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- Boynton Beach
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Karen,
It is hard to decide how to approach the proposed legislation when the information give is in the form of a YouTube video based on a movie from a decade ago. Less is more...Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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09-28-2018, 12:34 PM #7Karen37aGuest
And since I owned business and recruited over 10000 people in the past made money while having a lot of fun, I disagree.
I guess that's why I am an independent contractor
And if less is more I shouldn't have had to heard "dui" for 3 years and karen never had a stockbrokers licence
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09-28-2018, 12:37 PM #8
- Join Date
- Mar 2015
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- Boynton Beach
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- 3,490
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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09-28-2018, 12:42 PM #9Karen37aGuest
Regulation, if passed with the illegal contracts will be challenged on a federal level and it's not coming out of Calif
People should be happy that I made an attempt at blocking something ( while being attacked and slandered) that would have got a majority of people charged with criminal usury and Rico / racketeering
So the result will be coming up shortly
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09-28-2018, 12:47 PM #10
- Join Date
- Mar 2015
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- Boynton Beach
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- 3,490
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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09-28-2018, 12:36 PM #11
I thought more was more. I've had less and I've had more. More is better.
Sorry, went off on a tangentYou either win or you learn. The only failure is in quitting.
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09-28-2018, 12:53 PM #12
I think the best solution is for California to just secede from the Union.
Basically they have, they just haven't formalized it yet.1 ca secede.jpgYou either win or you learn. The only failure is in quitting.
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09-28-2018, 01:07 PM #13
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- Oct 2016
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- 4,318
karen, rather than rants about regulation in general, why don’t you address the actual legislation proposed. It’s weird that you chose to use strawmen when there is actual language available. Let us know what language in the legislation you object to.
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09-28-2018, 01:16 PM #14
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,490
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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09-28-2018, 01:29 PM #15Karen37aGuest
its a bit of a strawman for you to ask me now
and I have been objecting for 3 years already if they do it a certain way
and I find i offensive that some people who have 1/8th of the knowledge that I have chat with me about these things as if they know whats going on.
I tollerated it...untill you are trying to get us all in trouble...they may not know whats happening but I do
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09-28-2018, 01:32 PM #16
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09-28-2018, 01:33 PM #17
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09-28-2018, 01:05 PM #18
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09-28-2018, 02:51 PM #19Karen37aGuest
Please you and I and my hedge fund friends debated doody frankenstien extensively
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Trump signs the biggest rollback of bank rules since the financial crisis
Congress Approves First Big Dodd-Frank Rollback
https://www.cnbc.com/2018/05/24/trum...gulations.html
West coast just one question for you. How are you a sadist and a libtard socialist all at once?
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09-28-2018, 01:44 PM #20
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- Dec 2017
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- 397
factor rate is the most simple and easiest rate to calculate, you think merchants are all of a sudden going to balk because there is an outrageous APR on the paperwork?
loan me has merchants paying 169% real APR every single day
having some time to think about it today tho, i wonder how the estimated APR could **** some merchants who then want a true up on their receivables... you agreed to the APR SOL idk
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09-28-2018, 01:45 PM #21Karen37aGuest
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09-28-2018, 01:53 PM #22
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09-28-2018, 01:54 PM #23Karen37aGuest
They did not create the metric yet...they are leaving it up to the dbo to decide and the stupid smart box says apr on it for cash advances
https://innovativelending.org/smart-...closure-depth/
this looks like a loan contract there for it is one ...I could nullify this cash advance and move to not pay it back in 5 seconds flatLast edited by Karen37a; 09-28-2018 at 02:01 PM.
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09-28-2018, 01:59 PM #24
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09-28-2018, 01:48 PM #25Karen37aGuest
I was a Compliance officer none of you say Apr again...not even the ex-regulator fool
and its not a loan its an advance
and they are not lending its funding
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