[Michael Slabitcher]

Anyone else offers a 0% net rule for consolidations besides Breakout?

Thank you,
Michael Sla*****er
msla*****er@sla*****er.com

[Davincinc]

how many positions?

[soscap]

We've done net 0 deals

[Lendvo]

We do @Lendvo, hard to qualify for but if aged business, with good credit, good industry, good banks its got a good shot.

[Michael Slabitcher]

how many positions?

One.

[Michael Slabitcher]

We do @Lendvo, hard to qualify for but if aged business, with good credit, good industry, good banks its got a good shot.

TIB: 6 years
One owner states his credit score is 640. I do not know the credit score for the 2nd owner (50/50 partners).
Industry: Restaurant
Bank Statements Breakdown (3 month average)
Deposits $28,000.
OD: 8
Negative Days: 5
Ending balances: $932 (negative balances for July and August).
Average ledger: $1,917.
Number of Deposits: 23.

As you can see the bank statements are not strong.

Feel free to email me if you think you can assist.

Thank you,
Michael Sla*****er
msla*****er@sla*****er.com

[Michael Slabitcher]

The balance on the position is $20,000 (OnDeck/weekly payments).

The merchant has received several loans from OnDeck and the payment history is intact.

I am guessing business credit is very good.

Merchant is seeking to net $10,000 with weekly payments of no more than $1,500.

[AlfaSam]

Michael we offer both scenarios. Our reverses tend to be 0 net but if the merchant qualifies we could get him to net some working capital. Call me at your convenience to my number below and we can discuss in detail more about the programs we offer.

[fundingsmbs]

Anyone else offers a 0% net rule for consolidations besides Breakout?

Thank you,
Michael Sla*****er
msla*****er@sla*****er.com

have you actually funded deals with them on that program

[Cfairbank]

have you actually funded deals with them on that program

While not broadly offered, we are funding millions a month (on our books) under just this new program already.

[Karen37a]

Michael,
The reason these do not work out well is ; if the merchant is making 28k a monthLet's just say 30k to make the number round. By the time they pay for the rent, salaries, vendor costs for the food they make, electricity etc etcThey are not left with any moneyif there are 2 partners what is their salary yearly? or monthly and where does it come from?

30k a month...so the partners who own this restaurant make???? 10k a month each? 20k( can't happen)
5k a month to own a restaurant? ( 10k between the 2) then are they waiting tables themselves? Cooking the food? Advertising? the point is margins

So now this person took out the max offer ( which they most likely did not deserve based on margins) And can't keep up with the payments because they were not making it BEFORE the cash advance.Or its harming their cash flow, that was already depleted ( or suffering ) before anyone gave them any money.

I wouldn't even entertain a conversation with this person on more money let alone a consolidation. And it's not because I am a snob.
That might be a pending default ( unless they pay down debt and pull revenue up, or fix their margins somehow). I teach my brokers to put those people in their 90-day pipeline ...follow up in 30 days and see if they are still alive ( which is what most consolidation people are going to do)...
(another reason brokers were coming after me yelling ...yyoouuuuuu areeeeeee nootttttttt theeeeeee unnnderrrr wriiittter...with a pencil, not scissors...then funky stuff makes it to the deal bin and I am saying "I told you its denied, wait 30 days"...Karen has cat piss)
__
This is also the real reason why I do not want to talk to anyone who is not making 25k -50k a month? Depending on the industry. The few 10k ones did double their revenue..so then I thought yeah they might make it. Now they Trippled coming back for a renewal.

So anything is possible ( I do not know your merchant and why and what happened)

Add

And some 1st position Funders are not being "stacked" they are being "bailed out" , while calling Isos boiler rooms etc etc. You cant change the Default Ratios of American Business..ive been saying for years they are going under with or without a cash advance they are bad business people...and sometimes the stack prolongs their enivetable death. I learned to get in and out of there( like a bob and a weave) and try to find some of the good ones ( very hard to do) I wouldnt stack
( bail out) some 1st position Funders for all the TEA in China...APR Regulation does not cure any of this it makes it worse..This is impossible to each to people, even people in the industry do not understand. Outside Regulators really will not understand nor black box algorithms ( the person writing the code or directing the code has to understand to make that the key points, and they are not a salesperson)

Im going on vacation ( which means sitting outside in paradise ) I will have my laptop only for the deals in play. have fun

[Cfairbank]

Karen the first half of your argument shows why we need to show an annulized rate —> businesses are getting killed by the renewal rates (and augmented double dipping —> which should imo be included in disclosure) to make a decision based on ToC on your first ST loan that doesn’t reflect the ultimate cost of capital needed to run their business for the year..... they’ll get churned (most likely) and end up with a ToC per MCA/loan they can’t manage or understand.... unless the loan is longer than one year with no double dipping.

Put it this way, If u were a biz owner taking a loan and knew u were taking 140% Effective APR (or choose your own annualized rate definition), would you take it? Would u churn it? Would u even realize you were getting double dipped w/o an accountant (presuming u are like most business owners that don’t understand double dipping — and yes Karen, I know u know how damaging that can be)? I doubt it.

Why are we able to feature a low single digit loss rate across our four year portfolio ( half the industry loss rates at A paper shops) but fund 470 FICOs or consolidate 8 positions with APR-based loans in the teens to 30s? We get creative to de-risk the customer instead of offering a commoditized MCA or loans.

[Karen37a]

Karen the first half of your argument shows why we need to show an annulized rate —> businesses are getting killed by the renewal rates (and augmented double dipping —> which should imo be included in disclosure) to make a decision based on ToC on your first ST loan that doesn’t reflect the ultimate cost of capital needed to run their business for the year..... they’ll get churned (most likely) and end up with a ToC per MCA/loan they can’t manage or understand.... unless the loan is longer than one year with no double dipping.

Put it this way, If u were a biz owner taking a loan and knew u were taking 140% Effective APR (or choose your own annualized rate definition), would you take it? Would u churn it? Would u even realize you were getting double dipped w/o an accountant (presuming u are like most business owners that don’t understand double dipping — and yes Karen, I know u know how damaging that can be)? I doubt it.

Why are we able to feature a low single digit loss rate across our four year portfolio ( half the industry loss rates at A paper shops) but fund 470 FICOs or consolidate 8 positions with APR-based loans in the teens to 30s? We get creative to de-risk the customer instead of offering a commoditized MCA or loans.

Which is why I advocate for it when its warranted but what people do not understand isThe merchant is going out of business with or without a cash advance and it was not the cash advance that put them under
Its like they are a product on a grocery store shelf...with a shelf expiration date

This one needs to be frozen or it spoils in 3 months
this one 9''
this is a can of soup
__

If you had a crystal ball to see the future and you knew it was going to default in 12months 14 months 24 months whats the rate?AND when you renew certain people even A paper 1st postion you are speeding up the default ratio time ( which is why I make them wait for the balance to go lower sometimes...I do talk about their business goals to see if they really want to make it. I come from a cross selling loans/investment/insurance financial planning background) ( which is not some isos style )..., like that hurricane barreling in picking up speed( so they do not deserve a longer term and lower rate)..and if you give to much money certain people think they hit lotto and force themselves under

( this has nothing to do with disclosures)

Now maybe you can't see the defaults coming in advance but I can reasonably guess, just like I can guess when the MCA broker/ iso/ funder is going to fold after talking with them for 10 minutes. Or the story they are going to spin.

I've been doing it too long, it's like a giant repeat groundhogs day. Different decades different hairstyles and different clothing styles

Someone saying the rate put me under is an excuse because I know from extensive past experience with stock and bonds in a total market free fall implosion and loans in a world collapse implosion.. like rats backed into a corener they will blame everyone for their demise except the man in the mirror

__
add . The bottom line is we are not partners in the merchants business. We are not going to participate if they strike it rich. Its a cash advance with no real way to get your money back if they go out of business ..all risk , high chance of default. I really in my heart of hearts believe If they do not want the money, go to the bank or their grandmother, lose their money. We are not a charity or a grant. Or go on the Shark tank and have mr Wonderful humilate you on tv or take a 51% stake in your business and sell it out from under you.

[Karen37a]

This is my last example justifying higher rates because I really do not want the rates to go up...I am a salesperson

Algorithms

If a Strip joint is the restricted period the end

italian Restaurant avg life span 6-8 years
pizza place 8-10
Trucking 3-7

(I am just making up numbers)

If I get a pizza place open 9.5 years and struggling

Trucking 3 years

I can see the trucker driverr getting a lower rate after talking with them because that pizza place is going under or sold statistically in 5 months
( pizza places have low margins just used for example purposes)

And if you are renewing someone at the end of their "shelf life" , 3 cash advances into it (ive asked the on the phone..so when are you retiring ..9 years oo we, you must like flipping pies..., they said right after thsi cash advance ...DENIED...broker comes at me with scissors lol)
...you shouldn't be dropping the rate down( sometimes *)...no shot in hell can anyone stay profitable its a default

Can't put that on an Apr Disclosure to justify the rate...many factors go into risk assessment

( my mind is clicking like a calculator when i see the file...many many many more data points)

_

I came to grips with this a long time ago and it made me a better sales person There are no God Given rights to have a loan..not even for a home. People use to build log cabins. Now people "think" they deserve a loan. You dont. And you do not own your home the banks does. You want a home pay cash.

Same with a business's no one has a right to tell someone how much interest they are going to lend them their hard earned money atThere are some predatory practices but outside of that. Work hard save money and do not ***** about money someone is giving you that you do not want to pay back...

And if your cash advace is denied for risk, if you do not like it...lend them your own money

See you all in a week

[Michael Slabitcher]

have you actually funded deals with them on that program

Not yet.

[Karen37a]

Not yet.

I do not know what their program is about but some of the people that were offering consolidations etc were doing it for sole purpose of capturing applications to then fund with another funder 30-45- 60 days down the line

Also, the unreasonably low offers do this

( its called a Tank file)

They will say "put it in the tank file" ... many a firm or loan company I walked out of in my life.

which is why most of them fought with me and are now gone


again. This has been very hard to watch and a fun experience ...Deja vu


This is also why some of the people ( some) are advocating against "co brokering".. and I watched the ones saying they are doing it( co brokering)...those people are the ones blocking the tank file

[Mynameisbob]

We have been trying to submit deals to your company, and have been receiving an error message

[Karen37a]

We have been trying to submit deals to your company, and have been receiving an error message

"you" means Breakout?

I hate paperwork and do not want files sent in that wont close. I tell people to put it in their 90-day pipeline until the balance comes down
I have a hugeeeeee backlog as well

That's why anyone who tries to say I am backdooring is a nut. I could never handle the deal flow if I ever really opened up full force.

I sent you a pm

[Karen37a]

I have a computer system that I am going to be bringing up 100% very shortly...I will be able to handle more deals

holding exclusivity to the Iso/broker ( only with me I cant control others ) and have ( funding/funders) coming in thru the system as well

Encrypted

[Cfairbank]

"you" means Breakout?

I hate paperwork and do not want files sent in that wont close. I tell people to put it in their 90-day pipeline until the balance comes down
I have a hugeeeeee backlog as well

That's why anyone who tries to say I am backdooring is a nut. I could never handle the deal flow if I ever really opened up full force.

I sent you a pm

If “you” does mean breakout, that shouldn’t happen, period —> but if it is, ask my team to reset your credentials (per my guidance). But, to be clear, we don’t work (take apps, fund, nor broker) with Karen so I can’t opine on her systems.

Edit to note: And while this thread is unclear who the company is that is being referred to, I can guarantee you we fund our deals on balance sheet and now half our volume, if not more, is FactorAdvantage. But to access this program is currently limited —> where we are consolidating multiple positions (we’ve done up to 8) or funding 470 FICOs, the merchant needs AR (doesn’t matter if encumbered or not, depending on buyout cost relative to net revenue). We don’t directly factor but offer a double patented program (tech patents) that enables high risk businesses to de-risk themselves and access credit-card type rates

[Karen37a]

If “you” does mean breakout, that shouldn’t happen, period —> but if it is, ask my team to reset your credentials (per my guidance). But, to be clear, we don’t work (take apps, fund, nor broker)) with Karen so I can’t opine on her systems

Carl do me a favor like the rest

I can talk about how you threatened me about Regulation 3 years ago..

because I still have it

[Cfairbank]

Carl do me a favor like the rest

I can talk about how you threatened me about Regulation 3 years ago..

because I still have it

Karen we wouldn’t take you on as a broker — and I’m sorry that u are still upset about that — despite you trying to push a partnership forward several times (and directly copying our double dipping content on your site verbatim) — the drama wasn’t worth it. Our lack of a relationship has nothing to do with regulation; but yes, I’m in favor of common sense federal regulation so u don’t see all these damaging bills put forward in an increasing number of states. We are getting regulated. Do u want it state by state or consolidated under a single entity (federal)? So many folks have taken a stance against federal regulation, and that lack of consistency is what creates these state issues (which can be much more damaging than federal — imagine having to register in each state under different laws. The industry would be handcuffed).

[Mynameisbob]

No I was referring to SOS capital

[Karen37a]

Karen we wouldn’t take you on as a broker — and I’m sorry that u are still upset about that — despite you trying to push a partnership forward several times (and directly copying our double dipping content on your site verbatim) — the drama wasn’t worth it. Our lack of a relationship has nothing to do with regulation; but yes, I’m in favor of common sense federal regulation so u don’t see all these damaging bills put forward in an increasing number of states. We are getting regulated. Do u want it state by state or consolidated under a single entity (federal)? So many folks have taken a stance against federal regulation, and that lack of consistency is what creates these state issues (which can be much more damaging than federal — imagine having to register in each state under different laws. The industry would be handcuffed).

Carl I do not care if I do business with you or the other 50 people..you are not funding enough to matter ( I trust certain funders)

Bottom line you made a threat that if I did not stand down from regulation ...everyone will know I have a DUI and you are doing me a favour by telling me

And other things that are way worse..

You also giggle like a little girl that you will make more business and do not care if other people do not

Also the smart box...

I have the messages saved. I do not like people making threats to me.

ALL of them. I gave seminars on double dipping since the year 2000...and bi-weekly payment you act as you invented it

ALSO i gave ou the idea for your dd calculator then you bragged that you got recognition and that I can't prove I gave you the idea

[J.Celifarco]

another fun day on the forums.... let the screaming match that has nothing to do with the thread begin