[WestCoastFunding]

I think page 3 of this thread sums up everything in a nutshell: https://dailyfunder.com/showthread.p...t=Cash+village

On that thread people were asking Cash Village to prove they were direct funders. Cash village decided the best way to prove it was to post a statement showing them pulling. On the statement it showed 4 positions:

1st: Can Capital pulling $130
2nd-4th: Cash Village pulling $900
4 overdraft charges ($140)

The fact this “funder” chose to use those specific statements to show the world tells you just how comfortable he was with what they “underwrote”. Guarantee the merchant went out of business and they filed a COJ before Can could collect.

[mcaguru]

I have seen some chatter on various posts with this idea. I can't speak definitively for the actions of all SBFA members, but I can say 2 things with certainty. One, no member of the SBFA wants regulatory scrutiny of any kind. That rarely leads to a positive outcome. Second, Rapid doe not speak to the press. We had no hand or involvement of any kind in these articles.

I agree with Jerry Brown 100% on both his points.

[NoBigDeal]

You think any of the lawyers used in the MCA space would go and defend the use of COJ's as an attempt to get rid of the proposed bill?

[Kevin Henry-Seacoast]

Why would any competing firm draw the attention to the industry by ratting out another firm?
Why would any other alternative lender, leasor, factors do the same as they too have much at stake and light could be shed back on them.
An attorney is not going to waste their time on a vendetta because they lost a case.
I would bet it might be a former employee that has an ax to grind.
Non of the above mentioned groups would have had insights to the customers or what happened to them.l

[J.Celifarco]

Why would any competing firm draw the attention to the industry by ratting out another firm?
Why would any other alternative lender, leasor, factors do the same as they too have much at stake and light could be shed back on them.
An attorney is not going to waste their time on a vendetta because they lost a case.
I would bet it might be a former employee that has an ax to grind.
Non of the above mentioned groups would have had insights to the customers or what happened to them.l

agree completely on this.. Too much risk and not enough reward

[BROKER TIME]

agree completely on this.. Too much risk and not enough reward

bottom line no one really knows whats going on and instead of speculating

get as many deals closed as you can

[J.Celifarco]

bottom line no one really knows whats going on and instead of speculating

get as many deals closed as you can

yes but everyone should start planning how to survive in a world where there are no COJ's. That is where this is headed and I think now is when people need to start planning on what they are going to do when that happens.

[BROKER TIME]

yes but everyone should start planning how to survive in a world where there are no COJ's. That is where this is headed and I think now is when people need to start planning on what they are going to do when that happens.

thats the thing

it will start with COJ

lenders will find another way to collect

than when that happens they will go after rate being charged

at the end of the day no one would be in this industry if there weren't big $$$ involved

the second they get a win on coj the rest of the industry is fd

so instead of surviving people should be looking for a new ship to sail on

[CraaaCraaa Radio]

This changes the mca marketplace totally.

Good UW's & Collections will become more of an asset than ever before

[WestCoastFunding]

That's not what you asked. You asked:



There are lots of people with an interest.

I agree with Jeremy - nobody in this space wins when all eyes are on us. Everyone stands to lose something.

Again, merchants and pols couldn’t feed this story.

[ryan $]

This is complete bull****.

The industry started one way. 1st Positions only. Credit Card splits. It evolved.

These merchants are only being funded because the COJ exists. 2nd 3rd 4th positions, all exist because of COJs

Get rid of COJs and you get rid of merchants being Funded who dont qualify for Rapid and other A Tier 1 First Positions.

COJs serve a purpose. Boohoo Merchants, they can read what they are signing? Cant they?

Where is the Boohoo for lenders, people forget there is little to no recourse for us, these are unsecured advances.

**** the media

[BROKER TIME]

This is complete bull****.

The industry started one way. 1st Positions only. Credit Card splits. It evolved.

These merchants are only being funded because the COJ exists. 2nd 3rd 4th positions, all exist because of COJs

Get rid of COJs and you get rid of merchants being Funded who dont qualify for Rapid and other A Tier 1 First Positions.

COJs serve a purpose. Boohoo Merchants, they can read what they are signing? Cant they?

Where is the Boohoo for lenders, people forget there is little to no recourse for us, these are unsecured advances.

**** the media

the medias ****ing us

[ryan $]

yes but everyone should start planning how to survive in a world where there are no COJ's. That is where this is headed and I think now is when people need to start planning on what they are going to do when that happens.

We would just go back 10 years. When MCC got all of my business.
Then First Funds, Rapid. Etc.
No STacks. Renewals.

[ryan $]

Stacks Opened up a ton of business.

And let Merchants get more money on top of just the 1st position.

COJs and ACH programs went hand in hand.

And Stacking became normal when before it was outlawed primarily impossible because it was all CC Splits.

Ive seen this industry grow and shift and change - one thing i know for sure- it wont die. Whatever regulations come, we will be here.

[WestCoastFunding]

yes but everyone should start planning how to survive in a world where there are no COJ's. That is where this is headed and I think now is when people need to start planning on what they are going to do when that happens.

Here’s how I see it: 90% of these new D-F funders are going to disappear. The remaining D-F funders will get the rest of that market share. But, there collections process isn’t going to be nearly as effective as before. The remaining funders will heavily scrutinize brokers. The best funders will only deal with the most reputable brokers. Those reputable brokers will the a competitive advantage and many of these little fringe shops will disappear — giving the reputable shops even more market share.

Or better yet, things will go back to where they were 3-4 years ago before the scavengers (brokers and funders) flooded the space over the past few years.

[BROKER TIME]

Here’s how I see it: 90% of these new D-F funders are going to disappear. The remaining D-F funders will get the rest of that market share. But, there collections process isn’t going to be nearly as effective as before. The remaining funders will heavily scrutinize brokers. The best funders will only deal with the most reputable brokers. Those reputable brokers will the. have a competitive advantage and many of these little fringe shops will disappear — giving the reputable shops even more market share.

Or better yet, things will go back to where they were 3-4 years ago before the scavengers (brokers and funders) flooded the space over the past few years.

if you think that this will make things better your on some real crack

[SmartAdvanced]

COJs collect 5% of the total outstanding default balances. UCCs probably collect 25% of the balances. So why all the fuss about the COJs??

[WestCoastFunding]

if you think that this will make things better your on some real crack

If you think you will personally be affected by this, you should re-examine your business model. If you are reputable, steered merchants toward most response financing, don’t use PSFs, and primarily use non-COJ funders, then what the **** do you have to worry about?

This industry was funding things just fine before COJs came along. And YSC will be funding long after COJs are gone. While YSC may have mastered the COJs, many of these piece of **** funders have used them to replace underwriting - and in the process strain the **** out of merchants cash flow. I hope those ****ty as funders die.

And I will gladly go back to the days when you could expect damn near 90% of your 1st positions renewing like clockwork. Sure beats these crackheads seeking to stack another $10K on an over leveraged merchant.

[NoBigDeal]

COJs collect 5% of the total outstanding default balances. UCCs probably collect 25% of the balances. So why all the fuss about the COJs??

This is just simply not true

[Fundingfordollars]

You think any of the lawyers used in the MCA space would go and defend the use of COJ's as an attempt to get rid of the proposed bill?

There has to be a few thinking about that.

[ryan $]

Here’s how I see it: 90% of these new D-F funders are going to disappear. The remaining D-F funders will get the rest of that market share. But, there collections process isn’t going to be nearly as effective as before. The remaining funders will heavily scrutinize brokers. The best funders will only deal with the most reputable brokers. Those reputable brokers will the a competitive advantage and many of these little fringe shops will disappear — giving the reputable shops even more market share.

Or better yet, things will go back to where they were 3-4 years ago before the scavengers (brokers and funders) flooded the space over the past few years.

You say it was great 3-4 years ago, I say it was great 10 years ago. its a matter of opinion, its always great at the beginning. I swapped renewals for stacks. if it goes back oh well - one thing will stay constant - I WILL ALWAYS FIND A WAY TO MAKE MONEY - regardless of rules, laws, practices, whatever - ill find a way

[WestCoastFunding]

You say it was great 3-4 years ago, I say it was great 10 years ago. its a matter of opinion, its always great at the beginning. I swapped renewals for stacks. if it goes back oh well - one thing will stay constant - I WILL ALWAYS FIND A WAY TO MAKE MONEY - regardless of rules, laws, practices, whatever - ill find a way

Hey, I was doing this 10 years ago too. While there has always been growth in the industry, the explosion of COJ (and COJ funders) happened just a few years ago.

[BROKER TIME]

If you think you will personally be affected by this, you should re-examine your business model. If you are reputable, steered merchants toward most response financing, don’t use PSFs, and primarily use non-COJ funders, then what the **** do you have to worry about?

This industry was funding things just fine before COJs came along. And YSC will be funding long after COJs are gone. While YSC may have mastered the COJs, many of these piece of **** funders have used them to replace underwriting - and in the process strain the **** out of merchants cash flow. I hope those ****ty as funders die.

And I will gladly go back to the days when you could expect damn near 90% of your 1st positions renewing like clockwork. Sure beats these crackheads seeking to stack another $10K on an over leveraged merchant.

iam not worried a bit of how my company handles our merchants
i agree with your points however my worry is not about cojs being gone

its the fact that they go after cojs who will know what they are after next for example capping interest to merchants hurting how much we can upsell

[StipMeBabyOneMoreTime]

COJs collect 5% of the total outstanding default balances. UCCs probably collect 25% of the balances. So why all the fuss about the COJs??

Going to need a source on this, chief.

[Don Dolla]

It's like in war fare, when there's an international accord / treaty whatever, not to use a certain weapon, everyone stops using it.. but the wars still continue.. my point albeit a little dark example (especially for a friday) is that as long as every funder agrees not to use COJs, the playing field stats the same and the stacking will continue just the same. As long as COJs are allowed, everyone will continue to use them. Any funders advertising that they won't use a COJ right now, even though the majority of companies do.. are probably just trying to backdoor your deal to a COJ funder LOL