[J.Celifarco]

every industry benefits from having to pivot in certain ways. innovation will only help. this industry makes money, no one disputes that, so smart money will find a new way no matter what. funders that do not pivot, will die off. funders that do pivot will help benefit brokers as well since they do not want to see their deal flow decline. smart companies are already using your declines as data to create models and are finding ways to lower defaults period. as mentioned, new collection practices will emerge and someone who is forward thinking will capitalize on that. I would not categorize it as "win" or "lose", but change is a good thing.

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[WestCoastFunding]

A COJ is like a QB's O-Line, without it the QB screwed, if COJ's are deemed illegal, what will the funders do that require it, no matter what?

It means things will be like they were before COJs were used. Back then you could get larger amounts, with longer terms, and CONSTANT renewals. That was before the 4-100th position funders came along, ****ing up everyone’s books by jumping in and destroying merchants cash flow.

Keep in mind, most COJs are done just to jump in and collect before guys that funded before them could. Why is it fair a 4th position funder gets to jump-in and collect before the 1-3rd? Hell, bunch of them will file over the slightest things, ****ing up the entire collection chain.

[Bloomingdale Funding]

Yellowstone and par sweating right now?

[Michael_Prompt]

Its just sad because of a few people that tried to hammer merchants with these, laws come out and **** everyone else

[DTFdowntofund]

That's a good thing. All these fugazi high risk bull**** shops will be wiped off the map in no time, and we can play the game like we used to without the jokers.

[J.Celifarco]

So I wonder what the panels will be talking about in Miami at the deBanked event

[morgan.quinn]

This is probably the most effective way of cleaning up the space in so, so, so many different ways all at once.

The difference between MCA collections agencies and actual collections law firms is staggering; Any funder that neglects cultivating a relationship with a well-established firm and, instead, relies solely on agencies that live and die by COJs won't stand a chance when the time comes for recovery.

Hate to say it, but if you're in collections and you've ever uttered the words, "The notary stamp isn't clear - we can't collect on this one" you might wanna start surfing Indeed in your free time.

[jenk12]

This is probably the most effective way of cleaning up the space in so, so, so many different ways all at once.

The difference between MCA collections agencies and actual collections law firms is staggering; Any funder that neglects cultivating a relationship with a well-established firm and, instead, relies solely on agencies that live and die by COJs won't stand a chance when the time comes for recovery.

Hate to say it, but if you're in collections and you've ever uttered the words, "The notary stamp isn't clear - we can't collect on this one" you might wanna start surfing Indeed in your free time.

Agree. There are a lot of fly-by-night collections operations who have built their business on COJ's and an absentee attorney. If you are interested in using a legitimate collections law firm that can handle non-coj accounts, PM me.

[Michael I]

someone will come up with a new way . maybe poa comes back i havent seen one of those in a while .
but this will separate the underwriters from the the clowns .

[Collection Specialist]

My value just rose 69,767 basis points...but NOT good news at all

[DTFdowntofund]

If you're pitching a decent product and have stellar underwriting, this really shouldn't be that big of an issue. This is how the industry used to be, COJ's weren't always around. But I'll tell you one thing.. lenders will be more selective with ISOs from this point out due to it. Back when I first started, I would run quarterly reports on every partner we had: # of subs, # of funded deals and their performance history. I'd cut off shops who would just flood our UW and never fund. I'd cut people off if they had more than a certain percentage of default with their deals repayment history. Everyone is going to start being specifically responsible for themselves again, and it's going to weed out the trash quickly. Doing grimy things will put a target on your back or get you blacklisted from submitting in a snap. But for those who are playing by the rules, it's really going to let your performance / numbers speak for themselves. But that's just my opinion.

On another note, I'm sure the lack of 'guarantee' of repayment is going to spook some of the funding houses and you may be coming into an age with more conservative approvals for a while, but in the end, I think this may develop into a step in the right direction overall. MCA is becoming reckless, and I don't care what end of the spectrum you're on, you can't deny it. Change is the only thing that will sustain longevity, so maybe this will entice a more balanced industry again.

[Chambo]

My value just rose 69,767 basis points...but NOT good news at all

Your stock only went up, if you a successful alternative way to collection on deals without running to the COJ (emphasis on successful). Otherwise, you're just another cat calling these merchants

What I DO believe this will bring about, is more screw-the-COJ-straight-to-litigation approach on many deals. Those blue papers showing up at your place of business, in front of all your staff, will change a merchants' tune toute suite.

[Collection Specialist]

Your stock only went up, if you a successful alternative way to collection on deals without running to the COJ (emphasis on successful). Otherwise, you're just another cat calling these merchants

What I DO believe this will bring about, is more screw-the-COJ-straight-to-litigation approach on many deals. Those blue papers showing up at your place of business, in front of all your staff, will change a merchants' tune toute suite.

Agreed 100%. Those who know me know of my ability to achieve success with or without the COJ. It certainly is a powerful tool to use, but leverage or even the perception of leverage can always be created otherwise and elsewhere as it has for years before COJ’s were used.

[Don Dolla]

This will actually help the high risk space fund more money. Bc the FILER is the wild card. This will remove all the trigger happy coj filers out of the equation... it will make the lending more predictable and more aggressive. Now u don’t have to worry about the other funder in front in the deal.. no worries of trigger happy coj filers ****ing up a good cash flowing business...So there will be even more approvals to be had. all you hating on short term funders, thinking this will suddenly stop stacking, think again, that’s not what it’s about ... l

[WestCoastFunding]

This will actually help the high risk space fund more money. Bc the FILER is the wild card. This will remove all the trigger happy coj filers out of the equation... it will make the lending more predictable and more aggressive. Now u don’t have to worry about the other funder in front in the deal.. no worries of trigger happy coj filers ****ing up a good cash flowing business...So there will be even more approvals to be had. all you hating on short term funders, thinking this will suddenly stop stacking, think again, that’s not what it’s about ... l

The problem is, many of these funder’s investors require the use of COJs (to help ensure they make a return on their investment). Have to wonder how many investors will walk away. Keep in mind, if you’re a 4th position and file a COJ, you’re collecting before the other 3 can. Now, that 4th position guy will be 4th in line to collect (and will get nothing).

[Lendvo]

Good riddance, the COJ system is ridiculous and shouldn't exist. Moreover, the stories springing from it and the crap funders that it allows to exist only tarnishes the image of everyone else.

[abfunders]

I think that some of the broker shops might also have to close. If renewals are key and stacking is harder, to make money we'll need W2 employees with less commissions, so some broker shops will either never open or close, also having trouble attracting summer help without paying the W2 (that's a hit of 7.6% on the taxes that has to be paid by the employer for social security taxes and medicare).

For example, those of us who love lines of credit and factoring are going to be okay. The ones who need 10 points per deal up front or they won't have enough money to pay their 1099 employee.... they can't afford it when they get 3 points from Bluevine, or 1-2 points over the course of a year from a factor (even when the credit facility on the factor is $10,000,000!)

Might take some of the greed out of the market.

Maybe.

[SmartAdvanced]

Imagine a world where you can tell your funder: Can you give me 250 for this deal and you end up getting a COJ as well

[SmartAdvanced]

Ok so here’s a loophole:

Fund $250k with COJ, disbursed over time... like a reverse

[abfunders]

Ok so here’s a loophole:

Fund $250k with COJ, disbursed over time... like a reverse

You don't have to fund with a COJ if you don't want to. Not much of a loophole!

[mcaguru]

remind me are we just talking about NY state ?

[DTFdowntofund]

remind me are we just talking about NY state ?

For now. Mark my words, others will follow suit in short order. NY is the matriarch of finance. "If you build it, they will come"... & if she bans COJs, they will follow her lead.

[ADiamond]

SO... NYS is giving the power to Debt Negotiation firms to **** MCA companies even harder now?

What is the MCA Coalition Task Force or whatever it's called doing about this in Albany? Haven't heard from them in a while.

And if you guys think this will clean up the MCA space, you're poorly mistaken. This industry is full of snakes, they will find a way. Too much money to be made not to.

[Collection Specialist]

SO... NYS is giving the power to Debt Negotiation firms to **** MCA companies even harder now?

What is the MCA Coalition Task Force or whatever it's called doing about this in Albany? Haven't heard from them in a while.

And if you guys think this will clean up the MCA space, you're poorly mistaken. This industry is full of snakes, they will find a way. Too much money to be made not to.

This will give massive power to the settlement scum out there, this comment is spot on. They will have even less reason to make a viable offer. On the plus side if a funder has no COJ or don't file their UCC, these settlement companies won't know who to call as easily.

[ADiamond]

There's a simple fact that most of you are missing.

COJ's exist in other states. NYS was simply the easiest to file in.

lol derp. Wasn't gonna say it, but whatevs.