[Nunya]

https://debanked.com/2019/01/coming-...ew-york-state/

Discuss...

[newunderwriter007]

Holy hell, if it goes through it will change everything, I see a need for many more collection agencies, specializing is filing lawsuits and submitting COJ's in all states. Did they mention a time table?

[harvey]

nothing wrong with this - i would consider it a win for the space

[kingcash555]

nothing wrong with this - i would consider it a win for the space

true

[makemoney123]

I only see it as lender stop giving such competitive approvals, How is it exactly beneficial?

[WestCoastFunding]

I only see it as lender stop giving such competitive approvals, How is it exactly beneficial?

Which “lenders”? If you’re talking about these little no-name **** stackers (looking at you, Mr Advance) then, yeah, they’re ****ed. But if you’ve got a reputable funding house, with solid underwriting, plenty of financing and good collections processes, you’ll be just fine. Thrive even.

If you a broker reliant on stacking $10,000 5tb position deals over 30 payments, you’re ****ed. And good. All **** like that does is cause damage to the merchant and previous funders. So die *****, die.

[Don Dolla]

If you a broker reliant on stacking $10,000 5tb position deals over 30 payments, you’re ****ed. And good. All **** like that does is cause damage to the merchant and previous funders. So die *****, die.[/QUOTE]

what do we say to death? not today lol another 5th out the door

[BROKER TIME]

nothing wrong with this - i would consider it a win for the space

dont you know the ramifications ?

most of these lenders give the large approvals for 3rd 4th 5th position by being able to file

this will hurt the industry big time

maybe your happy because your merchant doesn't have to go get a page notarized

but your dollar approval will shrink

[WestCoastFunding]

dont you know the ramifications ?

most of these lenders give the large approvals for 3rd 4th 5th position by being able to file

this will hurt the industry big time

maybe your happy because your merchant doesn't have to go get a page notarized

but your dollar approval will shrink

But 1st and 2nd position funders will see defaults shrink. They won’t have their merchants getting stacked into bankruptcy. Because of that, they’ll be able to offer larger approvals with longer terms.

And let’s be real, if someone is getting a 4-5th position, they are mostly likely on their way out of business.

[levcap]

dont you know the ramifications ?

most of these lenders give the large approvals for 3rd 4th 5th position by being able to file

this will hurt the industry big time

maybe your happy because your merchant doesn't have to go get a page notarized

but your dollar approval will shrink

Hurt or help?

[QuickFund]

dont you know the ramifications ?

most of these lenders give the large approvals for 3rd 4th 5th position by being able to file

this will hurt the industry big time

maybe your happy because your merchant doesn't have to go get a page notarized

but your dollar approval will shrink

I agree with you. I'm not exactly sure how this could possibly be good for the industry.

[kingcash555]

Prohibit the use of COJs in small business loans under $250,000

[WestCoastFunding]

https://debanked.com/2019/01/coming-...ew-york-state/

Discuss...

It will go back to how things were just a few years ago. 3-4 years ago next to no one used COJs. YSC funded just fine. Most reputable companies did. But when COJs started being used, all these ****ty little F paper stackers (like Mr Advanxe) popped up. Those companies will now die.

[mcashark]

no COJ ='s "no soup for you" https://www.bing.com/videos/search?q...2&&FORM=VRDGAR

[WestCoastFunding]

Now the ****ty D-F paper players are going to have to actually underwrite rather than just base their approval on what the previous funder gave.

[J.Celifarco]

I am curious if there is still anyone that think this is all smoke and nothing is going to happen. Can we all finally agree regulation is a real thing and it is coming to this industry sooner rather than later.

[BB_Cooper]

Agreed. When you are funding high risk, underwriting matters. "Eyeballs on the file!" Having a COJ has never been the same as having a risk model.

No COJ's would certainly put the interests of the funder and a merchant more in line-

[newunderwriter007]

I have been mainly at higher risk funders. None of them just underwrote based on other companies. At most, having an A paper funder meant the merchant had good background, and maybe would give a slightly bigger and longer offer. Who really underwrites just based on what the last guy gave?

[Cashman1]

I have been mainly at higher risk funders. None of them just underwrote based on other companies. At most, having an A paper funder meant the merchant had good background, and maybe would give a slightly bigger and longer offer. Who really underwrites just based on what the last guy gave?

Well think about it. Every lender wants the deal with the least exposure. So if the client took, 100k 100 days, why should a UW approve more? He just took 100k when he probably wanted 150k. However, the real good UW sometimes will actually look closer at a file and feel more comfortable giving more then previous lenders, but not common.

[newunderwriter007]

Well think about it. Every lender wants the deal with the least exposure. So if the client took, 100k 100 days, why should a UW approve more? He just took 100k when he probably wanted 150k. However, the real good UW sometimes will actually look closer at a file and feel more comfortable giving more then previous lenders, but not common.

I usually cannot give a bigger/longer offer then who came on, simply based on the % of revenue being pulled, and based on our own max underwriting guidelines. However, I have gone bigger&longer on specific deals where the numbers worked.

[Cashman1]

I usually cannot give a bigger/longer offer then who came on, simply based on the % of revenue being pulled, and based on our own max underwriting guidelines. However, I have gone bigger&longer on specific deals where the numbers worked.

What company do you work for?

[mcashark]

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?

[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.

[fundingsmbs]

the COJ is very important for alot of companies who fund seconds + and high risk. not sure this will help them at all if it becomes law. they are taking the risk of funding a merchant and also paying out commissions upfront. this in turn, hurts the brokers opportunity for commissions. it looks like bloombergs articles were strategic in nature and accomplished their goals of putting this practice under the microscope.

[mcaguru]

The biggest issue facing funding companies over the next 2 years will be new players to the market (seeking to fund merchants "ON THE FLASH" -- they may be well known and currently in the financial space). there will be a few upcoming companies that will do almost the A-Z of the business "underwriting-identifying merchant-collecting/servicing" minus the actual cash to place into the deal. This will impact the top of the chain primarily. looking to fund the Prime-Prime merchant.