[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

[kingcash555]

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

[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]

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.

[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.

[mcashark]

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

[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?

[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?

[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.

[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?

[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.

[Lmonus]

This is going to separate the men from the boys - this should be good for us in my opinion.

[J.Celifarco]

Time to see who actually has an underwriting model and who was just throwing money around counting on a COJ to protect them

[Atlas Financial]

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.

[mcaguru]

This is going to separate the men from the boys - this should be good for us in my opinion.

I am sure companies like Mantis and your company never funded a deal based on COJ...banks can foreclose on a house after 30 days and recoupe the value of loan (since the LTV has a 20% cushion) they still always fund a home buyer based on his credentials..income and etc) ..same here anyone whose funding based on a coj should NOT be in our space.