[abfunders]

OC, you are saying accurately.

The funder wouldn't want to do that because it affects their cash-flow assumptions, however it does reduce defaults significantly. I know that's why they don't do it up-front, however I would wonder why there aren't more funders who don't offer this plan. I guess for the same reason they don't want to do a CC split.... it's harder to really underwrite properly.

[OC Funder]

OC, you are saying accurately.

The funder wouldn't want to do that because it affects their cash-flow assumptions, however it does reduce defaults significantly. I know that's why they don't do it up-front, however I would wonder why there aren't more funders who don't offer this plan. I guess for the same reason they don't want to do a CC split.... it's harder to really underwrite properly.

Sadly, you can't assume everyone really cares about the health of the merchant. True, it may keep a file or two out of default, but some may decide that by clawing back quicker on the rest of the performing portfolio and redeploying the capital at a faster rate, they'll make more by letting a few die... especially if their pocketbook struggles to keep up with production.