Results 1 to 15 of 15
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03-18-2019, 11:08 PM #1
- Join Date
- Dec 2017
- Posts
- 277
Funders Offering to Lower Payments Towards the End of the Term to Block Other Funders
Has anyone seen this?
How would you suggest proving the funder reached out to the merchant and offered to lower payments? Everything is done over the phone and there is no paper trail.
Your input is appreciated,
Mike
msla*****er@sla*****er.com
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03-18-2019, 11:20 PM #2
- Join Date
- Jul 2018
- Posts
- 193
Tell Your merchant to call the accounting department of the funder/Lender, they are funded with and ask for confirmation that they are in good standing with lower payments the funder provided and have the merchant record the call. 2) if there is no UCC filing after lowered payments, chances are they lowered it to prevent stacking.
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03-19-2019, 12:40 PM #3
- Join Date
- Feb 2018
- Posts
- 1,349
modification of payments is a real topic. it happens. whether the funder is allowing it, or, the merchant's are requesting it, happens all the time.
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03-19-2019, 12:59 PM #4
- Join Date
- Jan 2014
- Posts
- 1,375
ive seen this happen first hand with prospects. It was during holiday season lender reached out offered as a holiday special to lower payments via phone no paper trail just to make it seem like they lowered payments so no other lender would fund them. I didn't believe it and he 3-way called them again with me on the line to confirm what they were telling him few weeks prior and they said yes, then he asked them to send a email stating this was an offer they had not that he lowered payments and was in good standing and the rep started trying to give him the run around as to why he didn't need that. I was speechless
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03-19-2019, 01:09 PM #5
- Join Date
- Feb 2018
- Posts
- 1,349
^ which co was it
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03-19-2019, 01:17 PM #6
it is getting CRAZY out there and desperate funds are trying any and everything
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03-19-2019, 01:26 PM #7
- Join Date
- Jun 2015
- Posts
- 3,325
i have been realizing also where they will oops miss to take a payment and file a ucc on larger merchants . Some funders are known to only file ucc if he defaults and now no one will touch the merchant . At first i did not beleive the merchnat but i have now seen it 3 times with the same funder
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03-19-2019, 01:53 PM #8
- Join Date
- Apr 2015
- Posts
- 300
imo merchants in lower payment are better merchants - show that they actually know what is going on with the business.
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03-19-2019, 01:59 PM #9
- Join Date
- Apr 2018
- Posts
- 104
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03-19-2019, 02:10 PM #10
- Join Date
- Apr 2015
- Posts
- 300
didn't praise them said sometimes it helps funding companies to work with them - rather then a merchant R08ing them and disappearing for ever
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03-19-2019, 02:31 PM #11
if a merchant has a corresponding drop in revenue, then lowering payments is mandatory, not a courtesy, as per the contracts & is NOT a default.
We are afterall, purchasing receivables at 30-40% discounts & NOT loaning money for specified periods of time...that would be illegal
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03-19-2019, 02:32 PM #12
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03-19-2019, 03:48 PM #13
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03-19-2019, 04:24 PM #14
- Join Date
- Apr 2013
- Posts
- 245
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03-19-2019, 06:11 PM #15
- Join Date
- Jun 2013
- Posts
- 293
There have been shticks pulled by funders to keep other funders away from their renewals for years. UCC "poaching" is what first started it. In todays market, it doesn't surprise me what some funders will do. It's pretty genius if it actually works.
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