[sergio450]

I have an A paper client who's incorporated in South Dakota, but he operates his business in Chicago, IL. Looking for a funder who will take a look at the file since South Dakota is a prohibted state for most funders.

Thanks

[Kevin Henry-Seacoast]

What industry and how big is the company?

[DannyFoxCap]

Fox funds in all 50 states, reach out to go over the deal.

[sergio450]

It's a marketing company. Deposits about $200k a month. Looking for an ACH not CC split

[TedFundy]

We can fund him and get him a better rate than an MCA. You will get residual income for the life of the deal.

[LondonNyc]

We fudn in south dokota

[ghosthand]

submit to sales@oarex DOT COM

They may be able to help they specialize in marketing and digital media comanies

[Sachip24]

south Dakota is prohibited state? thats first for me, anyone know why that is?

[blashley]

Expansion is in south Dakota.

[mcaguru]

South Dakota is a Great state it even has More shoreline then my state of Florida!

[BB_Cooper]

South Dakota is a Great state it even has More shoreline then my state of Florida!

South Dakota vs Florida? Really?

But seriously, why is South Dakota treated as a restricted state by some?

[budlightboy]

In the terms of business LOANS.... There's basically 2 ways a lender can get licensed to lend. They can use the "rent-a-charter" model where they rent a national bank charter (think celtic bank, web bank, bank of internet) and lend money through that. Banks with a national charter are exempt from state lending laws, so the rent-a-charter model allows the lender to lend in any state while following federal business lending laws. The 2nd way is to get licensed in each state the company plans to lend in. With this comes additional red tape as the loan company has to abide by that state's laws. For example, Nevada requires that business lenders licensed there have a physical office in the state. SD has some kind of similar law which prevents most lenders from issuing loans to that state unless they use the rent-a-charter model. The state licensing model means that lenders must follow APR caps, Origination fee caps, NSF fee laws, and more. All of those are state by state specific.

Even with the rent-a-charter model the company may run into issues... Some states have weird homestead laws which can make collecting a PG more difficult so they have stricter underwriting in one state vs another.

This is the reason the OCC fintech charter was such a big deal. Companies pay a TON of money to rent bank charters, so to be able to apply for their own charter and follow federal laws would be huge. It appears it won't be happening anytime soon though, if I recall right 14 states sued the OCC and it doesn't look like the fintech charter will be a thing.

[mcaguru]

South Dakota vs Florida? Really?

But seriously, why is South Dakota treated as a restricted state by some?

Yep... SD does have more shoreline than FL!

[VitalCapJeff]

We fund in South Dakota.

Jeff Pecori*
ISO Relations manager
VitalCap Fund*48 Wall St.
New York, NY 10005
P. 850.630.7509*
F. 646.219.7949
jeff@vitalcapfund.com

[LendingValleyOwner]

Lending Valley !

Submissions@lendingvalley.com
(347)491-5219

[blashley]

Everyone funds in Dakota

[Jason Sterling]

I just did a deal in South Dakota a few months ago.

[ddm]

We fund all states. Pm me or call me, a-d paper, super agressive, high risk tier. 100% direct funder only