[Finance1]

The math can be spun on stacking pretty easily against doing a refi.

10k balance and need 10k

Refi: 20k 8 month deal @ 1.35 = $27,000 repay or $7k cost for $10k.

Stack: $10k @ 1.42 = $4,200 in cost for $10k.

Yea, time vs money is out of whack but still, it's not hard to spin to make a sale. Why the iso wanted to push the stack is hard to say. If he didn't own the first position then it's obvious. Retention could have cut him out. If he did own the first position then it was kinda dumb. Especially because stacks can screw up the clients ability to refi the first position deal leaving them worse off in the long run.

[J.Celifarco]

The math can be spun on stacking pretty easily against doing a refi.

10k balance and need 10k

Refi: 20k 8 month deal @ 1.35 = $27,000 repay or $7k cost for $10k.

Stack: $10k @ 1.42 = $4,200 in cost for $10k.

Yea, time vs money is out of whack but still, it's not hard to spin to make a sale. Why the iso wanted to push the stack is hard to say. If he didn't own the first position then it's obvious. Retention could have cut him out. If he did own the first position then it was kinda dumb. Especially because stacks can screw up the clients ability to refi the first position deal leaving them worse off in the long run.

I see what you are saying in this example.. The deal I am talking about owed 15k doing 50k gross.. The ISO pitched a smaller second position deal. Pitched the merchant 12k second position instead of trying to do a 40k regular deal and pay off the existing position..

The point I was trying to make is that I am starting to think there are people in this industry who dont know there is an option other then to offer a stack.

[Chambo]

The math can be spun on stacking pretty easily against doing a refi.

10k balance and need 10k

Refi: 20k 8 month deal @ 1.35 = $27,000 repay or $7k cost for $10k.

Stack: $10k @ 1.42 = $4,200 in cost for $10k.

Yea, time vs money is out of whack but still, it's not hard to spin to make a sale. Why the iso wanted to push the stack is hard to say. If he didn't own the first position then it's obvious. Retention could have cut him out. If he did own the first position then it was kinda dumb. Especially because stacks can screw up the clients ability to refi the first position deal leaving them worse off in the long run.

you are leaving out one essential point. With a stack, you now have TWO payments coming out, thus further killing one's cash flow