[Joseph Esparza]

Subtract the MCA/ACH world from the landscape of the lending, and what remains are a community of anemic small businesses, deemed un-fundable by the standards of most traditional lending institutions.

Add it back into the equation and those same institutions dismiss it as a viable alternative instead, often comparing it to predatory lending their only defense for a market share they just can’t seem to fully comprehend.

The MCA/ACH model follows basic economic principals of Supply & Demand, taught us by nursery rhyme in elementary school:

Jack and Jill went up a hill to fetch a pail of water,

The well was dry,

Jack almost died,

So Jill administered intravenous.

If not for this capital injection [from the MCA/ACH Funders], the better part of our small business community would die in-waiting for banking institutions to awaken and recognize this nonconformist mutually beneficial exchange of services. The Predatory perspective is faulted in that it does not take into account the sustainability that MCA/ACH has offered small to mid-size businesses, as traditional lenders decline a greater number of loans than they approve – begging the question:

Might the absence of these risk-averted lending institutions be in direct relation with the SBA’s statistic that says 95% of ALL small businesses will close within the first 5 years of their existence?!

A compelling argument, indeed…

At closer look, the real conversation is that our economy needs small business to succeed in order for them to create jobs, and that unless lenders are and sync with that that need, a failing economy is inevitable.

Just as history teaches us that, new fronts are often met with adversity before acceptance, so too do business owners, accountants, financial advisors and the like, reinforce the notion that, money secured today is far cheaper and greater in value, than money promised tomorrow.

The evolution of small business lending will ultimately lead us in many new directions, with a vast array of new methods by which to measure the risk…tell then, it is imperative that we keep them funded and growing.

Joseph Esparza | Director of Business Development | Capital Stack, LLC

[Zach]

Eloquently put, Joe.

[Joseph Esparza]

Much appreciated Zach...

[Funder Mark]

Its like the banks are saying to merchants, "Its bad for us to fund you, but dont go to the people who will, they are too expensive".

Its the law of supply and demand. Where there is demand, supply WILL come, and it may be expensive. It reminds me also of the Golden Rule, "Let they who has gold make the rules", banks have no skin in the game now, we do, where are they for this sector of the market?