Results 51 to 53 of 53
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08-28-2019, 11:58 AM #51Member
Reputation points: 119
- Join Date
- Apr 2019
- Posts
- 17
You have to have a good underwriting team and risk analyses system that can calculate the risk and if the next stack will over-leverage the merchants. We have a no stacking agreement withing our contracts to secure ourselves as lenders and the merchants. The industry is full of grime and some brokers will ride on their greed and risk many merchants into busts/defaults.
We've seen merchants with 7 positions and were great payers and some were even put on our reverse consolidation program. It's sad to see how the some eager brokers are slowly killing the merchants with stacks.
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08-28-2019, 12:25 PM #52Banned
Reputation points: 179851
- Join Date
- Jun 2017
- Posts
- 2,049
The Grey Area is where most Funders like to Operate.
They Like having the Power that one Provides. Just Because they Never enforce a Stack Addendum if it doesn't affect them being repaid, doesn't mean they won't. If they want to file a COJ on said deal, want go after ISO Specific Merchants. They Like that they can.
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09-20-2019, 02:00 PM #53Senior Member
Reputation points: 51397
- Join Date
- Jul 2018
- Location
- London
- Posts
- 480
I underwrote a deal back in maybe 2014/15, and if we didn't pay off our existing balance with the new cap, i would have been a 20th position. 19th pos, 125k. under a 30% HB no less. Good payer.. no reason to take mcas, but sometimes these merchants are just cash advance hewas.
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