[isaacdstern]

Stacking and grasshoppers are practically main stream and accepted these days...what funders need to look out for I when an iso sends you a deal an once you fund it he sends it immediately to another shop to get it funded!

[FactorExchange]

Stacking is not main stream nor is it acceptable to any lender who is being stacked upon. We invest in a very large number of advances with the lions share of the large lenders in the industry. At the risk of being overly blunt, stacking lenders quite frankly do not have the talent or a solid enough ISO program to bring in high quality new business. Greed.... plain and simple.

[Finance1]

Stacking is not main stream nor is it acceptable to any lender who is being stacked upon. We invest in a very large number of advances with the lions share of the large lenders in the industry. At the risk of being overly blunt, stacking lenders quite frankly do not have the talent or a solid enough ISO program to bring in high quality new business. Greed.... plain and simple.

I don't think it's related to talent or offerings. It's simply identification of opportunity within the space and motivation to profit from it. Is it bottom feeding? IMO it is but it's out there and not going away anytime soon. Merchants want or need more capital before they are renewable with the primary funder so the need is being met and profited on.

[FactorExchange]

I agree with you to a certain extent Finance1. The issue is that they are not moving the business to their portfolio properly. If a lender wants the business that badly, they should pay the original lender off completely through a refi. As the Factor Exchange is growing and our submission base expands the nature of the model is highly conducive to very deep lender communication. When we receive a file that can be categorized as a merchant attempting to stack (less than 30% paid ect.) we automatically reach out to the original lender with a series of warnings to do our best to block this kind of behavior. Often times a simple phone call can stop a stack in its tracks while maintaining a positive relationship with the merchant. In my opinion it is our responsibility as lenders to stop this kind of behavior through intelligence and good process vs. the saber rattling most us display when stacked upon.

[Chambo]

I agree with you to a certain extent Finance1. The issue is that they are not moving the business to their portfolio properly. If a lender wants the business that badly, they should pay the original lender off completely through a refi. As the Factor Exchange is growing and our submission base expands the nature of the model is highly conducive to very deep lender communication. When we receive a file that can be categorized as a merchant attempting to stack (less than 30% paid ect.) we automatically reach out to the original lender with a series of warnings to do our best to block this kind of behavior. Often times a simple phone call can stop a stack in its tracks while maintaining a positive relationship with the merchant. In my opinion it is our responsibility as lenders to stop this kind of behavior through intelligence and good process vs. the saber rattling most us display when stacked upon.

The only thing that is going to stop this practice is a big whopping lawsuit....a la California and AMI

[Finance1]

The only thing that is going to stop this practice is a big whopping lawsuit....a la California and AMI

That or fast hitting recession

[MCNetwork]

You are the fly in the ointment of the industry the loose wheel on a well oiled machine. I could go on with euphemisms but i dare not elude to one that would exceed your minuscule level of comprehension.

By the way, these are idioms. Not euphemisms. Just sayin'