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04-16-2013, 10:27 AM #1
- Join Date
- Sep 2012
- Posts
- 199
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.
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04-16-2013, 12:06 PM #2
- Join Date
- Apr 2013
- Location
- Irvine, Ca
- Posts
- 8
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.
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04-16-2013, 12:18 PM #3
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04-16-2013, 12:45 PM #4
- Join Date
- Sep 2012
- Posts
- 199