[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