[WestCoastFunding]

Ricky, do you have proof that they are not giving them a 25% APR loan? Or are you just assuming?
However, tell me what you think - is a client calling up a funder and telling them that they can "pay in full in return for a 10% prepayment discount" bad faith negotiations, while they are paying normally? The funder can always say "No." I have no way of knowing for sure what LendaBiz is doing, but that's the most I can figure based on the little information I had read. Unless you know something we don't know? You're making a lot of assumptions.

The "bad faith" negotiations that funders hate are when the merchants are not defaulting, and the merchant breaches their contract by stopping payments on the funder and force their hands to "settle." Funders are constantly settling with their defaults when it was done in good faith, and, yes, they offer prepayment benefits for 30-60-90 early payoffs. What's wrong with requesting for a little "give" to get paid off? Did I miss something? Chutzpah? Maybe. Illegal or immoral? I don't think so....

For me, it’s really going to come down to how the funders react to this. Like Ricky said, if Rapid gets a call one day from some guy saying he’s representing a merchant that Rapid is servicing, saying he wants to work out to deal to pay they 80% of what is owed. Does Rapid hang up the phone and cutoff the ISO agreement? Or does Rapid say, “you know what, this is great because we eliminate risk and are able to put this money back out on the street immediately”?

I really don’t know the answer to that. I wish some funder would provide feedback on how this is viewed.