Results 1 to 25 of 34
Hybrid View
-
12-19-2014, 10:17 AM #1
Reputation points: 2218
- Join Date
- Apr 2013
- Location
- NY
- Posts
- 203
I agree no way will stacking become the norm for all companies. There will always be the big players that will not stack. Because lets be real, is paying 25+% of your gross sales towards cash advance debt really a good or sustainable idea for most businesses? The established players keep payments low for a reason. Stacking only appears to be the norm because as new players enter the game they have to stack in order to get market share. Cant beat an ODC MCC or CAN rate? Lets stack on it instead. That is why some of the newer stackers are now doing longer terms, because they have no other way to gain market share. They will soon learn why no one else is doing 6 month 3rds at 1.40, because add in default rates and lawsuits and its not such a profitable business anymore....
-
12-19-2014, 10:31 AM #2
Reputation points: 820
- Join Date
- Jan 2013
- Location
- Berlin, CT
- Posts
- 191
I'm with John and Andy on this one.
-
12-19-2014, 10:34 AM #3
Over the past year a lot of new companies have opened and everyone is trying to find their place in the industry. To speed up the process they tried to gain market share quickly by stacking because it is easier then looking for quality 1st position deals or waiting till a merchant qualifies to pay off a current balance. AS these deals start to go bad and I think we all know they will when you are taking 25%-30% of a merchants gross sales, thats when all these new companies will be in trouble. I think you will see a lot of these companies leave the industry as fast as they came in. I just don't see how a business model based solely on stacking can stay viable when you factor in both bad debt and the cost law suits
-
12-19-2014, 01:32 PM #4
Similar Threads
-
Need To Stop The Bleeding
By 1StopFunding in forum Deal BinReplies: 4Last Post: 06-19-2014, 11:47 AM -
Instead of stacking... what if...???
By Ryan Shiroky in forum Merchant Cash AdvanceReplies: 45Last Post: 04-28-2014, 10:19 AM -
Namaa initiates no stacking policy for lenders: Who is namaa?????
By 1StopFunding in forum Merchant Cash AdvanceReplies: 11Last Post: 04-15-2014, 09:48 AM -
Sfs stacking
By gc543 in forum Merchant Cash AdvanceReplies: 3Last Post: 04-14-2014, 11:53 AM