[Atlas Financial]

The companies who will burned the most are the ones who forged headfirst into 12-18 month deals at 1.25-1.40 rates and weekly payments. There was zero room for error on those deals that were funded in early 2019 and have yet to reach their last payment. The companies that built their business on 90-120 terms will continue to hold that niche because the money goes out and comes back so quickly that they are able to leverage a couple million bucks into funding 5-6x that a year in volume.

[J.Celifarco]

The companies who will burned the most are the ones who forged headfirst into 12-18 month deals at 1.25-1.40 rates and weekly payments. There was zero room for error on those deals that were funded in early 2019 and have yet to reach their last payment. The companies that built their business on 90-120 terms will continue to hold that niche because the money goes out and comes back so quickly that they are able to leverage a couple million bucks into funding 5-6x that a year in volume.

I completely disagree with this. Any of the high risk short term companies who have senior lenders are at the most risk. With so many clients adjusting or stopping paying the companies with the shorter terms are the ones who are at risk of defaulting on their senior lenders. If the Senior lender pulls the line the companies are screwed.