[jjdcnetrex2]

Guys I have been in the business for 5 years and done quite well with a small shop but like everyone else have never seen anything like this. I'm still open and have my guys working form home (more because I want to keep paying them for as long as possible) but I cant help but wonder is this it? Can and will the MCA world bounce back after this is over (if and when that happens)??…… Just looking for some insight and opinions from some of the veterans as this has always been a solid source of industry information for me. Thanks and stay safe everyone.

[ryan $]

If and when? Obviously this is going to end at some point. Idiots just need to stay the **** home. I just read an article where our entire States (CT) Outbreak can be traced to a single Birthday/Dinner party where someone recently traveled to South Africa (Dumb) then infected half the party who then those people returned to their homes all oer CT and boom, Outbreak.

Stay Home, No Dinner Parties. No Gatherings. It will stop spreading.

Also, its gonna take more than a Severe Flu to kill the MCA Industry

[Moshe73]

MCA will be fine. It will be extremely limited for the next few months which is not good for brokers income but unfortunately that is the truth.

I say this once again as an UW, you are an idiot if you are still pursuing and submitting SICS which you know you will not fund. Restaurants, retail, home services, daycares, etc are a complete waste of time. I've advised some ISO's on what/where to target and am seeing them continue on and seeing them get some deals funded.

I have every intention to continue funding and syndicating on deals which I know will last this, but I also have to be mindful that things change every hour/day. Since last week my opinion on certain SICS have had to completely change.

[WestCoastFunding]

Fed projecting GDP will be -50.0% this quarter. I can’t even wrap my head around that.

[capaxess]

Guys I have been in the business for 5 years and done quite well with a small shop but like everyone else have never seen anything like this. I'm still open and have my guys working form home (more because I want to keep paying them for as long as possible) but I cant help but wonder is this it? Can and will the MCA world bounce back after this is over (if and when that happens)??…… Just looking for some insight and opinions from some of the veterans as this has always been a solid source of industry information for me. Thanks and stay safe everyone.

I was a stock broker in 1987 and also 2000. Both of those crashes we're nothing compared to this. MCA won't die but it'll certainly change in meaningful ways. This is going to be a years-long bottoming process filled with challenges AND opportunities for everyone. Get right, stay tight and be OK with the guy upstairs!

[fundingsmbs]

the feds have warned that unemployment could hit 30% in the 2nd qtr. many people lost their jobs and have no income to spend even if things start to open up slowly. the government data showed that initial UI claims grew faster than they did at any point during the great recession. you tell me....

[MCN]

No its not the death sentance for the industry, but yes things will change and the next couple of months (probably longer) will be a roller coaster. Remember as bad as things get, there will still be a Demand for the MCA product, maybe more so then ever.

The real questions is which funders are closed for good and which will repoen. Many will lose their source of capital to fund

[FHFunding]

No its not the death sentance for the industry, but yes things will change and the next couple of months (probably longer) will be a roller coaster. Remember as bad as things get, there will still be a Demand for the MCA product, maybe more so then ever.

The real questions is which funders are closed for good and which will repoen. Many will lose their source of capital to fund

This is the answer - not just the hopeful and positive and non-fear mongering answer - but the actual answer. Well said.

[WestCoastFunding]

The question is: how many funders will have access to capital when this is over? Are we really to believe they'll just have access to lines? Do we really believe investors will just start letting money flow again in just the next few months? How will they properly evaluate apps? If so, then yes, things will get back to normal in months. But call me skeptical in thinking that investors will be quick to provide funders with cash until they see the funders have new underwriting guidelines and a track record in the new environment. So I think many of the guys that were funding before are going to have a hard time resuming. If they do, they'll have smaller lines, which will lead to more restrictive underwriting.

As noted above, we're looking at Q2 GDP being at...... -50.0%. In 2008 financial crisis it was -8.2%. This is just insane. Also noted above, we are talking about 30% unemployment (2008-2009 height was 10.2%). The economy is going to be ****ed up, yall.

My opinion: I don't see this industry getting back to anything close to where it was until the end of this year, or early next year. And that, to me, is best case scenario. Probably way too optimistic. The realst in me says half of the funders aren't coming back.

[fundingsmbs]

also, nobody has brought this up, but, when a funder goes down, they typically have already begun to sell portions of their assets to another company. What will that mean to the ISO's book of business if let's say a competing co buys the folio pennies dollar? i would stay in touch with your merchants very very closely during these next few months

[Esteban2000]

MCA survived 9/11, the twin Hurricane hits of Katrina and Rita, and the Great Recession. All these events winnowed out some of the bad players, and the ones who were left standing grabbed market share and did well in the aftermath. Pent-up demand for capital in 4Q will be incredible (that's obviously only my opinion on how the timing will work out), and Funders need to be ready to meet merchants at their point of need.

[Regium]

This will wipe out the ****ty funders / syndicates (sky high default rates, they won't sustain it, especially the small 2nd -8th pos companies)

The A-B funders, who knows. Some have a crazy overhead. That, mixed in with every client calling in for a payment plan / turn off payments. They will downsize (layoff) as many as they can to conserve as much cash as possible. BUT add a stop of funding to that mix? Those are in risk of shutting down as well.

Its very unknown what will happen, who will close, who won't.
But like said before, even if a company can survive this - once you have you investors pulling their funds, nothing matters. You're closing your doors.

Feel free to chime in or correct me if I'm wrong

[fundingsmbs]

this is the tsunami first position funder's feared. first, stacking behind their positions already posed addtl risk in good times. now.. the companies who go shorter and smaller dollar always had more insulation than those who do bigger deals and go long. i actually think the A funders may have more liabilities than the shorter term stackers purely based on unit/debt owed basis

[Hedley Lamarr]

this is the tsunami first position funder's feared. first, stacking behind their positions already posed addtl risk in good times. now.. the companies who go shorter and smaller dollar always had more insulation than those who do bigger deals and go long. i actually think the A funders may have more liabilities than the shorter term stackers purely based on unit/debt owed basis

Yeah....just wait until the bank that has the LOC in front of everyone that stacked stops all ACH payments to the stackers.......

[mrmrg]

Yeah....just wait until the bank that has the LOC in front of everyone that stacked stops all ACH payments to the stackers.......

By then it's usually too late though.

[cashplug]

the gravy train is over

[golf2014]

the gravy train is over

Way way way over. A medical disaster can strike harder in fall and winter. Too many unknows...no lender will give a cent. Its definately over

[fundingsmbs]

this stimulus package has a lot of unknowns to say its over. billions of $ are available to keep people employed, companies can get tax credits and write off losses, etc etc etc. tom is the final vote by house. i think the details will impact the market but as it stands, lots of $ avail for people that qualify to stay afloat. this is a wartime investment as a matter of fact, some fintechs may even benefit from this as they have already written congress to manage the funds to small business owners (assume there will be mass tax incentives or even fee incomes earned from this).

[omegafund]

We just funded a deal MCA. Larger shops will fail and be done they cannot cover payroll. Yes a stimulus bill will get done but you are still WEEKS++ from any merchant getting money. They will need MCA still. Obviously the haydays of the larger boiler shops are done but this industry is not done.
Smaller shops that have a diversity of funding options will come out stronger.

[WestCoastFunding]

Way way way over. A medical disaster can strike harder in fall and winter. Too many unknows...no lender will give a cent. Its definately over

Golf, you’ve been out of the industry for years. You failed long ago, yet here you are always ****ting on it. Sour grapes like a mother****er.

[sbuda150]

To claim that this industry is dead is basically saying that the economy will never recover and we're all ****ed IMO. I doubt this is the case.

Obtaining traditional bank loans will still have stricter guidelines than MCA, which makes room for alternative/specialty finance companies, MCA included. Given this whole shake up, I think (at least in the short to medium term) funders with strong UW teams will survive and capture market share. These are funders that thoroughly analyze macro/micro level impacts of the pandemic per specific verticals and can adjust their guidelines just enough to 1) protect themselves and 2) allow enough approvals for ISOs to make money and not deem brokering a waste of time.

The funders that just look to stack behind a funder with actual UW will come back, but not until they see movement from the real funders

[SFC]

Guys I have been in the business for 5 years and done quite well with a small shop but like everyone else have never seen anything like this. I'm still open and have my guys working form home (more because I want to keep paying them for as long as possible) but I cant help but wonder is this it? Can and will the MCA world bounce back after this is over (if and when that happens)??…… Just looking for some insight and opinions from some of the veterans as this has always been a solid source of industry information for me. Thanks and stay safe everyone.

This isn't the death sentence of anything except
1. The elderly that get sick because people are too selfish to stay inside.
2. Outsourcing our manufacturing to China who now won't send us masks we already paid for. All of that is coming back.
3. Small retail that was on life support and now we are all e-commerce trained for months on end.

For MCA this will grow forever. IF you had X% of merchants needed money before, EVERY SINGLE business needs it NOW and for the next few years. I don't see anyone getting money into a merchants hand faster than MCA. Not now, and not for a very long while. This too shall pass. The industry will be back soon. The virus may be too but we will never shut down the country like this again. Lessons learned.

Prepare yourself as a SMB to plan for a crisis, but this won't happen again. Another crisis might.

People always need money. MCA always gets it to them the fastest.

[WestCoastFunding]

It all comes down to whether/when investors come back. If there aren’t people providing the lines of credit, there arent Funders.

[golf2014]

Golf, you’ve been out of the industry for years. You failed long ago, yet here you are always ****ting on it. Sour grapes like a mother****er.

Yup....you all got what you deserved. Your induatey is long gone and will never be anything like it used to be. Never failed..never did it..it was easy for a few deals...but its over ladies..god bless mca fail

[golf2014]

Investors come back ?? Not unless its secured...plus within 3 months you will have 100k dead here unfortunately and no lender wantsnhigh risk...mca,bye bye