[KanjorskiPartners]

No we do not tell merchants to stop paying their old advances. We pay off their MCAs and get them zero balance letters. We roll it all into one loan at the par value owed on a 24 to 36-month amortization with one monthly payment.

[ryan $]

No we do not tell merchants to stop paying their old advances. We pay off their MCAs and get them zero balance letters. We roll it all into one loan at the par value owed on a 24 to 36-month amortization with one monthly payment.

Ok you don't tell them to stop payments, but....

Do you "Settle for Less" on the Outstanding MCA Amounts, as opposed to paying off in full.........

[WestCoastFunding]

No we do not tell merchants to stop paying their old advances. We pay off their MCAs and get them zero balance letters. We roll it all into one loan at the par value owed on a 24 to 36-month amortization with one monthly payment.

When you negotiate a lower payoff amount with the MCA funders, is the merchant made aware of this? Specifically, do you tell the merchant what the negotiated payoff amount would be, or are they kept in the dark?

[KanjorskiPartners]

this has been asked before and yes they are made aware of this right from the start. They are more-than-happy to have a new payment that is 50 to 90% less per month than it is on their MCA amortization.

[KanjorskiPartners]

When you negotiate a lower payoff amount with the MCA funders, is the merchant made aware of this? Specifically, do you tell the merchant what the negotiated payoff amount would be, or are they kept in the dark?

This has been asked before and yes they are made aware of this right from the start. They are more-than-happy to have a new payment that is 50% to 90% less per month (because of their new amortization) than it is on their MCA amortization and the MCA company is more-than-happy to get an accelerated return on their capital or at minimum the expected monthly return on their capital, therefore the can reroll the compounded return into a new origination. Its a win-win-win-win transaction no matter how you try to dissect it (broker, merchant, us, MCA funder)