Results 1 to 25 of 38
-
04-25-2020, 04:47 PM #1
- Join Date
- Oct 2019
- Posts
- 48
The problem With MCA After Opening For Business
I am asking this to the seasoned more advance people here.
Sales will not be were they were some some time, 6-12 months maybe?
Now, I am speaking to the industry i am in which is any retail store front shop.
DISCLAIMER sadly.
Retail store front shops.
Yes Iv'e been told many times seek a different industry
My credit card processing volumes in California is down by 35% and i'm sure cash is way down.
With that in mind.
With an MCA loan of $25k
Total payback $33,750
Term 8 Month's
Daily payments $192
Monthly $4,218
I just don't see it in the near future.
Yes other industries, Yes. I just don't see a sttruggling merchant paying those payments.
Your opinion?
-
04-25-2020, 05:07 PM #2
- Join Date
- Aug 2014
- Posts
- 194
Our CC portfolio of approx 4000 merchants, total processing volume is down 68% to date from same time last year. I don't see this getting better that soon, my brother who works at the Pentagon and is part of the Covid 19 task force there said they are all in agreement that we really don't get out of phase 1 easement until early next year, some states will try phase 2 but they will see a spike again. This will be the norm for awhile, unfortunately
-
04-25-2020, 07:14 PM #3
- Join Date
- Feb 2018
- Posts
- 1,349
without a vaccine or massive herd immunity the uncertainty is going to linger for awhile. in order to get to a large herd immunity status, 70% or more of the population would have to become infected and immune to it, and, reports are stating 1-3% currently are immune (lots of debates on real #s). will wearing face masks and opening up brick mortar again lead to healthy sales revenues again? nobody can really answer that question today. i certainly will agree that taking on expensive debt has to be on the low end of importance right now for most business owners. we will see after this next PPP round what occurs and how many were left behind without funding. we are in survival mode, which, is the worst stage to be in for an mca debt service. i think you will see select states and industries continue to be the norm for UW entertaining funding.
-
04-25-2020, 09:20 PM #4
- Join Date
- Jun 2015
- Posts
- 3,323
Last edited by Michael I; 04-26-2020 at 12:14 AM.
-
04-26-2020, 07:24 AM #5
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,952
Credit card splits never disappeared.
Tighter underwriting moving forward.
Also, NO STACKING!!
Short-Term MCA should only be for "Growth" what specifically will the funds be utilized for.
Not a Broker stating "Max Offer"Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
-
04-26-2020, 09:34 AM #6
- Join Date
- Jun 2015
- Posts
- 3,323
-
04-26-2020, 12:15 PM #7
- Join Date
- Feb 2017
- Posts
- 3,429
-
04-26-2020, 07:59 PM #8
- Join Date
- Jun 2013
- Posts
- 293
You have 3 kinds of merchants now:
1. The ones who are open and have not been heavily impacted (20% of our portfolio)
2. The ones who are open but have had a drop in revenue (70% of our portfolio)
3. The ones who are completely closed (10% of our portfolio)
Merchants in category 1 reported between 10-35% drop in revenue.
Merchants in category 2 have seen between 50-90% drops in revenue, and had payments reduced by an average of 80%. I don't think this group will ever regain normal payments again. Chances are they'll be at reduced payments until paid in full.
Merchants in category 3 are a mystery right now. They have no revenue at all. Most of them aren't making any type of payment right now. No revenue, no payments. I believe a quarter of them won't be reopening.
-
04-27-2020, 11:01 AM #9
- Join Date
- Oct 2019
- Posts
- 48
Consumer confidence will be the key (solution)
How can we get this consumer confidence back swiftly and quickly?
Obliviously it would be the cure to the virus.
I believe this is in the horizon sooner than what we expect, not talking about vaccines.
Thank you for the input
-
04-27-2020, 11:05 AM #10
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,485
Consumer confidence may get a bump as states start opening up businesses again. Once the consumer realizes that life will be quite different until a vaccine is readily available, most will hunker back down. I expect that a lot of small Mom & Pop businesses may open back up, but struggle and ultimately close.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
04-27-2020, 11:34 AM #11
This is exactly what Governors and the President need to worry about with how they open back up. In the long run I am more worried about opening too soon and having this happen then staying closed longer and opening when people are ready to go out and start moving back to normal. If business try to open too soon they will spend money to prepare for that and being tight on cash if they spend money and dont have any sales that is going to make a bad problem worse in my opinion.
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
04-27-2020, 11:39 AM #12
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,485
The old expression "death by 1000 cuts". Opening too soon and having the virus spike again or take longer to manage would be far worse than keeping things closed until things are more manageable. Either way, it's ugly..... The later could be less painful for the business owner.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
04-27-2020, 11:43 AM #13John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
04-27-2020, 01:02 PM #14
- Join Date
- Sep 2019
- Posts
- 402
This thread seems to be overly pessimistic. Nothing is ever as good as it seems (see 6 weeks ago) and nothing is ever as bad as it seems.
John's right, we're all operating on "best guesses." The thing I think that will hurt the most (and we've seen it a lot) is this culture of people deciding it's okay not to pay what they owe, be it rent, credit cards, loans, etc.
For people who legitimately can't afford it that's one thing, but there is so much info out there now on debt forgiveness and stopping payments and we've seen tons of merchants try to play the system.
I think this will only increase with merchants taking advances and then claiming Covid issues.
-
04-27-2020, 01:50 PM #15
- Join Date
- Oct 2016
- Posts
- 4,318
You’ll know the industry is back when Marcus starts trolling DF again.
-
04-27-2020, 02:03 PM #16
- Join Date
- Jul 2018
- Posts
- 54
As an underwriter I'll be blunt here. I see the industry staying the same for the next several months at least(Ex: Shorter terms than usual, Essential businesses only, Cut commissions, etc). I'm sure high risk will return with their 20% fees and 10-20 payments for the riskier businesses in the coming weeks.
As mentioned above, no one knows whats going to happen. I'm still declining deals in states that are reopening as restaurants, retail, etc are all going to still be hit and who knows in a few weeks the reopened states could be back in lock down. Brokers often forget we aren't dealing with play money here and there are repercussions if we are not funding smart. For funders its best to stick with what we know will be safe and pay for now.Last edited by Moshe73; 04-27-2020 at 02:08 PM.
-
04-27-2020, 02:26 PM #17
- Join Date
- Apr 2020
- Posts
- 54
-
04-27-2020, 02:29 PM #18
- Join Date
- Apr 2020
- Posts
- 54
-
04-27-2020, 02:32 PM #19
- Join Date
- Oct 2019
- Posts
- 48
pes·si·mis·tic tending to see the worst aspect of things or believe that the worst will happen.
Its a valid question as to current events, hard to hear maybe but is very true. People and business will not be as before, for a while anyway.
I believe this environment will be short lived.
States will be fully opened and business operating fully by late summer July early August 2020, will it be the same commerce, of course not.
Some businesses will close.
A cure, not a vaccine will change the narrative. I am not taking no dam vaccine that's for sure.
-
04-27-2020, 02:34 PM #20
- Join Date
- Apr 2020
- Posts
- 54
Agreed. Merchant's have gotten much smarter about how they take their MCA's and I can't imagine only the real dirtbags are the ones who've closed up shop cuz they're already 4-7 positions deep (with 10 previous defaults)
Nature of our industry is we deal with real scumbags who'll stop at nothing to gain access to unsecured money
-
04-27-2020, 02:37 PM #21
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,952
While the controlled News Media from NY & D.C and of course the Cuomo Sitcom we have everyday,
ponder these numbers as of April 27, 2020
USA Population 320,000,000 (Estimated) add 45 to 50 Million Illegals
Total Confirmed Cases 972,967
Total Tragic Deaths - 55,118 = 5.3826171875e-13% of the population and we allowed
the so-called experts to shut down a $19,000,000,000,000 economy
Gives a person reason to ponder what and why the talking heads are blasting over the controlled news media 24/7.Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
-
04-27-2020, 02:47 PM #22
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,485
Confirmed cases=people that were actually tested and the test came back positive. There is about a 30% error in testing....false negatives. There are other studies done in NY with testing for anti-bodies. Of the groups tested 24% of the people had the anti-bodies, but no symptoms and were NOT tested for the virus. It is truly a damned if you do....damned it you don't scenario.
The testing for the actual virus done to date is less than 1% of the entire population of the US. Of which, a bunch were false negatives. At the rate of testing today, it would take a full year to test less than 10% of the population. We should have switched to anti-body testing weeks ago....deep and hard. If and when the testing for anti-bodies begins, you will get a true number on how many actually had the virus.Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
04-27-2020, 02:47 PM #23
- Join Date
- Feb 2017
- Posts
- 3,429
Um, may I ask, why would a vaccine NOT change the narrative?
I'm one of the biggest pro-vaccine people out there, let's not get into the reason why the pseudo-science of anti-vaccines are so stupid, but a vaccine certainly helps even if some isolated idiots don't take them and don't trust anyone.
But that is my question - why would it NOT change the narrative?Last edited by abfunders; 04-27-2020 at 04:03 PM.
-
04-27-2020, 02:49 PM #24
- Join Date
- Feb 2018
- Posts
- 1,349
CBS did a poll with a margin of error of 2.5 pts**
If a stay at home were to be lifted would the consumer be comfortable going to a bar or restaurant: 71% said no. get on an airplane: 85% said no. go to a large event: 87% said no. so even as states slowly open up business, the general population is not confident in the current pandemic safety
one thing that can be learned from this and 2008 era when funders went under and brokers closed shop, don't rely solely on MCA for a living. This business always has ups and downs and some funders even in ok times have folded. Arm yourself with other products and services and never rely on one income stream.
-
04-27-2020, 02:54 PM #25
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,485
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
Similar Threads
-
Opening up an ISO
By WallStreetFunder1 in forum Merchant Cash AdvanceReplies: 5Last Post: 07-19-2019, 11:01 AM -
Opening an ISO
By WallStreetFunder1 in forum Merchant Cash AdvanceReplies: 10Last Post: 07-18-2019, 12:24 PM -
Declined file - Been out of business, re-opening shop
By Iannad in forum Deal BinReplies: 6Last Post: 06-18-2018, 12:46 PM -
Job opening
By Mrsizzle45 in forum Help WantedReplies: 1Last Post: 01-24-2018, 09:01 AM -
Need a business loan ? Line of credit? No problem
By kathryndelatorre19 in forum Business LoansReplies: 15Last Post: 01-18-2018, 05:30 PM