[Winning]

Welcome to the DF family.. I am a merchant and I always ask and try to get a clear understanding of exactly how a transaction will benefit all the various parties involved. If I feel if something doesn't add up right, or if the deal seems to go to be true, it makes me take a harder look at the numbers. But at the end of the day, it's the total cost that matters most to the merchant, not exactly who gets what.

I think shopping the deal is more important than trying to figure out exactly who is getting what.

No differance when getting multiple bids for a home renovation, multiple bids for cc processing, multiple bids for a MCA.. What's the differance?

For instance... Yesterday I had an electrician come to my house and install a new 15amp 120volt dedicated circuit for an indoor Sauna I had installed for my wife. I received quotes from electricians ranging from $1200 to $200 for the exact same job request. I may not know the hourly rate of the actual person that installed the circuit, how much franchise fees cost, how much they spend on marketing, etc.. In some cases it may not matter who is making what.. As long as the value to the customer is there..

In the example I just gave, Technically the sole proprietor owner operator electrician that quoted $200 could be making more money per hour than the w2 electrician that works for the franchise company that quoted $1200.

[Michael I]

No differance when getting multiple bids for a home renovation, multiple bids for cc processing, multiple bids for a MCA.. What's the differance?

.

one big difference is you need to worry about your credit

[Winning]

one big difference is you need to worry about your credit

I beg to differ..

Why would I not have to worry about my credit on a $30K home renovation or a $200 circuit install? I don't pay for anything with cash. I use a credit card or charge card to reap the benifits of the points and have more protections in the event something goes awry, plus if the card is compromised, my real bank accounts are not compromised. But doing it that way, I still have to worry about my credit. Because what if I cant pay the bills when they are due?

And how is that different than a MCA?

[Michael I]

I beg to differ..

Why would I not have to worry about my credit on a $30K home renovation or a $200 circuit install? I don't pay for anything with cash. I use a credit card or charge card to reap the benifits of the points and have more protections in the event something goes awry, plus if the card is compromised, my real bank accounts are not compromised. But doing it that way, I still have to worry about my credit. Because what if I cant pay the bills when they are due?

And how is that different than a MCA?

Lol u misunderstood me.when you get a quote for home renovation, they do not pull your credit like an MCA does .
I will never forget I had a merchant a bunch of years back insisting his credit was 700 plus ,I sent him to an a lender who declined for sub 500 credit.merchant went nuts calling me a liar etc. I told him to pull a free credit report send it to me and let's see what is going on . Merchant got his credit and saw that from shopping he had over a hundred inquiries which dropped his credit from 700 plus to under 500. When you are dealing with credit pulls you need to be more cautious when shopping

[Winning]

Lol u misunderstood me.when you get a quote for home renovation, they do not pull your credit like an MCA does .
I will never forget I had a merchant a bunch of years back insisting his credit was 700 plus ,I sent him to an a lender who declined for sub 500 credit.merchant went nuts calling me a liar etc. I told him to pull a free credit report send it to me and let's see what is going on . Merchant got his credit and saw that from shopping he had over a hundred inquiries which dropped his credit from 700 plus to under 500. When you are dealing with credit pulls you need to be more cautious when shopping

Yeah, I thought you were talking about hurting your credit by not being able to pay..

But even in this scenario in regard to acquiring credit or a MCA. I still had to worry about my credit when I applied for the credit cards that I use. I think the credit aspect that you mention has no bearing on if a merchant wants to understand exactly how parties involved are compensated in regards to something that the merchant is purchasing.

A couple of years ago I took abfunders advice that he mentions here in regard to 0% Low Interest Credit Cards being the cheapest access to funds. I had to worry about my credit, to think I would be able to get the highest approvals for the longest amount of 0% promotions. Also I had to understand that my credit would also take a hit for the new inquires, then also take a hit when I use the credit that they give me due to my utilization sky rocketing!

To paint a clear picture regarding the 0% CC...
Those cards have been a gift that keeps on giving! I have since paid off all those cards, so my credit score is now higher than what it was before hand. Plus the credit limits on the card have been raised even higher, plus they send me those blank checks in the mail with more 0% interest promotions!! After we come out of this covid situation, it may be time for me to re-leverage my credit score and go for a new round of 0% CC approvals.

[Michael I]

Yeah, I thought you were talking about hurting your credit by not being able to pay..

But even in this scenario in regard to acquiring credit or a MCA. I still had to worry about my credit when I applied for the credit cards that I use. I think the credit aspect that you mention has no bearing on if a merchant wants to understand exactly how parties involved are compensated in regards to something that the merchant is purchasing.

how you are compensated, is a fair question. how much you are compensated, is no one business as you also have all your other costs.

[Winning]

how you are compensated, is a fair question. how much you are compensated, is no one business as you also have all your other costs.

Typically the "how you are compensated" is actually a moot point.. If it is something I am buying or consuming, vaguely I kind of already know how you are compensated.... From my bank account.. Right?

I say typically, because apparently businesses that are deemed "to big to fail", dont play by the same rules. Those companies can operate at huge deficits but it's executives can still make millions, and the employees still get there paychecks... I digress...

Back on topic...

As an employeer and business owner how much people are compensated is my business. It just depends on if I feel the compensation amount, what ever that amount is, is justified and of value to me..

On the other hand, who am I to dictate what someone should or should not make... The answer to that is using the free market to help settle the dust... That's why there is great benefit to shopping the deal, getting 2nd opnions, evaluating the offers, then letting the best man/woman win..

All these same fundamentals apply when getting an MCA, renovating a house, hiring an electrician, or getting an elective surgery...

Again what's the differance?