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  1. #101
    Quote Originally Posted by RickyR3712 View Post
    Those who can't do teach
    And those that can't teach... teach gym

  2. #102
    Korchak's company Primary Capital sued a merchant on this very day (literally today) over a contract with a 1.42 factor rate and then assessed additional fees making the total factor rate charged to the merchant 1.93: https://iapps.courts.state.ny.us/nys...UUcU/NiivC1w==

    Look forward to hearing all about this absolute ridiculous hypocrisy in your next show "homie"

  3. #103
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    Quote Originally Posted by gftcap86 View Post
    Korchak's company Primary Capital sued a merchant on this very day (literally today) over a contract with a 1.42 factor rate and then assessed additional fees making the total factor rate charged to the merchant 1.93: https://iapps.courts.state.ny.us/nys...UUcU/NiivC1w==

    Look forward to hearing all about this absolute ridiculous hypocrisy in your next show "homie"
    It’s sad and pathetic that a looser like this would open his mouth and cry like a crocodile about “predatory lending”...
    What’s not predatory about a 1.93 ???? Why’s he still busy with mca if he’s serious about leaving with regrets ??

    This pathetic loser has never funded anything decent, besides crappy small dumb deals.. was never even a player at all.. but tried hard though!
    Now he wants to make money off of antisemetic and hateful propaganda when in the same day he files a lawsuit!

    Wait really?

    Go charge YouTube for the 75 clicks you’ve gotten so far

  4. #104
    8 month 1.42 paying 15% to the broker, 3% processing fee (anything north went to the ISO), merchant went MIA for 3 months before we filed suit. Something wrong?

  5. #105
    Quote Originally Posted by GoodCustomerService View Post
    8 month 1.42 paying 15% to the broker, 3% processing fee (anything north went to the ISO), merchant went MIA for 3 months before we filed suit. Something wrong?
    Ok so now you've decided 8 month 1.42's are ok?
    What about 7 months? 1.43?
    What if I want to pay the ISO 20%, can I do a 1.47?

  6. #106
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    Good customer service. While i think a lot of the points that you make are valid. Seems to me like your reputation preceeds you here. That the message is being diluted by the messenger not having a stellar backround. My suggestion would be that if you really want to do all the things you are saying, find a figurehead that hasnt raped and pillaged the same merchants you are looking to protect.

  7. #107
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    Quote Originally Posted by iawia_advanced View Post
    Ok so now you've decided 8 month 1.42's are ok?
    What about 7 months? 1.43?
    What if I want to pay the ISO 20%, can I do a 1.47?
    Who decides what’s predatory and what’s ok?
    A 7 month 1.43 is probably 400% apr, that’s like 380% more than the max predatory interest rates.

    So instead of being 560% apr, you’re “lowering” your predatory rates to “only” 400% apr.

    Wow, what a saint!

  8. #108
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    You’re not only charging a 42% rate for unreal insanely expensive money, you even have the chutzpah and the audacity to charge a 3% fee?

    And because some companies charge more in fees, you somehow justify the 3%?

    So you mean to tell me that on $100k in funding, you charge a whopping 42% on top, and the client doesn’t even get $100k? He only gets $97k?

    Do you even know how insane your rates are!?

    The bottom line after fees is 49% cash on cash

    So basically you’re taking 49% on the net?????

    49% ??????

    What kind of mafia shark deal is this????

    Who the hell charges 49% ???

    And for 7 months? With daily payments?

    How are you not ashamed of yourself????

  9. #109
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    Quote Originally Posted by SmartAdvanced View Post
    You’re not only charging a 42% rate for unreal insanely expensive money, you even have the chutzpah and the audacity to charge a 3% fee?

    And because some companies charge more in fees, you somehow justify the 3%?

    So you mean to tell me that on $100k in funding, you charge a whopping 42% on top, and the client doesn’t even get $100k? He only gets $97k?

    Do you even know how insane your rates are!?

    The bottom line after fees is 49% cash on cash

    So basically you’re taking 49% on the net?????

    49% ??????

    What kind of mafia shark deal is this????

    Who the hell charges 49% ???

    And for 7 months? With daily payments?

    How are you not ashamed of yourself????
    fees are the way to screw the syndication/investors not the merchant. If it was to screw the merchant just charge 1.45 instead of 1.42 the fee goes straight to the funder and cuts out investors. You will see companies that use their own money will be fine with charging zero fees and adding to the payback

  10. #110
    Quote Originally Posted by SmartAdvanced View Post
    Who decides what’s predatory and what’s ok?
    A 7 month 1.43 is probably 400% apr, that’s like 380% more than the max predatory interest rates.

    So instead of being 560% apr, you’re “lowering” your predatory rates to “only” 400% apr.

    Wow, what a saint!
    You are all missing the point of what this is about. I'm not calling MCA predatory. Again, MCA is NOT PREDATORY! The point of all this is to inform as many people as possible that MCA, along with multiple other businesses in the financial market, have massive amounts of predators. I never said a 1.42 over 8 months was predatory. I never said the WHOLE MCA MARKET is bad. Never once did I call anyone out by name, or any company (since I started this, cause I'm pretty sure I've spoken poorly about WBL in the past), and say "You Are a Predator". Everyone is putting words in my mouth. Which should literally be impossible at this point, because it's on YouTube. There is a correct way to do MCA. There is a correct way to do factoring. There is a correct way to do Student Loans. Car Loans. Mortgages. Hard Money. It's about being transparent, and informing your clients and customers on how you do business. What they need to know about their rights as a merchant/borrower, and how they can eventually make themselves a better merchant/borrower so they can get cheaper financing in the future. Look through this thread and there are people that have known my way of business and know that's how I did things. With all merchants and ISO's. I always paid commissions, syndication money (and still am), and keep in consistent contact with them all, almost daily.

    Now, in my efforts to try and help guys like myself, and others, who try and run a clean MCA/AR Factoring/Equipment Financing/Lender/ISO Shop in todays market, and the merchants that rely on us for our financial and services support, for the life of me I can't figure out why some of you people are legit bashing me hard. I need someone without a personal vendetta against me, and clearly understands what I'm doing, to please explain to me why this is happening.

  11. #111
    My fees came out from the first payments collected on almost all my deals. Ask around.

  12. #112
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    Quote Originally Posted by gftcap86 View Post
    Korchak's company Primary Capital sued a merchant on this very day (literally today) over a contract with a 1.42 factor rate and then assessed additional fees making the total factor rate charged to the merchant 1.93: https://iapps.courts.state.ny.us/nys...UUcU/NiivC1w==

    Look forward to hearing all about this absolute ridiculous hypocrisy in your next show "homie"


    GoodCustomerService, I am not judging you, maybe the facts warranted the numbers.

    Can you share the backstory on this deal? Industry, Credit Rating, previous defaults, and any other info gathered to help you establish your risk assessment that supported the numbers on this deal?

    Also I would love to know the mindset of the merchant that would accept such a deal. Was this their 1st mca? How long had they been in business... etc..

    If you can't share the exact details due to legal reasons I understand. Perhaps you or someone here can justify when a deal like this is justified in general. I am sure some other people here have done deals just as high as this one, and higher.
    Last edited by Winning; 07-21-2020 at 10:07 AM.

  13. #113
    Quote Originally Posted by SmartAdvanced View Post
    You’re not only charging a 42% rate for unreal insanely expensive money, you even have the chutzpah and the audacity to charge a 3% fee?

    And because some companies charge more in fees, you somehow justify the 3%?

    So you mean to tell me that on $100k in funding, you charge a whopping 42% on top, and the client doesn’t even get $100k? He only gets $97k?

    Do you even know how insane your rates are!?

    The bottom line after fees is 49% cash on cash

    So basically you’re taking 49% on the net?????

    49% ??????

    What kind of mafia shark deal is this????

    Who the hell charges 49% ???

    And for 7 months? With daily payments?

    How are you not ashamed of yourself????
    I have a couple of issues with this, on one end, this guy may be a hypocrite.

    On the other end, you're speaking about APR, theres no such thing if the contract has a reconciliation clause.

    Also, its easy to judge what someone does from the sidelines, default rates are very high in high risk funding models, the factor rates must reflect the risk or there will be no capital available for anyone that doesn't have a perfect situation (ie Credit rating, revenue etc.)

    My only issue with this is that you have a podcast speaking ill of people that do exactly what you do. Instead of explaining why theres a place for it in the market and how it works.

  14. #114
    Quote Originally Posted by Winning View Post


    GoodCustomerService, I am not judging you, maybe the facts warranted the numbers.

    Can you share the backstory on this deal? Industry, Credit Rating, previous defaults, and any other info gathered to help you establish your risk assessment that supported the numbers on this deal?

    Also I would love to know the mindset of the merchant that would accept such a deal. Was this their 1st mca? How long had they been in business... etc..
    the mindset is, I have bad credit, or I have a criminal background, or my business is not able to be funded by a bank, or simply my business can not wait 3 months to get approved for funding at a bank; so its either I get no funding at all and let all my hard work and investment into my business go to hell or I take expensive capital. This is America, everyone should have a choice to do what they deem is necessary.

  15. #115
    The facts warranted the numbers. You want the details? Call the ISO who upsold the 1.27 Buy Rate to a 1.42. The mindset of the merchant is what his broker told him. His industry, credit, prior history led him to MCA. My company just let him know we are there to support him if he needs us, and to check out our two partners that offer credit repair services and bookkeeping services.

  16. #116
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    Quote Originally Posted by Winning View Post


    GoodCustomerService, I am not judging you, maybe the facts warranted the numbers.

    Can you share the backstory on this deal? Industry, Credit Rating, previous defaults, and any other info gathered to help you establish your risk assessment that supported the numbers on this deal?

    Also I would love to know the mindset of the merchant that would accept such a deal. Was this their 1st mca? How long had they been in business... etc..

    If you can't share the exact details due to legal reasons I understand. Perhaps you or someone here can justify when a deal like this is justified in general. I am sure some other people here have done deals just as high as this one, and higher.
    its a purchase just like anything. will this make you money or not?Is keeping the lights on for your business worth it or not.I will go old school on the example , If a restaurant takes this expensive money to expand and add a couple of tables. They do the math , each table will make me x amount more per night so after y a mount of months i will be in the positive.

  17. #117
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    Quote Originally Posted by FlexibleCapitalSolutions View Post
    the mindset is, I have bad credit, or I have a criminal background, or my business is not able to be funded by a bank, or simply my business can not wait 3 months to get approved for funding at a bank; so its either I get no funding at all and let all my hard work and investment into my business go to hell or I take expensive capital. This is America, everyone should have a choice to do what they deem is necessary.
    Cash advance is definitely an industry that the market created itself. Small businesses and merchants with bad credit needed capital when denied by banks and MCA stepped up to take on that role. My own personal experience in MCA has been really tough. I've worked for 4 brokerage shops that have been run by people who have literally gone to prison for years for serious crimes. I have worked at places where not only my managers but the owners were laughing and smiling about how happy they just screwed/lied to merchants. I have managed hundreds of large and respected ISO shops to continuously find that they will use any excuse/lie in the book to get ANY and I mean literally any deal funded with no regards to whats going to happen to the funders money or to the businesses cash flow. I have seen deals in bank statements that scare me and I have helped merchants get out of them and into better programs. I have seen merchants being told that they need to take out 6 advances because once they take out all 6 the broker will be able to get them into a reverse consolidation which should never be a reason to do a reverse and usually the merchant doesnt even qualify and they default on all funders.

    I don't think MCA itself is bad. I think that the unregulated and no barrier of entry aspect of MCA has generated a large amount of misconduct that has been kind of hard for me to personally be involved in.

    I have also had merchants thank me years later because no one else was willing to give them money and they used an MCA for the right reasons. I don't see it much but I do see that too.

  18. #118
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    I am not judging you at all. However if you are offering a 1.27 buy with a 15 point upsell plus fees through a broker channel. You are opening up the door for bad actors. If you REALLY want to do whats right for merchants, and service business's via mca, stop taking broker business. Control the deal by working direct with a merchant. Price in the risk, but most importantly educate the merchant on why the deal is what it is. I will say for me that the hipocrisy is that you want to blame the "bad actors" but you work with them. Maybe I am missing something, but if I was in your shoes and really wanted to change something. I would control all aspects of the deal, then over time my portfolios performance would tell the story. Your reputation would speak for itself through the grapevine and you wouldnt need youtube to do it.

  19. #119
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    Lightbulb

    Quote Originally Posted by gftcap86 View Post
    Korchak's company Primary Capital sued a merchant on this very day (literally today) over a contract with a 1.42 factor rate and then assessed additional fees making the total factor rate charged to the merchant 1.93: https://iapps.courts.state.ny.us/nys...UUcU/NiivC1w==

    Look forward to hearing all about this absolute ridiculous hypocrisy in your next show "homie"
    The Complaint Filed states "Interest" that would indicate it was a loan, not an MCA.
    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

  20. #120
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    Quote Originally Posted by GoodCustomerService View Post

    Now, in my efforts to try and help guys like myself, and others, who try and run a clean MCA/AR Factoring/Equipment Financing/Lender/ISO Shop in todays market, and the merchants that rely on us for our financial and services support, for the life of me I can't figure out why some of you people are legit bashing me hard. I need someone without a personal vendetta against me, and clearly understands what I'm doing, to please explain to me why this is happening.
    "clearly understands what im doing" is exactly why people are bashing you . No one is clear. The more you write on here ,the better the picture i am getting. but not everyone is as smart as me lol .

  21. #121
    Man, if I told you how many people called me asking if they should jump on this thread and defend me, you'd understand. I ONLY work with ISO's that were true partners. If they decided the 15% upsell was warranted, who am I to tell them not to upsell. That was what the market required. 15% upsells. So I did it. Knowing sure well that upsell could be the difference between the deal being affordable or not. In some cases, I'd cap the upsell because I was sure the merchant couldn't afford it, and would end up almost splitting the profit on the whole deal with the ISO/syndicate partner.

  22. #122
    Let's not get it twisted. Korchak does 1.47s too (not just 1.42s) and he's suing those same merchants for breaching their agreements with his company...during the shutdowns...and then adding fees on top. Then he goes on youtube and says a long time ago he cried when he found out an imaginary merchant named bob was actually a real person and how upon learning bob's life story he decided he would not enforce a judgment. Months later he not only sues merchants during a nationwide pandemic for "breaches," he then lectures his competitors about what's predatory and what's not. He says he left the business, but he didn't. He's too busy filing lawsuits in between his videos to get his 1.4x + fees back. Please tell us more Mr. Korchak sir about why you don't understand why this is happening to you.

  23. #123
    Quote Originally Posted by GoodCustomerService View Post
    merchant went MIA for 3 months before we filed suit. Something wrong?
    Hmmm... can anyone think of anything else that might have happened during those 3 months? Did something happen? Nah... right?

  24. #124
    Quote Originally Posted by Michael I View Post
    "clearly understands what im doing" is exactly why people are bashing you . No one is clear. The more you write on here ,the better the picture i am getting. but not everyone is as smart as me lol .
    I'm trying. Really, not trying to confuse anyone.

  25. #125
    Quote Originally Posted by gftcap86 View Post
    Let's not get it twisted. Korchak does 1.47s too (not just 1.42s) and he's suing those same merchants for breaching their agreements with his company...during the shutdowns...and then adding fees on top. Then he goes on youtube and says a long time ago he cried when he found out an imaginary merchant named bob was actually a real person and how upon learning bob's life story he decided he would not enforce a judgment. Months later he not only sues merchants during a nationwide pandemic for "breaches," he then lectures his competitors about what's predatory and what's not. He says he left the business, but he didn't. He's too busy filing lawsuits in between his videos to get his 1.4x + fees back. Please tell us more Mr. Korchak sir about why you don't understand why this is happening to you.
    Primary Capital is open and servicing it's syndicate partners, ISO's and merchants, but will not being doing MCA anymore, or any financing in general, until after the election, potentially as long as inauguration day, and either we pivot to a new product that we find more acceptable for our money, and/or MCA reforms.

    And yes, we are filing lawsuits against merchants who went completely dark on us, no communication via cell, business phone, home phone, and email for 3 months. Should I just let our money sit out there because I decided I didn't want to do "NEW" MCA deals?!

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