Results 1 to 25 of 173
Hybrid View
-
07-20-2020, 09:57 AM #1
- Join Date
- Apr 2020
- Posts
- 191
and who decides who deserves what ? is it you, or is there any specific person or entity that you feel comfortable relinquishing your freedom and rights to? and even if you do have this person or entity will they live forever? because if they don't, then are you confident their successors will maintain the same level of fairness you expect?
Also, just to correct something, these MCAs are not loans, they are factoring contracts with reconciliation clauses. Which means that in reality, and legally, there are no set terms under which they are required to repay them, it is solely based on the performance of the business. It can be within a month or it can take 2 years. It all depends on the performance and sales of the business. How can you calculate APR if you do not ever have a SET term.
-
07-20-2020, 09:59 AM #2
- Join Date
- Jan 2018
- Posts
- 519
Because the terms are set in the contract through an ACH daily pull of a specified amount. I think that some companies put something in the contract that allows the merchant to change their daily payment if revenue goes up or down but has anyone ever actually explained that to the merchant or had a merchant use that?
-
07-20-2020, 10:06 AM #3
- Join Date
- Apr 2020
- Posts
- 191
yes, I just mentioned it in the post you are replying to. It's called a reconciliation clause.
I do not know if it's ever explained to a merchant or not, however, it's there, and it's in writing.
I am not sure who to place this blame on, do you blame the broker, merchant or funder for the lack of explanation or clarification?
I guess you can make the argument for either of these, but in my opinion if it's in the contracts, then it's ultimately the merchants responsibility to read the contract.
-
07-20-2020, 10:22 AM #4
- Join Date
- Jun 2015
- Posts
- 3,322
Similar Threads
-
How to be Successful in the MCA Marketing Business?
By dtxbusinesssolutions in forum PromotionsReplies: 3Last Post: 09-06-2019, 12:06 PM -
How to be Successful in the MCA Marketing Business?
By dtxbusinesssolutions in forum PromotionsReplies: 0Last Post: 09-20-2018, 11:14 AM -
Need financing of 200k to buy a successful restaurant...
By Ash Sheehan in forum Business LoansReplies: 11Last Post: 02-21-2015, 07:33 AM -
Successful industries for autodialer
By Nate@FastAdvanceFunding in forum Merchant Cash AdvanceReplies: 1Last Post: 01-17-2015, 01:57 PM -
Former merchant becomes wildly successful as a sales rep
By isaacdstern in forum Merchant Cash AdvanceReplies: 17Last Post: 08-26-2014, 04:26 PM