[happyman]

https://news.bloomberglaw.com/bankin...lending-abuses

[abfunders]

Well at least this is something that everyone has to be careful with and we can all learn from: Never use the term "loans" or "lending" or "lender" when you are referring to merchant cash advances.

I know that one funder (Elevate) has their emails combed server-side to prevent anyone in the firm or their clients or their brokers use any of those terms, and they will actually correct someone if they do.

[HeatherF]

Well at least this is something that everyone has to be careful with and we can all learn from: Never use the term "loans" or "lending" or "lender" when you are referring to merchant cash advances.

I know that one funder (Elevate) has their emails combed server-side to prevent anyone in the firm or their clients or their brokers use any of those terms, and they will actually correct someone if they do.

You are correct, Elevate partners with Performline to monitor all email exchanges and we record all calls to make sure that if the word "loan", "lend", or any other term that can lead to be construed as loan product. But we do go further than that and spend our time educating merchants and our partners alike on the usage. From our welcome calls, to our signatures stating what product elevate provides, and our bi weekly notices to merchants that they can have their payments adjusted as it is contractually with in their right. As you know Elevate is transparent in everything we do to provide the best experience for all but most important so that the small business owner is aware and fully knowledgeable in the product Elevate provides.

[pcfunder]

You are correct, Elevate partners with Performline to monitor all email exchanges and we record all calls to make sure that if the word "loan", "lend", or any other term that can lead to be construed as loan product. But we do go further than that and spend our time educating merchants and our partners alike on the usage. From our welcome calls, to our signatures stating what product elevate provides, and our bi weekly notices to merchants that they can have their payments adjusted as it is contractually with in their right. As you know Elevate is transparent in everything we do to provide the best experience for all but most important so that the small business owner is aware and fully knowledgeable in the product Elevate provides.

I had no idea you guys do that. That's awesome. A lot of people I meet just try to find a way to make the most amount of money as fast as possible.

[fin4all]

soooo which "lender" is getting sued next, getting raided, getting bought out, bets anyone ?

[fundingsmbs]

this article doesn't mention that it was due to using the word lending or loan. it says, "deceiving small-business customers, hitting them with surprise fees and overcollecting on debts."

[J.Celifarco]

this article doesn't mention that it was due to using the word lending or loan. it says, "deceiving small-business customers, hitting them with surprise fees and overcollecting on debts."

Agreed anyone who thinks this is just about using the word loan or lending I believe is in for a big surprise. This sounds like more than that. I hope Im wrong but this could get ugly for them

[golf2014]

Party is over..i have been telling u this..over n over n over

[Onepointwhat]

The FTC complaint mentions that part of the issue is false advertising surrounding the personal guaranty. Supposedly Yellowstone was advertising no PGs on deals but routinely included them. Does anyone know if the contracts had a true Personal Guaranty or was a Performance Guaranty? Curious if the FTC doesn't care about the distinction.

[Chambo]

The FTC complaint mentions that part of the issue is false advertising surrounding the personal guaranty. Supposedly Yellowstone was advertising no PGs on deals but routinely included them. Does anyone know if the contracts had a true Personal Guaranty or was a Performance Guaranty? Curious if the FTC doesn't care about the distinction.

the gray area was with all the COJs. Pretty much all MCA contracts are a clearly delineated performance guaranty in them, but when you lock up a merchant's personal accounts by adding his name into a COJ, and then go after those personal bank accounts after judgment, you kind of turn the deal into a personal guarantee. THIS is where clarification was warranted. The first step was eliminating the COJ. hat's the next step? Good question....clearly defined PERSONAL GUARANTY? I'll leave this to the jokers with the JDs

[FUND3R1]

As long as you educate your clients and they know what they are paying you will be fine. There is clients who's credit is sub PAR (no pun intended.) Some people like this money because it's fast and they don't have hop through many hoops to obtain the financing.

[FCG]

The end is near.

[Shorebird]

I guess that Bloomberg article really did have some legs.

[ryan $]

"And it routinely continues debiting customers’ bank accounts for four or five days after a debt is repaid, the agency said"

COMPLETE AND UTTER HORSE ****.

UH YEA, SO DOES EVERYONE ELSE BECAUSE WE RELY ON OUTDATED ACH TECHNOLOGY! THIS COMMENT IS MAKING YS LOOK BAD WHEN IN REALITY IT SHOULD CAST SHADE RIGHTFULLY WHERE IT BELONGS AN OUTDATED FINANCIAL SYSTEM, WHERE REGULATORS OBSTRUCT GROWTH AND TECHNOLOGY WITH REGULATIONS INSTEAD OF ALLOWING NON FIAT BORDERLESS BLOCKCHAIN BANKING TO GO WHERE IT EVENTUALLY WILL ANYWAY

IT TAKES 3 DAYS TO KNOW IF AN ACH CLEARED OR NOT, SO HOW CAN LENDERS STOP ON THE EXACT DAY? HOPE FOR THE BEST?

[pcfunder]

"And it routinely continues debiting customers’ bank accounts for four or five days after a debt is repaid, the agency said"

COMPLETE AND UTTER HORSE ****.

UH YEA, SO DOES EVERYONE ELSE BECAUSE WE RELY ON OUTDATED ACH TECHNOLOGY! THIS COMMENT IS MAKING YS LOOK BAD WHEN IN REALITY IT SHOULD CAST SHADE RIGHTFULLY WHERE IT BELONGS AN OUTDATED FINANCIAL SYSTEM, WHERE REGULATORS OBSTRUCT GROWTH AND TECHNOLOGY WITH REGULATIONS INSTEAD OF ALLOWING NON FIAT BORDERLESS BLOCKCHAIN BANKING TO GO WHERE IT EVENTUALLY WILL ANYWAY

IT TAKES 3 DAYS TO KNOW IF AN ACH CLEARED OR NOT, SO HOW CAN LENDERS STOP ON THE EXACT DAY? HOPE FOR THE BEST?

your an idiot and your party is ending soon. hope you had fun.

[golf2014]

So many things wrongbwith the mca....end is near

[golf2014]

Ryan.confirned idiot

[ryan $]

Ryan.confirned idiot

Im an Idiot. Yet EVERY lender pulls a few payments after the last payment then refunds the difference.

ACH Is Outdated Technology, Fact.
Regulations stop Innovation. Blockchain Technology would allow Instant Funding and Reconciliation, If it was adopted, and end the extra Pulls.

You both are ****in idiots.

If "My PARTY" is MCA's - They aren't ending any time soon. And even if it did, I made enough these past 15 Years, Ill retire.

[pcfunder]

Ryan I can’t imagine you made a single penny in MCA if you don’t know about the long list of funding companies that purposely continue pulling merchants accounts hoping the merchant is too clueless to notice.....

[ryan $]

Ryan I can’t imagine you made a single penny in MCA if you don’t know about the long list of funding companies that purposely continue pulling merchants accounts hoping the merchant is too clueless to notice.....

Purposely? No.

Ive gotten calls from merchants saying so and so overpulled, and always straightened it out. But as a PRACTICE? No, I don't know anyone like that.

And I don't do it on deals I fund directly. But there is no getting around the 3 day lag from ACH's and Lockboxes.

[Michael I]

who still does coj?

[golf2014]

So i can go into your house take 300.00 then give it back..or is that theft ??

[Cooperrex]

has anybody bought leads from Cashyew Date

[EDcap]

yea

[ryan $]

So i can go into your house take 300.00 then give it back..or is that theft ??

I was double charged by google this month, then they returned it......Is that theft?

Lets say it went the other way, lets say funders stopped the very day the last pull is pulled and didn't wait for it to clear and the actual balance to reach zero. Then 3 days later they found out the last payment or 2 bounced, and the merchant went MIA....and then assessed default fee's (as is their right). That would be wrong right?

Or when Funders pay off other Funders, but the first Funder keeps taking payments because they don't process the payoff instantly....by your logic, your saying that is theft?

Every MCA by your rational should be arrested then, put them in cuffs. What your saying is completely asinine. It is not theft. It is just how it is....AGAIN, as a result of using outdated ACH technology. Look at Crypto lending, Instant Settlement, Low Interest, it is a much better system. Until it is adopted globally/nationally and replaces the centralized banking industry (BELIEVE ME IT WILL HAPPEN EVENTUALLY) - Collecting 3 Payments past the end of term, because ACH takes time to clear..... is the system we have.

Why you are on a forum filled with people who make a living with the Industry,, calling them thieves, Is unknown to me.

Thats like saying if you pay with a check, the moment the receipient receives the check said product should be released or its theft. No, waiting for it to clear to make sure your paid isn't theft.