[JSL23]

Longer terms ABSOLUTELY does not stop stacking. EVERY "consolidation" that I have seen has a really good first at a lower rate for almost a year or more.
If paid more than 50%, most do not have a problem paying off IF that is the only balance (obvious).

What lenders DO NOT want to do is pay off a 2nd, 3rd, and beyond leaving the 1st and an open door to stack again - with the same lenders who just got paid

Renewals are getting funny. Some lenders have their own departments and some don't. With UCC filings and the mass amount of brokers buying them and attacking them, what is the actual amount of merchants that you will renew?

Also, I understand that everyone wants new ways to find new businesses that have never had a Capital Advance etc. BUT as soon as you get them, unless you are branding, marketing, and approaching differently while keeping contact and offering more of what they need (besides money) - what makes you think that someone else won't swoop in?

Someone will always try to swoop in, so yes, there is bound to be turnover. That is why it is good to have additional funding options at your disposal and moving forward I probably will be more active in that area.

I hear what you guys are saying about longer terms and agree 100% about them stacking MORE; when I first mentioned longer terms as a preventive measure I was thinking more like 7 months instead of 5 for the B paper types who aren't terrible but not good enough to qualify for a 12+ month term. That daily gets so high its almost as if they have to borrow from Peter to pay Paul.

One of the most common reason Merchants take additional funding is to "bridge the gap" from what they received to what they actually wanted(I know because that is the line I used a year ago when I started and was power dialing UCC Leads everyday). I realize every Lender would be closed in months if they started approving Merchants for 50% of their yearly gross or something nuts like that, but what about a slight increase across the board OR more of an industry wide willingness to do add-ons after a certain time frame. I know the banks prefer a Refi(and I guess most Brokers do as well) so maybe it could be limited to one add-on per Funding Round. Example: Someone was funded $40,000 @ a 1.36 10 month term. They feel the itch after 4 months. How much would giving them an extra $10,000 at a 1.38 and adding 2 months hurt? You can do a renewal or refi in 7-11 months instead of 6-9 and the $10k in between would give your client a little something in between rounds without them having to take a 2nd.

I would imagine any Lender willing to do this would be a little more strict about stacking(automatic $2500 fine, NAAMA blacklist, etc.) and the "bottom feeders" wouldn't really be able to compete. I apologize for the tangent, but just to put a bottom line on it, wouldn't these shady shops decrease if they were phased out by the strength of what we could offer? Just my $0.02...