Results 1 to 19 of 19
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01-19-2021, 08:59 AM #1
- Join Date
- Jun 2018
- Posts
- 462
Will mca ever recover?
in march 2020 pandemic hurt the MCA business
followed by PPP and SBA which hurt the MCA business even more
most said once businesses run out of the ppp and sba funds the mca world would be booming once again
WELL FAST FORWARD
were already in middle of January and the government has set up more money for businesses
so figure at least 3-6 months of more slowness on the mca side.... things are not looking good my friends
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01-19-2021, 09:35 AM #2
- Join Date
- Jun 2017
- Posts
- 2,049
things have not been slow. shift in whats funding perhaps
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01-19-2021, 10:13 AM #3
- Join Date
- Dec 2018
- Location
- NY
- Posts
- 11
I think we all need to manage our expectations. A quick recovery was what we all wished for but not realistic at any point. I personally prepared myself for an 18-24 month recovery process where the name of the game is to survive and readjust ourselves to the new landscape. Don't fret too much beyond that. MCA will never die. It will most likely take different shape, like everything else in life over time. But at some point, the fed money runs out, the lockdowns get lifted, vaccines are effectively distributed and America does what it's always done, rebuild even stronger. Stay strong and keep fighting.
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01-19-2021, 10:31 AM #4
- Join Date
- Feb 2017
- Posts
- 3,433
My suggestion is to get comfortable with with real estate and factoring, so many new companies will need liquidity for distribution on the B2B side and everyone's looking for real estate deals now.
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01-19-2021, 10:37 AM #5
- Join Date
- Feb 2020
- Posts
- 27
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01-19-2021, 10:46 AM #6
- Join Date
- Feb 2017
- Posts
- 3,433
What type of collateral?
RE?
AR? (Yes, that's called collateral)
Machinery and Equipment? (M&E)
Inventory?
There are probably hundreds of them out there, so, honestly, to just give you a list is a waste of time for you. It really takes super-brokers (there are several of us here) to know how to navigate these files. I have a signed LOI out there right now for a LOC based on the AR with an $850,000 line, buying out $420k of MCAs. The client really doesn't want to factor, but he might not have a choice in the meantime because of the timing of how fast he needs to get this done.
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01-19-2021, 11:02 AM #7
There are changes but business is picking up for sure! I'm tacking toward reminding merchants that the coming price increases in materials and equipment will exceed in many cases our factor rates - That is, buy it now while you can! Has anyone else seen the prices of lumber lately?
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01-19-2021, 11:12 AM #8
- Join Date
- Oct 2020
- Posts
- 129
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01-19-2021, 11:18 AM #9
- Join Date
- Apr 2018
- Posts
- 178
I might be in the minority but the pandemic only boosted my business. I can honestly say this past year was my best year in the industry.
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01-19-2021, 11:37 AM #10
- Join Date
- Apr 2013
- Posts
- 245
We're funding 6-10 deals per day, hundreds of submissions sent in daily. MCA didn't slow down although the quality of the deals has become worst but nonetheless still funding.
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01-19-2021, 11:45 AM #11
- Join Date
- Jun 2015
- Posts
- 3,325
December we were nearly at precovid numbers for new deals. My renewal book defiantly took a hit . January first half is doing well shot out to Kalamata for funding a 12 month 500k deal with a 1.21 buy rate
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01-19-2021, 12:21 PM #12
- Join Date
- Feb 2020
- Posts
- 27
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01-19-2021, 12:37 PM #13
- Join Date
- Dec 2016
- Posts
- 379
I don't know about you guys but I welcome the free/easy SBA money coming to my merchants. This time of the year is always rough with merchants missing payments, and last time we had government funding come out, nearly all of my merchants got back to clearing normal payments, and a handful called up and straight up paid off in full. Business never slowed down, if anything it's gotten stronger with a shift in industry types funded.
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01-19-2021, 02:07 PM #14
- Join Date
- Mar 2018
- Location
- Salt Lake City, UT
- Posts
- 86
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01-19-2021, 04:34 PM #15
- Join Date
- Dec 2015
- Posts
- 610
Indeed, Stimulus funds are necessary for us to even have an industry to come back.
Every few years there’s a tightening and restructuring. If not covid it would have been something else.
There is still demand for money but it takes more work and or more resources and or more relationships and or more creativity to get to them.
Basically more effort, or more good old fashioned manipulative trickery.
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01-19-2021, 08:29 PM #16
I don't think this industry will be the same after 20 Jan 2021. I personally don't think it will be around several months down the road. Maybe I have intel. Maybe I don't.
God Bless the USA
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01-20-2021, 02:07 PM #17
- Join Date
- Jan 2021
- Posts
- 23
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01-20-2021, 03:31 PM #18
- Join Date
- Jun 2014
- Posts
- 541
Intel??? As in,
http://https://www.washingtonpost.com/business/2021/01/18/chopra-cfpb-biden-transition/
The same Rohit Chopra that commented,https://debanked.com/2020/08/ftc-com...cash-advances/
Chopra's interpretation of Dodd Frank's 1071 could force MCA into a new regulatory framework quite quickly, https://www.consumerfinance.gov/abou...n-requirement/
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02-05-2021, 06:08 PM #19
- Join Date
- Nov 2017
- Posts
- 153
The Key is to get merchants to understand that they should capitalize while there in a strong position.
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