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  1. #1
    Senior Member Reputation points: 60165
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    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

  2. #2
    Banned Reputation points: 179851
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    things have not been slow. shift in whats funding perhaps

  3. #3
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    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.

  4. #4
    Senior Member Reputation points: 216519
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    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.

  5. #5
    Quote Originally Posted by abfunders View Post
    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.
    Can you please share a list of a few trustworthy companies that do collateral based loans?
    Office: 718-313-3240
    Website: www.ThorCapitalGroup.com
    Email: info@thorcapitalgroup.com

  6. #6
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    Quote Originally Posted by ThorCapitalGroup View Post
    Can you please share a list of a few trustworthy companies that do collateral based loans?
    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.

  7. #7
    Senior Member Reputation points: 16117 capaxess's Avatar
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    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?

  8. #8
    Senior Member Reputation points: 64261
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    Quote Originally Posted by BROKER TIME View Post
    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
    This summer it'll be back to normal. Need enough vaccine distribution. Enough government policy direction. Enough stable reopening across the country. Till then lay low or fund what you need to survive. This is certainly now growth time.

  9. #9
    Senior Member Reputation points: 31326
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    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.

  10. #10
    Banned Reputation points: 10108
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    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.

  11. #11
    Senior Member Reputation points: 301165
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    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

  12. #12
    Quote Originally Posted by abfunders View Post
    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.
    Real estate backed lenders would be helpful.
    Office: 718-313-3240
    Website: www.ThorCapitalGroup.com
    Email: info@thorcapitalgroup.com

  13. #13
    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.

  14. #14
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    Quote Originally Posted by TheUnderwritingProdigy View Post
    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.
    Agreed, obviously there will be wave of people who are just looking for SBA money but the stimulus will help the merchants that currently billing with MCA's.
    Eric Christensen
    ISO Relationship Manager
    Torro

    eric.christensen@torro.com
    (801)-441-7958

  15. #15
    Senior Member Reputation points: 55949
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    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.

  16. #16
    Senior Member Reputation points: 99227 ridextreme's Avatar
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    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

  17. #17
    Quote Originally Posted by ThorCapitalGroup View Post
    Can you please share a list of a few trustworthy companies that do collateral based loans?
    Our specialty is asset based lending. On real estate deals in specific we'll even do hard money loans in 2nd lien position. Please call me if you have any deals like these.


    Thanks,

    Adam
    Adam Cohen
    Diverse Capital
    Direct Funders
    (646) 239 - 2887
    adam@diversecapitalllc.com

  18. #18
    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/

  19. #19
    Senior Member Reputation points: 2271
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    The Key is to get merchants to understand that they should capitalize while there in a strong position.

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