[TheUnderwritingProdigy]

my mistake I though you were a different company then.

But to your points:

" there is no situation where a 4th, 5th or higher position in anyway helps the client."

Who are you to decide this? are you God?

"You are hurting the business more than they already are and putting a nail in their coffin for the hopes of making a little money."

How could you possibly know this, again who are you to decide this or make a blanket statement like this?

"20k over 30 days at a 1.50 does not help someone."

Who are you to decide this?
wouldn't the owner of the business be more qualified to decide this than you?

"The best thing to tell that person is that another position will not help you and that they should look into other options."

If you are in this industry and you stay away from these types of deals, you know what type of conditions they are in, please give some examples of other realistic options for people in these positions. (since you clearly know everything)

"Dont try to justify these programs because there is no way that they can help any company ever."

I am not justifying anything, I am just curious what gives you the confidence to make all these statement and make decisions from your high horse on who needs or should take what, when and how.

What if one day something happens to your business(es) and you are no longer able to sustain daily operations but you have put in years of work to build it up and you need it to feed your family? Lets say, for whatever reason your credit and liquidity don't allow you to obtain traditional financing (Pandemic crushed you for example). Would you like to live in a world where you have the option to take expensive money but have a chance to fight for your business? or should you just have to go out of business because another grown adult that is not in your situation decided that they don't like this type of funding so too bad for you.

I am not justifying any type of funding, I just find blanket statements and opinions such as yours very interesting, becareful what you wish for life has a funny way of humbling you. I believe that everything should be fully disclosed to merchants, absolutely everything, even if it kills the deal but I still believe business owners should have the right to make their own decisions.

ALL IMO

This is essentially the same thing as a ponzi scheme in a sense. You're taking money from 1 lender to be able to cover the payments of another. It's a terrible cycle that they never get out of and it does nothing for the renewal game. Merchants who have over 3 positions have no grasp of their business or finances.

[FlexibleCapitalSolutions]

This is essentially the same thing as a ponzi scheme in a sense. You're taking money from 1 lender to be able to cover the payments of another. It's a terrible cycle that they never get out of and it does nothing for the renewal game. Merchants who have over 3 positions have no grasp of their business or finances.

How so? if your first position purchased part of your receivables, for example 25% specified percentage. Don't you have 75% left over to work with and negotiate with? how is it a ponzi scheme, these aren't loans by the way, it seems you dont understand this since your calling them lenders, and they also didn't purchase your whole business, they are purchasing a percentage of your receivables not all of them.

If the funder is stupid enough to take the risk and the business owner decides they need it what makes you better than anyone else to decide this.

[J.Celifarco]

How so? if your first position purchased part of your receivables, for example 25% specified percentage. Don't you have 75% left over to work with and negotiate with? how is it a ponzi scheme, these aren't loans by the way, it seems you dont understand this since your calling them lenders, and they also didn't purchase your whole business, they are purchasing a percentage of your receivables not all of them.

If the funder is stupid enough to take the risk and the business owner decides they need it what makes you better than anyone else to decide this.

Except that you are leaving them no money to run their business. What type of profit margin do you think businesses work on? If you are taking more money then they make after paying bills you are by definition hurting the business not helping.

[FlexibleCapitalSolutions]

Except that you are leaving them no money to run their business. What type of profit margin do you think businesses work on? If you are taking more money then they make after paying bills you are by definition hurting the business not helping.

I am not disagreeing with you in certain scenarios, I see your point, but at the end of the day no-one is forcing these people to take it, and as long as everything is fully disclosed shouldnt the business owner have the right to make their own decisions?

I think were arguing two different things. You're arguing the math on hypothetical/imaginary scenarios based on your experiences, I am arguing against your absolute/blanket statements and against your desire to take options away from other grown adults who should have the right to make their own decisions. (as long as everything is fully disclosed)

[J.Celifarco]

I am not disagreeing with you in certain scenarios, I see your point, but at the end of the day no-one is forcing these people to take it, and as long as everything is fully disclosed shouldnt the business owner have the right to make their own decisions?

I think were arguing two different things. You're arguing the math on hypothetical/imaginary scenarios based on your experiences, I am arguing against your absolute/blanket statements and against your desire to take options away from other grown adults who should have the right to make their own decisions. (as long as everything is fully disclosed)

Will never agree with knowingly selling someone something that I know will hurt their business. Especially when I know it is these programs that have put a target on the industry as a whole and will lead to regulations that could ultimately destroy the industry. Its not worth it for me or for the business owner

[SmartAdvanced]

Will never agree with knowingly selling someone something that I know will hurt their business. Especially when I know it is these programs that have put a target on the industry as a whole and will lead to regulations that could ultimately destroy the industry. Its not worth it for me or for the business owner

The craziest deal I've seen was a public traded company, they took about $10M in MCA, with over 20 positions, and in the end got a bailout, paid everyone off, never looked back. They're up more than 200% since then!!

[FlexibleCapitalSolutions]

Will never agree with knowingly selling someone something that I know will hurt their business. Especially when I know it is these programs that have put a target on the industry as a whole and will lead to regulations that could ultimately destroy the industry. Its not worth it for me or for the business owner

Well what really put a target on this industry's back is not the actual deals, its the way some funders in this industry acted throughout their business dealings with merchants and as far as you never agreeing and never being willing to offer something like this, I am on the same page, I stay away from offering these but I like knowing that its based on my decision not to do so..... not another grownup who is not in my shoes deciding that I am not allowed.

[Joseph Pak]

A broker should help the merchant not stress the business.

Just like a Doctor shouldn't prescribe drugs that wont help the patient ...............Look what happened to Michael Jackson.

[Yankeeman07]

Well what really put a target on this industry's back is not the actual deals, its the way some funders in this industry acted throughout their business dealings with merchants and as far as you never agreeing and never being willing to offer something like this, I am on the same page, I stay away from offering these but I like knowing that its based on my decision not to do so..... not another grownup who is not in my shoes deciding that I am not allowed.

My 2 cents worth - Look up the definition of "Tortious interference" Funder #1`has purchased 100% of future receivables until they are repaid,
in a Merchant Cash Advance Contract.