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  1. #26
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    Quote Originally Posted by ryan $ View Post
    Uhm, No. They Purchased a Percentage, not 100%, that's ridiculous.
    If the client has already pledged the assets under a security agreement and a lender/factor/funder has filed a UCC on the assets of the business, you would be interfering with the relationship even if you entered an agreement to purchase 1% of any or future receivables.
    Seacoast Business Funding, a division of Seacoast Bank
    Kevin Henry-VP Business Development
    Kevin.Henry@SeacoastBF.com
    561-623-1872
    www.seacoastbf.com
    Boynton Beach, FL

  2. #27
    Senior Member Reputation points: 158186 ryan $'s Avatar
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    Quote Originally Posted by Kevin Henry-Seacoast View Post
    If the client has already pledged the assets under a security agreement and a lender/factor/funder has filed a UCC on the assets of the business, you would be interfering with the relationship even if you entered an agreement to purchase 1% of any or future receivables.
    Most funders only file UCCs in event of default now a days.

    If there is no anti-stack addendum or clause. I am under the firm belief, stack away......

    Dude from Horizon saying he does 1st and 2nds... If your arguing it breaks the contract, 2nds would break it just as much as an 8th position would.

  3. #28
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    Quote Originally Posted by ryan $ View Post
    Most funders only file UCCs in event of default now a days.

    If there is no anti-stack addendum or clause. I am under the firm belief, stack away......

    Dude from Horizon saying he does 1st and 2nds... If your arguing it breaks the contract, 2nds would break it just as much as an 8th position would.
    If a company has any bank or non bank facility where there is a security agreement in place and UCC filed, the person that stacks (the funder and the company) are breaking the contract as ALL assets are already pledged to the company with a security agreement in place. The remedy would be to have a subordination agreement or inter-creditor agreement in place if a company enters any agreement where the assets are already pledged.
    Last edited by Kevin Henry-Seacoast; 02-24-2021 at 03:45 PM.
    Seacoast Business Funding, a division of Seacoast Bank
    Kevin Henry-VP Business Development
    Kevin.Henry@SeacoastBF.com
    561-623-1872
    www.seacoastbf.com
    Boynton Beach, FL

  4. #29
    Veteran Reputation points: 137047 J.Celifarco's Avatar
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    I din't argue the breaking the contract because i do give 2nd's even though I do see some merit to that argument. I am arguing that a business can only handle a certain % of their sales going to pay back a loan and giving a business a 4th or 5th position that takes the gross holdback way above what any business can handle is wrong.
    John Celifarco
    Managing Partner
    Horizon Funding Group

    3423 Ave S
    Brooklyn, NY 11234
    T: (347) 773-3990 | F: (718) 795-1990
    Linkedin: Profile
    Email: john@thehorizonfinancialgroup.com

  5. #30
    Quote Originally Posted by J.Celifarco View Post
    I din't argue the breaking the contract because i do give 2nd's even though I do see some merit to that argument. I am arguing that a business can only handle a certain % of their sales going to pay back a loan and giving a business a 4th or 5th position that takes the gross holdback way above what any business can handle is wrong.
    Agreed.

  6. #31
    Senior Member Reputation points: 158186 ryan $'s Avatar
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    Quote Originally Posted by J.Celifarco View Post
    I din't argue the breaking the contract because i do give 2nd's even though I do see some merit to that argument. I am arguing that a business can only handle a certain % of their sales going to pay back a loan and giving a business a 4th or 5th position that takes the gross holdback way above what any business can handle is wrong.
    In most cases where you see 8 lenders in a deal, you may see 8 advances, yet still be under your % of what you see is fair...... this is because of issues with the deal.

  7. #32
    Senior Member Reputation points: 158186 ryan $'s Avatar
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    Quote Originally Posted by ryan $ View Post
    In most cases where you see 8 lenders in a deal, you may see 8 advances, yet still be under your % of what you see is fair...... this is because of issues with the deal.
    In other deals, merchants lose control and make poor decisions.

  8. #33
    Quote Originally Posted by ryan $ View Post
    In other deals, merchants lose control and make poor decisions.
    Yes, which is why ISO's shouldn't push more positions so that they can take money from Peter to pay Paul, and then find themselves with even greater daily payments, which results in them having to take an additional advance, and then another one, and another one... having a merchant go belly up means every funder gets screwed, and ISO's lose out on residual commission from renewals.

  9. #34
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    Lightbulb MCA Contracts

    Quote Originally Posted by ryan $ View Post
    Uhm, No. They Purchased a Percentage, not 100%, that's ridiculous.
    A MCA funder is purchasing 100% of "Future Receivables" and the repayment is a % of the daily/weekly/monthly receipts.
    Whatever terms the contract states.

    A true MCA, not an MCA disguised as a Loan (Consult an Attorney) the devil is in the details of the contract.

    My niche market is "Credit Card Splits" - The funder I work with is purchasing 100% of the "Credit Card Receipts"
    until the Full Purchase is repaid. No Stacking allowed and included is a hefty "No Stacking Penalty"
    Dave Lambert
    FC Financial LLC
    dave@fcbankcard.com
    http://www.fcbankcard.com
    1-727-291-7890 (Text or Leave Message)
    Office: 727-233-1111

  10. #35
    Quote Originally Posted by Bestinthebiz View Post
    Who is good at coming in at 5th, 6th and 7ths?
    IMAP
    Torro
    East Shore
    AJ Equity
    Cooper Asset
    HFH
    Noble Funding
    Spartan
    Mantis
    Last Chance
    Yellowstone
    Wide Merchant
    Ironwood Finance
    Main Street
    ML Factors

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