Results 1 to 25 of 34
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02-25-2021, 07:37 AM #1
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- Apr 2019
- Posts
- 72
Negative Days / Credit Card Splits
Is anyone ACTUALLY doing credit card splits these days??
Who is funding merchants who have several negative days per month (think Yellowstone pre-Covid).
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02-25-2021, 09:05 AM #2
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02-25-2021, 09:23 AM #3
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- Sep 2018
- Posts
- 5
I just got one done with Birchwood. They're a small boutique funder and I've never had any funny business w/ my deals.
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02-25-2021, 09:36 AM #4
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- Jun 2017
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- 2,049
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02-25-2021, 10:02 AM #5
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- Apr 2017
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- 190
Contact us at 646-547-2105, we could assist you in this deal. We do CC Splits in high risk deals. Thanks
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02-25-2021, 10:08 AM #6
20 months might be their "hero" pricing. Longer term, lower markup.
Edgar Lopez - Partner Relationship Manager | (858) 427-0010 | elopez@mulliganfunding.com
Eric Roberts - Partner Relationship Manager | (858) 427-5660 | eroberts@mulliganfunding.com
Vanessa Arellano - Partner Relationship Manager | (858) 427-5664 | varellano@mulliganfunding.com
Aidai Tologonova - Partner Channel Support | atologonova@mulliganfunding.com
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02-25-2021, 10:52 AM #7
- Join Date
- Mar 2019
- Posts
- 105
Rapid will do crazy deals w/ high negative days. Funded one last month w/ 9 negative days.
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02-25-2021, 11:48 AM #8
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,948
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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02-25-2021, 11:51 AM #9
- Join Date
- Dec 2016
- Posts
- 379
That's an extremely poor way to look at underwriting. If the merchant is already negative every single day of the month, and then you come in and take a 25%+ credit card holdback, they're going to go that much further into the hole. How long do you think that's sustainable before the merchant goes belly up?
I agree that you can get away with a merchant having more negative days than would be acceptable on an ACH program, but some of these funders are idiots funding merchant splits with 15+ negative days every month. Only a matter of time before they open up another terminal and start running the majority, if not all, of their credit card deposits through there citing "people just haven't been paying with card as much lately".
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02-25-2021, 12:37 PM #10
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- Jun 2017
- Posts
- 2,049
Do you even fund bro?
If a merchant has NSF/Overdraft Issues, how would a split or lockbox eliminate them? This is the biggest bonehead comment Ive ever seen you make (and its you - so that says a lot)
It is simple logical thinking, if a merchant has NSF/Overdraft Issues, and you put him in a split, what happens? LESS money gets to that very same bank account with the issues and therfore does what? Survey says? CAUSES MORE ISSUES (Number 1 Answer)
Yea the Lender gets paid, but what happens when they close his account for bouncing **** left and right? Or he goes out of business? What happens to your Magical Lockbox then?
A Lockbox isnt a Magic Wand.
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02-25-2021, 12:42 PM #11
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- Dec 2016
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- 379
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02-25-2021, 01:40 PM #12
- Join Date
- Mar 2014
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- Florida
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- 2,948
I'm not your bro ! What are you 25 years old?
Yes we fund. Numerous negative days is not the only factor in underwriting an account.
A funder (or at least the company I rep) looks at the complete file, TIB, Monthly Sales Volume,
Credit Score and almost the number 1 Factor - WHAT IS THE USAGE OF FUNDS!
Will the funding generate additional revenue and profit.
What occurs with a lock-box is that the funder (us) receives payments on-time without any risk
of ACH Reject Fees and the compounding of stacked late payments and fees.
We want the merchant to stay in business - it is not SOP to give funding to merchants
that are closing their doors.
BTW - you may not be old to enough to know this but the original MCA Product was a credit card split / lock-box.
My 1st exposure was via United Bank Card (1999?) when they partnered with Amer-Finance (Mike DeAngelo?) ( someone can check my
memory & history)
If you conduct a Google Keyword search for Merchant Cash Advance. most of your initial results will refer to an MCA
as a Credit Card Split.
**The original post was "Who is funding merchants who have several negative days per month" - Is several negative days 3 or 5 or 7, 15?
It was a general question, and I responded, yes, we can POSSIBLY fund that type of account.
Who the F** Asked you for you 1 cent opinion?Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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02-25-2021, 01:58 PM #13
- Join Date
- Dec 2016
- Posts
- 379
Asking a merchant what their "usage of funds" has got to be a joke... It really doesn't matter what they say they're going to use the funds for because most of the time they're lying and after they receive the funds, there's nothing stopping them from just going on a vacation or buying themselves a new TV.
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02-25-2021, 02:06 PM #14
Split deals are made for people who have a few negative days in their account. I would think that is something anyone in this industry should know. This industry was built on split deals, if you don't know that then you have no idea what the MCA is or how it was built.
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@horizonfundinggroup.com
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02-25-2021, 02:32 PM #15
- Join Date
- Jun 2017
- Posts
- 2,049
Split deals were really made for everyone. Everyone who wanted $$$.
It was a world where only 1st Positions existed, renewed your Merchants and kept them for years.
Then ACH Product came out, YS, Pearl, Not really sure who did it first. It was just 1st and 2nds for a while.
Then sure enough....we get to now. Ive seen 18 Positions in One deal.
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02-25-2021, 02:43 PM #16
- Join Date
- Apr 2020
- Posts
- 191
Here you go on your high horse again, no-one is as good or knowledgeable as you; in the amount of time that it took you to type that you could have gave the poor guy a brief summary. Maybe this is the reason the industry has a target in its back, because no-one is willing to teach and guide newbies on the right path so people have to do what they have to do. Come on John, you can do better than this. There has to be a day you can remember where you didn't know everything.
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02-25-2021, 02:54 PM #17John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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02-25-2021, 03:02 PM #18
I think First Funds did them first, but were too ahead of their time. Then it was indeed either Pearl or YS, but years later. It was considered insane but it disrupted the whole industry. While you were sitting there waiting 2 weeks for your merchant's POS system to be switched over, they could come in and fund basically same day without switching anything over. It became impossible to compete against. Who are you going to go with? The guy messing with your credit card machine that's going to take a week or more, cause early termination fees, and create unknowns for your business OR the guy telling you he'll fund you today, same amount, same cost, no switching anything.
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02-25-2021, 03:20 PM #19
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- Aug 2020
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- 144
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02-25-2021, 03:50 PM #20
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- Jun 2017
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02-25-2021, 04:07 PM #21
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- Mar 2014
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- Florida
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A credit card split does not require any messing with a terminal. It is a DDA Change authorized by the merchant.
The delay could come from the data entry and in our situation we do not fund until we see at least 1 batch in the
new DDA (Lock box) - In mos instances it is not an issue - The merchant wants the funds - therefore he/she can
push their processor to change the DDADave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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02-25-2021, 07:20 PM #22
- Join Date
- Jan 2014
- Posts
- 1,374
keep in mind a lockbox will delay merchant getting their deposits by 1-2days. if the merchant is a restaurant that delay will cause hell for them on their busy days, fri sat sunday.
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02-26-2021, 01:08 AM #23
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,948
If the merchant has switched processing, that will eliminate the 1 day delay.
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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02-26-2021, 09:58 AM #24
- Join Date
- Jan 2020
- Posts
- 88
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02-26-2021, 10:44 AM #25
- Join Date
- Nov 2018
- Posts
- 24
It's hit or miss with negative days and A paper players. From what I've seen, most of them will allow some negative days in the 3 months of cashflow but they want them spread out, not all in the most recent month. You also have to take the ADB into account. If a business has 1 neg day a month but maintains a 10k ADB, that's a lot more doable than a biz that has 1 neg day a mo but has a $300 ADB.
Call your A paper shops and ask them for their negative day guidelines.
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