Results 26 to 37 of 37
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06-14-2021, 01:29 PM #26
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- Jun 2015
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- 754
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06-14-2021, 03:03 PM #27
- Join Date
- Jun 2021
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- 13
Which funders have you seen that have funded a business that defaulted in the past (knowing about it) 120 days?
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06-14-2021, 03:50 PM #28
- Join Date
- May 2021
- Posts
- 1
Missed a payment or two or completely defaulted?
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06-14-2021, 04:07 PM #29
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- Nov 2018
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- 30
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06-15-2021, 11:31 AM #30
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- Jan 2018
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- 519
AJ Equity sucks big booty burger.
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06-16-2021, 09:23 AM #31
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- Jun 2017
- Posts
- 2,049
Flex Deals in certain Scenarios make sense. But not if it is just 4 Increments at 20 Day Terms. If that was the case Merchants would be better off just taking 1 deal at 20 Days and then renewing after 10 Payments.
WG/MCA Rehab does Flex deals that are actually Flex Deals (First Funding Term at 20 Days, then 40, then 80, then 120 then a 240 Day Term) The Factor gets lower with each Tier too. And they get new round 80% Paid in.
This Offer (Isn't from WG/MCA Rehab) but is how a Flex Deal should be (Merchant has 5 Positions, other offers on table are 60-80 Day 1.49's)
Purchase Amount: $150,000.00
Increment Amount $50,000.00
# of increments 3
Frequency (Days) 20
Rate: 1.25
Term: 126
Payment (Daily) $1,488.10
Commission 10.00
Payback Amount: $187,500.00
Week # Increments
1 $50,000.00
5 $50,000.00
9 $50,000.00
This offer isn't Funding 3 20 Day Deals. Based on the payment, he pays back 50k in 42 Days. Yet gets the next 50k in 20 Days. And the final 50k at 40 Days (Prior to the first 50k being Paid in Full)
This is an ACTUAL Flex Deal. If it was my business I would much rather take this 1.25 Flex/Incremental deal, over a 80 Day 1.49
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06-16-2021, 09:42 AM #32
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- Jun 2015
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- 754
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06-16-2021, 10:24 AM #33
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- Jun 2017
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- 2,049
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06-16-2021, 11:08 AM #34
- Join Date
- Jan 2018
- Posts
- 519
AJ Equitys flex deal is a scam created by major scammers...what a surprise lol. their flex deals are designed to make an ISO's eyes glow up with dollar symbols because they are sending out offers that say "500k!!!" "750k!!!" and ISOs are somehow falling for this stupidity... but from my understanding what is the difference between offering someone a 500k flex deal but really only funding 100k the first round and someone else offering 100k no flex but renewing for another 100k when its 50% paid in? all of their "flex deals" are like 20 payments so its technically..... not a 500k offer its a short term 100k offer with options to renew if merchant is a good payer
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06-22-2021, 02:51 PM #35
- Join Date
- Jun 2017
- Posts
- 2,049
Yea I was butthurt when Pearl and YS started stacking merchants in splits with ACH Products over a decade ago.
I didn't cry about it. I realized instead of Renewing a merchant 2-4 times a year. I can stack them way more times than that.
Then do a reverse. That Client has become more Valuable to me because there are more options at my disposal.
Where do you draw the line? Why is a Reverse BAD, but a 2nd is okay? A 2nd ruins renewals with 1st position funders anyway, so your decent 2nd position funders are thorns in the side of 1st Position only lenders, and the 1st funders are *****ing at the 2nd funders.
Ill put my money into a deal and let someone reverse it NO PROBLEM. It is giving them the money each week to cover my payment.
As a broker/funder its my job is to work every deal I can. If a deal comes in and their only option is a reverse, thats what they are going to be offered. As brokers your job is to present the best option for the merchant. When a merchant has 3 positions and wants to consolidate, sure submit it to 1st Position lenders that would even entertain paying off 3 positions, but most likely you can only get a 4th or a Reverse.
My point is.... everything is about perception.... you say if brokers do a reverse they are scumbags. Bankers say all MCA's are scumbags.
I say, I'll give the best option I can to a Merchant. Whatever it is. Its up to the Merchant to decide to take it or not. It's their business, Not yours. I'm not a f*cking credit counselor, I sell Cash Advances.
The Grass is always Greener
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06-22-2021, 02:56 PM #36
- Join Date
- Apr 2015
- Posts
- 300
expansion funds the most defaults- the real issue is as brokers are you doing your partners a disservice by allowing them
to fund defaults that you know about & they missed.
different story if the lender likes funding defaults (morons but a different story)
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06-23-2021, 03:15 PM #37
- Join Date
- Feb 2018
- Posts
- 1,349
nobody has a monopoly on funding/lending. first pos funder's think that a merchant will only take money from them are silly. the landscape is crowded and merchant's get hit with offers all day long from a multitude of companies. Pearl and YS opened the floodgates to what is now a common practice in this space.
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