Need a Funder or Vendor? START HERE

Page 2 of 2 FirstFirst 12
Results 26 to 37 of 37
  1. #26
    Senior Member Reputation points: 97075
    Join Date
    Jun 2015
    Posts
    754

    Quote Originally Posted by Ben_p View Post
    if my deal gets stacked up and starts taking those dog **** 30 day deals then obviously i would hope that he gets on a reverse so i can get out of the deal. im talking about my 2014 active deals that dont even need a reverse. it totally blows that i get bullied out of them. That being said, i like u guys over at Torro and i hope u crush it this month.
    I’ve seen default files get 120 day offers. So at this point, if a merchant defaults he can still get decent offers Post Defaulting. Rinse repeat

  2. #27
    Which funders have you seen that have funded a business that defaulted in the past (knowing about it) 120 days?

  3. #28
    Missed a payment or two or completely defaulted?

  4. #29
    Quote Originally Posted by LULUADAM View Post
    Which funders have you seen that have funded a business that defaulted in the past (knowing about it) 120 days?
    i see EBF fund my open defaults the most. KNIGHT would be second place

  5. #30
    Senior Member Reputation points: 76187
    Join Date
    Jan 2018
    Posts
    508

    AJ Equity sucks big booty burger.

  6. #31
    Banned Reputation points: 179851
    Join Date
    Jun 2017
    Posts
    2,051

    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

  7. #32
    Senior Member Reputation points: 97075
    Join Date
    Jun 2015
    Posts
    754

    Quote Originally Posted by ryan $ View Post
    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
    I love how there are two types of Flex.. a fake Flex and an actual “legitimate” Flex..
    This is awesome

  8. #33
    Banned Reputation points: 179851
    Join Date
    Jun 2017
    Posts
    2,051

    Quote Originally Posted by SmartAdvanced View Post
    I love how there are two types of Flex.. a fake Flex and an actual “legitimate” Flex..
    This is awesome
    Flex deals are real, and have benefit. But structuring a 20 Day Advance and then Funding Every 20 Days is just dumb. I wouldn't call it FAKE Flex. Just a dumb deal.

  9. #34
    Senior Member Reputation points: 76187
    Join Date
    Jan 2018
    Posts
    508

    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

  10. #35
    Banned Reputation points: 179851
    Join Date
    Jun 2017
    Posts
    2,051

    Quote Originally Posted by Ben_p View Post
    Yes it helps me get paid and thats great but I can't renew the merchant. I don't see how that makes no sense.
    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

  11. #36
    Senior Member Reputation points: 25752
    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)

  12. #37
    Senior Member Reputation points: 86751
    Join Date
    Feb 2018
    Posts
    1,346

    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.

Similar Threads

  1. Worst Deal
    By Funder Mark in forum Merchant Cash Advance
    Replies: 27
    Last Post: 07-15-2019, 09:21 PM
  2. MCA Worst Practices
    By Finance1 in forum Merchant Cash Advance
    Replies: 21
    Last Post: 05-27-2015, 11:23 PM
  3. best and worst sales pitches
    By Paperchaser in forum Merchant Cash Advance
    Replies: 23
    Last Post: 03-16-2015, 05:35 PM
  4. worst funders
    By Paperchaser in forum Merchant Cash Advance
    Replies: 6
    Last Post: 11-06-2014, 06:33 AM
  5. Worst Funders?
    By michaelh in forum Merchant Cash Advance
    Replies: 31
    Last Post: 10-08-2014, 06:32 AM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


INDUSTRY ANNOUNCEMENTS

BoA launches business loan marketplace
Quickbooks adds new LOC product
Dext Capital upsizes corp note


DIRECTORY