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  1. #1
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    Funky deal

    So I have a file that I funded back in November for like 5K and then refied him around the end of Jan.

    In mid March he got a call from a consolidation company that told him that they can help him settle for less and he went for it by blocking our payments. We froze his Square account in a matter of days and he came running back and even paid the lawyer an extra 1K or so to get back on track.

    He now has maybe a 1K balance with us and is requesting a refi. He does around 18K per month and we're the only position taking $100 per day. He's in the Cannabis business so his Square merchant account is his lifeline and he's frightened that we'll freeze it.

    I'm on the fence with this deal, is anyone in this forum interested in funding?

  2. #2
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    Quote Originally Posted by zalman View Post
    So I have a file that I funded back in November for like 5K and then refied him around the end of Jan.

    In mid March he got a call from a consolidation company that told him that they can help him settle for less and he went for it by blocking our payments. We froze his Square account in a matter of days and he came running back and even paid the lawyer an extra 1K or so to get back on track.

    He now has maybe a 1K balance with us and is requesting a refi. He does around 18K per month and we're the only position taking $100 per day. He's in the Cannabis business so his Square merchant account is his lifeline and he's frightened that we'll freeze it.

    I'm on the fence with this deal, is anyone in this forum interested in funding?
    Your merchant is at risk - He is using Square to process sales for Cannabis?
    Square does NOT knowingly process cc sales for Cannabis

    Your Underwriters fell asleep at the switch.

    1st Prohibited Line Item: " Any illegal activity or goods"
    Prohibited Goods and Services with Square Point of Sale | Square Support Center - US (squareup.com)

    Cannabis is a Federally Illegal, therefore there is no legal credit card processing.
    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

  3. #3
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    Let me clarify, he's using square to sell CBD-infused foods....

  4. #4
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    Quote Originally Posted by zalman View Post
    Let me clarify, he's using square to sell CBD-infused foods....
    That's different - IF the merchant went thru Square's CBD Beta Program and is paying these rates

    Sell CBD online and in-store with Square (squareup.com)


    Either way, you are in a very risky position - The merchant could lose his account without warning for a variety of reasons.

    I would collect your $1000.00 and if you fund again, do not rely on his/her credit card sales.
    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

  5. #5
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    I'd be willing to try and help here.
    Paul Boxer
    Merchant Marketplace

    Chief Operating Officer
    Chief Revenue Officer

    Cell: (516) 805-9209
    paul@merchantmarketplace.com
    www.merchantmarketplace.com

  6. #6
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    Ill go half, doesn't matter your books or mine. I've had good luck with CBD, ill keep rolling the dice.

    I'd obviously want to look at the deal first. If your on the fence, after funding him twice, id probably want a conversation as well.

  7. #7
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    This is one of the reasons Cannabis-CBD-Hemp is such a risk for funding.

    Warning Letters and Test Results for Cannabidiol-Related Products | FDA

    This is one of the latest raids, just think if a funder was on the hook ?

    Federal officials seize more than $1 million in dietary supplements from manufacturer | Business Observer | Business Observer (businessobserverfl.com)
    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

  8. #8
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    Quote Originally Posted by ryan $ View Post
    Ill go half, doesn't matter your books or mine. I've had good luck with CBD, ill keep rolling the dice.

    I'd obviously want to look at the deal first. If your on the fence, after funding him twice, id probably want a conversation as well.
    Talking to the merchant to get more details such as what's the money for etc....

  9. #9
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    Quote Originally Posted by Yankeeman07 View Post
    That's different - IF the merchant went thru Square's CBD Beta Program and is paying these rates

    Sell CBD online and in-store with Square (squareup.com)


    Either way, you are in a very risky position - The merchant could lose his account without warning for a variety of reasons.

    I would collect your $1000.00 and if you fund again, do not rely on his/her credit card sales.
    Do you do CBD merchant accounts? this guy does like 20K per month, not sure if that's small for you.

  10. #10
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    Quote Originally Posted by Finance Guru View Post
    I'd be willing to try and help here.
    Getting more info from the merchant and I'll let you know. Thanks

  11. #11
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    Quote Originally Posted by zalman View Post
    Do you do CBD merchant accounts? this guy does like 20K per month, not sure if that's small for you.
    I have a few banks that have stepped into the CBD Merchant process - the underwriting is strict and the 2nd issue, is that the
    banks can pull the plug without warning ( which has occurred within the last 90 days)

    I have a closed loop peer to peer payment & online banking solution that does NOT involve the Card Brands, which is where
    I place most merchants - simple boarding process
    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

  12. #12
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    Zalman, I'm going to send you an email, there are a few banks who do CBD, but then there is good customer service. I'll send you an email.

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