Results 1 to 16 of 16
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04-24-2013, 12:19 PM #1
Wells Fargo Loves Merchant Cash Advance
BFS announced that they secured an $82 million credit line from Wells Fargo earlier today.
http://www.prnewswire.com/news-relea...204347891.html
The money continues to pour into the industry.
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04-24-2013, 01:03 PM #2
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04-24-2013, 03:19 PM #3
Congrats Indeed. The strong will servive! Wells-Fargo is on top something but I am not sure on what.
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04-24-2013, 03:39 PM #4
Well, part of that is replacing an existing line, but it is still impressive nontheless.
Banks want in on this high margin business. Due to regulation, they cannot offer it directly, so they simply fund the companies that DO offer it
Wells Fargo
Capital One
Bank of America
M&T Bank
Fifth Third Bank
they'll in bed with MCA
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04-24-2013, 03:40 PM #5
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04-24-2013, 04:36 PM #6
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- Sep 2012
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- 199
Much better way to fund an mca or loan company than private equity partnerships and hedge fund money. The banks are secured with first lien on the receivables too so it's not unsecured money.
This brings up a couple interesting points too. If the big banks feel confident in extending large credit facilities then they also have confidence in the industry itself. That's a nice shot in the arm for our space.
Another good thing is banks having "our banks" in a way. They will do anything to protect their LOC's so they will go to bat to stave off scrutiny and prohibitive regulation if it ever comes up.
The payday loan industry is getting a hard look as we speak. Nice article on bloomberg.com today. An interesting stat was in the article. Apparently the payday loan and deposit advance industry is estimated between 30-50B. I had no idea it was that big. Makes the MCA space look like chump change.
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04-24-2013, 09:56 PM #7
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04-25-2013, 01:09 PM #8
Payday loans are legal loan sharks!
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04-25-2013, 02:09 PM #9
Payday loans are factor deals based off of a person's payroll. They are charged 1.39's to 1.49's the same way, only over payroll cycles (so not much different than the 102 month starters)
You can confirm this by going to a payday loan company and look to sign up as a seller of payday loans
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05-01-2013, 05:10 PM #10
Is anyone else coming across Wells Fargo's reluctance to allow daily ACH'es for their merchants? I understand Pearl got in trouble with them for wanton overcollection adn general unscrupulous and careless collection methods.
Was wondering if anyone else heard about it?
I had a merchant today tell me Wells wouldn't let him do a daily ACH plan with any "lenders"
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05-04-2013, 05:22 AM #11
The daily remittance and risk scoring models have proved the funding model to smbs works and banks dont want to build out infrastructure/overhead to manage/service this, but, will invest in it behind the scenes. another way for banks to make their "fees"
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04-03-2020, 12:15 PM #12
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04-03-2020, 12:18 PM #13
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- Dec 2017
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04-03-2020, 03:06 PM #14
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04-03-2020, 03:25 PM #15
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- Mar 2020
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04-05-2020, 04:03 PM #16
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- Apr 2015
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- Morristown, NJ
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BFS has had a huge line with Wells for a decade now
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Rich McKellar
www.linkedin.com/in/richardmckellar