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  1. #1
    A forum user Reputation points: 2147483647 Sean Cash's Avatar
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    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.

  2. #2
    Senior Member Reputation points: 148 Capital Stack's Avatar
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    Quote Originally Posted by sean bash View Post
    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.
    Wowzer! that's a big line. congrads BFS

  3. #3
    Senior Member Reputation points: 3217 CO1's Avatar
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    Congrats Indeed. The strong will servive! Wells-Fargo is on top something but I am not sure on what.

  4. #4
    Veteran Reputation points: 134971 Chambo's Avatar
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    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

  5. #5
    Veteran Reputation points: 134971 Chambo's Avatar
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    Quote Originally Posted by CO1 View Post
    Congrats Indeed. The strong will servive! Wells-Fargo is on top something but I am not sure on what.
    Wells Fargo is actually in bed with a couple of the bigger MCA's simultaneously

  6. #6
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    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.

  7. #7
    A forum user Reputation points: 2147483647 Sean Cash's Avatar
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    Quote Originally Posted by Finance1 View Post
    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.
    Someone told me that half a million Americans apply for a payday loan every single day. Not sure if that's accurate, but if so holy crap!

    Great point there about banks having our backs. They now have a vested interest in keeping the industry protected.

  8. #8
    Senior Member Reputation points: 3217 CO1's Avatar
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    Payday loans are legal loan sharks!

  9. #9
    Veteran Reputation points: 134971 Chambo's Avatar
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    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

  10. #10
    Veteran Reputation points: 134971 Chambo's Avatar
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    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"

  11. #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"

  12. #12
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    Quote Originally Posted by Chambo View Post
    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"
    I don't think this is true.

  13. #13
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    Quote Originally Posted by SmartAdvanced View Post
    I don't think this is true.
    You're replying to a thread from 2013.

  14. #14
    Senior Member Reputation points: 8875 Enablement Data's Avatar
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    Quote Originally Posted by mrmrg View Post
    You're replying to a thread from 2013.
    Growth hacking 101
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    Enablementdata.com
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  15. #15
    Quote Originally Posted by Sean Cash View Post
    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.
    Wow...this article is from 2013??



    News provided by
    Business Financial Services, Inc.

    Apr 24, 2013, 09:00 ET

  16. #16
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    BFS has had a huge line with Wells for a decade now
    ---------------------------------------------------------

    Rich McKellar



    www.linkedin.com/in/richardmckellar



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