[Friendly funder]

A lot of funders have told me default rates are shooting up

many Isos are having a very hard time finding good deals that arent overleveraged and defaulted

Alot of isos have posted on here that funders are getting desperete for deals

On the other hand i hear of brokers funding huge deals and killing it

What does the next 6-12 months look like for the Mca industry

[closer129]

I think in the next 6-12 months might get easier for dome and harder for others. I have been seeing a lot more files that merchants are over leveraged bouncing payments on current advances defaulting taking reverse consolidations. This is because kind of like you said some funders and brokers are desperate so they will give out crazy offers the merchant cant afford and the brokers will push it to make a commission. I also see clean 6 figure files that have one or no positions.

I am funding one today for a new iso 150k first posotion flooring sales and installation. My top guys do not look to mak out every file to make 15 points or more they charge what they can based on the rsik and size of the file and they renew them over and over again. They know business always need money so they do not push long term deals on them especially my companies first position deals work like a line of credit that benefots the merchant more in the long run and the iso makes a lot more in the long run. And they syndicate on thier files and make sure the merchant as much as they can do not over leverage themselves so they can keep renewing them.

[Olderguy]

I am doing a lot of hard money property loans for debt consolidation and over-leveraged merchants. Getting more calls lately.

[sequoiacapllcleo]

Better get into debt consolidation lol

[LucrumFunding]

I forecast a situation where the demand for capital and default rates will both increase. Inflation is hitting businesses hard by driving up their production costs and bank rates are increasing due to the Federal Reserve's attempt to drive off this inflation by increasing the federal funds rate. What this means is that bank loans will dry up and a lot more merchants will be forced into alternative funding solutions like MCAs. Until the economics of production become more favorable to merchants, though, defaults will correspondingly rise with this demand for capital. Try to make sure the clients you take on are solvent enough, not overly leveraged, and go with a funder that doesn't use clawbacks if the worst-case scenario of default does occur.

[SendDocsPlox]

Maybe everyone should dial it the **** back with 20% UW fees and 20 day terms lol

[dollarbillz]

Maybe everyone should dial it the **** back with 20% UW fees and 20 day terms lol

maybe you should stop subbing ****ty deals lol

[SendDocsPlox]

maybe you should stop subbing ****ty deals lol

Somebody's gotta do the ****ing

[BR-Nightmare]

Somebody's gotta do the ****ing

And people can be smart and avoid them.

Take time to educate your merchant and maybe earn their trust to keep them in business and avoid the those people that love to f*ck them over.

Nothing beats a renewing merchant that can trust you and even refer you business. If that take too much time for you, that sounds like a you problem.

***Not directed at you Plox****