Results 1 to 14 of 14
-
12-02-2021, 09:17 AM #1
- Join Date
- Jun 2018
- Posts
- 462
the problem with saying the word LOAN?
I never understood the reason you cant use the word "LOAN" when working with a client any of the veterans on DF care to elaborate why
-
12-02-2021, 09:21 AM #2
Because MCA isn't a loan...it's an advance against receivables. Think Pawn Shop....when you pawn something, it's an advance against the asset which can be retrieved back when the advance is paid back. It isn't a loan that's paid back. it's an advance against value due.
Last edited by Olderguy; 12-02-2021 at 09:24 AM.
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
-
12-02-2021, 09:26 AM #3
- Join Date
- Jun 2018
- Posts
- 462
Yes that i understand
i thought its illegal to use the word loan because if you categorize it as a loan any interest charged over a certain percentage would be illegal
which leads me to my next question how does a company like on deck use the word loan? (no beef with ondeck great company)
-
12-02-2021, 09:30 AM #4Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
-
12-02-2021, 09:34 AM #5
- Join Date
- Jun 2018
- Posts
- 462
-
12-02-2021, 09:57 AM #6
The primary system that allows lenders to bypass state interest rate caps is to partner with a state or federally chartered bank. Banks are exempt from complying with the interest rate caps of states. Often times you will notice that it is not "the lender" as you know them making the loan itself, but rather the bank they are partnered with. Afterwards the bank can sell the loan to the lender or use the lender to fully service the loan on their behalf. Here's me talking about it: https://debanked.com/tv/?v=532324556
It is okay to use the word on loan contracts. In fact, if it really is a loan, that is the term you should definitely use. You should read every contract you present to a merchant in full so that you know exactly what it is you are selling. And if it is a loan, you need to know what makes the company legally eligible to offer them. Some states require a lending license. If the lender demurs on explaining to you as the broker how they are legally able to make loans, do not work with them.
-
12-02-2021, 09:59 AM #7
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,959
On Decks funding (loans) are bank originated - The average rate for term loans is 54.96% APR. Averages are based on loans originated in the quarter
The alleged benefit is a longer term (2 years) vs. a MCA is generally a much shorter term (typically less than 6 months - 120 payments or less)
https://www.ondeck.com/short-term-loansDave 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
-
12-02-2021, 10:32 AM #8Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
-
12-02-2021, 10:43 AM #9
- Join Date
- Jun 2018
- Posts
- 462
-
12-02-2021, 11:10 AM #10Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
-
12-02-2021, 11:11 AM #11
- Join Date
- Nov 2018
- Posts
- 24
Ahhh but it doesn't. That 50k 1.5 deal still has a holdback % listed on the contract. Deep within the size 4 font of that contract there will be a clause stating how the merchant can adjust their payment to equal the proper hold back %. That ability to adjust means there is no set term, and thus it's not a loan.
-
12-02-2021, 12:02 PM #12
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,490
Simple explanation: Factoring or advancing cash on future receivables is a purchase of the asset or a percentage of the asset. A funder or factor is not lending money vs. the asset, it is a purchase in whole or a percentage of the asset. Some factors structure their facilities whereby they are collecting only a discount rate on the face amount of the receivable. Some charge a lesser discount rate and interest on what funds are available when the invoice is purchased. The later is a better deal for the client if they are good at collections and cash management. ABL facilities are considered LOANS as you re borrowing vs. the value of the underlying asset.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
12-02-2021, 02:10 PM #13
- Join Date
- Feb 2018
- Posts
- 1,349
the bank chartered term loans are really MCA's in disguise. Its a legal loophole for regulatory purposes. Finwise, Web Bank, First Electronic Bank, Utah is pouncing on this opportunity with it's favorable exportation laws from it's bank charters there.
-
12-03-2021, 12:36 PM #14
- Join Date
- Oct 2013
- Location
- Designer
- Posts
- 592
The cost of an advance is set up front, and doesn't change.
The cost of a loan adjusts as the balance reduces, as interest only accumulates on the remaining principle.
A loan paid off early is cheaper than if it went to term.
An advance costs the same whether you pay off early or not, as the fee is already determined upfront.
(Sometimes a funder will provide a discount on the fee if it's paid early, but its not standard practice
in a factoring agreement).
www.UccRadar.com
Similar Threads
-
Any word on the coj ban ?????
By Showmethemoney in forum Merchant Cash AdvanceReplies: 25Last Post: 06-21-2019, 02:13 AM -
Need a business loan ? Line of credit? No problem
By kathryndelatorre19 in forum Business LoansReplies: 15Last Post: 01-18-2018, 05:30 PM -
Word Slips
By Funder Mark in forum Everything elseReplies: 2Last Post: 03-01-2017, 02:15 PM -
Spread the word!!!
By PledgeCap- A.E. in forum PromotionsReplies: 0Last Post: 06-01-2015, 02:07 PM -
The New Word on the Street
By Joseph Esparza in forum Merchant Cash AdvanceReplies: 1Last Post: 02-10-2015, 12:50 PM