[mca123]

Any lenders that'll pay off a 1st position that is less than 50% paid down?

[GRP Funding]

What is the balance and how much does the merchant do in sales?

[MaxAdvance]

It is a possibility, would just need to know some more specifics on the deal. Shoot me a pm.

Maxadvance Banner 2.jpg

[Chambo]

Any lenders that'll pay off a 1st position that is less than 50% paid down?

That sounds like a TBB response (which I have never understood). the fund should decide what THEY THINK the merchant qualifies for and base their decision on that. Who care if they are only 10% paid in the other deal?

If they got $10K from XYZ-D paper company and you are going to offer $40,000 1.25 over 9 months.....does it really matter?

[L_LOTT_ARF]

We'll pay off a merchant's 1st position with no regard to the 50% paid rule. We offer a weekly ACH as well.

[JSL23]

That sounds like a TBB response (which I have never understood). the fund should decide what THEY THINK the merchant qualifies for and base their decision on that. Who care if they are only 10% paid in the other deal?

If they got $10K from XYZ-D paper company and you are going to offer $40,000 1.25 over 9 months.....does it really matter?

It shouldn't. What should matter is: Can the Merchant NET 50%+ of the funded amount. If their balance is $10,000 and they are only 25% paid back but they can qualify for $40k-$50k as a 1st position it shouldn't make a difference. If you can pay off the $10,000 and still allow the Merchant to net $30,000 it is crazy not to approve. Some places look at it logically and will do it that way, some won't back off the 50% balance rule.

[Chambo]

It shouldn't. What should matter is: Can the Merchant NET 50%+ of the funded amount. If their balance is $10,000 and they are only 25% paid back but they can qualify for $40k-$50k as a 1st position it shouldn't make a difference. If you can pay off the $10,000 and still allow the Merchant to net $30,000 it is crazy not to approve. Some places look at it logically and will do it that way, some won't back off the 50% balance rule.

My thoughts exactly....

[IKorie]

WE do at Go Accredited Business Solutions: contact me at Ikorie@goaccredited.com

[golf2014]

I find it entertaining how lenders will have all these rules, but then charge a factor rate of 1.40 and say hey..it's a good deal. Obviously the op wants his customer to have one ach payment and more money. If we r in business of lending at high rates..then why are we going for the money and then saying..well....we don't want to hurt the merchant!!

[bizloanbroker]

very few funders are still paying off other advances, stacking old advances is just standard now

[halasniks]

Payroll Financing www.fundmypayroll.com will pay off from 1-5 lender in their new debt restructuring program. They don't have stead fast rules about where your client needs to be.

[GRP Funding]

very few funders are still paying off other advances, stacking old advances is just standard now

Most funders that have been around for more than a year are still paying off other advances

[CpepeWBL]

We can payoff one advance and net the client money without collateral if the cash flow can support it.

If there is collateral involved, we can consolidate and payoff as many advance as they have, and the client does not have to net a minimum percentage.


Chris Pepe
Vice President
World Business Lenders, LLC

[JSL23]

Most funders that have been around for more than a year are still paying off other advances

Ouch!! I have worked with Payroll though, and have seen them really bail a couple of Merchants out(not to mention save them a ton of money on daily pulls). It is a sad state that a Lender would rather give a $20k 3rd position @ 1.449 with a 60-90 day term then invest in a long-term relationship and educate the Merchants about the pitfalls of stacking. I will admit, a large part of it is mitigating risk, but it is also taking the easiest way out.