[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....