Results 1 to 14 of 14
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12-01-2014, 10:56 AM #1
- Join Date
- Jul 2014
- Posts
- 74
Paying off 1st position
Any lenders that'll pay off a 1st position that is less than 50% paid down?
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12-01-2014, 10:59 AM #2
- Join Date
- Jan 2013
- Location
- Berlin, CT
- Posts
- 191
What is the balance and how much does the merchant do in sales?
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12-01-2014, 11:09 AM #3
It is a possibility, would just need to know some more specifics on the deal. Shoot me a pm.
Maxadvance Banner 2.jpgChristina Rossi
Business Development
Account Executive
Tel: 866-629-4464 ext 229
Fax: 917-368-6943
Crossi@maxadvance.com
www.maxadvance.com
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12-01-2014, 12:06 PM #4
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?
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12-01-2014, 02:01 PM #5
- Join Date
- Apr 2014
- Location
- Houston, Tx
- Posts
- 30
We'll pay off a merchant's 1st position with no regard to the 50% paid rule. We offer a weekly ACH as well.
Lauren Lott
ISO Business Development
ARF Financial, LLC
281-538-8311 ext. 2110
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12-01-2014, 04:17 PM #6
- Join Date
- Jan 2014
- Posts
- 283
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.
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12-01-2014, 06:28 PM #7
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12-02-2014, 07:13 AM #8
- Join Date
- Dec 2014
- Location
- NYC/Florida
- Posts
- 86
WE do at Go Accredited Business Solutions: contact me at Ikorie@goaccredited.com
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12-02-2014, 11:50 PM #9
- Join Date
- Apr 2014
- Posts
- 781
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!!
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12-03-2014, 07:09 AM #10
- Join Date
- Jun 2014
- Posts
- 195
very few funders are still paying off other advances, stacking old advances is just standard now
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12-03-2014, 08:09 AM #11
- Join Date
- Feb 2014
- Posts
- 27
Paying off 1st position
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.
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12-03-2014, 09:09 AM #12
- Join Date
- Jan 2013
- Location
- Berlin, CT
- Posts
- 191
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12-03-2014, 09:27 AM #13
- Join Date
- Jun 2013
- Posts
- 195
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
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12-03-2014, 09:28 AM #14
- Join Date
- Jan 2014
- Posts
- 283
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.
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