[MaxAEP]

Subject title says it all. Haven't been around this space long enough to know how Bidenflation will affect the landscape. Do MCA providers prosper as a "last chance" source of funding? How do funders deal - with what I presume will be - an exorbitant increase in defaults?

Literally open forum here, feel free to share whatever comes to mind.

[MCA-VET]

A tough economy with regards to MCA is like a rubberband ---- the tougher the economy the more prospects seek MCA's but like any Robberband at some point it can break which would mean increase in defaults

[TheUnderwriter]

Subject title says it all. Haven't been around this space long enough to know how Bidenflation will affect the landscape. Do MCA providers prosper as a "last chance" source of funding? How do funders deal - with what I presume will be - an exorbitant increase in defaults?

Literally open forum here, feel free to share whatever comes to mind.

I like the term 'Bidenflation'. Im stealing this. Very funny. But I am sure to the not too intelligent crowd out there, they will still believe this is Trump's fault.

But to answer the question, definitely going to see higher defaults. Just need to price the deals accordingly to risk levels. But if cowboys out there want to go super long on files or very thin on rate due to 'competition' then those funders will get hurt the most.

[BR-Nightmare]

But to answer the question, definitely going to see higher defaults. Just need to price the deals accordingly to risk levels. But if cowboys out there want to go super long on files or very thin on rate due to 'competition' then those funders will get hurt the most.

I agree, it's a matter of reviewing the risk factor the funder will be willing to take while making sure the Merchant can afford the advance with chances of renewing.

[fundingsmbs]

those companies can do their 18=24 mo or 36 mo all day long. those deals are get stacked like hot pancakes all day long. go ahead, offer interest waiving schemes, go monthly, go long, do it!