[LendioCEO]

Just posted an article on Forbes regarding stacking. Since this article is targeted towards small business owners (most of whom have never heard of the term 'stacking'), it's fairly elementary info. However, would love to hear your thoughts on it?

http://www.forbes.com/sites/brockbla...friend-or-foe/

[Sean Cash]

Just posted an article on Forbes regarding stacking. Since this article is targeted towards small business owners (most of whom have never heard of the term 'stacking'), it's fairly elementary info. However, would love to hear your thoughts on it?

http://www.forbes.com/sites/brockbla...friend-or-foe/

I think it was a fair way to introduce the conversation and share that perspective.

[WhoisKingsley]

I think you made it as simple as possible for merchants to understand. While you hit the positives and negatives about stacking and how stacking one time or in emergency situations rather than excessively, I wonder if explaining the consequences as a follow up once the word it out is necessary.

You asked for horror stories- I have one. To this day this merchant calls and I have saved the number as "Do Not Answer, You Will Regret It". I have been working with this merchant on and off for two years and I can honestly say that when I talk to her, she goes from happy to crying to angry to begging to happy again in a 5 minute time frame. Last time I talked to her she had 5 positions and was buried beyond repair to the point where collateral was the only way out. Unfortunately, I don't have the heart to tell her that there is no hope for her business in the future... but that whoever wanted to help her wanted to make sure they had a piece to hold on to before everything came tumbling down. The stacking made her crazy even though she consented to all of the loans and listened to every broker who promised to save her. No matter what I offered- she always wanted more and was never happy. Kudos to the person who helped her this time... I hope you never gave out your cell phone number. I give it a month before she comes crawling back

There is a difference between a merchant reaching out for help and a broker preying on a merchant making them believe that they "need" more.

[jbrown]

Just posted an article on Forbes regarding stacking. Since this article is targeted towards small business owners (most of whom have never heard of the term 'stacking'), it's fairly elementary info. However, would love to hear your thoughts on it?

http://www.forbes.com/sites/brockbla...friend-or-foe/

Brock, this is a very balanced and good article. We find merchants are very sorry when they come up for renewal and because they have stacked we can't renew them. They always say "I didn't know I couldn't do that; I promise not to do it again!"

[Zach]

Every client that I've consolidated so far has stacked again. It's like giving a heroin addict meth to curb their addiction.

[mcaguru]

Yep...I liked the comparison to consumer credit cards. the similarities make a lot of sense, think about it.... Capital One offers Ms. Lovaine (single mom with 2 kids on minimum wage) A 2K credit limit and just for the simple fact that she makes the minimum payment of $27 bucks for 6 months straight her action triggers Discover Cards algorithms to send her a 5K credit card (did someone just say stacking?) with 6 months of $54 buck payments Citi Group comes in for the 20K line followed by another 20K from Wells Fargo (that's if her credit stinks, LOL) next thing she knows shes $50,000 in debt and before long the original 2K from capital One goes into collections, Now listen up! ...if Ms. Lovaine Never received additional credit lines from fargo and Citi (stackers one would-argue?!) she may have kept her 2K account up to-date..Right?? Does anyone think that the current $11.7 Trillion (FAAAAAAACT!) of national consumer credit card debt came from the first Credit Card Line?! of course not !!....its from the 2nd/3rd/4th/5th Offer!! (AHA!) scariest part is that's all Business to Consumer and no one including congress or anyone else has halted the Credit Card Issuing companies from making 2nd/3rd/4th/5ths offers! (I keep getting weekly offers!) and not aware of the initial Credit Card Company (capital one)complaining that Fargo and Citi pushed her into Default...