[JSL23]

I've honestly never even spoken to one about an MCA. Some obvious opportunities tend to stare you in the face and yet we miss them....... I'm in NYC so there are so many food vendors I can approach them on foot easily. My question is: Are they treated the same, from an Underwriting perspective as a normal Restaurant or is there an increased amount of risk?

[Andy]

I've honestly never even spoken to one about an MCA. Some obvious opportunities tend to stare you in the face and yet we miss them....... I'm in NYC so there are so many food vendors I can approach them on foot easily. My question is: Are they treated the same, from an Underwriting perspective as a normal Restaurant or is there an increased amount of risk?

Problem with many of them in NYC in my experience is that many do not report the vast majority of income. They show very little sales on paper. Most of the cash goes right into their pockets. The food trucks that we have funded have been bigger ones, doing 800k to 1.3 mill annual sales, with multiple trucks. From our UW perspective, as long as they are doing minimum 30k a month in deposits, we treat them as normal restaurants because their location is typically key to them doing that kind of volume, so we do not see it as much of a risk that they will just disappear with our funds. If they are only doing 10 or 15k a month then it would fall into our starter program.