[closer129]

Just found out from the broker I send a lot of business to that the craphole funder he decided to give a chance to on one of my files is threatening my merchant. They promised to renew him at 50% and we've been holding all new business to see if they lived up to their word, because they took their sweet time paying the original commission on the deal and I didn't trust them. Merchant should be renewing today and they decided he has to wait another 20% to be worthy of their funding. This is a third position funding, they also told him that if he takes a renewal from his 1st or 2nd position, they will enact their 'no stacking fee' and charge him 25% of the original payback (not even the original funding amount).

First of all, this is cleary in violation of NY's (the funder is an NY company) new disclosure law. Second, I thought we were done with toughguy lenders like this looking to strongarm people but I guess when everyone thinks they can be a funder ripping people off with fees, you'll have riffraff like this trying to basically extort people, must be real easy when you promise someone funding then tell him he has to wait and if he can't because he believed what you told him, that too bad now you owe me even more usurious fees.

My question is can a merchant renewing an existing 1st or 2nd position even be considered stacking, since their position never changed?

If he renews with the first and second position companies technically he did not stack on the third position and should not be charged a fee unless he takes a fourth position. If anyone that should be charging stacking fees is the 1st and second position funders if anything. Funders like this give the good funders like myself and the industry a bad name and they should not be in this industry.

If a merchant stacks on us we do not always add the stacking fee unless the new payments affects our payment and they start bouncing payments on us. But laot of times when merchants are bounding payments from stacking and being over leveraged they default and we do not get it back anyway. Our first position deals work like a line of credit and our deals are usually alot shorter for the merchant to renew several times a year so they do not have to stack and get more money at a cheaper cost. Doing this way keeps tyhe merchants business healthy and the broker gets a commission 2-4 times a year from the same merchant the right way.


Scott Platto
Scott@tmrnow.com
tmrnow.com
212-220-9872