[CO1]

http://mobile.nytimes.com/blogs/boss...ome-standards/

[Finance1]

If this was a get rich quick and easy game everybody would do it. Banks rake in fees and profits from business owners like nobody's business. But articles like this paint them as the "good guys" LOL.

Peel back the defaults, cost of funds, and overhead of any funding company and I guarantee the profit margins per client are lower than banks. It's not an apples to apples comparison for a lot of reasons but the point is still valid.

It's takes a lot of guts and brains to make it as a funder in this business. The "pie in the sky" of funders getting rich quick by raping and pillaging is far from the truth. The cost of funds is priced where it is for a good reason. Price too low and you're done.

Are there bad practices out there? Yep, I started a thread about it. Are there bad practices in every financial industry? Oh boy.

B2B transactions do not require protectionist legislation like B2C. Businesses looking for cash should shop around. Responsibility works both ways. I ask every single merchant the same 2 questions before we fund. Have you done the math and made sure that you can afford the repayment and will the cost of funds be more than offset by additional revenue and profit? If the answers are yes then my hands are clean and it's a good deal for both of us.

If the author of the article is implying that us "greedy funders" should offer 10-20% annually APR stuff then I think he should go ahead and do it himself and see how that works out for him.

[Chambo]

If this was a get rich quick and easy game everybody would do it. Banks rake in fees and profits from business owners like nobody's business. But articles like this paint them as the "good guys" LOL.

Peel back the defaults, cost of funds, and overhead of any funding company and I guarantee the profit margins per client are lower than banks. It's not an apples to apples comparison for a lot of reasons but the point is still valid.

It's takes a lot of guts and brains to make it as a funder in this business. The "pie in the sky" of funders getting rich quick by raping and pillaging is far from the truth. The cost of funds is priced where it is for a good reason. Price too low and you're done.

Are there bad practices out there? Yep, I started a thread about it. Are there bad practices in every financial industry? Oh boy.

B2B transactions do not require protectionist legislation like B2C. Businesses looking for cash should shop around. Responsibility works both ways. I ask every single merchant the same 2 questions before we fund. Have you done the math and made sure that you can afford the repayment and will the cost of funds be more than offset by additional revenue and profit? If the answers are yes then my hands are clean and it's a good deal for both of us.

If the author of the article is implying that us "greedy funders" should offer 10-20% annually APR stuff then I think he should go ahead and do it himself and see how that works out for him.

The issue is, those few bad apples you mentioned are going to ruin it for everyone else. THIS is why we need to police ourselves before someone comes in and decides they will do it for us.

10-20% annually is the LAW, that is why it is mentioned (rmember, we do NOT do loans, right?)

[Finance1]

The issue is, those few bad apples you mentioned are going to ruin it for everyone else. THIS is why we need to police ourselves before someone comes in and decides they will do it for us.

10-20% annually is the LAW, that is why it is mentioned (rmember, we do NOT do loans, right?)

B2B lending is quite a patchwork of usuary law when it comes to actual loans. In MD, any unsecured b2b loan over $15k has zero regulation. The rate could be 300% and the contract signed on a napkin but I know what you're saying.

I just didn't like the way the article was written at all. Specifically naming 3 of the top 10 funders out there and painting them in a bad light. Basically, the article talks about companies that participate in "the good practices" as being bad practices. And it's written by someone in the alternative loan space.

I do agree about policing ourselves though but I'm not worried about regulation much at all anymore. The payday loan space is 30 to 50 times larger than this space depending on what #'s you believe. It's barely regulated in the big picture and it's b2c. The MCA/loan space will likely go untouched for many years regardless of who does what. My concern about the crappy practices is more about credibility and reputation than regulation.

[Chambo]

All it takes is one snowflake poorly placed to start an avalanche

[funding pro]

The good news is, this isnt an article, its a blog. A blog that has been written and rewritten by the same guy over and over again. He uses this to drive business to his own company acting as if he isnt a broker that funds out MCAs and he doesnt take a commission on those deals. Paying attention to this ass clown only gives him more credibility which makes me sick.

[Chambo]

Sounds to me like a frustrated broker who cannot close the deals that are presented to his merchants...or the merchants went and got the money form the aforementioned companies and poo-poo'ed on him for not bringing it to their attention