[jbrown]

11 Stacks. 8 stacks still outstanding. 3 year old restaurant.

In no particular order:

Advance Payment (existing from first bank statement received)
Yellowstone (existing)
World Business (existing)
Strategic - 5/14
Advance Payment -7/2 (increase previous ACH by 50%)
Pirs Capital -7/10
Complete Business - 7/10
Yellowstone (doubling previous ACH) - 7/21
Richmond Capital -7/23
Advance Payment (increase ACH again) - 8/4
Wide Merchant - 8/27
Ironwood Finance - 8/27
Pearl - 9/11
NLYH - 9/4
Capital Stack - 11/26

As expected there are multiple NSF's to various lenders. Average monthly gross is $94k. Hard to tell exactly what % of total revenue is being repaid but in some months it is in the range of 50%. Sort of a pyramid scheme in a way - take money from the next 3 stackers to be able to pay the current stackers.

Is there no underwriting at these companies?

[ADiamond]

What's the name of the restaurant? ISO double funded twice and you blame the funders?

[anonymous]

I'll see your 12th position client, and raise you a 1.74 factor rate haha. New records being set today.1.74.JPG

[ADiamond]

I'll see your 12th position client, and raise you a 1.74 factor rate haha. New records being set today.1.74.JPG

i know the broker that owns this merchant, you think you're nice?

10k, 1.795 10% psf, $445/day, merchant wires 12k balance before 20 days is up.

point, game score - you lose.

[anonymous]

i know the broker that owns this merchant, you think you're nice?

10k, 1.795 10% psf, $445/day, merchant wires 12k balance before 20 days is up.

point, game score - you lose.

Yeah, can't really compete with that haha

[sam@ybc]

i know the broker that owns this merchant, you think you're nice?

10k, 1.795 10% psf, $445/day, merchant wires 12k balance before 20 days is up.

point, game score - you lose.

Ill see your 10k @ 1.795 and raise you
11k 1.99 pb 21980 699/day, paid back like a champ.
Oh and a 10% PSF.
Double point - you all lose lol

[Regium]

Ill see your 10k @ 1.795 and raise you
11k 1.99 pb 21980 699/day, paid back like a champ.
Oh and a 10% PSF.
Double point - you all lose lol

Kudos for bragging about that.... You deff win .
:sigh:

[mcg168]

Ill see your 10k @ 1.795 and raise you
11k 1.99 pb 21980 699/day, paid back like a champ.
Oh and a 10% PSF.
Double point - you all lose lol

ugh

[jmccready]

Wow, I've never seen numbers like that. Whatever the market will bear right?

[Quickfunder]

I'll see your 12th position client, and raise you a 1.74 factor rate haha. New records being set today.1.74.JPG

I'm confused. What is this screenshot from? Everyone's debating if it was typo but it looks like this is the originating funding calculator right? Isn't it pretty obvious?

[anonymous]

I'm confused. What is this screenshot from? Everyone's debating if it was typo but it looks like this is the originating funding calculator right? Isn't it pretty obvious?

Screen shot is from the lender's portal.

[Sean Cash]

A 1.74 four month???

Before closing fees?!

[anonymous]

A 1.74 four month???

Before closing fees?!

I'm sure it was an error. Waiting to hear back from the lender to confirm that it is actually 1.47, but who knows. Will keep you guys posted.

[WhoisKingsley]

OMG. J Brown, I thought my file I am working on was bad... and everyone knows her name and company.

I can try to help you be their hero. PM me.

[JSL23]

11 Stacks. 8 stacks still outstanding. 3 year old restaurant.

In no particular order:

Advance Payment (existing from first bank statement received)
Yellowstone (existing)
World Business (existing)
Strategic - 5/14
Advance Payment -7/2 (increase previous ACH by 50%)
Pirs Capital -7/10
Complete Business - 7/10
Yellowstone (doubling previous ACH) - 7/21
Richmond Capital -7/23
Advance Payment (increase ACH again) - 8/4
Wide Merchant - 8/27
Ironwood Finance - 8/27
Pearl - 9/11
NLYH - 9/4
Capital Stack - 11/26

As expected there are multiple NSF's to various lenders. Average monthly gross is $94k. Hard to tell exactly what % of total revenue is being repaid but in some months it is in the range of 50%. Sort of a pyramid scheme in a way - take money from the next 3 stackers to be able to pay the current stackers.

Is there no underwriting at these companies?

WOW, I mean WOW...I have seen a few bad ones this month but 11 stacks! What the hell are these Lenders thinking?! 2nd position fine. 3rd I understand, 4th and 5th are excessive but I know they are out there, but 11...who would do 7-11th position...what's the real upside?!

On a sidenote, who is Ironwood Finance? I have seen them on a couple of statements lately.

[MedDirect]

All aboard the default train.

[Chambo]

it is this predatory nonsense that will seriously hurt our industry

[Businesscap]

This stacking and 2nd position and beyond stuff is ridiculous. It's nothing less than self destruction and irresponsible lending. The fact that some post all the time looking for funders or ISO's who do this is nothing more than making money off of merchants misfortune and providing little to no value. The list of funders jbrown posted is the walk of shame.

[CashCapital]

Does any
one know the contact info for Advance Payment?

[WhoisKingsley]

But did the merchant keep applying and want it? Yes, a 9th position is insane but if they want it and their finances can handle it- they are going to get it wherever they can get it. It's not the lenders issue- they underwrite it as if the previous balance was another debt against the company- they don't care who as long as they can handle the payback.

I'm not saying that business owners who want more money and are addicted to advances are like crackheads... But read the situation. Metaphorically you can say the same thing about a drug transaction.... It is pretty sad and no broker or lender can make them stop lol

[Chambo]

But did the merchant keep applying and want it? Yes, a 9th position is insane but if they want it and their finances can handle it- they are going to get it wherever they can get it. It's not the lenders issue- they underwrite it as if the previous balance was another debt against the company- they don't care who as long as they can handle the payback.

I'm not saying that business owners who want more money and are addicted to advances are like crackheads... But read the situation. Metaphorically you can say the same thing about a drug transaction.... It is pretty sad and no broker or lender can make them stop lol

Doesn't matter what they want. You, as the "seasoned professional", are supposed to inform them about standards and advise against destructive behavior. Not to mention, you're supposed to protect your funder's assets, and advise against an obviously super risky deal. Otherwise, you are just another predatory lender the Feds will want to throw in jail.

8 active deals, each taking (for argument's sake) 10% pull. That comes to 80% of GROSS SALES going to cash advance. A completely unsustainable equation

[FUSIONCAPITAL]

Anonymous,

That has be a simple typo and switch of the factor from a 1.47 to 1.74...maybe a new admin with dyslexia??? lol

Plus knowing that lender its most definitely a 1.47.

[J.Celifarco]

Anonymous,

That has be a simple typo and switch of the factor from a 1.47 to 1.74...maybe a new admin with dyslexia??? lol

Plus knowing that lender its most definitely a 1.47.

does that really make it better when we are talking about a 12th position

[GRP Funding]

does that really make it better when we are talking about a 12th position

2nd, 3rd, 4th, 12th. It's all the same.

[J.Celifarco]

2nd, 3rd, 4th, 12th. It's all the same.

Brian, I usually agree with everything you say on the forums but here I don't think I can agree that there is no difference between a second and a 12th. A merchant taking a second can either be in a bad position and need a little more money or might not know that taking a second loan breaches their first contract.. At 12 positions they don't care and neither does the broker facilitating the loan.
I don't agree with stacking and I think my posts on here can confirm that, but that said there is a huge difference in the mentality with a merchant taking a second compared to taking a 12th