Quote Originally Posted by MCNetwork View Post
The REAL question is how many merchants actually qualify for 1.12 deals? Maybe 2% of all applicants? The great majority of my merchants fall in the 500-600 FICO range and the average deal size is about 15K-25K. I'd venture to say that almost NONE of these guys would be approved for a 1.12 deal.
That's the "thing" about Opportunity Fund. A 550 FICO Merchant can potentially qualify for a 1.12 factor rate. To provide financing at this cost, especially to risky businesses will incur losses overall. Opportunity Fund will gladly lose money on their loans and advances because they accept donations to make up for it. That's the nature of their charity.

So if they end up a million in the hole at the end of year but receive a million in donations, they break even.