Originally Posted by
sean bash
Word through the grapevine is that a pretty well-known low factor rate MCA shop is ceasing operations in the near future due to bad debt. I don't know if I'm allowed to mention who it is but if it happens, it'll be evidence that the low factor, long term model is too fragile to be sustainable.
Risk vs. reward. We're echoing each other's beliefs that small businesses have a difficult time putting their books together yet we're quick to offer them "premium pricing" because of last month's bank statement or strong credit history. Real banks wouldn't touch many of these "premium" deals so they are perhaps not as premium as we think.