[sean-nayyar]

In the original post I made, I made a bold claim that this industry is plagued with fraudsters, con artists, and other scammers who are destroying this industry and making it tough for legitimate operators to flourish. I was met with anger and ridicule from various members, whom I suspect are part of that infrastructure and thrive off of the chaos in the MCA industry. Backdooring, fake LOCs, Overpromising and underdelivering, hard selling merchants on products they don't need, stacking them to make a buck off a small funder, overleveraging the merchant, causing him to default and the funder to go out of business. These are all the issues that have brought out the termites from the woodwork. This thread will probably not die, since these "termites" will never relent at trying to crucify me for having exposed the fraud in the industry and the potential death of the MCA industry (if things don't change for the better). I'll be here, defending the legitimate operators in the industry against these "termites".

[FLORIDAMAN]

That's cute. Is this you by any chance?

Attachment 4514

Edit: Read through the case. It was dismissed with prejudice. But, the fact stands, you got taken to court by the My Pillow guy lol. No wonder you're mad at me for living my best life abroad, making bank, living in a penthouse in Bangkok, or wherever.

ITT: Dudes throwing stones while living in a glass house

Ohh noooooooo!!!! he found the My Pillow lawsuit everyone already knows about my reputation is ruinedddddd!!!!

what kind of Geo-Arbitraged pillows do they have in Bankok for $0.12?

[Sachip24]

Your opening statement was "MCA industry is dead"

Any and every industry dealing with money has scammers and fraudsters.. Wall street has Ponzi schemes up the wazzoo, insider trading, securities fraud.. does that mean investing is dead? Retail banks have scams run on them left and right daily from identity theft, wire fraud, atm skimming, fake checks etc etc....does that mean banking is dead? Real estate has title fraud, rental scams, quick claim deed scams...does that mean real estate industry is dead?? OP you're in marketing/lead generation...they also have scammers and fraudsters selling packs with banks, selling stolen apps, ripping brokers off then blocking them. Does that mean the lead generation industry is dead? no, no, no and no. MCA space is no different, it will always scammers especially with 0 barrier for entry into the industry. those that don't really know what they are doing, yes it makes it harder for them. Those who do know what their doing thrive when they deal with someone that has been scammed and they do right by them, they know they have a customer for life. Welcome to finance.

[sean-nayyar]

Your opening statement was "MCA industry is dead"

Any and every industry dealing with money has scammers and fraudsters.. Wall street has Ponzi schemes up the wazzoo, insider trading, securities fraud.. does that mean investing is dead? Retail banks have scams run on them left and right daily from identity theft, wire fraud, atm skimming, fake checks etc etc....does that mean banking is dead? Real estate has title fraud, rental scams, quick claim deed scams...does that mean real estate industry is dead?? OP you're in marketing/lead generation...they also have scammers and fraudsters selling packs with banks, selling stolen apps, ripping brokers off then blocking them. Does that mean the lead generation industry is dead? no, no, no and no. MCA space is no different, it will always scammers especially with 0 barrier for entry into the industry. those that don't really know what they are doing, yes it makes it harder for them. Those who do know what their doing thrive when they deal with someone that has been scammed and they do right by them, they know they have a customer for life. Welcome to finance.

You're missing the macro picture. Wall Street, real estate, and retail banking are backed by institutional frameworks and old money. They survive fraud because their baseline legal structures are permanent.

MCA is entirely different. It is a new money space built on a single regulatory arbitrage: classifying an advance as a purchase of receivables to navigate around usury laws. That arbitrage is actively being dismantled by the courts.

When regulators and class-action lawsuits start reclassifying these products as loans and prosecuting them under usury caps, the structural foundation of the industry dies. The game changes permanently. In a heavily litigated, low-margin, high-squeeze environment, funders can no longer afford the luxury of high default rates caused by stacked merchants and recycled UCC lists. The entire operational model has to evolve to survive the legal crunch.

And the scammers and fraudsters in the industry are just adding fuel to the fire and giving the regulators reason to squash the alternative lending industry. Probably the best way to move around this is to go niche, and sell other products such as hard money financing, invoice factoring, equipment leasing, and other types of products (which I have seen a lot of brokers doing lately).

Here is a real world example I have seen people running:

Equipment leasing to Construction companies / HVAC / Blue collar contractor companies. HVAC is hot right now. Look at the google trends, look at the money being spent on marketing on google ads, look at the job postings on linkedin. massive.

[brandon_]

You're missing the macro picture. Wall Street, real estate, and retail banking are backed by institutional frameworks and old money. They survive fraud because their baseline legal structures are permanent.

MCA is entirely different. It is a new money space built on a single regulatory arbitrage: classifying an advance as a purchase of receivables to navigate around usury laws. That arbitrage is actively being dismantled by the courts.

When regulators and class-action lawsuits start reclassifying these products as loans and prosecuting them under usury caps, the structural foundation of the industry dies. The game changes permanently. In a heavily litigated, low-margin, high-squeeze environment, funders can no longer afford the luxury of high default rates caused by stacked merchants and recycled UCC lists. The entire operational model has to evolve to survive the legal crunch.

And the scammers and fraudsters in the industry are just adding fuel to the fire and giving the regulators reason to squash the alternative lending industry. Probably the best way to move around this is to go niche, and sell other products such as hard money financing, invoice factoring, equipment leasing, and other types of products (which I have seen a lot of brokers doing lately).

Here is a real world example I have seen people running:

Equipment leasing to Construction companies / HVAC / Blue collar contractor companies. HVAC is hot right now. Look at the google trends, look at the money being spent on marketing on google ads, look at the job postings on linkedin. massive.

Most legitimate funding companies have moved away from the purchase of future receivables contracts and are offering loans in most states. It’s becoming the new standard. It’s going nowhere. Like I said it’s alive and kicking. Major banks are heavily involved. They run finance. If major banks pull out, then you have a problem.

[Franklin]

You're missing the macro picture. Wall Street, real estate, and retail banking are backed by institutional frameworks and old money. They survive fraud because their baseline legal structures are permanent.

MCA is entirely different. It is a new money space built on a single regulatory arbitrage: classifying an advance as a purchase of receivables to navigate around usury laws. That arbitrage is actively being dismantled by the courts.

When regulators and class-action lawsuits start reclassifying these products as loans and prosecuting them under usury caps, the structural foundation of the industry dies. The game changes permanently. In a heavily litigated, low-margin, high-squeeze environment, funders can no longer afford the luxury of high default rates caused by stacked merchants and recycled UCC lists. The entire operational model has to evolve to survive the legal crunch.

And the scammers and fraudsters in the industry are just adding fuel to the fire and giving the regulators reason to squash the alternative lending industry. Probably the best way to move around this is to go niche, and sell other products such as hard money financing, invoice factoring, equipment leasing, and other types of products (which I have seen a lot of brokers doing lately).

Here is a real world example I have seen people running:

Equipment leasing to Construction companies / HVAC / Blue collar contractor companies. HVAC is hot right now. Look at the google trends, look at the money being spent on marketing on google ads, look at the job postings on linkedin. massive.

This debate of regulation being the end of MCA has been raging on this forum for over a decade, you can search up threads from when you were a college student, from vets like Chambo and myself and John Cal.

The core line was, you cannot make money disappear, because as long retail institutions only lend to the top 30%, 70% of business will always find a way to get money, regardless of the cost. Trying to regulate it away, will just create another alternate, to the current alternat financing space.

If I have money and you need money, and I can profit on that, we will make a deal.... and no large official entity can stop us. Especially when those entities pay a quarter of 1 percent annually for the right to take my money and make 20% on it.




www.UccRadar.com

[Incbiz440]

This debate of regulation being the end of MCA has been raging on this forum for over a decade, you can search up threads from when you were a college student, from vets like Chambo and myself and John Cal.

The core line was, you cannot make money disappear, because as long retail institutions only lend to the top 30%, 70% of business will always find a way to get money, regardless of the cost. Trying to regulate it away, will just create another alternate, to the current alternat financing space.

If I have money and you need money, and I can profit on that, we will make a deal.... and no large official entity can stop us. Especially when those entities pay a quarter of 1 percent annually for the right to take my money and make 20% on it.




www.UccRadar.com

Not related to most of the... interesting conversation here, but I wonder what the next pivot will be as MCA has become a mature industry and there's likely to continue to be a trend towards regulation.

How many people at the outset of the industry pivoted from the mortgage industry once it became highly regulated? There will be something else.

[sean-nayyar]

This debate of regulation being the end of MCA has been raging on this forum for over a decade, you can search up threads from when you were a college student, from vets like Chambo and myself and John Cal.

The core line was, you cannot make money disappear, because as long retail institutions only lend to the top 30%, 70% of business will always find a way to get money, regardless of the cost. Trying to regulate it away, will just create another alternate, to the current alternat financing space.

If I have money and you need money, and I can profit on that, we will make a deal.... and no large official entity can stop us. Especially when those entities pay a quarter of 1 percent annually for the right to take my money and make 20% on it.




www.UccRadar.com

Franklin, I respect the argument and you're right that money can't be regulated away entirely. The demand side will always exist. But I'd push back on the supply side. The regulatory pressure isn't trying to eliminate lending, it's trying to reclassify it, and that reclassification changes the economics fundamentally for funders operating on thin margins.

Texas and New York legislation are real signals, not just noise. And the tightening criteria I'm seeing on the ground, my lead gen clients preferring 50k+ monthly revenue whereas 2019-2023, they'd tolerate 20k+ , tells me the institutional money is getting more selective as defaults climb.

You're right that another alternate will emerge if MCA gets squeezed out. Maybe it already is. Equipment leasing, invoice factoring, hard money. The guys I'm seeing pivot to those products are the smart ones who read the writing on the wall early.

Maybe MCA isn't dying. Maybe it's just shedding the bottom half of the market and concentrating upward. Which means the guys who survive are the ones with better merchant quality, better intake systems, and less reliance on recycled UCC lists. Which is kind of the whole point I've been making since post one.

One more thing: I am also noticing brokers focus on certain industries only, whereas before, they were trying to fund anyone and everyone. Another sign they are feeling stress right now in the market.