[sean-nayyar]

Merchant cash advance is dead, but i see people running around acting like their business is doing well.

....

You've got fraudsters selling people MCAs under the guise of a fake LOC offer, telling them that if they take an MCA and prove they can pay it off, they may qualify for a huge LOC.

You've got "MCA debt settlement" companies actively advertising on facebook ads telling merchants "Hey, you can default on that MCA you took out and nothing bad will happen! We'll negotiate it down for you!"

You've got tightened criteria from the institutional money on who they want to lend to, so your files get rejected from major funders... even if it's a great file.

ISOs putting all over their marketing pages that merchants need more than $50K a month in revenue and 1 year time in business to qualify for funding (tightened criteria).

And a recession happening all at the same time.

Am I going to get banned for saying all this, or is someone in here going to finally admit that I'm right, swallow their pride, and admit something.

[sean-nayyar]

Oh and also, loads of MCA collection companies advertising in the promotions section lol. Another obvious signal.

[diditevenfund]

1. Sure, a good slew are, all from Miami and NY. These people can't close a door unless they lie, they suck at sales, and would lie to sell anything they were involved with. Not everyone is an asshole, and their company reputation proves it.

2. These people are in fact idiots, and so are the merchants that think it is a good idea. More and more merchants know settlement is a joke, and don't do it.

3. It is not hard to get a deal approved let alone a great file. Typically guys say this that THINK they have a great file but know nothing about what merits receiving funds or does not. "Oh it has great deposits and a 650 score, its a slam dunk!". Go back to the learning table.

4. ISOs that put that have no respect for the smaller merchant. They think they can streamline their ticket to higher commissions squeezing out the 20k/mo electrician. Again, being an asshole and not a smart one, that 20k/electrician is critical to the world, and if you do right by him, you will easily renew him 3-5 times, and far exceed the 50k pop that the clown is chasing. Guys who do all deals, and focus on retention are the winners today.

5. The sky has been falling for years. Yet somehow here we are and people are doing fine, the ones that adapt and arent actually morons.

So, either you are mad because an MCA pissed in your cereal, you actually do MCA and had a bad beat this week, or simply don't actually understand MCA and just pretend you do.

Carry on.

[diditevenfund]

Oh and also, loads of MCA collection companies advertising in the promotions section lol. Another obvious signal.

Yeah shocker, this forum is where their ICP hangs out, cant believe they make themselves known here. Maybe they should use Craigslist?

[DonMcGrath]

SEAN: Every time I try to teach MCA and call the industry dead..., an ISO who works with dumbleads.com, shows up during breakfast and does it again....

[sean-nayyar]

1. Sure, a good slew are, all from Miami and NY. These people can't close a door unless they lie, they suck at sales, and would lie to sell anything they were involved with. Not everyone is an asshole, and their company reputation proves it.

2. These people are in fact idiots, and so are the merchants that think it is a good idea. More and more merchants know settlement is a joke, and don't do it.

3. It is not hard to get a deal approved let alone a great file. Typically guys say this that THINK they have a great file but know nothing about what merits receiving funds or does not. "Oh it has great deposits and a 650 score, its a slam dunk!". Go back to the learning table.

4. ISOs that put that have no respect for the smaller merchant. They think they can streamline their ticket to higher commissions squeezing out the 20k/mo electrician. Again, being an asshole and not a smart one, that 20k/electrician is critical to the world, and if you do right by him, you will easily renew him 3-5 times, and far exceed the 50k pop that the clown is chasing. Guys who do all deals, and focus on retention are the winners today.

5. The sky has been falling for years. Yet somehow here we are and people are doing fine, the ones that adapt and arent actually morons.

So, either you are mad because an MCA pissed in your cereal, you actually do MCA and had a bad beat this week, or simply don't actually understand MCA and just pretend you do.

Carry on.

I used to be a broker in 2014 so I know what the good ol' days were like.

Your rebuttals to my arguments are valid rebuttals, but you're proving my point. Bunch of fraud in the industry.

Aren't you guys afraid of clawbacks from some guy calling your merchant randomly and convincing him to default within the clawback period?

I didn't even mention all the backdooring etc, which is the life blood of the industry lol

[diditevenfund]

Good ole days like what? When you didn't have to actually differentiate yourself? You could just cold call and do some deals? Days are fine today, unless of course you can't keep up, provide no value, have a crap brand, all that.

Name me an industry that doesn't have fraud in it? I agree the fraud in MCA is big and most of it is absolutely stupid type ****, but again, tell me an industry that is free of fraud.

Am I afraid of clawbacks? Absolutely not. The guys who cant build relationships and just jam deals down peoples throat after their little **** SMS bait are the ones that should be. The ones who build real relationships with clients don't worry about stuff like this. Is it present? Sure, take some steps to stay in a good spot and this is not even a big issues at all.

Backdooring? Again, points above. The guys who cry about clawbacks, backdoor, and settlement ruining their leads are the ones who literally have no skillset or understanding of how things really work. The good ones just sit back, let our names speak for themselves, and work forward evolving with the times. It seems to be the old school guys who got pushed out for whatever reason that have the boldest opinions.

[sean-nayyar]

Good ole days like what? When you didn't have to actually differentiate yourself? You could just cold call and do some deals? Days are fine today, unless of course you can't keep up, provide no value, have a crap brand, all that.

Name me an industry that doesn't have fraud in it? I agree the fraud in MCA is big and most of it is absolutely stupid type ****, but again, tell me an industry that is free of fraud.

Am I afraid of clawbacks? Absolutely not. The guys who cant build relationships and just jam deals down peoples throat after their little **** SMS bait are the ones that should be. The ones who build real relationships with clients don't worry about stuff like this. Is it present? Sure, take some steps to stay in a good spot and this is not even a big issues at all.

Backdooring? Again, points above. The guys who cry about clawbacks, backdoor, and settlement ruining their leads are the ones who literally have no skillset or understanding of how things really work. The good ones just sit back, let our names speak for themselves, and work forward evolving with the times. It seems to be the old school guys who got pushed out for whatever reason that have the boldest opinions.

Fair points on the relationship aspect, and I respect the hustle on the smaller, sticky files. But my point isn't that the hustle stops... it’s that the math is fundamentally changing right now.

With the Fed keeping liquidity tight and institutional money staying expensive, funder warehouse lines are under major pressure. Even if you've got a killer relationship, a funder can only lend out what they can afford to borrow.

Out of curiosity... are you seeing your main syndicates and funders jacking up factor rates or shortening terms across the board to protect their margins? And on those $20k/mo service files, are you noticing funders backing away from certain industries entirely because of daily cash flow volatility, or is it business as usual for your roster?

Just trying to get a read on the market.

[diditevenfund]

Fair points on the relationship aspect, and I respect the hustle on the smaller, sticky files. But my point isn't that the hustle stops... it’s that the math is fundamentally changing right now.

With the Fed keeping liquidity tight and institutional money staying expensive, funder warehouse lines are under major pressure. Even if you've got a killer relationship, a funder can only lend out what they can afford to borrow.

Out of curiosity... are you seeing your main syndicates and funders jacking up factor rates or shortening terms across the board to protect their margins? And on those $20k/mo service files, are you noticing funders backing away from certain industries entirely because of daily cash flow volatility, or is it business as usual for your roster?

Just trying to get a read on the market.

Yet funders keep expanding those lines and getting more capital. You are trying to get a read on the market, when you already stated it was dead and no longer are a broker for whatever reason, makes no sense. Are funders getting picky on small files? That is nothing new, no they are not doing shorter terms, backing off industries is nothing new, some are better than others. I am not sure what happens in the 1.499 3 month land, I don't spend my time there. Also smaller does not = sticky whatsoever.

Just confused by this whole post, was it just a random crash out on a bad beat or what?

[sean-nayyar]

Yet funders keep expanding those lines and getting more capital. You are trying to get a read on the market, when you already stated it was dead and no longer are a broker for whatever reason, makes no sense. Are funders getting picky on small files? That is nothing new, no they are not doing shorter terms, backing off industries is nothing new, some are better than others. I am not sure what happens in the 1.499 3 month land, I don't spend my time there. Also smaller does not = sticky whatsoever.

Just confused by this whole post, was it just a random crash out on a bad beat or what?

Haha, not a crash out at all man, zero bad beats here.

To answer your question: I stopped traditional brokering precisely because I saw these structural cracks widening. I realized that fighting the data decay, the compliance headaches, and the legacy outbound grind was a losing battle for my time.

Instead of staying on the phones, I shifted entirely to building the inbound tech infrastructure to fix it. We built a system that uses conversational AI to handle front-end qualification... filtering out the junk traffic, answering baseline objections, and forcing merchants to upload their bank statements and stips before a rep even dials out.

I’m looking at the market from the data and software infrastructure side now. I’m seeing the macro shifts because I watch the traffic data across multiple verticals every day.

I genuinely respect your stance on the relationship game, though. If a broker is still grinding out traditional files today, that old-school relationship model is literally the only protective shield they have left.

[LJH365]

I've been in commercial lending 25 years and I've never seen so many idiots in my industry than I do now.

We live in a time where someone actually though this was good branding (saw it earlier in my FB feed)-

[sean-nayyar]

I've been in commercial lending 25 years and I've never seen so many idiots in my industry than I do now.

We live in a time where someone actually though this was good branding (saw it earlier in my FB feed)-

Donkey Loans... You'd have to be a donkey to take one...

Click now and apply!

We know you will... Ya Donkey! (Gordon Ramsey impression)

--------

Edit: I looked the donkey loans website over, and the person is actually not dumb. They differentiated in a way that now they stand out amongst every boring loan company. The guy is a genius actually. You'll never forget a donkey loan company. It's like the geico insurance company.

[diditevenfund]

I love all the idiots, eat their leads for lunch. Keep up the donk work boys, making it easier for the legit ones.

[Business2122]

I don’t think it’s dead it’s just evolving and it’s fiscal circulation is attracting higher business acumen, for better and worse lol

[diditevenfund]

I don’t think it’s dead it’s just evolving and it’s fiscal circulation is attracting higher business acumen, for better and worse lol

Hopefully pushes out all the morons who run around saying "I am an investment banker". No bub, you do MCA from your apartment and carrot people. (not you)

[WhoisKingsley]

By higher business acumen do you mean shirtless dudes on rented boats selling 0% business credit ?

or the gym bros up at 4:30 am teaching their office to "shove the money down the merchant's throat"

[ASAPFUNDINGGROUP]

yea this industry took a wild turn wish we could go back to the good old days when transportation and construction were preferred industry's i switched over to the funding side recently because i was getting backdoored so much

[diditevenfund]

yea this industry took a wild turn wish we could go back to the good old days when transportation and construction were preferred industry's i switched over to the funding side recently because i was getting backdoored so much

Had some real **** partners, couldn't build relationships, or both?

[Business2122]

Hopefully pushes out all the morons who run around saying "I am an investment banker". No bub, you do MCA from your apartment and carrot people. (not you)

lol, I can almost guarantee what I net in a month is 100 times more than your entire documented blood lines historical bank balances

[Business2122]

By higher business acumen do you mean shirtless dudes on rented boats selling 0% business credit ?

or the gym bros up at 4:30 am teaching their office to "shove the money down the merchant's throat"

Pretty much;

Your MCA world is large enough to be packaged into CDO/CLOs etc, that’s going to bring in characters who’s use to monetizing 7 and 8 figures on a monthly basis

[ASAPFUNDINGGROUP]

well 95 percent of the companies backdoor was just tired of always fighting for the deal on this side its much easier. i have great relationships with the guys i used when i was a broker i used pearl alot lendini cfg i kept it small towards the end

[sean-nayyar]

yea this industry took a wild turn wish we could go back to the good old days when transportation and construction were preferred industry's i switched over to the funding side recently because i was getting backdoored so much

So you decided to go work for a funder? Hmm... market is that bad rn?

[diditevenfund]

So you decided to go work for a funder? Hmm... market is that bad rn?

You are the one that said its dead.

[ASAPFUNDINGGROUP]

its not bad i funded 1.5 last month as a new iso. its not that its bad there just so much comp on the broker side

[brandon_]

You are the one that said its dead.

He also has the freshest leads in the alternative lending business, and that one dude makes more than your whole bloodline