[fundgorilla]

I just spoke to a merchant who was slapped with a 1k stacking fee on a stack. Call me stupid, call me a neophyte, tar me as a dilletante, but is that common or new?

[J.Celifarco]

never heard of that who charged it the bank who stacked or the one who was stacked on?

[fundgorilla]

The bank who stacked. I'm sort of against naming names, but I can say that the 1k was charged on a deal under ten grand.

[mcg168]

Some of the stacking rates I have been seeing recently are so incredibly ridiculous that this doesn't surprise me whatsoever. However, what does continue to surprise me is that the merchants keep taking it these rates.

Also - I saw Swift will charge the merchant a fee if they get stacked on. I believe its $5,000.

[J.Celifarco]

The bank who stacked. I'm sort of against naming names, but I can say that the 1k was charged on a deal under ten grand.

I find so many things wrong with this I don't even know where to start

[Chambo]

this is one way to combat stacking....

[jotucker1983]

Merchants have to take responsibility as well and stop signing up for these insane programs. I honestly can't understand how a merchant can't sit down and run numbers, then calculate that well over 40% of their gross sales might be going to payback cash advances. And we aren't just talking about any cash advance with decent risk based pricing, we are talking insanely short term high 1.40 - 1.50 factor advances stacked on top of each other.

How can you be smart enough to run a $400,000 - $1 million business, but sign up for these insane programs is beyond me.

[ridextreme]

did the funder who stacked charge the fee directly, or the broker?

It's just an added fee to make more money on the deal such as an underwriting fee, processing fee, UCC filing fee, UCC termination fee, finder's fee, origination fee, the cup of coffee I drank while sending over your docs fee, etc.

Some funders themselves automatically charge a 2.5% origination fee. So I am not at all surprised at the stacking fee. Just a different name for a fee to make more on the deal.

[J.Celifarco]

this is one way to combat stacking....

Chambo he said the bank giving the stack charged a 1k stacking fee because it was a 2nd position it is basically a 10% junk

did the funder who stacked charge the fee directly, or the broker?

It's just an added fee to make more money on the deal such as an underwriting fee, processing fee, UCC filing fee, UCC termination fee, finder's fee, origination fee, the cup of coffee I drank while sending over your docs fee, etc.

Some funders themselves automatically charge a 2.5% origination fee. So I am not at all surprised at the stacking fee. Just a different name for a fee to make more on the deal.

yeah but he said the deal was under 10k so that is a 10% fee that is greedy and insane..

[fundgorilla]

Excellent! Through our thought leadership here at fundgorilla, we're introducing our exclusive new "slam piece needs a 500$ purse fee!"

[GoodCustomerService]

I've seen Retail Capital....now Credibly....debit the whole funding amount on the stack out of the merchants account right after it funded. Merchant defaulted on the stack right after.

[ridextreme]

yeah but he said the deal was under 10k so that is a 10% fee that is greedy and insane..

there are a lot of greedy brokers who will do this. Never a funder tho.

[GoodCustomerService]

Really? You think funders are always the good guys in these cases? I bet the $1k stack fee was from the funder, not the broker.

[J.Celifarco]

Really? You think funders are always the good guys in these cases? I bet the $1k stack fee was from the funder, not the broker.

this was the funder according to the original post

[mcg168]

there are a lot of greedy brokers who will do this. Never a funder tho.

Most C,D funders/stackers (not brokers) usually have 5-10% in fees. This is probably another fee on top of the usual ones.

[fundgorilla]

When I see a word like "Tho" in a professional forum, I immediately know I might be in the wrong industry.

[J.Celifarco]

When I see a word like "Tho" in a professional forum, I immediately know I might be in the wrong industry.

fair but lets assume there was a typo

[fundgorilla]

Doncha know?
I got deal flow!
my stacks they grow
to the ceiling yo
thats how it go
for the ceo
even tho
i gots ta go!

I consider bad grammar and lowbrow speech habits to be a bit of an impediment in a business that is conducted primarily over the phone, but then again, I'm a notorious snob and that probably comes across on the phone as well.

[Chambo]

But you're a Gorilla?

[fundgorilla]

I had to come up with something on the spot. Anyway, we digress. Happy hunting one and all!

[ridextreme]

When I see a word like "Tho" in a professional forum, I immediately know I might be in the wrong industry.

I just spoke to a merchant who was slapped with a 1k stacking fee on a stack. Call me stupid, call me a neophyte, tar me as a dilletante, but is that common or new?

To further answer your question, these fee's have been around forever in this industry. Does that mean you are stupid? Well, you did spell the word dilettante wrong.. does that mean I should be searching for a new industry also?

lmfao (oh **** am I allowed to say that)

[fundgorilla]

Snobby Gorillas type at 90 WPM....LOL ! ! !

[J.Celifarco]

To further answer your question, these fee's have been around forever in this industry. Does that mean you are stupid? Well, you did spell the word dilettante wrong.. does that mean I should be searching for a new industry also?

lmfao (oh **** am I allowed to say that)

fees have been around forever a bank coming flat out and saying this 10% fee is a stacking fee that is new.. I haven't seen that on any contract I work with

[ridextreme]

fees have been around forever a bank coming flat out and saying this 10% fee is a stacking fee that is new.. I haven't seen that on any contract I work with

It's just another name of the same fee... according to the OP, "I just spoke with a merchant who was hit with a $1K stacking fee", this could very well be a broker's fee and not charged directly from the funder.