Quote Originally Posted by wally View Post
If people sign a guaranty or a COJ then why do lenders still want 1.5? I understand it is due to risk, but is there that much risk of not getting the money back? If someone defaults is it that difficult to collect? I had someone default recently and I'm wondering if it is really that hard to collect? Do most lenders get their money back? Or just give up and never try to get a judgement?
A COJ only guarantees a judgment. A judgment doesn't guarantee payment. I like my role as a broker, and I sympathize with lenders. In the beginning I thought a 1.459 was outrageous, now, after seeing the portfolio performance over a long period on these merchants, I understand why the rates are what they are.