[mcaguru]

There is a world of difference between a $5k credit card where you can make a minimum payment of interest only for a few bucks a month, and a $100k alt loan where the merchant is paying 8-10% of revenue in repayment. Having said that grantors of consumer credit look at your monthly payment obligations and will deny additional credit, mortgage, car loan etc. if you total repayments are more than "x" % of your monthly income.

As far as the factoring world, the responsible alt lenders work with the first position factoring company, SBA lenders, and commercial banks to subordinate where appropriate. I have spoken at the CFA and IFA conferences about best practices. Do it responsibly and be aware of the borrowers other legal contracts. So yes, the responsible funders don't put the borrower in a position where they are in breach by taking our money.

I hear you! that's why you have the CEO Title

[mcaguru]

I hear you! that's why you have the CEO Title

The only issue that's left to discuss on the topic is this one remaining point..

I was Head of Business Development at 2nd source funding (largest MCA brokerage company in number of sales people!), 2nd Source boarded over 12,000 Merchants and they were "ALL" First position deals! Fast forward within a short period of time over a third of the merchants went out of business. Guess what NOT 1 Client had a 2nd position. My point is a first position deal to a well grounded businessman may be looked at like a 8th position.

I think MCA is a great product to many business owners, i just think the A paper Houses want to be viewed like Mother Theresa handing out capital on Christmas eve in the church parking lot.