[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