[MCS Info]

"Should call it Default Capital"
LOL. Probably. The major problem of stretching deals out to longer terms? The multitude of stackers not filing UCC's but requesting COJ's to jump the line on the first position funder on the way to a judgment. The first, with a no-stack agreement, potentially can negate the COJ by suing the borrower and invalidating the claim. If I came out with a long, unlimited SIC code Product, how could I be assured that no stacking would be really in effect?

[J.Celifarco]

"Should call it Default Capital"
LOL. Probably. The major problem of stretching deals out to longer terms? The multitude of stackers not filing UCC's but requesting COJ's to jump the line on the first position funder on the way to a judgment. The first, with a no-stack agreement, potentially can negate the COJ by suing the borrower and invalidating the claim. If I came out with a long, unlimited SIC code Product, how could I be assured that no stacking would be really in effect?

HOW DO YOU STOP STACKING????? That is the question every lender wants an answer to.

[anonymous]

You want a new product with some value - come in between IOU/QS and those like Knight with regard to strong seconds. 1 year term seconds for qualified clients with strong financials, who happened to have 6 negative days over the past 3 months or fall just outside the IOU/QS UW criteria. Or take a look at the PFS debt refinancing program (interesting from an investment standpoint as you never really go out on the limb too far with these merchants). Or do 6 month 3rds in the mid 1.30's coming in behind an 18-24 month first and a 1 year second.

Provide a reasonable product with a reduced broker commission. Those who want to last in this business will flood you with clients while the others are still pitching a 1.49 over 3 months going for a 14 point rip.

You don't stop stacking, its inevitable. I can't tell you how many business I've quite literally saved from BK w/ consolidations who ended up doing the same thing all over again and are no longer in business.

[J.Celifarco]

You want a new product with some value - come in between IOU/QS and those like Knight with regard to strong seconds. 1 year term seconds for qualified clients with strong financials, who happened to have 6 negative days over the past 3 months or fall just outside the IOU/QS UW criteria. Or take a look at the PFS debt refinancing program (interesting from an investment standpoint as you never really go out on the limb too far with these merchants). Or do 6 month 3rds in the mid 1.30's coming in behind an 18-24 month first and a 1 year second.

Provide a reasonable product with a reduced broker commission. Those who want to last in this business will flood you with clients while the others are still pitching a 1.49 over 3 months going for a 14 point rip.

You don't stop stacking, its inevitable. I can't tell you how many business I've quite literally saved from BK w/ consolidations who ended up doing the same thing all over again and are no longer in business.

6 month 3rd positions the company will be out of business before they ever get going. Why anyone would want to add additional stacking products to the industry is beyond me.. Everyday you have more companies getting sued for stacking, the industry is going to go away from stacking not further into it

[anonymous]

6 month 3rd positions the company will be out of business before they ever get going. Why anyone would want to add additional stacking products to the industry is beyond me.. Everyday you have more companies getting sued for stacking, the industry is going to go away from stacking not further into it

4 month 3rd positions are funded regularly. What's another 60 days for a business that has extremely manageable payments and strong ledgers despite the amount of outstanding debt. Should that example merchant, who is looking for a small chunk for a specific project consolidate both outstanding positions to net a small percentage of that amount? Absolutely not, they would be paying interest on interest, and the net amount would be at an unrealistic rate when taking this into account.

Agree to disagree on this one bud lol.

[jotucker1983]

I believe the industry is moving away from stacking with the Funders fighting back with lawsuits to Stackers, new requirements (and penalties) towards the merchant, etc.

We can make a "case" for a 2nd position, there's absolutely no reason for a 3rd, 4th, etc. position deal. The merchant needs to wait, continuing paying off the 1st and possibly the 2nd position, and then he can look at getting more capital in a couple of months.

If these merchants on these 3rd plus stacks keep ending up with cashflow problems as a direct result of these stacks, it's going to draw negative attention to our industry and Regulators might come a calling.

How any Funder or Broker with a straight face can stack a merchant on a 3rd, 4th or 5th position deal just to make a quick buck, is beyond me.