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09-07-2015, 01:00 PM #1
- Join Date
- Sep 2015
- Posts
- 1
legit deal?
Hi all,
I am a merchant who has used merchant funding several times before. It has been a help to my business. We received a solicitation for funding that seemed....well...a bit sketchy. The details are something like this:
The deal amount was said to be $155k. Once we went through the process it was actually an in initial funding amount of 5k then a guaranteed additional $150k after paying on the 5k for 30 (or 45, can't remember) days. It didn't seem right. Anyone know anything about these type of deals? Also, I'm not a 100% sure about this, but I'm pretty sure we received the exact same solicitation with a different funders name on it after several months of the previous company sending solicitations. It seemed like the previous company changed names. Anyone familiar with this? Thanks.
C. Brown
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09-07-2015, 07:55 PM #2
- Join Date
- Jun 2015
- Posts
- 3,325
Scam and run like hell
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09-07-2015, 08:27 PM #3
unfortunately there are a lot of people in the industry who will lie and not think twice about it. This guy is just promising you the world by signing a 5K contract. Then, when you ask him for the rest of the money a few months down the road, he will be nowhere to be found.
I never had to lie to a client to get their business whether it's lying about the approved amount or lying about what the product actually is. Honesty goes a long way.
PM me if you want me to see what you qualify for without the lies and the hype.
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09-07-2015, 09:34 PM #4
- Join Date
- Jul 2014
- Posts
- 1,746
Old scam used for decades. Sign this little deal (which is the max you qualify for), so we can get our commission, then we will give you the big money down the road once you are part of the (insert company name here) 'family'. Don't fall for it.
I'd be willing to bet my next commission check that this was a fax solicitation...
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09-07-2015, 10:20 PM #5
- Join Date
- Mar 2014
- Posts
- 20
legit deal?
Lol an iso sent me a signed contract for 5k and i noticed the pages i received were fax pages 12-26. The merchant told me 1-11 was the 150k about to fund in a few days. This merchant and I still laugh about how i saved him $500 and he saved me 12%
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09-08-2015, 10:29 AM #6
- Join Date
- Mar 2014
- Posts
- 86
[QUOTE=155refi10psf;29406]Lol an iso sent me a signed contract for 5k and i noticed the pages i received were fax pages 12-26. The merchant told me 1-11 was the 150k about to fund in a few days. This merchant and I still laugh about how i saved him $500 and he saved me 12%[/QUOTE
Did the funder go as NAH? they have been doing it like crazy
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09-08-2015, 12:11 PM #7
- Join Date
- Mar 2015
- Posts
- 17
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09-08-2015, 12:29 PM #8
Not sure about $150k if you take $5k but we offer starter programs for new merchants. The way we do it is similar we send 2 to 3 contracts for merchant to sign at the same time and and if merchant makes all payments for 50 to 60 days we release the second increment and we honor second contract. So if merchant has 2 to 4 out and they quilify for $50k we would offer $50k in 2 increments. If payments bounce or we have to many issues we will not honor second contract. This is a new program we have tested for about 6 months and it has lowered our default rate and it also gives us an idea of what kind of merchant we are dealing with. The goal is to have merchant borrow again with the same installment deal. the second time around the second install acts as a line of credit merchant can have it released after 15 days and merchant will pay for what they use. That's our starter program but $5k now with an second installment of $150k is definitely a swindle.
Last edited by SupremeCapitalGroupinc; 09-08-2015 at 12:32 PM.
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09-08-2015, 12:47 PM #9
Think about it from a meat and potatoes perspective. You have a company telling you that they don't trust you with $150k up front, however, if you show an ability to repay $5k then they will suddenly trust you with $150k??? If I am counting my fingers and toes correctly then they are saying that by you showing your ability to pay 5,000 then they will give you 30x that amount after you pay the 5,000 off. That is called a carrot and a stick. First they take the carrot and shove it in you and then they take the stick and beat you with it like a british school boy. My suggestion is you run the other way. There are plenty of very good companies on here that will give you the facts up front, regardless of how good or bad they may sound.
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09-08-2015, 01:46 PM #10
Ask JB Smoove if it's legit.
Anthony Diamond
Underwriter
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