Need a Funder or Vendor? START HERE

Results 1 to 10 of 10
  1. #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

  2. #2
    Senior Member Reputation points: 301165
    Join Date
    Jun 2015
    Posts
    3,313

    Scam and run like hell

  3. #3
    Senior Member Reputation points: 99210 ridextreme's Avatar
    Join Date
    Dec 2014
    Posts
    1,065

    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.

  4. #4
    Senior Member Reputation points: 23702
    Join Date
    Jul 2014
    Posts
    1,746

    Quote Originally Posted by cbrown View Post
    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
    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...

  5. #5

    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%

  6. #6
    [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

  7. #7
    Banned Reputation points: 96
    Join Date
    Mar 2015
    Posts
    17

    Quote Originally Posted by cbrown View Post
    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

    Sounds like a Molly Hurwitz deal, LOL

  8. #8
    Senior Member Reputation points: 1072 SupremeCapitalGroupinc's Avatar
    Join Date
    Oct 2014
    Location
    New York
    Posts
    100

    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.

  9. #9
    Senior Member Reputation points: 5034 AlexSMF's Avatar
    Join Date
    Jan 2015
    Posts
    286

    Quote Originally Posted by cbrown View Post
    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
    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.

  10. #10
    Senior Member Reputation points: 50566 ADiamond's Avatar
    Join Date
    Apr 2014
    Location
    New York City
    Posts
    890

    Ask JB Smoove if it's legit.

    Anthony Diamond
    Underwriter

Similar Threads

  1. Replies: 9
    Last Post: 04-12-2017, 12:27 PM
  2. Tough Deal or No Deal? Need 3rd position Commercial loan
    By Fundyman in forum All Other Lending
    Replies: 6
    Last Post: 07-01-2015, 12:58 PM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


INDUSTRY ANNOUNCEMENTS

BoA launches business loan marketplace
Quickbooks adds new LOC product
Dext Capital upsizes corp note


DIRECTORY