[Oxforddan]

Hello all, I am new to the industry less than 1 year and I have spent a lot of time learning about the different lenders. It seems like this industry is moving more towards consolidation than anything else. My question is who besides power up specializes in consolidating multiple advances. It seems like a lot of merchants that are over leveraged currently could benefit drastically from one advance over double the time. I understand that there is the inherent risk of them stacking behind the funder, yet I am sure someone figured out something to do for these merchants. What funder will consolidate for merchants that would qualify as d-b paper? Any advice would be greatly appreciated.

[rich@arcariusfunding.com]

Our company would look at consolidation (1-3 advances)...netting is case by case also deal needs to make sense and negative NSF's would be reviewed and would need explanations...for underwriting.

[Zach]

Hi Dan,

WBL is excellent at consolidating deals -- we don't require the merchant to net anything, and we can lend up to 3X their monthly deposit volume.

The only catch is that we require real estate as collateral.

[Funding101]

Hi Dan,

WBL is excellent at consolidating deals -- we don't require the merchant to net anything, and we can lend up to 3X their monthly deposit volume.

The only catch is that we require real estate as collateral.

When did you guys stop doing titled assets?

[Zach]

When did you guys stop doing titled assets?

Last week we stopped using vehicles and equipment as collateral.

[FUNd]

Last week we stopped using vehicles and equipment as collateral.

Seriously? So you guys are a mortgage company now? Why wasn't this front page news?

[Zach]

Let me clarify: we are not a mortgage company. We are a business lender which takes real estate as collateral.

[FUNd]

Let me clarify: we are not a mortgage company. We are a business lender which takes real estate as collateral.

I see. Don't you think this move is going to siphon off about 50-70% of your applicants? Why would someone with a low LTV on their property not go to the bank and get a equity line or 2nd mortgage at single digit rates for 10-15 years?

[dpFund]

Oxforddan - I am a direct lender and we can consolidate MCA loans. Consolidated north of $1M last month and on track to do the same this month. Twelve month funding with monthly payments (gets the client away from daily payments, which they hate). I can typically get their payments down to about one third of what they are paying now.

All that stated...the client has to be right side up and the numbers need to work (Their business needs to be healthy with the demonstrated ability to pay the note). We forbid them from stacking on top of us for the time period they are working with us (yes, we have a way to enforce that).

They are NOT required to take any extra cash out. It is possible if they want to...but the numbers have to support it.

Funding amounts $100k - $1M. Higher amounts possible.

If clients are seriously interested in getting away from the crack of MCA loans, let's talk.

Thanks,

Dan Page
Direct: (303) 938-8280
dan@fundingstrategypartners.com