Results 1 to 23 of 23
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11-06-2015, 11:22 PM #1
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- Dec 2014
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- Miami, FL
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- 13
Merchant with previous default ACH loan history
I have a merchant that defaulted last year on a ACH loan, Bad credit (under 500), but Company has good cash flow ($1.2 M gross annual sales). Do you know any funders that knowing that payment history will fund this merchant??
Please let me know.Last edited by Powerfunder; 11-06-2015 at 11:35 PM.
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11-07-2015, 12:52 AM #2
WBL can potentially fund this one if they have real estate collateral. I know every other lender will decline this, but WBL focuses on niche deals that no one else would do. Give me a ring!
Last edited by Zach; 11-07-2015 at 08:55 AM.
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11-07-2015, 01:52 AM #3
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- Oct 2014
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- 257
Merchant with previous default ACH loan history
Hate to say this but there are tons of "funders" coming into this space everyday and the majority of them don't have access to the match list. KEEP SHOOTING AND YOU WILL SCORE. For the record I would drop this deal in the trash.
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11-07-2015, 07:26 AM #4
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- Dec 2014
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- Quogue, NY
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Zach's reaction to seeing of there is any collateral to attach to is what Balance Sheet Lenders will look for- and at this point that's their only hope to receive capital. We deal with clients like this quite often. The details of the situation will dictate whether or not it's a waste of time... If you're not willing to roll up your sleeves and spend time on the file I agree with 'anydealfunded' above..
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11-07-2015, 07:42 AM #5
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- Mar 2014
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- Ann Arbor, Michigan
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- 1,289
Merchant with previous default ACH loan history
As Richard says this is a balance sheet loan. Help us with a little more information please.
What is the company's
business, what do they have as collateral and why did they default?
Bob
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11-08-2015, 01:28 PM #6
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- Dec 2014
- Location
- Miami, FL
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- 13
The only assets the borrower has is manufacture equipments (over $100K) payoff. I tried sale lease back option, but because the credit and type of equipment was a no end road. He already pay off the balance he owed to the cash advance company last month, but the record it is there.
Thank you.
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11-09-2015, 09:50 AM #7
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- Oct 2015
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- 53
You can definitely get this done with someone, like "anydealfunded" said, there are many new lenders that wouldnt have access or the resources to even know about the prior default, but, i agree with what he said, drop it in the trash. You don't want a reputation as an ISO thats sending known defaults to lenders.
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11-09-2015, 10:25 AM #8
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- Dec 2013
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- 4,713
Once you default and get funded again why not repeat ? So unless you need higher default rate no one going to knowingly fund again.
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11-09-2015, 10:55 AM #9
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- Oct 2013
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- New York, NY
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Not necessarily, There are a lot of tiems when a "default" isn't as egregious as others that's why knowing the circumstances around the default are very important.
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11-09-2015, 11:43 AM #10
Got to agree with everyone on this page has already said.. THROW IT IN THE TRASH. Its not worth it to fund a deal that you know will probably go bad. You are gonna put in all this work then worst case scenario it goes bad 1st 30 days and then they pull back commission, best case it goes bad after 30 days and a bank you had a good relationship with is now looking for reasons to decline your deals instead of funding them because they will think all your deals are bad.. Do yourself a favor drop it and move on, if it goes bad after funding it will cost you more money then you would've made on it
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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11-09-2015, 11:46 AM #11
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- Jun 2015
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- 3,326
guy has sub 500 credit which means that he never pays anything , yet you will give him an advance . But once one of the things is a competitor its a whole new game and even with 800 credit no one will fund . if he paid at the end of the day what's the difference
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11-09-2015, 11:52 AM #12
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- Oct 2013
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- New York, NY
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- 1,203
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11-09-2015, 12:08 PM #13
Last edited by J.Celifarco; 11-09-2015 at 12:15 PM.
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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11-09-2015, 12:25 PM #14
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11-09-2015, 12:51 PM #15
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- Sep 2012
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I'd want to know the amount of the default and the circumstances. If the merchant's time in business is good, daily balances are strong and financials are decent, I'd give him a "starter" advance with a short term and high factor to build a relationship in light of his poor FICO.
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11-09-2015, 01:47 PM #16
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- Jun 2015
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- 3,326
john my point is what is the difference between a guy not paying his mortgage , car lease , credit cards and everyone else- to not paying one cash advance . it seems everyone takes it more personal when it's in our industry .
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11-09-2015, 02:16 PM #17
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- Oct 2013
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- New York, NY
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John Celifarco, you, Sean M. your brother and Caronna were always so good to me at NLF that I ill always give my man props! Glad you're doing well
Andrew J. McDonald
Director of ISO Development
Yellowstone Capital LLC
1 Evertrust Plaza
Suite 1401
Jersey city, NJ 07302
PH - 347.464.0785
FX - 646.213.1790
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11-09-2015, 02:17 PM #18
I definitely think they do and I definitely think it should matter more. I have plenty of clients with bad credit who dont pay bills that i have funed that have turned out to be great merchants. They suck at running their own lives but happen to run a good business. On the other hand if a merchant took a loan from another company in our space didn't pay it back and is doing nothing to fix the situation, then goes to another bank in the industry for another loan. if i am that second loan company why would i think that he is going to pay me back when he still hasn't made good on his first loan. so yes they do look it worse if the default is in our industry as compared to a credit card or car loan, but i definitely think it is justified
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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11-09-2015, 02:20 PM #19
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- Oct 2013
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- New York, NY
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- 1,203
My man speaks the truth. There are times when a default isn't the same as a DEFAULT....for example: if my merchant has his mortgage paid, rent paid everything else is current but stops payment on his 149 per day cash advance payment that is AUTO DECLINED. However, if he went through a period of not being able to pay anything but is now back on track I'll take a crack
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11-09-2015, 02:23 PM #20
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11-09-2015, 02:24 PM #21John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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11-09-2015, 02:25 PM #22
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
It looks worse to default on a cash advance because they have to intentionally stop paying by switching bank accounts or changing credit card processors (unless they just went out of business). Cash advance collections are automatic so the merchant doesn't have to do anything to repay the advance. They just have to run their business as usual. By defaulting on the loan, they usually make a conscious decision to stop paying. Understandably, this sets off alarm bells with other cash advance companies.
Last edited by MCNetwork; 11-09-2015 at 02:43 PM.
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11-09-2015, 03:11 PM #23
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