[Powerfunder]

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.

[Zach]

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!

[anydealfunded]

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.

[RichardGerard]

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..

[bdshaw]

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

[Powerfunder]

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.

[JoeLepkoski]

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.

[mcaguru]

Once you default and get funded again why not repeat ? So unless you need higher default rate no one going to knowingly fund again.

[AndyYSCISOdept]

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.

[J.Celifarco]

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.

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

[Michael I]

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

[AndyYSCISOdept]

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

Johnny C droppin knowledge like its going outta style! Preach brotha!

[J.Celifarco]

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

huh???

Johnny C droppin knowledge like its going outta style! Preach brotha!

Just the truth not worth funding bad deals.. At the end of the day it hurts you more then helps

[mcaguru]

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

We fund 30+ deals a week that are under 600 CS that function well. I have been arguing for years that most people that default on lines of credit do so because they ha(ve)d to "send the check", and with our model of daily deduction they seem to not miss a beat.

[MCNetwork]

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.

[Michael I]

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 .

[AndyYSCISOdept]

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

[J.Celifarco]

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 .

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

[AndyYSCISOdept]

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

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

[Chambo]

We fund 30+ deals a week that are under 600 CS that function well. I have been arguing for years that most people that default on lines of credit do so because they ha(ve)d to "send the check", and with our model of daily deduction they seem to not miss a beat.

Clapman, can it. We're talking about a sub 500 dela here, no your piddlywink sales pitch is worthless.

Mike would *****slap you around the office like a rag doll if you tried to push this paper on him

[J.Celifarco]

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

Thanks Andy and same to you.. Glad to see you are doing good over at Yellow

[MCNetwork]

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.

[mcaguru]

Clapman, can it. We're talking about a sub 500 dela here, no your piddlywink sales pitch is worthless.

Mike would *****slap you around the office like a rag doll if you tried to push this paper on him

you left out a T.