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11-12-2015, 10:22 PM #1
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- Jul 2015
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- 24
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I just had a client default on $47,000 from OnDeck. He stopped paying after one month. They eventually offered to settle for $9,000. When I see these things happen it makes me wonder where this industry is going. I'm amazed anyone pays off their "loans" with the amount they are charged for the money.
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11-13-2015, 12:14 AM #2
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I'll give u a funnier one:
$50K balance w/ Happy Rock,
Happy Rock settled for $800/mo!
I'm thinking if merchants knew, they would automatically default! But then, that would kill everything in the industry, especially syndication!
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11-13-2015, 02:24 PM #3
Many merchants do the calculations, look over paperwork, consult with attorneys....
Then threaten default. Of course, the fund offer settlement for them...and merchant gets the 2 year, 15% deal they originally wanted.
Thanks to all the stackers out there, and smaller funds who don't care about history with fund #1, they know they can always go out there and get more money when they need it.
Rinse, repeat
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11-13-2015, 12:00 PM #4
- Join Date
- Oct 2013
- Location
- New York, NY
- Posts
- 1,203
The simple fact is...if a merchant isn't going to pay to the terms set in the contracts you need to recoup whatever you can. Who cares if it takes 5 years to get paid. That means that your 45% money is now 9% money. If it pays back does it really matter?
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11-13-2015, 12:49 PM #5
You have a point, except when someone puts their money into a 45% investment, they plan for it to produce a 45% return over 6-8 months. If not, they probably had another option giving them a 12-15% return instead. So it would suck if they're stuck now getting 9% back on their money over 5 yrs. But those are the high-risk investments.
The more the risk, the greater the chances of the reward.
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11-13-2015, 12:56 PM #6
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- Oct 2013
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- New York, NY
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- 1,203
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11-13-2015, 12:53 PM #7
- Join Date
- Jul 2015
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- 24
But OnDeck didn't seem to care. They aren't going to sue.
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11-13-2015, 12:57 PM #8
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- Oct 2013
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- New York, NY
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- 1,203
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11-13-2015, 01:46 PM #9
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- Jul 2015
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- 24
What is a waste? What do you mean?
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11-13-2015, 02:41 PM #10
- Join Date
- Jul 2014
- Posts
- 1,746
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Had several merchants take deals, thank me profusely, beg for the cash, then call my office the next day after funding, stomping their feet about how expensive the advance is.
Most of the follow up calls to merchants in a month or 2 after funding (if we don't hear from them first), are not enthusiastic. Almost all of them sound like a beaten prisoner that needs more food to survive.
We try and treat every client with respect, but can only give them the programs they qualify for. I guess all I'm saying is that merchants usually reluctantly sign these contracts, and there are full time attorneys out there helping them get out of their obligation to pay, and to screw the lenders that provide the money. Even have heard a lot of chatter about these being classified as "loans" in many states and therefore violating usury laws, and therefore not having to be paid back by the merchant...er... victim...
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11-13-2015, 06:46 PM #11jotucker1983Guest
Yes, guys, how about you please listen to what the Admin said?
This is one of the reasons why the Green Sheet Discussion Forum fell off so much, it turned from a place where guys in the industry could come discuss the industry as well as network, to childish bickering. Just agree to disagree and move on, there's no need for the personal attacks back and forth to each other.
This is supposed to be a Professional Discussion Forum.
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11-14-2015, 10:36 AM #12
- Join Date
- Aug 2015
- Location
- Boulder, CO
- Posts
- 755
I agree with John Tucker. But here's the way I look at it: I am waaaaayyyy too busy interviewing, underwriting and funding clients to be making thoughtless and argumentative posts on this forum or anywhere else. Same reason I never use Facebook or other social forums. I'd much rather be making money or enjoying time with my family. My perspective is that for the most part, when people choose to engage in these activities, they are either not being efficient with their time and sacrificing income or don't have a full life where they could be doing other (more worthwhile) things. Just sayin...
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11-14-2015, 01:27 PM #13jotucker1983Guest
Great response, however, in my opinion it all comes down to Time Management.
Networking is an important aspect of your long-term growth and operational procedures, and this medium (to me at least) serves as a function of Networking. You are able to discuss, meet and chat with other players within the industry just as you would if you go to major industry conferences.
It helps in general to be "exposed" to some of the major industry players which you might be partnered with or directly work with sometime down the line.
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11-14-2015, 12:04 PM #14
- Join Date
- Apr 2015
- Location
- Florida, First MCA sold in 85/ WS in 76. CFP/RIA, series 3,6,7,8,10,63,Ins218,220.
- Posts
- 554
Was told by a rep that WGF was hacked and unable to lend.....can anyone confirm?
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11-17-2015, 11:58 AM #15
- Join Date
- Oct 2015
- Posts
- 37
I was told WGF was taken by a group of ninja's... can anyone confirm?
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11-13-2015, 06:23 PM #16
- Join Date
- Feb 2014
- Location
- New York
- Posts
- 162
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