[IamGrateful]

I do not see where the funding companies are going to let the money they fund to a SMB owner go up in smoke if a business owner defaults some how ?

1) Do funding companies place a lien of some sort on the business once they get funded the monies, if so what kind of lien can they place if no collateral is required

2) Am I responsible in any kind of way, am I liable rather as a MCA AGENT/BROKER to the lender or the small business owner once I connect a potential prospect with a funding mca company and the company funds the SMB ?

3) What is the process that MCA FUNDING Co's go through to get their money back when they get a bad SMB who defaults on payments, and do they come after me as well ?

[CLucas]

In a nutshell one way money is recouped is by selling of the debt to a collection agency thus off setting debt owed then writing off the debt as a loss and creating a tax write off.

[ridextreme]

what's an SMB?

[Zach]

small business

[SCP]

Essentially what CLucas said. Most of this industry offers unsecured debt products, and that's one of the major selling points. The whole idea of an unsecured or non-collateralized loan/advance is that there's no collateral pledged against the loan/advance. Thus it's more cumbersome in the instance of a default and higher risk, so it's priced accordingly that IF there's a default, the funder can *hopefully* recoup after the merchant reaches the threshold of the initial amount they borrowed.

You can rest assured that no one is going to let $25,000 | $60,000 | $200,000, etc just evaporate easily though. Most will sell the debt off their books to a 3rd party who will collect - makes it easy for everybody.

[TheShitzuofMCA]

I private messaged you but if anyone else is interested in the answers here you go.

1. Funding companies place whats called a Uniform Commercial Code or (UCC) for short. It lets other funding companies know there is money owed. Liens are not placed unless previously decided its needed during the underwriting process, the advances remember have no collateral.

2. Legally you are not liable as long as you did not coach or tell the merchant to default within a certain time frame (fraud). If the merchant paid for 30 days you get to keep your commission, if they defaulted before 30 days of payments usually you will have to return any commissions paid. The only issue is the funding company keeps tracks of defaults your company will gain a bad reputation for defaulted files.

3. The process is lawyers and law suits. Usually funding companies will file fraud charges on the defaulting company especially if within 30 days of funding. If past 30 days they will enforce the signed agreement or any COJ confessions of judgments they may have signed previous to getting the money.

[NoBigDeal]

I do not see where the funding companies are going to let the money they fund to a SMB owner go up in smoke if a business owner defaults some how ?

1) Do funding companies place a lien of some sort on the business once they get funded the monies, if so what kind of lien can they place if no collateral is required

2) Am I responsible in any kind of way, am I liable rather as a MCA AGENT/BROKER to the lender or the small business owner once I connect a potential prospect with a funding mca company and the company funds the SMB ?

3) What is the process that MCA FUNDING Co's go through to get their money back when they get a bad SMB who defaults on payments, and do they come after me as well ?

It's called a COJ baby! They're pretty effective when it comes to merchant's defaulting. Unless of course the merchant goes BK, then there's not much more a funder can do.

2 & 3 were covered pretty thoroughly by The****zuofMCA

[nrh1lp]

COJ might not be a go to answer for everything like this in the near future, some courts are honoring it and others are pretending like is does not exist.

http://debanked.com/2016/03/ohio-con...s-of-judgment/

if anyone hasn't seen it yet and enjoys some light reading