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  1. #1

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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.

  2. #2
    Senior Member Reputation points: 20458 Fundyman's Avatar
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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!

  3. #3
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    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?

  4. #4
    Senior Member Reputation points: 20458 Fundyman's Avatar
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    Quote Originally Posted by AndyYSCISOdept View Post
    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?
    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.

  5. #5
    But OnDeck didn't seem to care. They aren't going to sue.

  6. #6
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    Quote Originally Posted by Fundyman View Post
    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.
    Maybe I should've said this as a disclaimer, I AM ONLY SPEAKING ABOUT WHEN YOU ARE AT A POINT OF HABING TO CHOOSE BETWEEN SETTLING OR LAWSUIT

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    Quote Originally Posted by wally View Post
    But OnDeck didn't seem to care. They aren't going to sue.
    Trust me, they care....that is a waste of man power, time, and money.

  8. #8
    What is a waste? What do you mean?

  9. #9
    Veteran Reputation points: 134971 Chambo's Avatar
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    Quote Originally Posted by Fundyman View Post
    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!
    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

  10. #10
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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...

  11. #11
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    You would've had to have been sitting at Yellowstone in 2009 to understand the inside behind what i just said... Lol. Enjoy the weekend.

    Quote Originally Posted by FUNd View Post
    What's this 'shots fired', thing...it sounds so cool, but means so little...like the kid in the school yard that yells "fight..fight..fight.."

  12. #12
    jotucker1983
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    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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    Quote Originally Posted by jotucker1983 View Post
    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.
    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...

  14. #14
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    Was told by a rep that WGF was hacked and unable to lend.....can anyone confirm?

  15. #15
    jotucker1983
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    Quote Originally Posted by dpFund View Post
    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...
    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.

  16. #16
    I was told WGF was taken by a group of ninja's... can anyone confirm?

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