Great points, Dan. I fully agree with you -- a lot of these companies are too far down the path to be saved, and even for those that aren't, a six month MCA or MCA-like loan won't fix their problems. That said, there are a lot of merchants on the brink -- I believe you can help these folks with a nine or 12 month product and lowered payments, but given risk profile, you can't take them from a 1.49 to a 1.25x factor or straight interest-rate based loan. But for many merchants that fall in that category, you can materially improve their situation by lowering payments and extending term but also mitigating your risk -- take them from the 1.49x to 1.3/1.35x, extend the term to 9 to 12 months and materially lower total monthly payments (and frequently change payment schedule from daily to weekly or monthly). We (Breakout) currently offer three products -- ACH MCA, factor rate-based loan, and interest rate-based loan. We hope to gradually improve our merchants by changing product and/or rate at each reload or new deal. However, we only focus on the smaller deals (sub 100K), typically don't extend past 12 months, and will only take a first position -- that isn't the right deal for many merchants, but a material improvement for many with upside.

That said, we are in the business for getting the right deal for the merchant -- and if they can qualify for Dan's program, I would strongly encourage brokers to consider his program -- the longer the term and the lower the rate, the more effective these consolidations will be. And a sub 5% rate on a $1MM deal is a pretty nice commission