[Finance1]

did you say 6 week deal? thats not a merchant cash advance, thats a payday loan outfit! and if the merchant took that, what does that say about the health of that business or the health of their business acumen! wow...the business owners can say no to all of this but so many sign the contracts anyways. sounds like predatory lending to me though if they are doing 40% over 6 weeks on top of an existing advance. but, funder could say- "hey, they accepted the contract anyways"....do you have a non compete in your contract language, if so, both stacker and merchant breached contract...

We had a small discussion about Pearl over on the mca forum board. Yea, the merchant used terrible judgement but we had already said no to a renewal. It was too early. So he went out shopping. Was promised all these great things and then when it came time to sign the offer was terrible. He needed the money and Pearl blew his phone up to sign and that's what he did. That's Pearl's angle. Preying on merchants who are desperate and already have a cash advance that isn't eligible for a renewal. How else could you get someone to sign a 1.40 / 6 week deal? Just find the most desperate who aren't eligible for a regular cash advance for any number of reasons and sign em on up.

My problem is how Pearl markets themselves. They are pushing the stacking angle with iso's. They tell all their iso's exactly how to do it and Pearl knows darn well that all MCA companies have clauses in their contracts forbidding stacking. It's that part that bothers me the most. It's greed in its worst form. Knowingly violating existing receivables contracts and pushing terrible offers. I remember some iso rep from Pearl was calling us a couple times a week to try and fund our turndowns. I asked about the whole stacking thing and the rep went on about how great it is and it's a way to get paid when clients have an advance balance that's too high to be renewed. I asked about the impacts of a stacked deal that could cause a merchant to be denied for a renewal because of breach of contract. And was quickly told how smart Pearl was. They figure out when the merchant would be eligible for renewal and structure the deal to be "inside of that window". Then I asked about when the mca company sees the ACH from pearl on the bank statement that they will still know there was a stacked deal even if it's already paid off. The guy at Pearl said it was MY job to explain to the merchant that they will need a clean bank statement before they can renew. I couldn't get over how slimy they were. I never sent them a single deal.

There are other stackers out there like Wide and I've talked to the owner Dave before. Total different class of company. Dave doesn't take on excessive risk and makes sure that he feels the company can repay without hurting the bottom line too much. Pearl doesn't give a crap about bottom line or helping anybody. It's pure bottom feeding greed.