Results 1 to 25 of 46
Hybrid View
-
01-22-2016, 11:33 AM #1
Reputation points: 10944
- Join Date
- Oct 2013
- Location
- New York, NY
- Posts
- 1,203
EXACTLY....the issue(s start when the merchants take a second position hits a slow period then takes a 3rd and a 4th to cover the paments on positions 2&3, now it comes time for OD to renew and they look at the statements and go, "WHAT THE HECK WERE YOU THINKING MR MERCHANT? DECLINED" Now the merchant doesn't have their super cheap long term deal and can only get shorter and shorter terms at higher and higher cost.
Responsible borrowing and responsible underwriting / funding go hand in hand.
-
01-22-2016, 11:55 AM #2
Reputation points: 3087
- Join Date
- Apr 2013
- Posts
- 117
Right Andy--also remember that even if a merchant isn't stacking, an approved refi will be pushed out by 3-5 months. So "orgination" growth is going to tank in a couple of quarters because of this negative impact. They have to know this.....so expect them to jack up marketing pretty substantially soon.
Lastly-from a securitization perspective, I'm relatively certain that they can't include stacked deals in the collateral pool (yes---they are doing it now--not sure Jefferies is on it). Does anyone know if this is correct...far too lazy to research today.
Similar Threads
-
chase/on deck
By FRESH DIRECT in forum Merchant Cash AdvanceReplies: 0Last Post: 12-01-2015, 11:16 PM -
On Deck
By Funder Mark in forum Merchant Cash AdvanceReplies: 37Last Post: 11-12-2015, 10:31 AM -
New On Deck Program
By mcg168 in forum Merchant Cash AdvanceReplies: 6Last Post: 01-22-2015, 06:47 AM -
On deck
By MCAVeteran in forum Business LoansReplies: 0Last Post: 05-15-2014, 09:06 AM -
On Deck Updates
By Chambo in forum Merchant Cash AdvanceReplies: 24Last Post: 07-24-2013, 11:54 AM