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01-26-2016, 10:23 AM #1
- Join Date
- Dec 2015
- Posts
- 51
Consolidate
Have a merchant doing around 45-50k,They have one position out totaling in around 27k left. They are looking for a consolidation and net around 10-15
They have around 6-10 negative days a month
Anyone can do?
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01-26-2016, 11:24 AM #2
- Join Date
- Aug 2015
- Location
- Boulder, CO
- Posts
- 755
This would fit in Carl Fairbank's wheelhouse in terms of size, but I think the negative days might kill it. Worth a shot though.
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01-26-2016, 11:50 AM #3
If the client has real estate collateral, WBL can offer between $75-150K. He does not need to "net" anything with us, and the NSF's won't be an issue.
Zachary Ramirez – CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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01-26-2016, 11:56 AM #4
- Join Date
- Oct 2013
- Location
- New York, NY
- Posts
- 1,203
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01-26-2016, 11:55 AM #5
- Join Date
- Dec 2014
- Location
- Quogue, NY
- Posts
- 1,108
Sent a PM...
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01-26-2016, 12:14 PM #6
We have found in the past Andy if they dont net 50% of funded amount, within 30 days they are already crying for more money. Or they need another advances to keep them afloat and the cycle continues. I assume Zach's company has a better history with this.
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02-04-2016, 11:30 PM #7
- Join Date
- Apr 2014
- Location
- Washington DC
- Posts
- 421
That's a fair point, and why consolidations tend not to work if the funder won't provide ongoing access to lower cost capital. If a funder consolidates and then waits until 50% or more is paid back before providing access additional capital (and then double dips on a renewal), the merchant will likely have no choice but to take a second (or more) position(s). One of the keys to our product is the revolving line of credit feature we offer our customers -- they can "draw" additional capital at any time at no cost as they pay back the loan or advance (as long as they don't take additional positions) without changing their daily/weekly/monthly payment. We also have a lot of other features ranging from our technology to payment consequences to to partner selection that help minimize and/or punish stacking (not going into detail on message boards, but feel free to contact me if interested). And as you mention, a lot of merchants we consolidate need additional capital and utilize our line of credit feature -- a consolidation isn't a cure all.
There also is typically a correlation between overall credit quality of the file and merchants that are stacked deep enough that they can only qualify for a net zero. That being said, our overall performance on a returns basis isn't directly correlated to the amount, if any, netted by merchant.Carl Fairbank
Founder & CEO boldMODE
www.boldmode.com
Carl@boldmode.com
Founder & former CEO of Breakout Capital (sold to SecurCapital in 2019)
www.breakoutfinance.com
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01-26-2016, 12:23 PM #8
- Join Date
- Oct 2013
- Location
- New York, NY
- Posts
- 1,203
Zach?
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01-26-2016, 12:45 PM #9
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01-26-2016, 07:10 PM #10
Hey guys,
In reference to your question about the default ratios after "netting", our portfolio is much different than any of the other lenders in our space. If your house is on the line, you are far less likely to default. We call this a "behavioral lien"... literally, it makes the client behave when they know it ain't no unsecured cash advance for $20K.
I am not authorized to go into specifics, but I assure you our portfolio is extremely profitable and performing well. As a piece of friendly advice, I highly recommend you purchase some shares as soon as it's made available to the public.Zachary Ramirez – CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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02-05-2016, 12:33 AM #11
- Join Date
- Sep 2015
- Posts
- 122
Add Content
It seems like a lot of times most 1st position lenders will underwrite a consolidation as a general advance. If the merchant has good credit balances no negative days and high enough revenue they will get approved for a certain amount and it is then just a matter of whether their outstanding balance is low enough to buy out. Most of the time though the merchants continue to stack lol
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