[fundnow]

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?

[dpFund]

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.

[Zach]

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.

[RichardGerard]

Sent a PM...

[AndyYSCISOdept]

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.

Side question about consolidation because im not as familiar with it as I should be. Is there any correlation between the deals that pay back versus don't in regards to the amount they "net" after consolidation?

[TheShitzuofMCA]

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.

[AndyYSCISOdept]

Zach?

[TheShitzuofMCA]

zach?

I would love to know also bud.

[Zach]

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.

[Cfairbank]

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.

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.

[SCCNY]

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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