[iso@wallfunding]

Michael Most regular financing is over much longer periods of time and the payments on those loans generally work out to 5% or lower then the total gross sales. In our space most 1st position lenders are comfortable taking 10%-14% of the gross sales as payment. When you get into second positions now that number is in the 20's.
If you go out farther then that you are getting to a point where you are taking 30% or more of a persons gross sales to pay back these loans. Most business's can not afford that and the only way to stay in business is for them to keep taking loans until they go out of business. If a broker knows this and dos it anyway they are wrong. You are screwing over the banks who gave the first loans making what was a good deal a default and you put the merchant in a position they could not sustain. It is not double standards what is should be is common sense.

I have gotten far more deals declined because giving ANY more money would bring them to 30% of monthly deposits going to advances, then I have gotten 4th position deals funded. On this particular deal, even with our funding, all the dailys will be below 30%.