Results 1 to 25 of 48
-
03-22-2016, 11:05 AM #1
Direct Capital 1.08 factor rate for 10 months??????
Just had a merchant tell me that Direct Capital offered him a 10 month 1.08??? In most cases I would reply by saying "then why are you on the phone with me?" but I know he sent me the contract along with email chain forwarded from Direct Capital. (Of Course he still could have made it up) but it looks legitimate. Who the hell offers a 1.08 for 10 months??? Talk about desperation if this is actually real.
-
03-22-2016, 11:08 AM #2Michael Jagiello
Director of Client Acquisitions
Blue Granite Funding LLC
mjagiello@bluegranitefunding.com
1(718)873-6407 Cell
1(917)791-8911 Fax
-
03-22-2016, 11:08 AM #3
I doubt you can get a 1.08 from BOA or Chase how the hell are they getting it from someone in our space.. I dont think that can be rel
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
03-22-2016, 11:08 AM #4
- Join Date
- Apr 2013
- Location
- NY
- Posts
- 203
I have seen them fund a 6 month 1.03 , pretty insane.
-
03-22-2016, 11:09 AM #5Michael Jagiello
Director of Client Acquisitions
Blue Granite Funding LLC
mjagiello@bluegranitefunding.com
1(718)873-6407 Cell
1(917)791-8911 Fax
-
03-22-2016, 11:09 AM #6
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
That's practically free money. Maybe I'll apply.
-
03-22-2016, 11:11 AM #7
- Join Date
- Jul 2014
- Posts
- 1,746
-
03-22-2016, 11:11 AM #8
Does the ISO make anything on that supposed factor rate?
-
03-22-2016, 11:12 AM #9
how do you cover over head cost of funds and bad debt lending money at that rate. I find that absolutely insane
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
03-22-2016, 11:14 AM #10
-
03-22-2016, 11:15 AM #11
- Join Date
- Jul 2014
- Posts
- 1,746
-
03-22-2016, 11:16 AM #12
-
03-22-2016, 11:19 AM #13Michael Jagiello
Director of Client Acquisitions
Blue Granite Funding LLC
mjagiello@bluegranitefunding.com
1(718)873-6407 Cell
1(917)791-8911 Fax
-
03-22-2016, 11:22 AM #14John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
03-22-2016, 11:22 AM #15
- Join Date
- Apr 2014
- Location
- Washington DC
- Posts
- 421
still an implied APR around 20. I think you'll see more of that from OnDeck and others for strong credits. We are funding a 100K 1.14x with a broker today -- not saying that for marketing purposes, just stating that i do think the prices will continue to go down on perceived strong credits (right or wrong). I know even we are aggressive on strong credits with security, and we don't have anywhere close to the cost of funds that OnDeck or Direct Capital has.
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
-
03-22-2016, 11:23 AM #16
-
03-22-2016, 11:29 AM #17
- Join Date
- Jan 2016
- Posts
- 435
I had a CC processing company reach out a while back offering rates and terms around this neighborhood, their main goal was to just to do lockboxes and splits and force the merchant into using their cheaper processing unit where they really "make the money" and their cash advance program was more of an at cost structure to keep a hold of the merchant, and with rates that low they know the merchant is not going anywhere else. Renewals are a lot cheaper and easier to fund than a new merchant... That model makes sense in some cases but it does have a few flaws
-
03-22-2016, 11:41 AM #18
- Join Date
- Dec 2013
- Posts
- 4,713
Last edited by mcaguru; 03-22-2016 at 11:44 AM.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
覧覧覧覧覧覧覧覧覧覧覧覧覧
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
03-22-2016, 12:28 PM #19
- Join Date
- Apr 2014
- Location
- Washington DC
- Posts
- 421
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
-
03-22-2016, 01:39 PM #20
To clarify everyone's questions.
1) Direct Capital charges 1.06 over 6 months and 1.13 over 12 months. So im 100% sure that is a real offer.
2) Direct Capital does not accept broker business and never has
3) Direct Capital was purchased last year by CIT. CIT's cost of funds makes this program possible.
-
03-22-2016, 01:43 PM #21
-
03-22-2016, 02:07 PM #22
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
Nice business model if you're a non-profit. You can put that capital in a stock index fund and earn 7.5% per year (historically) and not have to worry about defaults and overhead expenses, etc. A return of 13% per year in unsecured business loans isn't worth the effort unless you have a zero percent default rate and zero percent cost of capital.
Last edited by MCNetwork; 03-22-2016 at 02:11 PM.
-
03-22-2016, 02:10 PM #23John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
03-22-2016, 02:10 PM #24
-
03-22-2016, 02:46 PM #25
- Join Date
- Dec 2013
- Posts
- 4,713
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
覧覧覧覧覧覧覧覧覧覧覧覧覧
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
Similar Threads
-
What direct lender goes out 15 months or more?
By bostriba in forum Merchant Cash AdvanceReplies: 20Last Post: 05-07-2021, 10:34 AM -
Factor Rate to APR Formula
By Triton in forum Merchant Cash AdvanceReplies: 60Last Post: 02-28-2016, 02:50 PM -
Factor rate deducted on taxes as business expense?
By ADiamond in forum Merchant Cash AdvanceReplies: 3Last Post: 01-09-2015, 02:37 PM -
factor rate for cash advances
By golf2014 in forum Merchant Cash AdvanceReplies: 20Last Post: 04-23-2014, 09:58 AM -
What is the lowest factor rate you have seen?
By CO1 in forum Merchant Cash AdvanceReplies: 19Last Post: 05-15-2013, 12:10 PM