[isaacdstern]

http://debanked.com/2016/04/scorched-earth-controversial-bill-could-eliminate-marketplace-lending-merchant-cash-advance-and-nonbank-business-loans-in-illinois-and-starve-small-businesses-in-the-process/

[isaacdstern]

The CFC needs your support in making sure that small businesses have continued access to nonbank alternatives in the State of Illinois. The Small Business Lending Act affects nonbank lenders, marketplace lenders and merchant cash advance companies alike. For more information contact Mary Donahue at mdonohue@commercialfinancecoalition.com or reach out to me directly, thanks!

[AndyYSCISOdept]

Im sure everyone on this forum can agree that the following is true; losing states to blank legislation is a terrible idea. Even if you have never funded a deal in Illinois, the idea that one state would ban our type(s) of funding for merchants would set a bad precedent and it behooves us all to take action to make sure that any legislation regarding this industry is well understood and documented.

[Funder Mark]

While Andy is definitely correct, there is another way to look at the situation. If the small businesses in Illinois start suffering due to a lack of working capital, eventually the merchants will complain, and force changes to be made. At that point, we will have proof of what happens when alternative financing is locked out of a state, and we will have strengthened our case about how much we are needed in the economy.

[AndyYSCISOdept]

While Andy is definitely correct, there is another way to look at the situation. If the small businesses in Illinois start suffering due to a lack of working capital, eventually the merchants will complain, and force changes to be made. At that point, we will have proof of what happens when alternative financing is locked out of a state, and we will have strengthened our case about how much we are needed in the economy.

I like the angle you're taking but are we as an industry willing to sacrifice a state with a big city like Chicago to prove our point?

[J.Celifarco]

Nothing good can come from this.. This sets a terrible precedent. As an industry we need to everything we can to stop this. If if it did get overturned or reversed later the damage would be done once it passes. Hopefully this goes nowhere

[mcaguru]

Brokers keep in mind when looking to place a deal that the funding companies in the LINK below are spending serious money to make sure the wheels on our industry can keep spinning and be able to fund your files pay you commissions and of course allow your clients to have access to capital.

https://www.commercialfinancecoalition.com/about-cfc/

[Funder Mark]

Nothing good can come from this.. This sets a terrible precedent. As an industry we need to everything we can to stop this. If if it did get overturned or reversed later the damage would be done once it passes. Hopefully this goes nowhere

Absolutely true, my point was to try and find the silver lining.

[AndyYSCISOdept]

Absolutely true, my point was to try and find the silver lining.

Knowing that this legislation is trying to eliminate a bunch of opportunities for funding in our industry I don't see much of a lining silver or otherwise.

[isaacdstern]

A few like minded companies have started the CFC (Commercial Finance Coalition) to be able to have a voice when stuff like this happens. Regulation is not something that may or may not happen in 5 or 10 years, its happening right on front of our eyes TODAY! If you have interest in getting involved reach out to me or any one of our members.

[Michael I]

Brokers keep in mind when looking to place a deal that the funding companies in the LINK below are spending serious money to make sure the wheels on our industry can keep spinning and be able to fund your files pay you commissions and of course allow your clients to have access to capital.

https://www.commercialfinancecoalition.com/about-cfc/

wouldn't this thing affect the a lenders also ? why is it only the c d lenders on it ?

[AndyYSCISOdept]

As a side note, any of you that want just the most basic information give me a call and I'll help get you pointed in the right direction and hopefully youll see why the CFC is going to be such an important part of our industry

[AndyYSCISOdept]

wouldn't this thing affect the a lenders also ? why is it only the c d lenders on it ?

It will affect everyone, just because the so called "A Lenders" aren't on this now doesn't mean that they don't need to pay attention

[mcaguru]

Larger ships turn slower perhaps... the B/C lenders are more the Mark Zuckerbergs of the world kind of people that get things done on the ASAP mode.

[FUNd]

Maybe if funders weren't doing 5th position 4 month 1.59s with 10% in junk fees, our space wouldn't be getting so much of this negative attention. Once the word 'predatory' comes into play, well, we all remember 2008. Everyone was a "victim" of the big bad banks. Politicians can play the hero role to their constituents by saving them from these loans, without anyone really understanding that valuable access to capital has been taken away, for no good reason, by another bureaucrat trying to call the shots.

[isaacdstern]

It will not only effect ALL Merchant Cash Advance direct providers...it will also effect Factoring companies, all marketplace lenders....basically any company that is not a traditional bank in Illinois

wouldn't this thing affect the a lenders also ? why is it only the c d lenders on it ?

[nrh1lp]

Let's just take away a politicians access to "donations" while campaigning and follow it up with a simple "now if you were a business owner and I took away your access to capital as needed, how well would you preform?"

[AndyYSCISOdept]

Maybe if funders weren't doing 5th position 4 month 1.59s with 10% in junk fees, our space wouldn't be getting so much of this negative attention. Once the word 'predatory' comes into play, well, we all remember 2008. Everyone was a "victim" of the big bad banks. Politicians can play the hero role to their constituents by saving them from these loans, without anyone really understanding that valuable access to capital has been taken away, for no good reason, by another bureaucrat trying to call the shots.

I don't see how what type of funds being offered to the merchant has anything to do with this. This would make it so I couldn't give them funds at any cost....more important than our weekly sparring match about which company has the worst rates I believe.

[mcaguru]

Guys A B or C lenders are going to be painted the same way... the senators who never had to manage a business before evaluate a 1.20 factor from an A paper lender like they are killing the merchant.

All i know is that today I bought a ice green tea at starbucks and they did a 4.49 factor on me! it gets better they put 5 % green tea and then added water (to me the water is junk fees!! the Ice cubes is a PSF))...i was like lady get that water out of my cup and put only Tea from the green tea pitcher!!!

[Sean Cash]

everyone would be impacted A to Z unless you're an Illinois bank or a nonprofit

[Michael I]

everyone would be impacted A to Z unless you're an Illinois bank or a nonprofit

understood but in your opinion sean . where is lending club , on deck , can and all these others funding in the billions with fighting this ?

[Cfairbank]

wouldn't this thing affect the a lenders also ? why is it only the c d lenders on it ?

This has been going on for weeks in Illinois and A, A/B and marketplace folks have been all over this. For folks interested in a non-CFC angle, feel free to reach out.

Anyone at LendIt, I am here if you want to discuss.

[FUNd]

I don't see how what type of funds being offered to the merchant has anything to do with this. This would make it so I couldn't give them funds at any cost....more important than our weekly sparring match about which company has the worst rates I believe.

Was just pointing out that uber-hign interest rate 'easy credit' loans gather the attention of would-be regulators. If we were all doing 10-15% APR term loans with monthly payments, nobody would care.

[isaacdstern]

here we go fellas.....

NY lawmakers to review online lending to small businesses

New York lawmakers are reviewing how online lending may offer help to small businesses looking to get off the ground or expand.
Three different Assembly committees plan to hold a joint hearing Monday at the state Capitol on small business online lending practices.
The hearing will focus on the role of online lending in serving small business clients, and whether regulations could be amended to help business owners get the credit they need while still being protected from predatory lending practices.

After the economic downturn many small businesses found it difficult to find loans at traditional banks, leading to an increase in online lending.
Lawmakers say they want to find ways to balance the ease and flexibility of online lending with rules to ensure borrowers know what they're getting into.

http://www.newsobserver.com/news/bus...e71103277.html

[mcaguru]

If regulation comes it will affect A Lenders the same way. I spoke to a lobbyist who explained that many times its like after crime goes down one guy decides to help authorities and then is puzzled why hes facing the same punishment. we are all in the same boat denial is powerful.

my point is many A guys are yapping away with regulators thinking it will some how spare them not realizing that once they get back to there offices it takes an entire life of its own.