[CO1]

like an automated email or a personally typed up one from your biz dev rep there?

personally typed up one from our biz dev rep there

[CO1]

And wow this is the first time i seen this in my life in this career!

[cashguy]

Bull****. Has anyone here funded a deal with them yet.

[Sean Cash]

with who? mfs global? or infinity?

[cashguy]

Mfs does their guarantee hold any water. Do they actually fund or just post here

[Sean Cash]

no idea. Just so you can see I'm not making it up:

by the way, I talked to Shlomo today, Infinity's CEO. Those sky miles are gifted on top of the normal commission. So if you fund a 5k deal, you get a full commission and 2,500 sky miles. Imagine if you did a lot more deals... very cool concept.

[LoanShark714]

Great Promotion. For Infinity. You are basically paying for your own trip by going through Infinity if you really think about it . They are offering their "NEW" 6 month buy out starting at 1.24 0% commission. When I can get 6 month Buy out for 1.15 down the street. 9 points Difference from the get go. Am I missing something here? OR are they just LUCKLY tryin to find a ISO/Agent that doesnt know about the 1.15 buy out other places are offering? What you guys Think?

[AMERICApital1]

who is the funder that supplies free marketing leads (press 1 campaign) I am interested in utilizing this.

[AndyYSCISOdept]

I would have to think long and hard about buying shares ion any Cash Advance company. You don't know how "GOING PUBLIC" is going to affect their bottom line and the way they do business. Truth be told, I don't see how their business model wouldn't change

[Sean Cash]

I would have to think long and hard about buying shares ion any Cash Advance company. You don't know how "GOING PUBLIC" is going to affect their bottom line and the way they do business. Truth be told, I don't see how their business model wouldn't change

Kabbage already had to change their business model. They no longer do merchant cash advances, only business lines of credit. Take a look at the biggest players in the "MCA" space and tell me if you notice a trend.

CAN Capital - loans (via NewLogic)
OnDeck Capital - loans
Kabbage - loans

[MCNetwork]

If I was a funder, I'd probably prefer loans over cash advances too. Easier to implement, the merchants tend to have healthy balance statements and the returns are far more predictable. I've seen some cash advance portfolios of some large funders and realize that the more merchants they acquire the lower the returns on the portfolio. This may be due to a mix of defaults and very slow payers. I was surprised to note that my client portfolio with a particular lender was essentially flat over a four year period.

I understand why many MCA funders go out of business despite writing large amounts of business each month. The only real money in this business is from collecting commissions as a "super" ISO and if you're going to fund deals, you really have to cherry pick them. I'm still skeptical that the big loan players (OnDeck, Kabbage) make money from their loans. The only lenders that I think are profitable are the stackers. I know we tend to joke about stackers and treat them with scorn and disdain but they're really on to something. Maybe I'll start my own stacking firm lol.

[MCAVeteran]

In a regulatory environment the mca product just doesn't stand well. It's not a loan it is a loan it's not usurious it is usurious. Whereas the loan with few companies have connected with federally chartered banks to place loans in all states. It's a whole different game on the loan side if and when the industry is examined and also the barrier to entry for a company to do the loan with banks is limited seperated those said companies from the pack. Not to mention all the addtl industries the loan can market to

[Sean Cash]

In a regulatory environment the mca product just doesn't stand well. It's not a loan it is a loan it's not usurious it is usurious. Whereas the loan with few companies have connected with federally chartered banks to place loans in all states. It's a whole different game on the loan side if and when the industry is examined and also the barrier to entry for a company to do the loan with banks is limited seperated those said companies from the pack. Not to mention all the addtl industries the loan can market to

Good point. Plus imagine doing an IPO and being asked to describe in great detail your default, collection, and recovery process. You're not afforded the same protections as a creditor because you're not a creditor. Instead you're in a legal grey area where nothing is certain, including as to whether or not you can even pursue the business owner in a default.

The bigger you want to be, the more you'll need to conform to a system that is easily understood by all.