[MCAVeteran]

http://debanked.com/2016/06/transpar...hryn-petralia/

[Christian]

While I believe increased regulation is inevitable, I also can't help but get the feeling the big players are conspiring to use regulation to eliminate the competition and create artificial barriers to entry while cloaking them selves in a benevolent flag.

[Zach]

While I believe increased regulation is inevitable, I also can't help but get the feeling the big players are conspiring to use regulation to eliminate the competition and create artificial barriers to entry while cloaking them selves in a benevolent flag.

Of course they are. Sun Tzu would give them a big "thumbs-up"

[FUNd]

While I believe increased regulation is inevitable, I also can't help but get the feeling the big players are conspiring to use regulation to eliminate the competition and create artificial barriers to entry while cloaking them selves in a benevolent flag.

Don't you think there should be barriers to entry beyond a laptop, a cell phone, and the yellow pages? Because that's all that exists currently.

[mcaguru]

While I believe increased regulation is inevitable, I also can't help but get the feeling the big players are conspiring to use regulation to eliminate the competition and create artificial barriers to entry while cloaking them selves in a benevolent flag.

Na they should know better that we are hedge people and will be the most aggressive in what ever sandbox we (probably not) get thrown into.

[Cfairbank]

While I believe increased regulation is inevitable, I also can't help but get the feeling the big players are conspiring to use regulation to eliminate the competition and create artificial barriers to entry while cloaking them selves in a benevolent flag.

I don't believe the SMART box initiative is an attempt to encourage regulation -- in fact, I think it's the opposite -- it is simply a good proposal to promote proper disclosure and enable borrowers to compare options. While I believe this will help the market, self-regulation is not a viable option (especially "opt-in" self regulation). There are too many bad practices and regulators are completely aware of those practices -- no way they will allow these practices to continue or that anyone inside the market can convince these folks that we are capable of regulating ourselves (our market has proven itself as a market that is incapable of self-regulation). Breakout has stated our public support of both common sense Federal regulation (state by state regulation is a mess, which is already happening) as well as the the SMART box initiative that would allow customers to properly understand the actual cost of the funding and enable borrowers to compare cost across product-types.

I really don't think this is "big" vs "small", it's who can actually support that they have an unassailable product that isn't predatory and doesn't create debt traps. And as FUNd mentioned, some level of barriers to entry, especially in cash advance or broker market, would benefit everybody.

[Christian]

While creating some barrier to entry beyond the ever-popular required "gmail" alias account is obviously good, I can't help but feel like the "clean up the industry" effort will turn into an effort to make licensing requirements too complex and expensive to allow legitimate competition access to our game. Sort of like what the FDA has done. Call me old fashion but I like 8 page contracts, instead of 80 page contracts.

[omegafund]

Licensing has not been required in most states and there has been NO barrier for entry for invoice factoring,equipment leasing, and hard money real estate loan. Those are all much larger markets than MCA. For some reason the business owner that looks at MCA needs the help of the government to choose wisely? Funny

The good brokers and lenders will last regardless of entry level barriers and such.. No need for regulation from up top, just a plan to push out the smaller guys.

[Cfairbank]

Licensing has not been required in most states and there has been NO barrier for entry for invoice factoring,equipment leasing, and hard money real estate loan. Those are all much larger markets than MCA. For some reason the business owner that looks at MCA needs the help of the government to choose wisely? Funny

The good brokers and lenders will last regardless of entry level barriers and such.. No need for regulation from up top, just a plan to push out the smaller guys.

None of those markets had 250%+ effective APRs that, when constantly renewed and double dipped (with no disclosure of the massive additional cost of the double dip), create a completely unsustainable position for a small business.

[FUNd]

Licensing has not been required in most states and there has been NO barrier for entry for invoice factoring,equipment leasing, and hard money real estate loan. Those are all much larger markets than MCA. For some reason the business owner that looks at MCA needs the help of the government to choose wisely? Funny

The good brokers and lenders will last regardless of entry level barriers and such.. No need for regulation from up top, just a plan to push out the smaller guys.

I was in the equipment leasing for years and still have relationships in the industry. Never have I seen more fraud, theft, lies, and client manipulation than I have in that space. There are certainly good players that are honest but many are flat out criminals. Equipment finance does certainly have barriers to entry. You can not just sign up with the players you need to be successful without a full credit and background evaluation and verifiable industry references that can back you up on funding volume and experience.