Results 1 to 25 of 85
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03-13-2014, 12:07 PM #1
- Join Date
- Dec 2012
- Posts
- 116
Stacking Madness
One of our merchants. Dentist practice, sub 550 fico.
Rapid - $57k, 8 month MCA
WBL - $60k daily ach, 1.90/12 months
WG - $15k daily ach, 1.42/12 weeks
Yellowstone - $10k daily ach, 1.45/10 weeks
Don't post any nonsense about how this is an informed merchant and the stackers are like 2nd and 3rd home equity loans. The Hoppers are just burying the doctor until he goes BK.
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03-13-2014, 12:13 PM #2
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
Does he have a lot of NSFs or are his statements clean? I'm curious to know how much of his monthly gross is going towards debt service. 40%??
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03-13-2014, 12:15 PM #3
- Join Date
- Jul 2013
- Posts
- 352
1.90!
Who is WG?
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03-13-2014, 12:19 PM #4
- Join Date
- Dec 2012
- Posts
- 116
Statements have some issues. That is why we had him on a split.
Good guess on the % of revenue being taken. We have 10%. WBL 9.5%. WG 7% and YS 6.5%, total about 33%.
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03-13-2014, 12:20 PM #5
- Join Date
- Dec 2012
- Posts
- 116
World Global Financing. Cyril Eskenazi, CEO
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03-13-2014, 12:22 PM #6
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03-13-2014, 12:25 PM #7
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
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03-13-2014, 12:31 PM #8
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03-13-2014, 12:40 PM #9
6 week , 10 week, whatever the high rates durations and impact to merchant is nonsense - the merchant is equally responsible in taking these nonsense offers and illustrates that something really is broken out there on a macro level- if these were one off stories thats one thing but this is a daily occurrence now-
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03-13-2014, 02:31 PM #10
it is as if people are taunting the Feds to come in and regulate. Daring them
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03-13-2014, 03:04 PM #11
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
I love the 10-12 week stacks. Wham, bam, thank you ma'am!
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03-13-2014, 03:24 PM #12
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- Dec 2012
- Posts
- 116
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03-13-2014, 04:16 PM #13
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
Uh oh...don't throw your fellow funders under the bus!
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03-13-2014, 05:08 PM #14
- Join Date
- Jun 2013
- Posts
- 351
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03-13-2014, 06:06 PM #15
WOW! This is absurd.
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03-13-2014, 06:27 PM #16
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03-13-2014, 07:24 PM #17
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03-13-2014, 09:06 PM #18
- Join Date
- May 2013
- Posts
- 10
Stacking Madness
There are plenty of merchants who take a second or a third position and have absolutely no trouble paying all 3. There are some businesses that can handle multiple advances as long as their cash flow is there and their intent is to make the daily payments. I'm not justifying the merchant taking 4 advances, just saying that a majority of them continue to pay all of them without defaulting, you just see the defaulted ones more often bc they stick out. Most of these owners need more money then they are being approved for by one company
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03-14-2014, 07:33 AM #19
- Join Date
- Jan 2013
- Posts
- 151
Stacking Madness
I don't know if this is good or bad. It's hard to draw parallels to other industries. Is credit cards a good example or bad one where everyone is stacking each other and not concerned about who is in first position. But that happens everyday.
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03-14-2014, 09:11 AM #20
- Join Date
- Jun 2013
- Posts
- 351
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03-14-2014, 09:25 AM #21
- Join Date
- Oct 2013
- Location
- New York, NY
- Posts
- 1,203
I completely agree, but whats the solution? You going ot tell the reps who are able to collect the commissions on these deals to stop? That's never going to happen because the amount of greed among the haves and the have nots has saturated the industry. Its as if we are saying, "Who cares if the merchant goes out of business? I got 10 more lined up and I'm getting paid"
And don't think that I am busting out a "holier than thou" I have stacked many deals, but I don't do it without knowing that eventually something has to give.Andrew J. McDonald
Director of ISO Development
Yellowstone Capital LLC
1 Evertrust Plaza
Suite 1401
Jersey city, NJ 07302
PH - 347.464.0785
FX - 646.213.1790
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03-14-2014, 06:35 PM #22
- Join Date
- May 2013
- Posts
- 10
Stacking Madness
Funding pro you are not very intelligent. If you having something to contribute to the conversation then do so, you think stacking a merchant makes it hard to sleep at night. Get real hah shmuck
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03-14-2014, 11:25 PM #23
- Join Date
- Jan 2014
- Posts
- 283
I have only been in this industry for 6 months so I don't claim to be an expert, I do however have some insight based on 12 years of overall B2B sales experience. This is a corporate culture based issue that starts up top.
I spent 4 months at a Broker/Lender whose name I won't mention and I hated it. They micromanaged(counting dials, locking the door at 9:05), the gave a lousy 400 draw and capped it at $1600(withouttelling you until you were there a week or so) offered zero training on Sales techniques or product knowledge..... but they did teach us how to stack!(as long as it wasn't behind them ofcourse). Most of the leads we were given were UCC leads which inevitably lead to stacking, the commission for the brokered deals were weak...It was a total ****show! I left after 4 months and I was one of the last men standing.
I am now at a Broker shop that also syndicates and it is much different. We try to do the right thing by our clients. Will we do second position-yes, but it stops there and we are trying to find Merchants using methods other than UCCS. The people I work with now tell me a lot of places are very similar to the chop shop I wasted four months at. If that's true, than how do you expect people not to stack. No base salary, lots of deals get buried after preapproval, leaving the Account Executive looking like a fool and most of all, there are millions of Merchants out there who can benefit from this but we all chase a small segment of them..like the dentist with 4 different advances for example. Those guys are fast and easy is all.
Why not increase the approval range and terms across the board. Expand marketing efforts. Encourage your Sales reps to go to trade shows and network. Utilize LinkedIn and Twitter. Do you realize this board is the same 10-15 guys having the same stacking debate over and over!? You guys are the so called leaders of this industry, right?! Stop talking about it and go back to the drawing board. This is a legit bubble...a lot of people can enter this industryand thrive, without stacking. Set it up so they can do it the right way. Just my opinion...
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03-17-2014, 12:07 PM #24
"Why not increase the approval range and terms across the board. Expand marketing efforts. Encourage your Sales reps to go to trade shows and network"
Sure...you put up the money and take the risk. You can go to trade shows (I have been to three in my career) and meet -15-25 solid lead qualified merchants, or you can pick up the phone and get in contact with 300....WITHOUT the price of airfare and hotel.
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03-17-2014, 02:57 PM #25
- Join Date
- Jan 2014
- Posts
- 283
There are plenty of networking events and trade shows that cater to small businesses and every industry imaginable right here in NYC (or whatever city you are in). Why not hit 1 or 2 a month?! If you have to stay at a hotel........just write it off.
As far as risk goes, wouldn't the extra revenue make up for it. I'm not saying approve Merchants 200% of their monthly gross, just an increase for the ones that pose less risk.
How else to you guys propose to stop, or at least decrease stacking? Because dialing 300 UCCs a day and getting a couple of $10,000 2nd position approvals won't do the trick.
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