[mcaguru]

Hello all,

I am glad a found this forum. I have found some of the information here very helpful. I wanted to share my experience and ask a few questions.

Our company started funded deals about 45 days ago. We are off to a good start so far. Over 10 deals funded so far.

Have two questions:

How do most funders handle cash flow? Meaning do funders usually "reinvest" collected monies into other advances or just wait until the advance finishes?

Defaults and fraud:

Had one merchant approved for an advance and then it appears closed the business down about 1 week later. Another merchant closed their bank account and has not provided another one.

How are you guys handling defaults? We are taking the collections route, calling and sending letters. At some point have any of you guys actually sued the merchant? How did the law suit go? Because the advance is under the state limit we were considering using small claims court. Just wondering if anyone has actually taken a merchant to court?

Or perhaps other funders are just writing off the debt and still turning a profit. I just hope that merchants cant just default and we have no recourse????

Advice please.

I don't know were to start. if you cant afford to have losses than please hold off darting wires until you have all your questions answered, i watched to many funders come and go blowing up 6-7 digits of losses in a 2 month period.

PS i don't see a license relevant to making or losing in MCA....

[Funder Mark]

PS i don't see a license relevant to making or losing in MCA....

I beleive that was the point...

[FUNd]

PS i don't see a license relevant to making or losing in MCA....

Except that you legally have to have one to lend money commercially. Other than than, no, not relevant at all.

[mcaguru]

Except that you legally have to have one to lend money commercially. Other than than, no, not relevant at all.

MCA not a loan.

[FUNd]

MCA not a loan.

Yes it is. On it's face and by pure definition:

loan
lōn/Submit
noun
1. a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
"borrowers can take out a loan for $84,000"
synonyms: credit, advance; More

[mcaguru]

Yes it is.

debanked.com/2016/06/merchant-cash-advance-definitely-not-a-loan-new-york-judge-rules/

[FUNd]

debanked.com/2016/06/merchant-cash-advance-definitely-not-a-loan-new-york-judge-rules/

I don't care what some lower court judge's ruling was, that does not end the debate.

[J.Celifarco]

debanked.com/2016/06/merchant-cash-advance-definitely-not-a-loan-new-york-judge-rules/

I agree with you that this win is good for the industry but to sit back and say wow good this is over because of one lower court ruling is a very naive way to look at the industry.. Instead of always trying to find excuses to condone poor practices how about look at your company and say how can we make ourselves better so we are not part of the problem. The companies that survive for the long term are the companies that are looking ahead now a putting a plan in place to adjust when regulation comes as well as trying to get into the conversation on in what form regulation should come in. To sit on the sidelines and hope is not a long term plan for success

[mcaguru]

I agree with you that this win is good for the industry but to sit back and say wow good this is over because of one lower court ruling is a very naive way to look at the industry.. Instead of always trying to find excuses to condone poor practices how about look at your company and say how can we make ourselves better so we are not part of the problem. The companies that survive for the long term are the companies that are looking ahead now a putting a plan in place to adjust when regulation comes as well as trying to get into the conversation on in what form regulation should come in. To sit on the sidelines and hope is not a long term plan for success

This is very simple a motorcycle is not an airplane. perhaps one day lawmakers can decide a motorcycle should be treated with same laws like a plane.

Now regarding looking ahead for all you know we are at the end stages of the drawing board offering the most conservative A paper funding products ever introduced to the market place... (for all you know we are not )

My point is the guys looking to hurt higher risk funders DO not realize that with a few tweaks we are in the A paper game~!