Results 1 to 25 of 103
Hybrid View
-
06-15-2016, 09:09 PM #1
Reputation points: 203963
- Join Date
- Jan 2014
- Posts
- 1,380
[QUOTE=NewFunder80;50437]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 have now seen It all.
-
06-15-2016, 09:13 PM #2
Reputation points: 10
- Join Date
- Jun 2016
- Posts
- 23
-
06-16-2016, 10:28 AM #3
[QUOTE=Sachip24;50567]I will make this quick getting busy. Yes you reinvest the money as it comes in daily, compounding the interest as you do this and driving up your ROI. The two scenarios you stated smell like fraud. Collections isn't aggressive enough with fraudsters, I would get an attorney letter head if you don't have an attorney in house and start sending letters threatening legal action. Escalate the letters and usually that works, if it doesn't you may have to go the legal course file charges for fraud. You may get someone to pay you back months later cause they reapply for more money or the UCC affects them. Unfortunately in the cases you mentioned you probably got screwed, those are great lessons to learn anyways. FYI Some of the more aggressive companies have merchants sign COJ confession of judgement with the agreements, this helps to get a judgement in your favor if it goes to court. Like any case you run the risk of losing if your contracts and agreements aren't right. Good luck new funder
-
06-16-2016, 10:56 AM #4
Reputation points: 10
- Join Date
- Jun 2016
- Posts
- 23
Similar Threads
-
Direct Funder/ Syndicated Funder will work hard for deals!
By BoostAaron in forum PromotionsReplies: 0Last Post: 03-03-2016, 09:39 AM -
Funder Seeking Underwriter / management position
By FUSIONCAPITAL in forum Help WantedReplies: 0Last Post: 11-18-2015, 01:16 PM -
Need a Funder , real funder and fast..
By c4get in forum Deal BinReplies: 3Last Post: 06-28-2015, 03:29 PM -
Need a Funder , real funder and fast..
By c4get in forum Deal BinReplies: 3Last Post: 06-26-2015, 04:40 PM -
wanted : Funder , Direct real Funder -
By c4get in forum Deal BinReplies: 5Last Post: 06-20-2015, 12:16 PM