[aredmond]

Chambo, there are exceptions to this. I funded a deal for 500,000 12 months @ 1.36 and the business was in a very similar position. Balance sheet was upside down by almost $2,000,000. The merchant had a very good explanation for it which made perfect sense. Cash flow was very strong and so was everything else about the deal. There are exceptions to this and there are 1 or 2 A paper funders out there that would do this.

And someone probably got fired for authorizing that deal. I agree with Chambo, the company that funded that deal was not funding A paper....nobody 2 million negative on the balance sheet regardless of the explanation is "A" paper.