[CreditGuy]

MCN-That is if the senior lender knows about the MCA and there is a subordination agreement in place. I have seen dozens of case where the senior lender did not know their client took out the MCA and their was no subordination agreement in place.

If the bank's lien is organically senior, no subordination need be executed.

[Kevin Henry-Seacoast]

If the bank's lien is organically senior, no subordination need be executed.

True, but by taking out the MCA or any other loan without the bank's knowledge that it was done could violate their agreement and throw the Company in default.

[ADiamond]

If the bank's lien is organically senior, no subordination need be executed.

using "organic" as an adjective, very hipster - circa 2009. let me find out you wear skinny jeans.

[Michael I]

Absolutely and seeing it more and more.

is it with what in the mca industry we call the a lenders or even the c lenders that is not a real loan and do not file ucc

[MCNetwork]

using "organic" as an adjective, very hipster - circa 2009. let me find out you wear skinny jeans.

You've probably never heard of organic SEO. Way over your head.

[HDF]

This is all good stuff. I'd like to clarify what I am talking about when I mention bank worthy business owners. My discussion points relate to speaking with an owner who has already had an experience with a bank, is currently in the loan process, or currently has a bank loan. You have them on the phone. Like everyone else, I don't see value in spending a lot of time cold pitching alternative products to highly qualified businesses that likely don't need the money or have superior solutions on stand-by.

Now the businesses that you happen to have on the phone that has bank experience of some sort as explained above is worth speaking to. Why? Well, here are a few things that they might be experiencing:

- length of time during process becoming a hardship
- doubt as to whether loan will be approved
- shortfall in loan amount being considered
- need to pay off a lien or taxes before being considered
- business growing too fast and need to bridge payroll
- need a hedge or reserve against default or denial
- need to finance the down payment on a commercial real estate purchase (504)
- loan nearly paid off
- had a bad experience with the bank
- behind on payments / in pre-default
- need strategic funding for a business opportunity
- got declined
- got their loan amount revised down
- collateral value issues holding up the process
- looking for alternative funding ideas at the moment

So my point is (with this incomplete list) that when you get in front of someone who you learn is dealing with a bank, there is room to investigate where their pain points are and whether there is a solution you can offer. Obviously every business and call is different, and so is every sales person.

[KTK]

Perfect example:

2 days ago I spoke with a guy who immediately told me he was all set as he was in the process of an sba fast track application. Upon further poking I learned his plan was to use the sba as a bridge to a equity partnership expected to close in 60 days when he would retire the loan. He had seen some sort of a 5-7 day approval time quoted on the application/sba site or wherever.

After educating him on the true length of the sba funding process and as his 15 taxes are on extension still - the path he was on was not one that would garnish his desired end result.

Explained an MCA could have him funded in days and mixed with an aggressive prepayment option this product would get the job done.

He just needed to be educated properly.

[Rob Buchanan]

Also because you now need a way of reaching them. With a UCC you can generally get a name and number to go with the company name. If there is a brand new pizza shop for example without a UCC being filed, it would be difficult to find them as a new business.

We sell "new business data" but don't you guys require a business to be in business for a certain amount of time?

[Karen37a]

For the people who worked for Banks or were loan originators before. We know the ENDLESS documents piled high needed to get to close...Documents 2 feet high. Them asking someone why they had ONE collection on their credit report in 2 years for 80 bucks and looking to deny the loan.

If you worked in Venture Capital/Wall st you know that these people were never getting money for any reason whatsoever. It was always about how much money the firm was going to make off the merchant/company owners, more importantly how "sexy" the pitch was to sell.

MCAs are quick, that's true but most of these people are never making it thru underwriting process to get any real money from any true bank or low cost source.Thats why they take out high cost loans

They cant even make it thru the underwriting process for a c/d paper MCA cash advance.

Do they want the money for something serious in their business life? If they do this is it, the buck stops here.

If they don't..put your goals/dreams on hold.

The Financial Collapse of 2008 put restrictions on the lending of money..period the end. So its not just about getting money fast, its about getting any money at all.

"X" amount of borrowers, "Y" amount of Lenders and "Z" the dollar amount or Funding Allocation available to lend, the more borrowers who want money , the less money to lend leads to the cherry picking of loans.

Nice position to be in if you are a Lender, fighting for scraps on the bottom if you are a borrower.

Basic laws of Supply and Demand