[funding pro]

Bob, you know better. 17% of total deposits? How many transactions did CAN/AMI do in all your years there? What does their data show about the maximum revenue split and the correlation to loss?

We all know that merchants mostly max out on a deal with the first position funder. Stacking is a short term game and not sustainable for most merchants.

All this blather about "2nd mortgages" overlooks the fact that mortgage lending is a REGULATED industry and there are strict guidelines about debt/income ratios in mortgage lending.

Why even bother??? At this point it appears there are two groups of people in this industry. Folks that still think it is 2007, where we are providing financing to sub-prime business owners only and can say whatever they have to say so they can sleep better at night and then there are people doing meaningful business that see the big picture. As far as I am concerned its good vs evil and the line has been drawn. Sounds overdramatic just writing it out, but facts are facts. Opportunistic is just another way of calling someone greedy. Responsible stacking is an oxymoron. The responsible thing to do is educate, advise and implement the best strategy for the business owner. Not calling a UCC lead that was filed in the last 30 days to tell them you can get them funded on top of their advance, that it is "ok" and doesn't breach their current agreement and that everything will be fine since you've done it 1000 times before. All you can do is hope that as things continue to progress as they have and higher quality applicants continue to flood the marketplace the bottom end will continue to trickle out and take these folks with them. I cant see things going well when On Deck is doing a 24 month deal and 3 months in the business owner has 5 advances in place and wont qualify for a renewal for another 12 months...