[mcaguru]

Is this surprising to you? How do you average a 3 month, 1.45x with 10% origination fees and give any sort of crap about the businesses that are being crushed? Welcome to the high risk space, all that matters is how much money you make. Don't worry, things will be changing soon...

Carl. I was shown a Breakout Capital contract of you doing a 1.44 payback a faction over 100 days... it included an origination fee and a daily fixed payment..... Untill seeing that info i really belived you were a 1.08 Shop

[r mirlis]

The gloves are coming off!

[Cfairbank]

Carl. I was shown a Breakout Capital contract of you doing a 1.44 over 100 and a few days days it included an origination fee and a daily payment..... I

Not possible, unless it had a massive early repayment discount. Send me the contract. We do have a higher risk division but two key features to it.

1) we don't cycle merchants through a product (in the higher risk side, it is still 1.3s and not a four month deal) -- that is the equivalent of a 117% APR and it is impossible to make that a viable product. We also aren't double dipping that -- compare a 117% APR (that won't increase) to a 400% apr (1.45x for 3 mo's with 10% origination fee is 415% APR). Add the double dip to that deal? 616% APR. What business can possibly have the growth or margins to sustain that product. Even if a merchant is paying perfectly, if we don't think we can move them to more sustainable capital over time, we won't renew.

2) Every high risk product we offer allows a rate reevaluation after two months -- in other words, if you pay cleanly, do NOT stack, and business does not fall off a cliff, we will re-underwrite the deal for free and lower APR either through a lengthen term and/or lower rate. This is a major difference between any higher cost product we offer and ANY other company in the space.

There is nothing inherently wrong with a 3 month 1.45x -- it can potentially make sense when taken ONCE. It's the cycling that is killer, and it's what makes the product completely unsustainable and will ultimately put any merchant [I]out[I] of business.