[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.