[Businesscap]

Auto Service Center

$25,000 in Deposits per month
$5,000 in CC

CAN Capital 09/2013 $13,509 29% CC sales
Yellowstone 01/2014 $9,310 $215 per day
WGF 02/2014 $2,505 $101 per day
IMS Fund 02/2014 $4,701 $127 per day

Nothing but greed going on here...

[Regium]

Unbelievable

[CO1]

What did you end up doing with that file?

[nyadvance]

ended up depresed for not being able to fund a deal

[nyadvance]

are you upset for not being able to fund a deal

Auto Service Center

$25,000 in Deposits per month
$5,000 in CC

CAN Capital 09/2013 $13,509 29% CC sales
Yellowstone 01/2014 $9,310 $215 per day
WGF 02/2014 $2,505 $101 per day
IMS Fund 02/2014 $4,701 $127 per day

Nothing but greed going on here...

[Ryan Shiroky]

what does that article have to do with his comment? who is upset for not being able to fund a deal? nyadvance... wtf are you talkin about buddy???

Businesscap, I would say, if you have good rapport with the guy you should advise him to stop being a junky and clean those statements up... pay off at least two and dont have more than 2 open balances for 6 months... really shouldn't be stacking at all, no real a-paper funder is going to do the deal if they see him stacking...

I mean, yea, we will pay off 2 advances as long as the balances aren't more than like $60k and the guy will net 50%... but not many funders do this...

[Regium]

This guy joined this forum just to post those 3 comments... good for you my man

Btw, we have NEVER stacked on a merchant

[AndyYSCISOdept]

I find it amazing that we all only blame the funding companies but some responsibility needs to lie with the merchants. They need to understand what they are getting themselves into.

Because if the merchant wants the 2nd 3rd or 4th position funding they will get it. A lot of parallels to the whole "Drug war" argument, do you blame the user or the supplier. The answer is both.

Unfortunately I dont think that you can ever truly get rid of stacking until something drastic happens, and even then someone is always going to test the wateers in search of profit.

[Chambo]

I find it amazing that we all only blame the funding companies but some responsibility needs to lie with the merchants. They need to understand what they are getting themselves into.

Because if the merchant wants the 2nd 3rd or 4th position funding they will get it. A lot of parallels to the whole "Drug war" argument, do you blame the user or the supplier. The answer is both.

Unfortunately I dont think that you can ever truly get rid of stacking until something drastic happens, and even then someone is always going to test the waters in search of profit.

This sort of 4 and 5 deal nonsense is just the "something drastic" that would be needed. That merchant starts bouncing and getting inundated with collection calls. They run to their local Congress person complaining about the predatory nature of these ambiguous funds out there...and the snowball starts rolling

For all the cocky SOB's out there, who think this will never happen...how much money have B of A and Chase and Citigroup paid out in fines over these predatory mortgages? But the customers did in fact sign on the dotted line, right? so what's the harm?

[Regium]

This sort of 4 and 5 deal nonsense is just the "something drastic" that would be needed. That merchant starts bouncing and getting inundated with collection calls. They run to their local Congress person complaining about the predatory nature of these ambiguous funds out there...and the snowball starts rolling

For all the cocky SOB's out there, who think this will never happen...how much money have B of A and Chase and Citigroup paid out in fines over these predatory mortgages? But the customers did in fact sign on the dotted line, right? so what's the harm?

Well said..

[jcohen]

Andy,
I think all the blame is on a merchant if he cannot afford the advance/es. There are people who blame the banks for lending too much money for mortgages since there are millions of forclosures every year..... merchants are not sheep, they are business owners and should know how to run a business including how to finance it. (you cannot compare cash advances to drugs which are illegal and never helpful as apposed to CA which can be helpful in the right circumstance)

[Regium]

I don't believe it is on the merchant as much as it is on the MCA companies.

We do the risk assessment, not the merchant. We know when they cannot afford it. They just see money dangling in their eyes and go for it (especially when they are desperate).

[JayBallentine]

This sort of 4 and 5 deal nonsense is just the "something drastic" that would be needed. That merchant starts bouncing and getting inundated with collection calls. They run to their local Congress person complaining about the predatory nature of these ambiguous funds out there...and the snowball starts rolling

For all the cocky SOB's out there, who think this will never happen...how much money have B of A and Chase and Citigroup paid out in fines over these predatory mortgages? But the customers did in fact sign on the dotted line, right? so what's the harm?

I'm no legal expert but I think it Might be unconstitutional to stop people from selling their property (future sales).

What they may do is make you walk backwards to Greenland on one leg with your car on your shoulder in 60 seconds or less in order to "receive sensitive banking data" necessary to succeed as a broker.

[AndyYSCISOdept]

This sort of 4 and 5 deal nonsense is just the "something drastic" that would be needed. That merchant starts bouncing and getting inundated with collection calls. They run to their local Congress person complaining about the predatory nature of these ambiguous funds out there...and the snowball starts rolling

For all the cocky SOB's out there, who think this will never happen...how much money have B of A and Chase and Citigroup paid out in fines over these predatory mortgages? But the customers did in fact sign on the dotted line, right? so what's the harm?

Mat, I couldn't agree more. This is why I am almost welcoming a bit of regulation, this way we can keep out/get rid of the people looking to exploit an industry that for some of us has been a 7 year odyssey from obscurity to real careers.

[Capital Stack]

Well said Andy. Although government involved with business is never good for industry. It would be cool if we can self regulate.

DailyFunder is a Proud Sponsor of the nearly approaching ETA Transact 14. I've been getting emails and updates through the coming event. Whats awesome is CNBC is going to be filming live on the floor.

One of the discussion groups is the ETA spearheading a self regulation effort for merchant processors policy's on operation chock point and what happened to the payday space with ach processing. Members of the Federal Reserve and CFPB will be attending.

This is a great industry blooming, we need to take all efforts to weed out anyone or thing that can damage this space. Lets continue this mainstream growth not many years but potentially generations.

Great weekend

cheers,

[Ryan Shiroky]

Mat, I couldn't agree more. This is why I am almost welcoming a bit of regulation, this way we can keep out/get rid of the people looking to exploit an industry that for some of us has been a 7 year odyssey from obscurity to real careers.

unfortunately, the Gov doesn't do "a bit" of anything... it's all or nothing with the feds... this being said, we can either expect to run free and wild... or, have our hands held by compliance officers through the whole working day... "a bit of regulation" isn't going to happen, and if regulation happens, u can expect a cap on factor rates and minimum terms lengths and commissions and fees... so, brokers are going to get SUPER aggressive because now they have to really fight to make a buck and lenders who charge origination are gonna lose out because brokers won't send biz anymore, cuz they will want to make that junk fee...

regulation is going to suck the lifeblood of this business right out... i say this about stacking, if you dont wanna get regulated, put a cap on it.... come up with some 2nd position funding organization that promotes best practices (like a namaa for 2nds) and set a gross margin rule for all types of stacking deals... REGULATE YOURSELVES!!! pay less commissions to the brokers for doing the deals, that way you can lower rates to begin with (everyone cries about risk, charging 1.45 is risky in itself, nobody wants to pay that rate), and it discourages pushy brokers to coerce merchants...

im probably just pissing in the wind with all this... but the bottom line is, we need to regulate ourselves or the feds are gonna rip our hearts our and eat them...

[Ryan Shiroky]

rip our hearts out*

[AndyYSCISOdept]

Ryan, I agree with most everything you said, but the point I was making is this...I believe self regulation is by far the better option. But as of now there seems to an unwillingness or inability for people in the industry(especially those who are newer) to self regulate. Ive been here through the ups and downs and have seen our industry blossom and without some form of reigning in our practices we are setting ourselves up for failure.

I however do not agree that it is an all or nothing thing with the feds. I am pretty sure the smallest of regulating will cause enough of a stir and force those of us in the industry who want to see the fruits of our labor continue to sit up and fly right.

[AndyYSCISOdept]

Oh, and as far as "Junk Fees" are concerned, they were the orignal scourge of the industry. Not only have I never once charged one, I never will. The money is expensive enough and I'd rather make less now and keep my clients for a long time. By charging a fee a broker is opening themselves up for another rep to swoop in and take their merchant by simply saying, "...oh they charged you a closing cost? I wont ever do that. Come with me and I will get you funded."

***I learned that move from my mentor back in the day, and its served me well.

[Ryan Shiroky]

well, i have never heard of a situation where fed stepped in and didn't pull a .45 and mug an industry at gun point... thats what they do... maybe not all in one shot, but once they start, they dont stop for a hundred years... an example being all the regs you have to KNOW to pass the series 7 these days... the whole damn test is regulations now... i mean... that one chapter was like half the damn book...

idk, man... if the feds step in, alot of people are stepping out... or getting pushed out... how about alllllll the brokers that "used to do stocks" and CAN'T anymore (after taking an all inclusive 6 year vacation on the feds) that do this now... lol, most funders are losing 40% of their ISO biz right there, because the feds aren't gonna overlook the fact that Joey from Fly By Night Funding did a 7-10 in fed lockup for wire fraud...

[Ryan Shiroky]

but hey, an opinion is like an a**hole, everyones got one... right?

[JayBallentine]

Ryan, I agree with most everything you said, but the point I was making is this...I believe self regulation is by far the better option. But as of now there seems to an unwillingness or inability for people in the industry(especially those who are newer) to self regulate. Ive been here through the ups and downs and have seen our industry blossom and without some form of reigning in our practices we are setting ourselves up for failure.

I however do not agree that it is an all or nothing thing with the feds. I am pretty sure the smallest of regulating will cause enough of a stir and force those of us in the industry who want to see the fruits of our labor continue to sit up and fly right.

Self regulation absolutely sounds like the best option. But is that truly possible? Who's going to ward off the people who swoop in and say "gee - these guys have self regulated and in doing so have created X, Y, Z, pockets of value for us to exploit because we don't care to participate in that self regulation jazz!"?

I don't think self regulation can work. Only because there will always be someone, somewhere willing to exploit any situation where they can make a dollar - so long as they are protected by black letter law. People who deem it to be in their best interest, simply will not adhere to some esoteric rules, some self governing body made up.

[rld]

Wow.. I have done 2nd positions a few times.. never even seen anyone with a 4th position advance. I guarantee you that merchant is barely surviving. He would have to have a separate bank account that no one knows about to deposit extra cash into or something.

I have seen 1 restaurant guy that was way in over his head with 3 loans.. but never anything that bad.. almost half that guys revenue monthly is being taken by MCA companies.. You guys are right.. such as that is what will bring the hammer down on this industry.

[Ryan Shiroky]

the only way that would work out is if he used a different bank and never transferred money between the two... it happens...

[bruce@bdfunding.com]

If you are still looking for funding, please contact me at bruce@bdfunding.com. I believe we can get you a better deal that any of those. There are no application fees and no obligation to accept an offer unless it works for you.