[Cfairbank]

Carl

everyone sees things differently, I strongly suggest you contact the International factoring association and watch the video of Jeremy Browns chaired session Topic "MCA friends or Foe" Jeremy did a great job discussing the business model and how Rapid can help businesses with cash flow (loved it!! ), When Jeremy was done about 200 Factoring Participants started attacking MCA (at the Q&A) and a dozens started shouting and screaming they were describing MCA (I'm talking about Rapid style of funding) to be a horrible product and its killing entire factoring business and putting "clients under" and they were discussing FIRST POSITION LONG TERM DEALS (NOT STACK)...

TO-DATE I have never seen someone describe a stack anywhere as bad the way the factoring executives (and some are Billion Plus in funding per year) were discussing an A paper MCA.

Marcus, what does that have anything to do with my previous post about the impact of a short term high cost advance stacked on a longer term, lower cost loan? If we give someone an 18 month loan at a 1.25 factor rate and you stack me and keep turning your capital, what do you expect to happen to my loan or to that business? How many companies can survive (much less thrive) on 600%+ capital that keeps turning for a year or more? Not very many, and that's why more and more lenders are and will increasingly allocate money towards addressing the stacking problem. And its also a reason why, in the broader industry, the only metric that will ultimately matter to outsiders is default rate on a CUSTOMER basis, not a dollar or unit basis -- you can keep turning them until they are driven into the ground, and be playing with the houses money by advance number 3.