[Cfairbank]

Id love to give you more accurate and detailed information, so please private message or shoot me an email. The fact remains that YSC provides a service and we make no apologies for providing such, having said that we have always been and will always be open to those that ask for information (personal requests)

Andy, I'm just trying to understand how the math makes sense from two perspectives:

1) given the stated "low" default rate of 13% (relative to what you would expect for lenders charging those types of rates), what justifies charging the merchants that much? How does the market become more efficient so the products are properly priced so the risk-adjusted returns achieved by funders accurately reflects and prices the actual risk?;

2) explain how renewing (and double dipping) a cash advance at those rates is sustainable for a business, and won't ultimately kill the business -- the math makes no sense. I don't know of any clients in this market that are operating at a combination of margin and growth rate that is in excess of 600%. The one time deals are fine -- it's the renewals that are the problem. If you have the answers, I'd gladly speak with you off-line, but not sure what the "secret" sauce you'd be disclosing on this forum given that Isaac already has disclosed the default rate (and your deal stats are your deal stats and pretty consistent with other high risk lenders). My full contact info is in my signature.

Again, this isn't solely a YSC question, if anyone can defend this type of product with math, I'd love to hear it. Products structured like this are predatory (unless you can explain to me how they aren't), and threaten the entire market -- the small businesses that receive the capital, the 1st position lenders being stacked (with the stackers frequently turning their capital multiple times before the first position even recovers principal), and the reputation of the whole space if painted with a single, high risk cash advance brush.