[NewFunder80]

Hello all,

I am glad a found this forum. I have found some of the information here very helpful. I wanted to share my experience and ask a few questions.

Our company started funded deals about 45 days ago. We are off to a good start so far. Over 10 deals funded so far.

Have two questions:

How do most funders handle cash flow? Meaning do funders usually "reinvest" collected monies into other advances or just wait until the advance finishes?

Defaults and fraud:

Had one merchant approved for an advance and then it appears closed the business down about 1 week later. Another merchant closed their bank account and has not provided another one.

How are you guys handling defaults? We are taking the collections route, calling and sending letters. At some point have any of you guys actually sued the merchant? How did the law suit go? Because the advance is under the state limit we were considering using small claims court. Just wondering if anyone has actually taken a merchant to court?

Or perhaps other funders are just writing off the debt and still turning a profit. I just hope that merchants cant just default and we have no recourse????

Advice please.

[FUNd]

You're lending money to people and have to come on a public internet forum for legal advice? Wow...just wow...

[Michael I]

i want to sign up with you asap .

[Chambo]

I'd have to agree. You should have had your collections department all set up and ready to go. Those deals that blew you up, sounds like all you can do is send to collections.

As far as daily receipts...HELL YEAH you reinvest them into other deals!

[Funder Mark]

This is pathetic. Before you fund any more deals, why dont you work as an ISO, syndicate on all your deals, see how those deals turn out, see how their collections work, and THEN fund your own deals? You know, do what people call due diligence?

[Michael I]

This is pathetic. Before you fund any more deals, why dont you work as an ISO, syndicate on all your deals, see how those deals turn out, see how their collections work, and THEN fund your own deals? You know, do what people call due diligence?

shhhh i want to fund with them while they dont know how to underwrite

[FUNd]

I'm betting dollars to donuts they don't even have a lender's license.

[mcaguru]

Hello all,

I am glad a found this forum. I have found some of the information here very helpful. I wanted to share my experience and ask a few questions.

Our company started funded deals about 45 days ago. We are off to a good start so far. Over 10 deals funded so far.

Have two questions:

How do most funders handle cash flow? Meaning do funders usually "reinvest" collected monies into other advances or just wait until the advance finishes?

Defaults and fraud:

Had one merchant approved for an advance and then it appears closed the business down about 1 week later. Another merchant closed their bank account and has not provided another one.

How are you guys handling defaults? We are taking the collections route, calling and sending letters. At some point have any of you guys actually sued the merchant? How did the law suit go? Because the advance is under the state limit we were considering using small claims court. Just wondering if anyone has actually taken a merchant to court?

Or perhaps other funders are just writing off the debt and still turning a profit. I just hope that merchants cant just default and we have no recourse????

Advice please.

I don't know were to start. if you cant afford to have losses than please hold off darting wires until you have all your questions answered, i watched to many funders come and go blowing up 6-7 digits of losses in a 2 month period.

PS i don't see a license relevant to making or losing in MCA....

[Funder Mark]

shhhh i want to fund with them while they dont know how to underwrite

Reminds me of Cap Assist when they first opened, must be over a year ago now, they funded 2 nice deals for me, no login, within 3 months both defaulted. I am not saying causality, but shoddy underwriting definitely exists.

[Funder Mark]

PS i don't see a license relevant to making or losing in MCA....

I beleive that was the point...

[FCG]

lmao

[Funder Mark]

Its one thing for anyone to become an ISO. When idiots like this start becoming funders, thats when you KNOW we are in a massive bubble...

[FUNd]

PS i don't see a license relevant to making or losing in MCA....

Except that you legally have to have one to lend money commercially. Other than than, no, not relevant at all.

[BankComplianceGuy]

Hello all,

I am glad a found this forum. I have found some of the information here very helpful. I wanted to share my experience and ask a few questions.

Our company started funded deals about 45 days ago. We are off to a good start so far. Over 10 deals funded so far.

Have two questions:

How do most funders handle cash flow? Meaning do funders usually "reinvest" collected monies into other advances or just wait until the advance finishes?

Defaults and fraud:

Had one merchant approved for an advance and then it appears closed the business down about 1 week later. Another merchant closed their bank account and has not provided another one.

How are you guys handling defaults? We are taking the collections route, calling and sending letters. At some point have any of you guys actually sued the merchant? How did the law suit go? Because the advance is under the state limit we were considering using small claims court. Just wondering if anyone has actually taken a merchant to court?

Or perhaps other funders are just writing off the debt and still turning a profit. I just hope that merchants cant just default and we have no recourse????

Advice please.

This forum is the gift that keeps on giving. Who or where did you get your capital to start??? Is this your business pitch?

https://www.youtube.com/watch?v=j849cNSbVGo

[J.Celifarco]

Hello all,

I am glad a found this forum. I have found some of the information here very helpful. I wanted to share my experience and ask a few questions.

Our company started funded deals about 45 days ago. We are off to a good start so far. Over 10 deals funded so far.

Have two questions:

How do most funders handle cash flow? Meaning do funders usually "reinvest" collected monies into other advances or just wait until the advance finishes?

Defaults and fraud:

Had one merchant approved for an advance and then it appears closed the business down about 1 week later. Another merchant closed their bank account and has not provided another one.

How are you guys handling defaults? We are taking the collections route, calling and sending letters. At some point have any of you guys actually sued the merchant? How did the law suit go? Because the advance is under the state limit we were considering using small claims court. Just wondering if anyone has actually taken a merchant to court?

Or perhaps other funders are just writing off the debt and still turning a profit. I just hope that merchants cant just default and we have no recourse????

Advice please.

wow talk about doing things backwards.. Generally a business plan, cash flow evaluation, and collection methods are things and company decides on and looks at before starting to lend money.. Get your **** together before you lose everything you already have invested

[AndyYSCISOdept]

wow talk about doing things backwards.. Generally a business plan, cash flow evaluation, and collection methods are things and company decides on and looks at before starting to lend money.. Get your **** together before you lose everything you already have invested

I suppose we all have to start somewhere, and by somewhere I mean at the bottom of a huge hill to climb.

[Funder Mark]

I see a Debanked article in the near future, describing how to start ISO's and funding companies. This guy here is a perfect example of how to NOT start a funding company.

[Funder Mark]

I suppose we all have to start somewhere, and by somewhere I mean at the bottom of a huge hill to climb.

This guy dug a pit at the bottom of the mountain, by not planning ahead.

[FUNd]

There is probably no worse time than now to open an ISO or become a lender with no industry experience.

[AndyYSCISOdept]

This guy dug a pit at the bottom of the mountain, by not planning ahead.

In the words of my father, "Success is hard enough to come by, don't start by grabbing a shovel and digging a deeper hole"

[mcaguru]

Except that you legally have to have one to lend money commercially. Other than than, no, not relevant at all.

MCA not a loan.

[TStein]

I suppose we all have to start somewhere, and by somewhere I mean at the bottom of a huge hill to climb.

Instead of grass this hill must have nails.

When I started funding directly I made sure that I had everything covered. Lawyers, collections, the process vetted by more experienced funding houses, etc. Going in blind is completely idiotic.

[FUNd]

MCA not a loan.

Yes it is. On it's face and by pure definition:

loan
lōn/Submit
noun
1. a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
"borrowers can take out a loan for $84,000"
synonyms: credit, advance; More

[mcaguru]

Yes it is.

debanked.com/2016/06/merchant-cash-advance-definitely-not-a-loan-new-york-judge-rules/

[FUNd]

debanked.com/2016/06/merchant-cash-advance-definitely-not-a-loan-new-york-judge-rules/

I don't care what some lower court judge's ruling was, that does not end the debate.