[jotucker1983]

How do you do a collateralized deal @ 1.50/

I never quite understood these types of deals either. If the merchant is putting his house on the line, why is the pricing still at 1.30 - 1.50, with a short term of 6 - 12 months?

One of the arguments I make to merchants on why my standard advance/alt. loan rates are so high, is because the funding is unsecured. It would seem as though if the merchant put security on the deal, the pricing would go way down and the term would be extended.