[Jonathon]

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.

From my experience in the past with WBL it allows the merchant to get a larger approval amount, typically 2X the amount of an unsecured offer.

[Miller192]

From my experience in the past with WBL it allows the merchant to get a larger approval amount, typically 2X the amount of an unsecured offer.

So payback is based on what? The collateral or the ability to re-pay the loan? Sounds like an loan-to-own operation.

I saw a WBL default recent where they had a second mortgage recorded that exceeded the real property value. The attorney handling the default couldn't figure out how they were going to get their money back.