[jotucker1983]

John and Zach,

I understand what you guys are saying. Me personally though, I stay away from discussing interest rates at all unless the deal is structured as an alternative business loan. I do know the MCA deals with a daily payment are "tricky" from a legal standpoint though, but I still don't mention anything about interest rates even when I have those deals on the table.

When a merchant brings up an APR on an MCA, I just move the conversation back to the "cost for capital" of the individual deal we are doing. So if that's a $50k deal with a 1.20 factor over 6 months, I pinpoint that the "cost" of this transaction is $10,000.

[Zach]

John and Zach,

I understand what you guys are saying. Me personally though, I stay away from discussing interest rates at all unless the deal is structured as an alternative business loan. I do know the MCA deals with a daily payment are "tricky" from a legal standpoint though, but I still don't mention anything about interest rates even when I have those deals on the table.

When a merchant brings up an APR on an MCA, I just move the conversation back to the "cost for capital" of the individual deal we are doing. So if that's a $50k deal with a 1.20 factor over 6 months, I pinpoint that the "cost" of this transaction is $10,000.

Agreed -- that is universally agreed upon as the best way to sell the transaction.

The APR comments were in reference to the tirade brought upon us by Mr. Craig McGrain regarding 75% interest being unsustainable to small businesses.

[jotucker1983]

Agreed -- that is universally agreed upon as the best way to sell the transaction.

The APR comments were in reference to the tirade brought upon us by Mr. Craig McGrain regarding 75% interest being unsustainable to small businesses.

Yeah I know. Craig should know better though, I mean after all his main business is factoring.

[J.Celifarco]

John and Zach,

I understand what you guys are saying. Me personally though, I stay away from discussing interest rates at all unless the deal is structured as an alternative business loan. I do know the MCA deals with a daily payment are "tricky" from a legal standpoint though, but I still don't mention anything about interest rates even when I have those deals on the table.

When a merchant brings up an APR on an MCA, I just move the conversation back to the "cost for capital" of the individual deal we are doing. So if that's a $50k deal with a 1.20 factor over 6 months, I pinpoint that the "cost" of this transaction is $10,000.

Joe I do the same thing and completely agree with you.. The only time I ever say anything about APR is if asked specifically and have no choice.. The only reason I brought it up was the ridiculous statement by Marcus that he tells the merchants "THE TRUE COST OF FUNDING" on funding calls, which was obviously untrue