[Cshoke]

I ask this question because I have a client I have been working with for about 2 years now and the lender I've been working with does not discount on MCA renewals.

The buy rate at 12 months is a 1.26, would like to possibly get him additional money where the lender will discount his remaining balance whenever he renews. I could see this merchant renewing for multiple years in a row.

Merchant owns a restaurant that grosses approximately 3.5 million a year, the business is seasonal, summer months are bringing in about 600-700k. For this specific reason he only wants a credit card processing deal, daily won't work for him.

[Cfairbank]

Unfortunately, most short term lenders and cash advance companies don't waive outstanding interest / outstanding margin income in renewals (this is double dipping, and as most people on this board know, double dipping is something I think is one of the worst aspects of the space). OnDeck, TBB, BFS, and Breakout (us) are the four firms I know of that don't double dip (other than the longer term, fully amortizing lenders such as Fundation). TBB and Breakout both offer a revolving line of credit-type feature where the merchant can draw additional capital at anytime (you don't have to wait for 50% paid down and all outstanding interest (assuming they are in good standing) is waived in a renewal (TBB does this slightly differently) -- not accelerated).

Edit to note: I missed the split requirement. Try TBB or us.

[Cshoke]

Thanks for the response, I noticed you mentioned BFS which I know will discount the outstanding interest on their loan product, but not their MCA product. OnDeck same story because they don't even offer MCA's. That's the issue with this particular merchant because it has to be through his processor.

[Cfairbank]

who is the merchant processing with? Try TBB or us, though we primarily do loans -- cash advances are a small segment of our business, but we still don't double dip our cash advances. Since cash advances are not our core business (and our pricing reflects it), you'll candidly likely get a better deal from TBB, but we are also happy to take a look -- though if it's an A paper file, we still should be able to beat or match 1.26x buy (again, assuming file is clean).

[Zach]

I ask this question because I have a client I have been working with for about 2 years now and the lender I've been working with does not discount on MCA renewals.

The buy rate at 12 months is a 1.26, would like to possibly get him additional money where the lender will discount his remaining balance whenever he renews. I could see this merchant renewing for multiple years in a row.

Merchant owns a restaurant that grosses approximately 3.5 million a year, the business is seasonal, summer months are bringing in about 600-700k. For this specific reason he only wants a credit card processing deal, daily won't work for him.

TBB can structure staggered payments for some borrowers.

[skideeppow]

can someone post up TBB contact info.

Thanks