[Sean Cash]

I know some do this, but its really not common practice... and as Funding Pro said before, it is usually when they qualify for more than they took. What I am saying, is that the model would deter merchants from stacking in the long run... and to not consider it with an open mind, would be foolish... i mean, what are the statisics? what percentage of merchants that take this money are stackers? probably a lot more than any of us really think/realize... i would say over 50%... so, half your book has/is stacked... that sucks... we need to think of a way to stop them from WANTING to do it... the only way, is to be there to fill the coffers when they need it. if we say no, someone is going to say yes, bottom line...

I think the notion that higher approvals would deter merchants from stacking is a false one. We all know how a lot of these phone calls with merchants start off:

They want $1 million, get some sense talked into them that they might only qualify for $25,000 based on their sales, and then the deal closes for $15,000. Then another guy comes in and offers him $10,000 on top. If only the first guy had approved him for $25,000 right? Except the merchant was dreaming about $1 million when the conversation first started.

People are never satisfied when it comes to money. Everybody always wants more, more, more. If every company doubled their approvals tomorrow, the rate at which stacking occurred would stay the same in my opinion. We refer to merchant's desires as working capital needs, but once those needs are satisfied, something else is awoken: greed, opportunity, ambition...

If you only needed a $100,000 line to start an ISO, but a bank offered you a million dollar line, would you take it?