Results 1 to 25 of 30
-
11-29-2016, 05:06 PM #1Karen37aGuest
Wells pulling credit lines
My friend Happy Horsht on these posts said that Wells is probably getting hit by every regulator known to mankind because of their shenanigans and FDIC money should not have been in this business to begin with.
This is why I have stated that MCAs need to run lean and mean...no 7 vice presidents, executive vps , svps.
Going Ipo my arse.
People speculating on why I didn't want regulation...this is why ( didn't think it would happen this soon)Last edited by Karen37a; 11-29-2016 at 05:35 PM.
-
11-29-2016, 07:12 PM #2Karen37aGuest
As I have stated in the past over and over and over to be attacked. Regulation will doom the industry because the Money will dry up. Credit Lines will be pulled . Investors shy away . hedge funds have fiduciary responsibilities to their clients and their are suitability tests..less money to lend = less money = higher rates.
A paper who built their business model on low low under par value $$ get hit first and funny enough, its the brokers who can sell at the higher rate, that you were trying to knock out of the game they are left.
Ive raised money into the anticipated downturn.
Lets see you sell ( raise money) into a down market , use your patented ben franklin drop close with a half twist..
Comment is not to all companies..just one.
-
11-29-2016, 07:16 PM #3
I highly doubt this had anything to do with regulation. There is no regulation.
-
11-29-2016, 07:18 PM #4Karen37aGuest
The banks lending the money pull credit lines most likely because of the bad bank accounts and fraud they committed...they have regulators on them so they cant just lend freely.
Not mca regulation...banking. Banks pull their credit lines back so there is less money. And they put the Lenders under increased scrutiny .
Mca regulation would bankrupt people totally..not all, there is hedge fund money and private accredited investors.
Which is why I was and am against it. BUT I will come up with hedge fund money from friends, just at a higher cost $$, ive been pledged 10 mill..regulation scares my investors away..and I have to pass a securities exam again. Not too hard to do.Last edited by Karen37a; 11-29-2016 at 08:47 PM.
-
11-29-2016, 07:42 PM #5
I haven't gotten any confirmation that this is related to Wells Fargo. Only statement from CAN thus far has been that they 'self-identified' issues and are taking appropriate actions. I know that's corporate speak but...
-
11-29-2016, 08:00 PM #6
Reputation points: 5023
- Join Date
- Apr 2015
- Location
- Florida, First MCA sold in 85/ WS in 76. CFP/RIA, series 3,6,7,8,10,63,Ins218,220.
- Posts
- 554
I spoke to a rep that I work with for factoring at what used to be Capital Funding ( a very large factor) acquired by WF 5 years back. He said "he heard" that Can violated certain covenants and the losses were too high and that under the current climate it was time to move on. I luckily, was already moving my Can book because of the lack of service/turnover and the low renewal commissions as I said prior in this forum.
-
11-29-2016, 08:15 PM #7Karen37aGuest
John,
I heard something similar..but..i know of someone else who is in trouble under the certain climate....fear of regulation
And yes John I have seen you state that in the pastLast edited by Karen37a; 11-29-2016 at 09:30 PM.
-
11-29-2016, 08:16 PM #8
Reputation points: 3087
- Join Date
- Apr 2013
- Posts
- 117
-
11-29-2016, 08:37 PM #9Karen37aGuest
staten you might be right, I was hoping for the best...smh
Maybe they just didnt post enough earnings lol ..the nerve of people to take commissions away.
I never put my deals in there because I was warned way in advance they were going to cut commission, wasn't sure if it was true but did not want to chance it.
Well I hope they pull out of itLast edited by Karen37a; 11-29-2016 at 08:44 PM.
-
11-29-2016, 09:05 PM #10Karen37aGuest
Can Capital....Parris Sanz The Chief Legal officer and Compliance officer is stepping in to be acting Ceo....citing collections and underperforming assets
These Lending companies including On deck are citing competitions and concerns that regulators will clamp down on their business model
And the regulation lie becomes the truthLast edited by Karen37a; 11-29-2016 at 09:11 PM.
-
11-29-2016, 09:10 PM #11
Reputation points: 503040
- Join Date
- Oct 2016
- Posts
- 4,318
-
11-29-2016, 09:13 PM #12
Reputation points: 503040
- Join Date
- Oct 2016
- Posts
- 4,318
-
11-29-2016, 09:15 PM #13Karen37aGuest
West coast., they are the ones who said regulation will clamp down NOT ME, look at the press release tomorrow ..like tranches the big short. The reality is you cant sustain a business model with the rates that low..
Period the end. Cant be done...rate rate rate everyone running around not able to sell MCAs at a sustainable rates so they drop rate and call us rip off artists etc . Tell us we have no ethics.
No Ethics because I KNEW you cant sell a MCA that low.
( and not you west coast )
Regulation concerns and too low rates...which is what I said would be the demise of everyone. I am not the Lender...why wouldnt I want the lowest rates possible???Last edited by Karen37a; 11-29-2016 at 09:33 PM.
-
11-29-2016, 09:37 PM #14
Reputation points: 3087
- Join Date
- Apr 2013
- Posts
- 117
Absolutely lying about default rates. Looks like CEO, CFO and CRO. Board not on top it. QED and Accel clueless.
-
11-29-2016, 09:38 PM #15
Reputation points: 5023
- Join Date
- Apr 2015
- Location
- Florida, First MCA sold in 85/ WS in 76. CFP/RIA, series 3,6,7,8,10,63,Ins218,220.
- Posts
- 554
It is only a redistribution of wealth. Competition brings out the best. The strong will survive. Funding Ops will have to finally work closer with reps or die. Just like in insurance, the big carriers that thought they could get rid of the independent...were wrong. They needed agents. But reputable honest ones (sortof). There will always be price shoppers online but those that want an experienced expert will still call. Experts will align themselves more closely with Funders/banks to hone down the suspect/prospect/sale. The professionals usually thrive and take the redistribution. Put me or an expert against the $15 an hour clerk or sales person....hmm. Dream on. People want a hand holder that is experienced and seasoned to know and explain all the ripoffs in this industry instead of the boiler room types without seats that are ignorant purposely because the ISO owners don't want the kids to know and become competitors in a career without a price of entry.
-
11-29-2016, 09:44 PM #16Karen37aGuest
I agree John. I had said in a previous post once Lenders cut isos they are on their way out, either because of arrogance or financial difficulty. Now they could spook isos to pull deals until implosion...this is when they Isos say..I want more money like poker...they raised, re raise.
( and some smaller Lenders are in the driver's seat temporarily , remember I am your friend lol)
And That Accel Venture firm I think has 8 partners, 8 principals and who knows how many additional venture firms attached to it ...hard to watch the moneyLast edited by Karen37a; 11-29-2016 at 09:51 PM.
-
11-29-2016, 10:24 PM #17
Reputation points: 5023
- Join Date
- Apr 2015
- Location
- Florida, First MCA sold in 85/ WS in 76. CFP/RIA, series 3,6,7,8,10,63,Ins218,220.
- Posts
- 554
A good analogy, notice those great insurance companies like Geico, Progressive, State only sell B2C, not B2B which needs a more seasoned professional....same here. Business owner* Want a 40% MCA for 90 days that you might be able to improve rates or terms on (?), that the boiler rooms are selling or maybe, just maybe, is there another product out there..longer term, better rates...ok, maybe not today, so we have to work on increasing your paydex by forcing you to deal with reporting vendors, change your personal profile with credit remediation both personal and business.....hey wait a minute where'd the boiler room enterprise go? Sorry, the boiler rooms will either change their systems or go the way of the Cans....etc. Same as the Cans.
Last edited by John Galt; 11-29-2016 at 10:27 PM.
-
11-30-2016, 12:47 AM #18
Reputation points: 8656
- Join Date
- May 2015
- Location
- NYC
- Posts
- 197
Call me foolish but I don't think this space will ever run out of money. Pull the bank LOC'S and some fund or capital firm will fill that void.
Several of my fund/equity investors constantly tell me how much they love this industry.
Wake up calls need to happen though. We saw it with LC and now we'll see it in our space.Last edited by TStein; 11-30-2016 at 12:52 AM.
Tommy Stein
-
11-30-2016, 07:36 AM #19Karen37aGuest
you are right Tstein BUT ask the equity investors how much they love industries when CEO's step down because they lie about the quality of their paper or financial health well being
I said along time ago..people are watching the industry...future investors as well. I know my Venture capital friends are. Wouldn't you?
-
11-30-2016, 08:22 AM #20Karen37aGuest
I am just amazed at this...people pointing fingers. Bad pricing, underwriting and forcing "good brokers"
to compete against Air...how fair was it/is it to price below par value and make us all suffer trying to explain why the rates cant be that low .
I am waiting on 4 pay off letters and a zero balance. When people do not turn over these things it can affect their ability to perfect ucc liens going forward.
That should be the next thing thats cleaned up...that and passing the original merchant application from one ISO to another lender, then backdooring the sale..you better get a new signature, new application if that's anyones selling strategy.
I feel bad for the people whos books are trapped in there. And this is why i said in the past there is no regulation on the face of this earth that will ever make me sign on with certain companiesLast edited by Karen37a; 11-30-2016 at 08:24 AM.
-
11-30-2016, 10:08 AM #21
Reputation points: 2126
- Join Date
- Apr 2016
- Location
- Florida
- Posts
- 133
FYI FT article...
The company also said that it put a pause on generating new business until the end of the year, instead focusing on servicing current customers. It expects to resume growth in originations in 2017.
“It became clear that our business has grown and evolved faster than some of our internal processes,” CAN said.
“There are 1,000 ****ty ways to acquire a . . . customer,” . “We have to eliminate all of them.”
New York-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after an internal review found that “some assets were not performing as expected and there was a need for process improvements in collections”.
-
11-30-2016, 11:22 AM #22
Reputation points: 3087
- Join Date
- Apr 2013
- Posts
- 117
Look- the likelihood that CEO, CFO and CRO were hiding losses is 99%. Dan fired the fomer CFO in under a year. ?So Lending Club and Can blow ups were the result of fraud. DBRS fail but rating agencies are for sale, so of course are the auditors in this space. Who is Can's auditor?
-
11-30-2016, 03:04 PM #23
Reputation points: 13031
- Join Date
- Jun 2014
- Posts
- 541
Other than the rumor mill, is there any indication of that this is anything other than WF pulling a line because covenants were violated and/or loss ratios exceeded? A funder loosing their line is not a new concept to our industry. Other than the raw dollar amount, is their any public disclosures suggesting something radically different has occurred?
-
12-01-2016, 09:11 AM #24Karen37aGuest
Its hard to post something that you believe to be 99% true, then have them turn it around ...which they can...then them say "that wasn't the reason"
They stated the Ceo is on "leave" the chief compliance officer and legal officer is the new interim Ceo. No one makes a compliance officer the head Ceo and halts new funding unless its serious.
They stated they wanted to "identify underperforming assets and focus on collections"...collections, defaults?
..and i only hear the $$ things from the Financial/investing/hedge fund side .
Legal Compliance stepping in, Ceos walking off is not normal everyday move
-
12-01-2016, 07:47 PM #25
Is Wells pulling lines on any funders besides Can?
Similar Threads
-
lenders pulling credit
By Michael I in forum Merchant Cash AdvanceReplies: 39Last Post: 09-06-2016, 02:05 PM -
LInes Of Credit
By themoneyguy in forum Business LoansReplies: 5Last Post: 04-28-2016, 04:07 PM -
Looking for BUSINESS LINES OF CREDIT!
By qualifiedsub in forum Deal BinReplies: 6Last Post: 02-16-2016, 06:45 PM -
Pulling owner's credit bureau & D&B
By MTY MSI in forum Merchant Cash AdvanceReplies: 1Last Post: 11-02-2014, 04:50 PM -
credit repair / credit lines
By omegafund in forum Financial ServicesReplies: 1Last Post: 10-14-2014, 06:51 PM