Results 1 to 25 of 158
Hybrid View
-
12-20-2016, 12:19 PM #1
- Join Date
- Nov 2014
- Location
- NYC
- Posts
- 21
-
12-20-2016, 03:35 PM #2
- Join Date
- Dec 2013
- Posts
- 4,713
why would High Risk feel squeezed by higher IR ? ?
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
覧覧覧覧覧覧覧覧覧覧覧覧覧
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
12-20-2016, 03:44 PM #3
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,508
maybe because most high risk lender's lines with their senior lenders are tied to LIBOR or Prime on a floating basis. If the floor goes up, the high risk lender most raise rates to keep up with margin. Not everyone has the luxury of low cost of funds.
Another note: If senior lenders keep having unpleasant experiences lending to high risk lenders, they will continue to reel back in capital from the industry which will cause prices on those lines to increase because of demand. In efforts to limit losses or retreat from the alternative lender market, it could have adverse effects on other types of alternative lending: factoring, equipment finance, purchase order finance, etc.... Some of the lender providing lines to the MCA/Cash Advance industry are also lending to other types of alternative lenders.
Similar Threads
-
What's your thoughts on these lenders?
By ks0807 in forum Merchant Cash AdvanceReplies: 5Last Post: 09-10-2015, 12:23 AM -
Thoughts on email/direct mail marketing??
By Sammy Cashman in forum Merchant Cash AdvanceReplies: 25Last Post: 03-26-2015, 12:27 PM -
$7500 Needed for Seasonal Merchant - Any thoughts?
By Steven_O in forum Deal BinReplies: 6Last Post: 01-23-2015, 12:59 PM -
Thoughts? Stacking Article on Forbes
By LendioCEO in forum Merchant Cash AdvanceReplies: 5Last Post: 12-10-2014, 02:15 PM -
Your Thoughts Of What Occured
By 1StopFunding in forum Merchant Cash AdvanceReplies: 11Last Post: 04-23-2014, 06:35 PM