[Kevin Henry-Seacoast]

why would High Risk feel squeezed by higher IR ? ?

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.