[Vfunding]

I think you need time for the account to season because for the first 30-45 days, the money you're receiving back in remittances is essentially from the initial advance. You don't know if the merchant is actually credit worthy or not (unless the bank statements show his performance with another funder). After 60 days, you can probably determine that.

This is true in theory but how often do you look at a bank statement and see a $30k cash withdrawal the day after a $30k funding... An interesting stat is the % of defaults that occur in the first 30 days. We call these hit and runs.

[Funder Mark]

An interesting stat is the % of defaults that occur in the first 30 days. We call these hit and runs.

I had an $85k car dealer default in the first week.

[MCNetwork]

I had an $85k car dealer default in the first week.

These big hit and run guys are the reason you can't offer low rates. Just a handful of these scam artists can really screw a funder's portfolio.