[mcg168]

Other companies are not going to be that interested in the book when the best deals have been refi out to 24-36 month deals hich most companies aren't comfortable doing.. The most valuable thing they have to sell ids their data, the book of business is not worth as much as you would think if all the best deals are cheap long programs with small profit margin

CAN has never done 36 month deals. They just started going out to 18 months in the last 2-3 years. The 24 month deals were few and far between, and they essentially stopped those turns last spring.

If you looked at their entire portfolio, the average deal length is going to be under 14 months.

[J.Celifarco]

CAN has never done 36 month deals. They just started going out to 18 months in the last 2-3 years. The 24 month deals were few and far between, and they essentially stopped those turns last spring.

If you looked at their entire portfolio, the average deal length is going to be under 14 months.

retention pricing for existing customers, i thought these deals went out 36 months. I could be wrong but i have been told numerous times they they did these. That said if the average deal in the portfolio is over 12 months when the majority of the industry max term is 12 months that is going to greatly reduce the value of the whole book..

[mcg168]

retention pricing for existing customers, i thought these deals went out 36 months. I could be wrong but i have been told numerous times they they did these. That said if the average deal in the portfolio is over 12 months when the majority of the industry max term is 12 months that is going to greatly reduce the value of the whole book..

Retention pricing was rolled out in the summer of 2014 and the max term on those programs was 12 months. A few months later they allowed retention to go out to 15 months. It wasnt until this time last year that 16 - 24 month programs were available for retention pricing. Obviously those terms were available with them prior, just not on the retention program and the pricing prior to retention was similar to OnDeck, IOU, ect.

They stopped doing 22, 23, 24 month programs altogether this past summer.

I have never seen a 36 month program....the longest I ever saw was 24 and they were not very common, mostly reserved for doctors.

[J.Celifarco]

Retention pricing was rolled out in the summer of 2014 and the max term on those programs was 12 months. A few months later they allowed retention to go out to 15 months. It wasnt until this time last year that 16 - 24 month programs were available for retention pricing. Obviously those terms were available with them prior, just not on the retention program and the pricing prior to retention was similar to OnDeck, IOU, ect.

They stopped doing 22, 23, 24 month programs altogether this past summer.

I have never seen a 36 month program....the longest I ever saw was 24 and they were not very common, mostly reserved for doctors.

I am almost positive you are wrong, I didnt work with them but my brother has done a bunch of business with them and has spoken about 36 month offers and fundings he did with them.. Either way what ever the program was wont help them moving forward

[FUNd]

CAN has never done 36 month deals. They just started going out to 18 months in the last 2-3 years. The 24 month deals were few and far between, and they essentially stopped those turns last spring.

If you looked at their entire portfolio, the average deal length is going to be under 14 months.

CAN absolutely does (or did) 36 month deals.

[GSilverman]

So let's do the math....On average, if 1.5% of their book naturally matures every week, in 7 weeks about 10% of their book has evaporated.

[CreditGuy]

So let's do the math....On average, if 1.5% of their book naturally matures every week, in 7 weeks about 10% of their book has evaporated.

That would put the average duration of their portfolio at 15 months. There's no way it is that long.

[mcg168]

CAN absolutely does (or did) 36 month deals.

You funded a 36 month program with them?? I never saw or heard of these offers.

[GSilverman]

add in payoffs and maybe 15% of their book is gone. Every week of non-renewal activity 1.5%-2% of their book evaporates.

Time is Ticking

[mcg168]

add in payoffs and maybe 15% of their book is gone. Every week of non-renewal activity 1.5%-2% of their book evaporates.

Time is Ticking

I hear you...they are def losing deals off their book, what percent is anyones guess. The most important thing to CAN was getting back in good standing on their credit lines and didnt Sean put an article out saying they had a $200mm payment due?? So competitors paying off their deals early at a rapid pace must have helped their current cash situatin.

[Sean Cash]

CAN absolutely does (or did) 36 month deals.

FUNd is alive!!

[J.Celifarco]

FUNd is alive!!

I may have to agree with Sean here and say that the return of Fund is the best part of this thread so far.. and MCG yes they have done 36 month deals

[mcg168]

I may have to agree with Sean here and say that the return of Fund is the best part of this thread so far.. and MCG yes they have done 36 month deals

Not calling you a liar, at all, but I've never seen these 36 month offers....Out of curiosity, what were the buyrates/factors?

[J.Celifarco]

Not calling you a liar, at all, but I've never seen these 36 month offers....Out of curiosity, what were the buyrates/factors?

Dont know exactly or remember and being they arent funding and even if they do come back (which I doubt) they wont be doing 36 month deals anymore it really doesn't matter..
Either way the short version of the story is CAN is in deep trouble and needs a miracle to find their way out of this..

Reputation ruined because of fraudulent reporting on deal performance- makes coming back from this twice as difficult because nobody will want to give them money

Any value their years of data had is ruined for the same reason

and they are being sued by Wells as well as any other investors they had probably so they may be bankrupt from law suits before they ever have a chance to rebuild

These are mostly assumptions on my part but based on the information we have from the articles that have been written I think I am pretty close to what s going on and what will happen

[GSilverman]

Agree 100%

[FUNd]

FUNd is alive!!

I may have to agree with Sean here and say that the return of Fund is the best part of this thread so far.. and MCG yes they have done 36 month deals

Yep, still here. Was out for a minute, and missed the CAN debacle. Kind of a big hit to the space. Hope you all are well.

[J.Celifarco]

Yep, still here. Was out for a minute, and missed the CAN debacle. Kind of a big hit to the space. Hope you all are well.

Fund, am I crazy or did CAN definitely offer 36 month deals

[FUNd]

Fund, am I crazy or did CAN definitely offer 36 month deals

Yes CAN definitely did and piggybacking on another comment, it was an A+1 Medical deal and had to go through large funding approval. It was a nail-biter. (only time I ever saw 36 months come across my desk from CAN)