[MCAVeteran]

That's an excellent report very detailed. Direct business grew 400 perc and broker bz 80 perc YOY-

[Joseph Esparza]

Are they disclosing that these asset classes are subject to stacking and therefore creating addtl risk for the investor marketplace?

That was a great question, likely not. As I can assure you that selling that portfolio was only part I of the master plan. Stacking as we know it, will find it's place as first positions settle into a comfort zone with investors.

[Sean Cash]

stacked merchants are not eligible to be sold:

"Such Obligor is not a party to any other loan or advance arrangements similar to those provided by the Seller with another lender or advance provider, in each case that lends or advances funds based on such Obligor’s future collections or credit card receipts"

Of course what happens after the loan is sold is beyond their control.

[Joseph Esparza]

True that [for now] but, we've learned that portfolios are blended into derivatives and that point who knows what they may be comprised of in the near future. First A paper, then A&B, then A&B&C and so on...

[staten]

stacked merchants are not eligible to be sold:

"Such Obligor is not a party to any other loan or advance arrangements similar to those provided by the Seller with another lender or advance provider, in each case that lends or advances funds based on such Obligor’s future collections or credit card receipts"

Of course what happens after the loan is sold is beyond their control.

I imagine they are relying on their contracts for that statement. Impossible to review over 5000 bank statements to look for stacking prior to submitting to pool. That said the default ratios are extremely low but expressed on a net basis not gross.

[ADiamond]

change is progress, I suppose.

[MCAVeteran]

What do they mean bank of internet originates the loans in 5 states? As in the are funding it and than sell it back to on deck? The origination is still coming from brokers and direct marketing though? B of I is simply the vehicle used to avoid usury in those said 5 states

[c4bfunding]

OnDeck is well on its way to becoming the top business cash advance company. Too many MCA companies are wasting weeks evaluating a single merchant for a cash advance that's set to be repaid in a matter of months. OnDeck using the common sense approach by working quickly. They're delivering funding 24 hours while other companies are only promising it, making use the advanced technology needed to speed up approval and funding processes. They will continue to rise with these practices.

[Capital Stack]

Joe, if your prediction is correct then a case could be made we can see a securitization on 2nd to 5th position deals. Granted depending on the size of the market as it expands from its infancy . But imagine if there is that appetite by secondary market buyer's. Who know?

This sale was groundbreaking for MCA!!

True that [for now] but, we've learned that portfolios are blended into derivatives and that point who knows what they may be comprised of in the near future. First A paper, then A&B, then A&B&C and so on...

[cashguy]

Sean

you can sell the cash flow as long as there is a buyer my friend

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[JayBallentine]

Usually reserves are used to upgrade the rating of the tranche rather than to hedge against poor performance during the marketing of said tranche.

OnDeck has issued a reserve on each tranche which is "different" and to us it signifies that they did this as a risk control measure as opposed to what is generally a "marketing ploy." Additionally, given that these securities are backed by essentially "air," you gotta believe that Deutsche Bank got a great deal on this purchase.... An insanely great deal.