[WestCoastFunding]

There will be some form of regulation eventually. The real question becomes what kind, and can we do to make it beneficial? I believe rate, terms and stacking should be last on the list. First there should be some kind of process for companies to work as funders and ISO's. Once we do that, many of the bad players will be forced to get out. Once that is in place, there will be work on what fees can be charged. At that point, companies will be competing on rates, terms and positions, where the market will force out the dumb and weak funders. At that point, 90% of the problems the industry has will be resolved.

This approach is right on.

[jotucker1983]

John,

I have never seen you "propose" anything and if you did, I missed it thru all the negative attacks by your buddy. Or didn't read it because of all the negativity.Propose it again or post it if you like so I can see it and others. or post the link I will read it.

My proposal in terms of regulation?

I didn't have anything officially typed up, it was just a concept of us taking the leading charge on industry-wide regulation to put checks/balances in place, deal with the unethical nature of many players in the industry, have better disclosures of costs/fees/double dipping, as well as, put procedures in place to hire more efficiently AND have a centralized board that acts as a police man.

Right now the industry is the Wild Wild West. It's anything goes. That needs to stop. Plus there are no background checks being done on those being recruited into the industry, so all sorts of crooks, criminals, felons, etc., could be out here asking for a merchant's SSN, DOB, and Bank statements (the dream of an identity thief).

John you are a nice guy but I am scared of a guys proposals who thinks 2/3% commission is the right commission to charge when their is an industry with a 15-20% default ratio, maybe higher because some companies fudged the numbers or post massive losses to investors.

My specialization was A/B Paper, so it was a different market. My average deal was 2 - 6 points, very rarely would I do a deal over 6 points. But again, it was a different market. This structure also allowed for a very high rate of renewals, with many of my merchants renewing 5 (or more) years in a row.

If my specialization were 3rd - 7th position stacked deals, which includes higher levels of risk and a more eager/desperate merchant, then I'm sure my average points on a deal would have been 8 - 15 points. But the only stacked deals I would do were case-by-case 2nd position deals. When merchants get beyond 2nd position deals, you start to see cashflow issues where 25% - 35% (or more) of their gross sales are going to advance payments. That's bad.

The costs charged to the merchant depend upon the risk profile of the merchant. I'm not pushing for uniform costs nor am I pushing for uniform commissions paid to brokers, both of which depends upon the risk profile on the deal and other variables that shouldn't be "fixed".

I'm pushing for the things I listed above that's more centered around checks/balances.

[isaacdstern]

The New York State Assembly released their one house bill today and fully extracted Part BB and EE. I will let you know once the State Senate releases their version.

[isaacdstern]

The state Senate just released their bill and also extracted Part EE. Amazing work everyone who joined us in Albany 2 weeks ago for the CFC fly in.

[mcaguru]

!!

[fma123]

awesome work Isaac! thanks for the update!

[Karen37a]

Amazing Job. I am actually shocked that you all saw it coming thru a backdoor at almost the last second then got it done.

I said some things are "nearly impossible" . This is proof of the never say never concept.

Again great job !

[isaacdstern]

Brief: New York’s Attempt to Over-Regulate Lenders Downgraded to Doubtful

http://debanked.com/2017/03/brief-new-yorks-attempt-to-over-regulate-lenders-downgraded-to-doubtful

[AAlonzo]

Don't rest easy!

Isaac -- I respect you lots, but please hear me on this and ask Ed about me. I have major experience in this type of thing.

We need to be even more VIGILANT going forward! The fact they floated this out there is a sign that this is coming! They knew it would never pass on the initial go around -- but they have something to go on now after floating it! Best believe its coming! WHY? Because the BIG money players...I mean the BIIIGG money players: Google, Paypal, Amazon, American Express wants to dominate this and put the small guy out of business. And will use the uneducated merchants that signed off on it and then complained as the basis that it needs to be regulated.

I've seen it happen before.

Don't celebrate a half-victory -- it never was put out there to pass...but instead to test the resistance of the market to initiate the next bill when they come full force!!!

[isaacdstern]

We are all over this, definitely not kicking back and celebrating!

[Chambo]

isn't this exactly what is going on in Cook County, IL too?

[Karen37a]

Cook County is just one County of Illinois. Its coming out of the State Senate ,Springfield IL( which would be like upstate NY, but downstate for IL) for all of IL not just one county.

They have an ability to repay section in it. It says if you make a small business "loan" ( the word loan again) you cant exceed a payment of 50% of the net revenues as evidence by 6 month bank statements, 2 years tax returns, P and Ls and Balance sheets.
It also says if someone defaults they can't charge finance charges or interests or fees of any kind... ( this does not say any additional fees, ) They also worded it so traditional factoring companies can be in trouble.

if you are even breaking even you cant get additional funds for cash flow or growth. They are sinking the Illinois Merchants. People use Mcas to get needed cash flow when they cant get money elsewhere. Even if they are just breaking even or ahead of the curve. That's the whole purpose of getting an advance. If you are cash flush, 2 years tax returns, great banks you wouldn't need it or go to traditional lenders OR you can be A paper in our industry for faster funding.

So in other words. If you need money, and you are not already 100% established and stable..take a hike. Just like the banks.




http://www.ilga.gov/legislation/99/S...2865sam001.pdf

[Karen37a]

I just saw this Debanked Article.



http://debanked.com/2016/04/scorched...n-the-process/

[Sean Cash]

That bill ended up getting killed. Some people from this industry actually testified in a hearing on it.

I just saw this Debanked Article.



http://debanked.com/2016/04/scorched...n-the-process/

[CraaaCraaa Radio]

Amazing networking event at the Jacobs Javitz Center!!