[Michael I]

Have a merchant that in all my years doing this this is the first time i experienced something like this. I am in complete shock.
I sent the merchant an email asking for an update on the contract i sent him and this was his response.
"Michael,
My lawyer is currently reviewing the contract and fine print.I only plan on paying back the principal plus 10% so i just want to make sure there is no personal guarantee.In the meantime please see attached all the other stipulation that you asked for.
How quick is the processes once i sign?
Thank you for all your time and patience! "


I am lost for words on what to even respond back, this contract was for a first position paying off the current lender that he has a balance with.

[J.Celifarco]

WOW.. thats all I got

[MCNetwork]

I'd like to listen in on that funding call...

[CreditGuy]

That deal is going in the bin, right?

[FCG]

lmaooooooo ! love those type of merchants.

[Michael I]

That deal is going in the bin, right?

yes of course ,i will never fund someone knowing that fact even though the default will happen after 30 days.

[Vfunding]

I would like to know how the merchant decided 10% is the fair #. Why not 7% or 11%? This is a winner of a merchant you've got there :-)

[WestCoastFunding]

I hope this merchant goes out of business.

[Christian]

Points for honesty...

[ridextreme]

did you talk with him about an early payback discount? Maybe he means the principle plus 10% interest

[Chambo]

did you talk with him about an early payback discount? Maybe he means the principle plus 10% interest

No...sounds like the merchant is trying to dictate the terms of the agreement

[MCAVeteran]

are you getting double digit commissions for that deal?

[JSL23]

Yeah, he sounds like a lot of fun! I have had plenty of Merchants try to dictate terms BEFORE contracts and several who try to haggle after requesting contracts but never one with the nerve to say that!

If it is a quality 1st position type of offer there are times where, if you count early payment incentives I've seen it go down to 1.12-1.16...don't know if that is a possibility for you but maybe that can get him back with the program.

There is also the possibility he is a total idiot who can't read a contract and is delusional enough to think that can happen.

[Michael I]

and it gets better .i was moving him from a 6 month 1.4 to a 15 month 1.4
i emailed him that
John
I can not move forward with this is if you do not plan on paying it. What we can do is keep the daily payments at what you were currently paying and lower the rate to a 1.2 factor. If we do this it will be $52,000 with a total payback of $62,400 minus your current balance . Please let me know your thoughts.
His response
"
Michael that will not help me FYI, I have stopped my payments with this loan,as of today, and plan to only pay them principle only... If they don't except terms, then they get nothing.

I share this with you because I am considering closing my business. The loans from company's like yours have done nothing but hurt my company. Bottom line is my attempt to grow my company was squashed by expensive capital.

It's time me to move on, as there is no way for me to save my company under these current lending terms.

Thank you for all your time and effort!

[nrh1lp]

well sounds like he killed all hopes for a renewal...

[Sachip24]

saved yourself a default

[Chambo]

the truth comes out. IT wasn't about him being pissy with his attorney. His margins cannot afford a cash advance and he is circling the drain

[Chambo]

saved yourself a default

Sounds to me like he already defaulted by stopping payments on current balance

[WestCoastFunding]

I guess he's blaming everyone but himself.

[HDF]

The merchant and his lawyer (likely by proxy too) seem to be ready to throw the term "Loans" around a bit haphazardly. Good for you (if you funded the guy before) that this is in writing.

[Michael I]

The merchant and his lawyer (likely by proxy too) seem to be ready to throw the term "Loans" around a bit haphazardly. Good for you (if you funded the guy before) that this is in writing.

nope never funded him . i will never have put a guy eligible for A paper on c paper

[ridextreme]

His "Attorney" sounds like he has corporate turnaround written all over him.

[CthulhuNJ]

I would like to know how the merchant decided 10% is the fair #. Why not 7% or 11%? This is a winner of a merchant you've got there :-)

That's what I want to know. Where did he come up with that number exactly???
And if he had a lawyer's advise,.....the lawyer would probably tell him not to write that in an email........just default or run with the money or whatever scheme you're trying to pull....not to write that I plan to not pay it back....whatttt...there are just so many questions that come to mind......idg it......

[CthulhuNJ]

If it makes u feel better, I had a merchant today say in email "confidential to ............ Here are all my doc's, bit I don't want a hard pull on my credit" I explained it is a soft pull, not a hard pull he asked why does it say it pulls my credit,....blah blah again said it is a soft pull,.......looked at the statements,....he deposited 15xx in March, 11xx Feb 7xx and his industry is "gun retail" which is a restricted industry in most cases,.........I'm not even submitting, or bothering i don't even want to know what he's asking for on his app,...my mind is still boggled at his audacity......tomorrow I'm emailing him that our pre-underwriting declined based on so low deposits.....best of luck.......

[Karen37a]

Some of these merchants make me sick.I thought I got more of my fair share of pric*s trying to boss me around bully me and attempt to con me because I am a woman. I guess everyone hears the bs.

They really have a lot of nerve.This is why I say 20- 30% of them will sell you out for a toaster oven, no matter how nice you are.

Good thing you were savvy enough to catch this and ethical enough to not participate or coach them .That is the value of an experienced street smart Broker