[miked]

It looks like their entire purpose is really just to syndicate on advances and not share in the commissions.

[Capital Stack]

It looks like their entire purpose is really just to syndicate on advances and not share in the commissions.

Actually if you evaluate the landscape of the overall Funders in the market you generally see four (4) makeups.

1) Funder has a credit line usually structured as a senior debit facility on the receivables purchased

2) Funder has a private equity structure which allows "balance sheet" booking

3) Funder sells prior to or post closing the rights and receivables to a secondary market buyer

4) Funder has a lead in a transaction and syndicates the contract with multiple participants

The syndication model today is allowing for much more aggressive underwriting i.e. high risk. when not under the auspicious of a credit line or private equity firm, who require a whole slew of stipulations and conditions on SIC Code, credit scores, etc..