[GoodCustomerService]

Today is like a holiday. I'll mark it down on my calendar and celebrate it each year as the day predatory lenders, abusive funders and sham artist finally caused enough carnage that the government stepped in and bailed out the other guys. The ones who decided to keep their hands in their pockets when everyone else was grabbing without cause. Without legal right. Do I think COJ's are to blame? No. I only blame the guys that decided to use it as a weapon. COJ's have been around a lot longer than Yellowstone and Richmond Capital and served a more important purpose in an MCA than fraudulently filing them to cash and grab from already desperate merchants. They were used to screw the scumbag merchants who didn't pay. The ones who deserved it. Now, that won't be possible, and truly that does suck. For the amount of risk we take on borderline credible merchants, no COJ effectively makes them unfundable. I don't want to hear about "Now Funders need to ACTUALLY underwrite their deals" because that's bull****. A COJ had nothing to do with the underwrite. It was simply there for risk of fraud on a poor scored borrower. Then it became a doc to make a funder more comfortable to give a merchant WAY more money than they deserved, on top of already expensive and toxic MCA debt. Maybe to some this is more like D-Day. To me, it's the beginning of a better potential future for our clients. It's a blessing.

[NoBigDeal]

Today is like a holiday. I'll mark it down on my calendar and celebrate it each year as the day predatory lenders, abusive funders and sham artist finally caused enough carnage that the government stepped in and bailed out the other guys. The ones who decided to keep their hands in their pockets when everyone else was grabbing without cause. Without legal right. Do I think COJ's are to blame? No. I only blame the guys that decided to use it as a weapon. COJ's have been around a lot longer than Yellowstone and Richmond Capital and served a more important purpose in an MCA than fraudulently filing them to cash and grab from already desperate merchants. They were used to screw the scumbag merchants who didn't pay. The ones who deserved it. Now, that won't be possible, and truly that does suck. For the amount of risk we take on borderline credible merchants, no COJ effectively makes them unfundable. I don't want to hear about "Now Funders need to ACTUALLY underwrite their deals" because that's bull****. A COJ had nothing to do with the underwrite. It was simply there for risk of fraud on a poor scored borrower. Then it became a doc to make a funder more comfortable to give a merchant WAY more money than they deserved, on top of already expensive and toxic MCA debt. Maybe to some this is more like D-Day. To me, it's the beginning of a better potential future for our clients. It's a blessing.

What's the whole point of the contract then? And all the legal verbiage in the event a merchant defaults? The contract itself should hold up in court, even against real fraudsters. The real benefit the COJ gave was the timing it took to recoup the money

[Kevin Henry-Seacoast]

What's the whole point of the contract then? And all the legal verbiage in the event a merchant defaults? The contract itself should hold up in court, even against real fraudsters. The real benefit the COJ gave was the timing it took to recoup the money

Unfortunately regulators felt is was being abused. COJ required funders were executing the COJ when companies were not actually in default and in some cases seizing assets will above what was owed....not by a little.....A LOT. Some felt that the users of COJs were using them as a tool to grab funds from good customers that barely defaulted over and above what was owed to cover losses with customers that never paid back.

[HDF]

Unfortunately regulators felt is was being abused. COJ required funders were executing the COJ when companies were not actually in default and in some cases seizing assets will above what was owed....not by a little.....A LOT. Some felt that the users of COJs were using them as a tool to grab funds from good customers that barely defaulted over and above what was owed to cover losses with customers that never paid back.

Just wait until they dig deeper and find that a funder often stacks THEMSELVES causing the default and then swoops the COJ into the courthouse. Now that will be interesting.

[Chambo]

What's the whole point of the contract then? And all the legal verbiage in the event a merchant defaults? The contract itself should hold up in court, even against real fraudsters. The real benefit the COJ gave was the timing it took to recoup the money

Correct...but now one will have to go through normal legal channels. That takes time...and money