[Chambo]

Does is come as any surprise that these crazy low rates are only offered by new companies? Swift is big on their 14.99 product too. I had a shakey credit restaurant client that got offered a 14.99/6 by swift and asked me to match it. I said no thanks and go with the swift deal.

If these funders can stay in business and make money then good for them. The mca/unsecured loan biz is very risky. It's all fun and games till deals start going south. My guess is they either adjust rates to match defaults or go out of business. I know first hand that this is not a get rich quick business. It may look like it is from the outside but once you are inside you see the world differently pretty quickly.

Just like On Deck did. When they first came out, they offered 12 month 1.09's. Then it dropped to 6 month 1.12's, then 1.18's. Now you see 1.25's to 1.35's offered by them & they are STILL not profitable.

[Finance1]

Just like On Deck did. When they first came out, they offered 12 month 1.09's. Then it dropped to 6 month 1.12's, then 1.18's. Now you see 1.25's to 1.35's offered by them & they are STILL not profitable.

I often wonder what the big cash companies books really look like. I'm not implying that they are in the red or anything. Outstanding receivables vs actual remittance is a decent spread. You have to keep sending deals out the door fast and furious to stay far in front of losses. Once you stop sending money out the door and let things wind down it's a whole different look.

[Sean Cash]

I often wonder what the big cash companies books really look like. I'm not implying that they are in the red or anything. Outstanding receivables vs actual remittance is a decent spread. You have to keep sending deals out the door fast and furious to stay far in front of losses. Once you stop sending money out the door and let things wind down it's a whole different look.

Good point. One of the things I ask some companies when they tell me that their bad debt is "low" is how they calculate their bad debt.

[Finance1]

Good point. One of the things I ask some companies when they tell me that their bad debt is "low" is how they calculate their bad debt.

Yea, no kidding. We typically run 5% of every dollar that goes out the door goes sour and that's totally manageable. It comes in peaks and valleys though. Some months are almost flawless while other are riddled with bad accounts. I don't think you get in trouble until you start hitting 8-10%. Although our overhead is exponentially lower than the big guys and we plan to stay that way.

[Chambo]

I often wonder what the big cash companies books really look like. I'm not implying that they are in the red or anything. Outstanding receivables vs actual remittance is a decent spread. You have to keep sending deals out the door fast and furious to stay far in front of losses. Once you stop sending money out the door and let things wind down it's a whole different look.

You would be surprised how many of these companies are operating in the red. More, many more, than you think.