[FHFunding]

FHF, there are no rules in the industry, remember? It's still the wild west. "It's technically considered a default" is in the eyes of the beholder. Everyone wants to not pay a premium for money, and there's nothing wrong or illegal about good-faith negotiations. If the MCA companies cared about "their" merchants, then they would be thrilled that they found something else. Instead, it's a show of "selling cash" and selling bandaids as "real" solutions. Funders have obligations to resell their investors money, and want the entire balance paid-in-full. The funders legally bought the future receivables, there's nothing wrong with them demanding the entire amount (there is a contract after all ), but there's something wrong with someone saying that good faith negotiations are "technically defaults."

If a merchant successfully negotiated an early payoff, there's no law stating that the funder needs to write "settled" on a ZBL, nothing preventing them from saying "paid in full." They just might do it anyway. Both may be accurate statements.

Also, I don't think that a merchant who's entering a 24-month program with a balloon will be going back for MCAs so quickly (at least I hope not). Saving the merchant the money on the payoff and increasing cash-flow might save their business.

Trying not to take sides, just pointing out what is obvious to me.

Couldn't agree with you more. However, this is our livelihood and I'm talking about the way things are - not how we'd hope them to be.