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06-19-2019, 12:00 PM #1
- Join Date
- Jun 2013
- Posts
- 293
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.
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06-19-2019, 01:12 PM #2
- Join Date
- Mar 2016
- Posts
- 657
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06-19-2019, 01:20 PM #3
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,466
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.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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06-19-2019, 02:19 PM #4
- Join Date
- Jul 2015
- Posts
- 1,202
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06-19-2019, 02:36 PM #5
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