[Fundkite Egor]

That's exactly why we're calling this new program ACH Split, the amount we pull depends entirely on the merchants deposits and performance during the reconciliation that was agreed up, day, week, or month.

If you have any deals in the pipeline that this may help with feel free to give me a call or shoot me an email.

[FlexibleCapitalSolutions]

That's exactly why we're calling this new program ACH Split, the amount we pull depends entirely on the merchants deposits and performance during the reconciliation that was agreed up, day, week, or month.

If you have any deals in the pipeline that this may help with feel free to give me a call or shoot me an email.

that doesn't answer any of my questions, will the merchants have to switch bank accounts to one of your choosing?

[WCC_NYC]

that doesn't answer any of my questions, will the merchants have to switch bank accounts to one of your choosing?

I am under the assumption that it does not require a lockbox or a switch of accounts. My impression is that it acts like a Split where it is taking a percentage of revenue, but does not have all the headaches of switching accounts. For example if the MCA was underwritten based on the revenue of 100K a month and hold back was 18%, then company revenue drops to 50K they will adjust the payment of 18% holdback on 50K.

Can you please clarify this Egor?

[FlexibleCapitalSolutions]

I am under the assumption that it does not require a lockbox or a switch of accounts. My impression is that it acts like a Split where it is taking a percentage of revenue, but does not have all the headaches of switching accounts. For example if the MCA was underwritten based on the revenue of 100K a month and hold back was 18%, then company revenue drops to 50K they will adjust the payment of 18% holdback on 50K.

Can you please clarify this Egor?

that sounds nice but it's not possible unless Fundkite has some sort of authority over the account, which would only happen if the bank signs off and approves it prior to funding, and even then they would need to login everyday and adjust it accordingly (or have some sort of software doing it)

The only way this makes sense to me is with some sort of lockbox, not that there is anything wrong with that idea, but it is something we need to know before considering for our clients.

[Fundkite Egor]

that sounds nice but it's not possible unless Fundkite has some sort of authority over the account, which would only happen if the bank signs off and approves it prior to funding, and even then they would need to login everyday and adjust it accordingly (or have some sort of software doing it)

The only way this makes sense to me is with some sort of lockbox, not that there is anything wrong with that idea, but it is something we need to know before considering for our clients.

I was replying to Micah with the previous post, Roger is correct.

We're fully prepared to service merchants on monthly, weekly, or daily reconciliation without needing to switch accounts.

If you'd like any further information please shoot me an email.

[MCA]

that sounds nice but it's not possible unless Fundkite has some sort of authority over the account, which would only happen if the bank signs off and approves it prior to funding, and even then they would need to login everyday and adjust it accordingly (or have some sort of software doing it)

The only way this makes sense to me is with some sort of lockbox, not that there is anything wrong with that idea, but it is something we need to know before considering for our clients.

For those that have been in the industry long enough, when all we had were CC splits in 2007 - 2008, then some ach products came out in 2009 - 2010, they were set up exactly like this. Merchant signs up via decision logic, or provides view only access to their bank account or any other type of access for the funder to see daily deposits, then funder debits the agreed upon % based off of the daily rev, just like a CC split but all rev is included.

We tried this back in 2008, it was a lot of work (manually) at the time but I am sure there are algorithms and software available now that could make this a lot easier.

This method also keeps it as a true MCA, as you are debiting based off of % of revenue and not a set daily payment which most look at like a loan rather than MCA.

If Fundkite has the system to handle this, then good for them. I would think weekly and Monthly repayments would be much easier to handle but daily can be done.

[abfunders]

For those that have been in the industry long enough, when all we had were CC splits in 2007 - 2008, then some ach products came out in 2009 - 2010, they were set up exactly like this. Merchant signs up via decision logic, or provides view only access to their bank account or any other type of access for the funder to see daily deposits, then funder debits the agreed upon % based off of the daily rev, just like a CC split but all rev is included.

Decision Logic or Plaid
There's not a dearth of solutions like that in the market today that just weren't there 13 years ago.
Also, I imagine that investors liked having the set daily payback to know that 6 months means 6 months.

[BB_Cooper]

Decision Logic or Plaid
There's not a dearth of solutions like that in the market today that just weren't there 13 years ago.
Also, I imagine that investors liked having the set daily payback to know that 6 months means 6 months.

Good point Micah. Do MCA investors or many of the merchants want fluctuating daily draws?

[FundKite]

This is not about investors. This about proving merchants with the product they expect. Fixed payments are not MCA. Most of our merchants are on daily or weekly reconciliations. How we do it is a combination proprietary products and 3rd party vendors. It works, merchants are happy and they are paying what they are supposed to per the MCA product.

[FlexibleCapitalSolutions]

For those that have been in the industry long enough, when all we had were CC splits in 2007 - 2008, then some ach products came out in 2009 - 2010, they were set up exactly like this. Merchant signs up via decision logic, or provides view only access to their bank account or any other type of access for the funder to see daily deposits, then funder debits the agreed upon % based off of the daily rev, just like a CC split but all rev is included.

We tried this back in 2008, it was a lot of work (manually) at the time but I am sure there are algorithms and software available now that could make this a lot easier.

This method also keeps it as a true MCA, as you are debiting based off of % of revenue and not a set daily payment which most look at like a loan rather than MCA.

If Fundkite has the system to handle this, then good for them. I would think weekly and Monthly repayments would be much easier to handle but daily can be done.

I agree if they can handle this type of labor intensive task, good for them, sounds like a nightmare to me logistically speaking. but then again my name is not Alex Shvarts

[FundKite]

Thank you for the vote of confidence. We have built an entire process, technology, and systems around this to ensure it is quite seamless for the merchant and our team.

[WCC_NYC]

that sounds nice but it's not possible unless Fundkite has some sort of authority over the account, which would only happen if the bank signs off and approves it prior to funding, and even then they would need to login everyday and adjust it accordingly (or have some sort of software doing it)

The only way this makes sense to me is with some sort of lockbox, not that there is anything wrong with that idea, but it is something we need to know before considering for our clients.

Our company uses Decision Logic to create a better experience for our merchants when getting the month to date and other benefits we use regarding data and analytics. Decision Logic does allow a refresh daily of the account up to 90 days in some instances.

We have seen Plaid being used by many of the Fintech companies because it provides a more in depth history. But these are the only two I know that truly work when having access to an account.

[Yankeeman07]

IMO - This product will go a long ways to reducing-eliminating defaults