Comments on: Catch up with Alternative Business Lending ../../../../2013/05/catch-up-with-the-alternative-lending-industry/ The News Source for Merchant Cash Advance, Business Lending, P2P Lending, Bitcoin, and more Sun, 21 Apr 2019 00:11:34 +0000 hourly 1 https://wordpress.org/?v=5.2.4 By: Eric Sutherland ../../../../2013/05/catch-up-with-the-alternative-lending-industry/#comment-10272 Thu, 09 May 2013 01:40:00 +0000 http://www.merchantprocessingresource.com/?p=143172#comment-10272 No, 1.49’s do not happen all the time. They rarely happen. The sub 500 club doesn’t get approved the vast majority of the time and few and far between. Those are ridiculous rates and from someone who sells these for a living, and I sell quite a few, those are very rare. You have to understand, this industry is extremely sales oriented.

]]> By: Sean Murray ../../../../2013/05/catch-up-with-the-alternative-lending-industry/#comment-10263 Wed, 08 May 2013 17:10:00 +0000 http://www.merchantprocessingresource.com/?p=143172#comment-10263 It sounds like you had a bad experience with On Deck Capital. I don’t know what it was but a lot of ISOs I know have been very happy with them lately. They are much different company than they were a couple years ago.

1.49s happen all the time. The under-500 credit market doesn’t get love from the traditional MCA factor rate box like it did 6 years ago. The high risk “starter” market is big and the upper 1.4 range is common.

I can’t comment on how likely a 1.099 deal is yet since Swift Capital is just introducing it, but considering they come from the traditional loan industry and pride themselves on rate transparency, I am inclined to believe this product is very real. Friends of mine are getting deals done with other funders at rates of 1.11 to 1.15 fairly regularly but these terms are reserved for merchants with excellent credit, many years in business, and substantial annual revenues. There may not be much or any profit from a reseller’s perspective on them, but these terms do exist. You can upsell these rates and many do to get compensated for their service. I will concede that closing fees are common and so the low rate presented is not what you get once everything else is layered on top of it.

]]> By: Eric Sutherland ../../../../2013/05/catch-up-with-the-alternative-lending-industry/#comment-10262 Wed, 08 May 2013 16:38:00 +0000 http://www.merchantprocessingresource.com/?p=143172#comment-10262 Sean, I’m sorry to tell you this but you don’t know the MCA industry very well. On Deck Capital is a joke of a company and they are master scam artists. A 1.49 factor rate is hardly an industry standard and a 1.09 doesn’t exist. Every single customer that actually applies for it will be declined and then switched over to the standard rates.

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