Margins are dropping and competition is increasing. Over 50 NEW cash advance companies were found in a recent Google search. Many of these are small mom and pop are former mortgage brokers who think they can easily get into the business. NOT.
This is bringing a lot of new competition to the market along with merchants shopping around on the Internet for the best factor rate. This means that it is important to get the merchant locked in sooner rather than later to a contract.
NEW PRODUCTS: The American Microloan 1.12 factor is good, but can only be used with merchants with excellent credit.
Other lenders are specializing in refinancing other cash advance deals at a lower factor rate.
A plethora of new cash advance lenders have entered the market. These new lenders are hungry for business and approve a lot of deals that other lenders will not. As a broker it is important to stay on top of these new lenders entering the market and search out these new aggreesive funders to fund deals in this more compettitive environment. Email me for a list of these lenders at mikedoesbooks@yahoo.com.
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