Arrested ! Small Business Funder, Funding hundreds of millions of dollars arrested after threatening physically Violence to busineeses if they default!
Exeutives at Par funding are now in court after according to court documents, that Par funding made physical threats against at least on business owner when they defaulted, if you need MCA funding but dont want to have physical threats, click on the picture above to apply with Guaranteed Business Funding who is very non violent.
So after spending hours reading the legal complaint court document, I have all the Juicy details for you!
First of all, some background, the subject of this article is the multi million dollar MCA funder known as Par funding,
who touted an amazing "1 percent default rate" to its investors according to the legal complaint on ll business funding deals , and steady interested payments to investors.
OK, but First what is an MCA? well an MCA is according to the funding website GuranteedBusinessFunding.org
"Merchant Cash Advance Solutions: Lender buys a small percentage of future credit card sales and advances you the money. Unsecured Small Business Advances: No credit card merchant account required. Calculated based on monthly revenue/sales. Asset Based Lending: These advances or lines of credit are secured by inventory, accounts receivable other assets. Factoring: These advances involve a factor (lender) who provides an advance on your invoice receivables. "
However this is not wht happened, the default rates were much higher, although the managment of par funding stated they were succesful due to on site inspections according to court documents, however the inspections were not reliable, but what par funding failed to do in reliability of its inpections, were made up for by trying to reduce to default rates, as according to a merchant in the court document, that
"As the Tennessee merchant has explained under oath, “The only time CBSG visited the Company or sent someone to visit me was when it threatened me with physical violence after I missed payments.”