How Did Merchant Cash Advance Companies Get My Information?August 4, 2010 | By: Sean Murray
I used a Merchant Cash Advance program and now I am being solicited because of it. How did these companies get my information?
The Merchant Cash Advance industry is a competitive business. Most firms file a UCC-1 (public notice with your secretary of state) on your business to let potential creditors, lawyers, and other Merchant Cash Advance firms know your future credit card receivables have been purchased. This is customary for a loan as well, although the language in the filing is different.
Since this information is public, it is possible to request a list of all UCC-1’s filed by a particular funding company from the states. Each UCC-1 includes the DBA, Business Address, and Date it was filed. Computer programs or manual google searches can fill in the blanks and obtain the owner’s name and business phone number.
In just a few minutes, a competing Merchant Cash Advance firm or reseller can determine when you received funding and where you got it from. For the competition, It’s a free, easy way to create a marketing list.
The same can be done for traditional loans and equipment leases.Last modified: July 7, 2015
Sean Murray is the founder of deBanked, an 11-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper note investor, the co-founder of Daily Funder, an alternative lending speaker, consultant, writer, and enthusiast. Connect with me on LinkedIn or follow me on twitter.