P2P Merchant Cash Advance Model Already ExistsAugust 23, 2011 | By: Sean Murray
Posted on December 23, 2010 at 6:02 PM
Just a few weeks ago, we covered a story on how the Merchant Cash Advance(MCA) industry was evolving towards the Peer 2 Peer Lending Model. Apparently we were very right. We envisioned a future live marketplace that resembles Prosper.com and today discovered the closest thing so far: the Colonial Funding Network(CFN). http://www.colonialmgmt.biz/ready.html. Our site authors have no connection to CFN and we hope this reivew is not received as a gimmicky advertisement.
So why is CFN a highly evolved Merchant Cash Advance marketplace?
• You(meaning anyone) can pick the business to fund
• You can put up the capital
• You can contribute just a part of the capital
• You can have control over the funding terms
• You don’t do the underwriting
• The pay back and setup is serviced by the market maker (Strategic Funding Source)
• Businesses have already been funded using this model
An excerpt from their site:
“Ready to be a player? Take advantage of our world class capabilities! Colonial Funding Network is the answer for you. You find the merchant, invest the cash, and Colonial Funding does the rest.
Colonial will handle every detail of fulfilling and managing your merchant cash advance. From providing underwriting data, to administration… including filings, bookkeeping,reporting and disbursements… we do it all. Through our state-of-the-art Merchant Funding web portal, you’ll have real-time information on your clients… anytime you want it!”
Sounds very much like P2P is already staking its claim in the Merchant Cash Advance world. I wonder how far it will go….
deBankedLast modified: August 31, 2011
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.