1 00:00:00,210 --> 00:00:02,580 Johny Fernandez: So what do brokers need to know about 2 00:00:02,580 --> 00:00:03,240 stacking? 3 00:00:05,310 --> 00:00:07,260 Sean Murray: brokers need to know a lot about stats. So this 4 00:00:07,260 --> 00:00:10,620 is this is a kind of a little bit of a longer answer. 5 00:00:10,650 --> 00:00:12,660 Hopefully you're gonna give me you're gonna give me the time. 6 00:00:12,660 --> 00:00:17,280 Yeah. Okay, this is a price of a lifetime. So yes. So what are 7 00:00:17,280 --> 00:00:20,940 brokers need to know about stacking? It's very important 8 00:00:20,940 --> 00:00:25,020 for brokers to be aware that in commercial finance, there are 9 00:00:25,020 --> 00:00:27,570 different terms and conditions that come with every contract, 10 00:00:27,570 --> 00:00:30,840 whether it's a loan, factoring, merchant, cash, advance, 11 00:00:30,870 --> 00:00:35,190 equipment, leasing, or whatever. And so if a, if a merchant 12 00:00:35,190 --> 00:00:39,570 already has one product, and they need additional capital, is 13 00:00:39,570 --> 00:00:42,780 not as easy as as being like, Okay, great, I'll find you an 14 00:00:42,780 --> 00:00:46,020 additional capital source. And you'll just get it, you need to 15 00:00:46,020 --> 00:00:49,410 be aware that a merchant getting additional capital from 16 00:00:49,410 --> 00:00:53,160 somewhere else could conflict with the existing contract they 17 00:00:53,160 --> 00:00:58,740 already have in place. And so if you're offering something to a 18 00:00:58,740 --> 00:01:02,190 merchant, you don't want to put them in conflict with their 19 00:01:02,190 --> 00:01:04,890 original funding source that actually could end up hurting 20 00:01:04,890 --> 00:01:07,830 them. Right, it can put them in a breach of the agreement, some 21 00:01:07,830 --> 00:01:12,030 funding companies do not allow merchants to stack. They say you 22 00:01:12,030 --> 00:01:14,580 can only use this or if you're going to go out and get 23 00:01:14,580 --> 00:01:16,530 additional funds from somewhere else, you need to give us some 24 00:01:16,560 --> 00:01:20,400 type of prior written notice and get permission and so forth. 25 00:01:21,000 --> 00:01:23,250 Sometimes it has to do with depending on the product with 26 00:01:23,280 --> 00:01:28,050 with the collateral, you can't use the same collateral for two 27 00:01:28,050 --> 00:01:31,770 different loans. Right? And so if you're a lender and say, I 28 00:01:31,770 --> 00:01:34,470 want to use this merchant equipment as their collateral, 29 00:01:35,160 --> 00:01:37,980 but they've already pledged that collateral to somebody else. 30 00:01:38,130 --> 00:01:40,650 Well, you are the broker need to make sure you're navigating that 31 00:01:40,650 --> 00:01:43,830 properly, because you don't want to put the merchant in some type 32 00:01:43,830 --> 00:01:46,530 of conflict or breach of the agreement. So they need to 33 00:01:46,800 --> 00:01:49,500 brokers out there need to be very careful about stalking. 34 00:01:50,040 --> 00:01:52,350 Because it's not as simple as just going out and getting 35 00:01:52,380 --> 00:01:54,840 getting more money. You need to think about what are the 36 00:01:54,840 --> 00:01:57,390 consequences of getting money from more than one source.