An Inside Look at Strategic Funding’s Portfolio

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A Kroll Bond Rating Agency report reveals interesting details about Strategic Funding Source’s $105 million securitization and also their business. Here are a few main takeaways:

Pool breakdown
60% MCA
40% Loans

Average original receivable balance per merchant: $40,705

Weighted Average FICO Score: 649

Weighted Average RTR Multiple: 1.35

Weighted Average Time in Business: 12.5 years

Weighted Average Gross Revenue: $1,729,709

Number of ISOs/referral partners: 1,300

Strategic Funding MCA vs. Loans

credit grade
Per the Kroll report, F-grade merchants were not eligible for the securitization

ACH deals have a higher charge-off rate than deals that rely on a merchant account split

ach deal charge-offs

split deals charge-offs

MCAs and loans performed similar to each other

In an earlier interview, Strategic Funding CEO Andrew Reiser said, “It’s certainly exciting to be able to meet the requirements of a securitization. Kroll is a very responsible agency and they put you through a lot of rigor to be able to meet [their] requirements and have a rated bond.”

Last modified: June 10, 2018

Category: Business Lending, merchant cash advance

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