View Full Version : Question

Mr. Haunt
12-02-2007, 09:19 PM
Has anyone ever have or had any experience with this type of loan: AmericanCapitalAdvance.com

If you wish, feel free to PM me for a reply.

I am just seeing whats out there!



Jim Warfield
12-03-2007, 12:01 AM
Just be very careful. Count Dracula solicits unwary victims this way sometimes. Posing as a loan company...then sucking the life out of you, then they won't stop sucking...then they come back for MORE!!!

Doug Kelley
12-06-2007, 07:28 PM
My wife is a debt collection attorney and one of her clients is a funding company that works just like this, it's called factoring. It's expensive but if you can't get a regular loan, it works. READ YOUR CONTRACT CAREFULLY before signing. You can get into some serious trouble if you aren't careful.

Raycliff Manor
12-06-2007, 07:54 PM
I worked for a company years ago that was factoring their receivables. If the method still works the same today as it did then, what happens is you submit your client/customer invoices to them and they front you the amount of the invoice, less their service fee. When you are paid, you pay the entire amount of the invoice collected to the lender. The fee varies depending on the terms you have with your customers, (ie. net 30, net 60, net 90, etc.) If your customer stiffs you, you are still responsible for payment, and if applicable, stiff late penalties. This was the arrangement the company I worked for worked, but I'm sure there are varying situations and loan types. Be careful though, once you become reliant on something like this it can be difficult to get repositioned to no longer use the services.


Jim Warfield
12-08-2007, 08:45 AM
For some reason,( maybe I'm too simple to see it?) I don't see where there would be any "Profit" for the businessperson using a financial arrangement like this.
Once upon a time when leins could be filed at our courthouse for $7.00 each, a tradesman would file a lein against his customer's house Before he even handed them his bill, he never got beat out of his due this way and 99% of his customers never knew that he did this.
Back in those days when alot more people were not living hand to mouth on a weekly basis and people valued their community reputation so much more than most seem to today, those 99% would have been very upset to find out that he was doing this .
"It's just "business". He told my Dad as they passed one another at the courthouse doorway.
Guess who ended up being financially secure and who ended the up the broke but "nice-Guy" in town?
My Dad was "the nice guy."
They were in the same line of work.

Doug Kelley
12-09-2007, 12:22 PM
I guess the benefit to the businessperson is to be able to smooth out cash flow problems when traditional lending isn't available for whatever reason. It's not technically lending so the rules are different. Therefore, there tend to be quite a few bad actors taking advantage of this type of lending or people who are just not very business savvy. If anyone is considering this option, keep in mind these are small companies who can't afford bad debt and they will aggressively pursue the debt even to the point of piercing a corporate veil to come after an officer personally, reversing a bankruptcy, foreclosing on homes and other things big companies like Citi (for example) tend to shy away from. I'm not saying factoring companies are evil but like other small businesses they can't afford to be taken advantage of.