Comment posted on Forbes.com

This speaks for itself.

Comment posted here on forbes.com

Posted by bmorgens | 02/01/08 09:44 AM EST

In the interest of good journalism I am rebutting this story. Obviously to make news readable the media often distorts and sensationalizes the facts. As in any industry there are abuses and marginal players. There are a number of professional players in the MCA field and I will limit my comments to our company; Sterling Funding LLC: We at Sterling go out of our way to protect the merchant and we train and insist that our people who market this product adhere not only to full disclosure of the costs but will also advise the customer against using this product if it will not help the business.

Let's take Maureen's comments which unfortunately are just not accurate.

1. "These lenders of last resort, popping uup at the tech crash in 2001". First of all we have many clients who have good credit ratings and who have other resources but because they want to keep these in reserve and the PROJECT WILL BE A PROFITABLE ONE they go with the short term funding that we offer. MCA started some time before; companies such as Clever Ideas and others were doing this in the 90's. I personally have been infovled with MCA's since the 90's and can tell you it had absolutely nothing to do with the tech crash.

As to demand increasing, this is a logical outgrowth of a successful product that is maturing and becoming more well know. Ironically it is being promoted in many cases by the merchants themselves. David Goldin from AmeriMerchant (an excellent operator and competitor) is undoubtedly getting many of these calls from his own customers. A little research on Maureen's part would have shown that customers renew at a close to 75% rate. If this was such a bad product do you think the renewal rate would be so high?

(Blog editors note: see here...)

To compare this product to a loan product is really misleading and unfair. It is fee based and a markup with the problem being that the cost and markup are open for all to see. Why doesn't the author of the article put in a comment about their "sizzling" interest rate?

(Blog editors note: see here...)

Posted by bmorgens | 02/01/08 10:01 AM EST

Continued. (Sterling Funding)
We are also careful to approach higher markup operations and also make sure that they use of the money will return a profit to the customer. We and I am sure others stay away from low markup industries. As an aside when you shop in a store or eat in a restaurant you don't see their markup posted anywhere. Our is and it is readily disclosed. To compare our industry with "pay day lenders" is unfair. Business people know their costs and again can use the money to improve their business and make it prosper. Also nobody in the MCA field is making a killing. The net profits fall into the range of any well run business, with those that are marginal destined to failure. The comment that a business doesnt survive because of MCA is patently false and self serving. Talk to businesses that have and now us our service and you will get a true picture of the industry.

Bill Morgenstein, SVP Sterling Funding.