Metroplex Rule View
5-to-1 rule and fees vs brokers
In no case should a direct funder add a fee sheet to a deal on top of his or her fees that are assessed into the contract. Case study shows that in 2018 brokers who pose as funders were caught adding fees on white-labeled contracts paying the exact amount the real funder pays, but the extra fees sheet cause the merchant to be in a higher risk of a default because the payback and factor prescribed by the funder does not calculate for the additional fees assessed by the broker posing as a funder.
The solution in V2 warrants that offending parties identified are subject to expulsion in all Metromedia Branded Companies as the practice was identified as in malice and intent against unsuspecting Metromedia Funding Agents
In V1 fees and shown factor rate can be misleading, and it is understood there are always fees but in the writings on bylaws and code of conduct, we discover that fees should be capped and fully disclosed and easy for the merchant to understand.
In all files, the following shall be identified:
For each dollar deployed from a merchant cash advance, the merchant shall demonstrate how they are to use funds and essentially turn each dollar into five dollars before the last payment is pulled. For instance, if the funds deployed are $10,000.00 and a daily payment is set for 100 days at a 1.499 the merchant must show the following:
How they turn the advance into 5 times the face value of the advance before the last payment has pulled
Proof that the daily payment will not harm the overall cash flow and operations of the business taking the advance