Beware of Beckett!

[chalupacollects]

[QUOTE=Exhibitman;2212771]"Marx, which had been approved by PSA as a group submission outlet, indicated it had taken in over $954,000 in 2020, had $4.4 million in revenue during 2021 but because of its debts, ran out of money in August."

"the company says the suspension of PSA’s lower cost services last year resulted in a disruption of its revenue. After ramping up its business in 2020 including the opening of a storefront, Marx says it “was in so much debt that all revenues were being absorbed by the daily and weekly payments to merchant banks which made loans to the business.”


There in bold lies the rub. These Marx people were funding their business off of loans secured by their daily credit card receipts. How it works is the processor loans you money off of your daily or monthly average of projected (read future) card dollars processed for a higher rate than something secured and then the card processor pays themselves back on a daily basis by deducting the payment from the daily receipts sent back to Marx. So if you processed $1000 per day and your loan payment is $200 per day. They would fund you $800. It actually can also work on a daily percentage.

That said, once PSA shut down, Marx could not take payments or make payments hence the cash flow problem. At least a good part of it.