Originally Posted by samthemoneyman
The highest default ratio I have heard to date was First Funds at around a 19% default rate. The numbers still work somehow
There were a few other companies that went under with default rates a bit higher that that. Sometimes it's not only about the default rate - but also how good the company is on collecting their bad debt. Can they work with the merchant in-house to get them on a payment plan of some sort? Can they find a collections company to buy the bad debt? Or do they get a lawyer to go after the merchant?
Of course, the numbers would work a lot better if the default ratio was less than 19% - but they have to have some procedures in place to collect some of that back.
Trust me, you don't want this guy coming after you for shutting your machine off.