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Posts tagged buying

The Buyers are Back

You can say what you want about the economy and we can all speculate as to the positive and negative effects it will have on consumer spending and merchant processing accounts, but one thing is for sure- the number of active buyers of merchant portfolios and residuals is rising again.  There are a significant amount of buyers who are in the marketplace because they feel that they can finally obtain value.  There are also buyers who have entered the scene because their funding sources that were on the sidelines for the past few months have now given the green light for funding future acquisitions subject to tightened underwriting standards.  The availability of portfolios and residuals for sale has also increased significantly.  We’ve seen the shift from 12-24 months ago when there was not much of an inventory of ISO’s or portfolios for sale and, for all intents and purposes, it was a sellers’ market.  More recently, there appeared to be more available deals than potential buyers in the market.  The supply and demand now appears to be closer to an equilibrium point as there appears to be significant numbers of both buyers and sellers in the portfolio acquisition market. Read more...

The Residual Buying Game

Overview

One of the most interesting areas and perhaps one of the most profitable within the merchant processing industry is the purchasing of residual streams.  For anyone outside of the industry looking in, it is hard to fathom that agents and ISOs can sell their revenue streams.  In most industries, you can’t decide one day that you want to monetize your future cash flows and effectively sell them in a secondary marketplace to a buyer who is going to pay you a lump sum today.  Other than folks who sell their future lottery payments or insurance settlement payments, it is practically unheard of. Thus the merchant processing business offers yet another unique opportunity for savvy buyers and investors to profit. Read more...