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Good morning Daily Funder, thought I'd post here to start a conversation and sate my own curiosity,
I'm curious to know what trends/patterns you're seeing compared to pre-pandemic, what industries are you surprised to see excelling or didn't anticipate thriving during the pandemic and did you pivot entirely to a different form of financing or a split between MCA and something else?
I hope this discussion can help us better understand where the industry is, thank you!
We are seeing a large increase in interest from MCA ISOs wanting to diversify and start offering different financing options. While it was primarily for equipment financing, which we provide, many wanted to learn and offer a suite of products. This was one of the reasons we started offering the Commercial Finance Academy last year.
As far as industries thriving during the pandemic, we've been funding many of the same usual suspects. We are a generalist lender and will consider nearly all industries.
- Medical
- Manufacturing
- Transportation (Especially Last Mile)
- Food Production
- Technology
- Construction
- Cannabis
- Agriculture
- Etc
I'd say the same for us with the exception of trucking/transport.Quote:
Originally Posted by JParr
Biggest surprise for me, as you mentioned, was the amount of agriculture deals coming in.
Gladly did my due diligence and researched to stay on top of those.
What about the impact of PPP2 on the composition of deal flow this spring?
As a direct funder, we see a varying range of deals and what I've noticed...Quote:
Originally Posted by BB_Cooper
A Paper - Qualify for PPP etc. but a portion of them could use the extra funds provided by alternative funding.
B-C Paper - May or may not qualify for PPP but if they do, usually have no use for additional funding until they make use of their funding/burn through it.
D Paper - Does not qualify for PPP etc. so a majority of them are looking to alternative funding.
Of course you also have the brokers that pivoted towards PPP and have been incredibly busy since the first round. If you can't beat them, join them.