Just seen 2 guys pitching cash advance and merchant processing on shark tank lol mr. Wonderful bought in for 50% of the company. And the cash advance world just got a bit bigger.
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Just seen 2 guys pitching cash advance and merchant processing on shark tank lol mr. Wonderful bought in for 50% of the company. And the cash advance world just got a bit bigger.
are you serious? I missed it tonight
wow you're right! found this in a summary of tonight's episode.
"Jason and Val are the owners of Total Merchant Resources, a company that extends credit to businesses in exchange for processing their credit card transactions until the loans are paid off. The owners need $200,000 in exchange for 20% equity. Claiming to have a successful track record (with 400% return in less than a year), Jason and Val also need a shark who can introduce them to a bigger market.
The rest of the sharks think that this deal is right in Kevin’s alley so when he offers the amount in exchange for a 50% equity, the other sharks do not put their foot down than what they usually do whenever Kevin rolls out an offer. For Kevin, the 50% stake is just fair as the owners will have his tremendous credibility, capital and contacts working for them. Moreover, Kevin claims that he can do this on his own yet he’s giving Jason and Val the chance to succeed. When the owners counter with $250,000 for 25%, Kevin tells them that his offer is non-negotiable. In the end, Jason and Val take Kevin’s deal."
All it took was $200k to get 50 perc equity? It was funny how wonderful said he could do this himself and didn't need them - he's right-
I was able to catch a rerun of it earlier today. Crazy stuff. We'll definitely have to embed the video here when ABC posts it on their website.
The industry is getting more and more attention
Congrats Val and Jason!
wow! This is great for our industry. For the past year or so many had the goal of "legitimizing" our industry. In the past year we had OnDeck interviewed on CNBC and now one of the investors from Shark Tank go into the business and I'm sure a few other events that I am missing here. What will we see next? Will people eventually be able to walk into banks and get a cash advance from their banker?
From my perspective, it appeared they were trying to work with the sharks more on the merchant processing side than on the funding side. You could tell there was a lot of editing done especially when they were discussing how a cash advance works. It appeared when Val and Jason left the room and the sharks were talking about the value, they said they could certainly use them for processing the merchant accounts for some of their existing investments from the tank.
Which ever way you put it for funding or not. The sharks have learned a new method on getting there money back! Even if they offered processing to each sharks businesses they will gain exposure, an the ones that they invest into could sign up with his own processing team now adding value in the short an long term.
I know another company that was on Shark Tank and worked out a deal to purchase equity. After the show, the deal fell apart. I think once they start doing all the paperwork and legal contracts sometimes these deals die.
Just imagen this, how many people watch that show an think of how many there could be that own businesses an than the fans, thats national exposure for processing an funding!
Does anyone have a link to watch the episode?
www.abc.com
Scroll down to the bottom and click on Shark Tank
Here is the link. It is the full episode and they are the last ones, around 30 minutes in.
Enjoy.
http://watchabc.go.com/shark-tank/SH...prch0ct/week-6
Yeah... we had a local company go on it and it was in one of our local papers and i remember that sticking out more to me than what he got... but here is the link... and it is actually 5% on this one..
http://www.gainesvillechamber.com/20...ality-tv-show/
They removed the 5% equity clause and it will be retroactive for all past deals.
Mark Cuban gave the shark tank an ultimatum this year. Either get rid of this clause or he will not be back...They removed it.
Here is the link:
http://www.inc.com/will-yakowicz/mar...ty-clause.html
retroactive. Wow. That's wild that they returned all those shares back to the companies that have appeared on the show.
I think the 5% is not a bad deal for the majority of the companies, which are very small to begin with. The national exposure is well worth it.
Whether the sharks and their deep pocket contacts get into this bz or not, I do believe some companies are coming into the business- more on the loan side than mca side- to be a disrupter to the marketplace in the coming year(s).
regardless of the outcome, credit is due. I think mr wonderful was spot on when he said he could have hired a head hunter to find someone better to enter the business and had 100% of the company. these guys got in with someone that can probably get them their 50% worth in merchant processing residuals, let alone the mca side of the business.