Results 1 to 19 of 19
Threaded View
-
06-12-2014, 09:52 AM #10
First, think in terms of valuation, new investors, going public, selling the company.
The big money guys looking at the industry want to control all or most of the distribution channel. If you buy a company that has 90% of its distribution controlled by 3rd parties, and after you buy it, they decide to go to another funder, you create a huge hole in what you bought.
Funders are rushing to get their controllable distribution up to around 75%.
The industry will always use brokers, but not as their primary or only distribution channel.
Second think in terms of regulation and stacking. In moving to a direct distribution, they also get to walk away from brokers with no loyalty to funders and merchants. It is and will continue to cleanse out the bad actors and allow the good partners to grow. It may even help keep regulators at bay, while they finish focusing on payday and title lending.
I think next, you will see brokers need to go through a vendor registration, get certified, go through some checks, etc.
*100% my personal opinion*
Similar Threads
-
Summer of Submissions
By HeatherF in forum PromotionsReplies: 3Last Post: 05-30-2014, 11:07 AM -
Is On Deck Not Doing Split Funding Anymore?
By Quickfunder in forum Merchant Cash AdvanceReplies: 5Last Post: 03-14-2014, 09:52 AM -
Taking A Fresh Look At UCC Leads
By JayBallentine in forum Merchant Cash AdvanceReplies: 3Last Post: 01-21-2014, 08:23 AM