Well said Jay. Breaking the mold is something needed in this industry. Owning a functional aggregation entity in this industry, we have been told that what we have striven to do is impossible. I will tell you point blank that it is indeed very possible and extremely effective when executed correctly.

Firstly, trying to capitalize on 1.8% is not feasible because quite frankly the volume is just not there to support the over head necessary to build and maintain an enterprise such as somolend. One realization that needs to be made is that our industry in the grand scheme of things is tiny as finance goes. The pie is just not big enough to pull this model off based on fees alone. Look at The Receivables exchange. They processed an extremely large amount of business with a very similar model. At the end of the day they could not support the overhead and are on the verge of folding after laying off the entirety of their sales staff. The keys to the model are syndication and low overhead. Taking points is not amenable to the brokers or lenders.

On the technology front, providing tools for brokers to access more markets is much more effective at driving revenue than a syndication marketplace. We are about to launch an MCA based, extremely low barrier to entry comparative rater that gives brokers just that. Access to up to 15 direct lenders and system by which brokers can efficiently process and manage business to said lenders. We have been doing the aforementioned with people for the past three years and are very excited to see what this innovation will bring to our large network of brokers.

Being that we syndicate 50% of every deal that I can tell you first hand that not every lender is allowing syndication. As a matter of fact most are starting to require "accredited investor" status from would be syndication investors. This will help thin out the number of people who will be able to syndicate as the industry matures.