[LJH365]

Anybody ever heard of this?

Apparently its a portal where brokers can post deals they need homes for and lenders can compete on those deals?

Spoke to a guy earlier today who (I think) runs it or uses it. He was surprised I never heard of it.

Sounded a little sketchy to my ears, so I was wondering if anyone else had any experience with it.

Thanks

[Irving]

went after my company yesterday as well

[J.Celifarco]

I have been receiving emails from them but have no idea what they are about.. If someone else can figure it out let me know

[MidnightAdvance]

So it's actually an amazing idea to prevent backdooring, the founder has a successful history as far as building tech startups.
The problem is you can't really underwrite the deals properly, and a lot of funders I spoke to, don't like to use it.

It's a great piece of software though.

[abfunders]

I spoke with them last year, I guess it's finally starting to move.
It was in beta when I spoke with them in July. I guess they've launched full-force.
They were marketing it to me, as a broker, to put deals up there. Sounded like a solid platform, they do their own soft pull for the lenders, as well, to give them a FICO range.
I never tried it, would love to hear an experience.

[MCNetwork]

Received emails from them as well. I have no idea what they're about.

[ryan $]

I had this idea a while ago.

It only works if you actually do a credit pull, check for defaults, do everything.

Which is going to be too costly.

Then you run into lenders who use different systems, so then what, you have to pull the same thing on multiple platforms?

If you dont do EVERYTHING to the lenders satisfaction - you will run into a lot of declines at closing...

Which will piss brokers off and kill deal flow

In theory its a great idea, and I hope you can work out the kinks....

[fundingfloor]

Hey Sean,

Great speaking to you earlier. For everyone else on the thread; The Funding Floor is a marketplace for alternative financing, specifically MCA.

For IOS's it allows them to submit their deals to multiple lenders without the risk of getting backdoored and without destroying their merchants credit.

For Funders it allows them to source more deal flow and filter the deal flow based on things like business type, revenue, location, etc.

We have a ton of great features that allow you to bid/counter bid, message each other, upload/exchange files, and close deals. 1 deal will have one page. No matter how many bids or messages you place or receive. You will see it all in one pace. Forget overloaded inboxes.

If you have any questions feel free to reach out to hello@thefundingfloor.com and I'll be happy to answer any questions.

[NoBigDeal]

I also got his email yesterday. Didn't really get how it's profitable for a funding company to get on board as it seems like there will just be a ton of free underwriting without any closed deals. Waste of time and resources.
From a brokers perspective, I get why it can be advantageous. Shotgun a deal to as many Funders as possible (through 1 platform- The Funding Floor) and only have the merchant's credit hit once, wait until the funders bid on the merchant. Go with the best offer, and call it a day

Unless I misunderstood...

[MCNetwork]

I also got his email yesterday. Didn't really get how it's profitable for a funding company to get on board as it seems like there will just be a ton of free underwriting without any closed deals. Waste of time and resources.
From a brokers perspective, I get why it can be advantageous. Shotgun a deal to as many Funders as possible (through 1 platform- The Funding Floor) and only have the merchant's credit hit once, wait until the funders bid on the merchant. Go with the best offer, and call it a day

If only it were that easy. Now you have to compete with the other 3 brokers that the merchant is working with. If the merchant only worked with the Funding Floor broker, then the model would make sense. But that's not real life, especially if the merchant was found on a UCC list.

[fundingsmbs]

didn't a company try this model and ended up funding deals themselves eventually and sent out all the low credit deals to other funders? I am not a fan of this model at all. an ISO should have his/her rolodex list of funders they have relationships with to submit deals to (some do soft pulls) and get the deals done direct without going through a portal like this.

https://www.lendio.com/


For IOS's it allows them to submit their deals to multiple lenders without the risk of getting backdoored and without destroying their merchants credit. - what data do the funders see to ensure deals won't get backdoored? Will your co PG that in writing?

For Funders it allows them to source more deal flow and filter the deal flow based on things like business type, revenue, location, etc. - funders are sending deals through you to mask their direct submissions to funders?

[fundingfloor]

We certainly agree on the benefits for the brokers and the merchants.

As for funders, I'm not sure why you would think this is a waste of time. Since we do not charge brokers nor are they risking getting back doored, they are sending all their deals, not just the last second stuff that they can't fund.

So we are growing your deal flow. We also have filters you can create, so you can only be alerted to deals you like. I.e. credit levels, deposit amounts, location, industry, etc. You can create as many filters as you'd like and only get alerted when a filter hits.

Finally, the offers you are putting in are soft offers. Funders on the platform are usually able to put these offers on in a few minutes. Once you are awarded a deal you can then spend more time underwriting.

No lender can see any other lenders offers.

Our goal is to help the right deals find the right funders as quickly and automated as possible.

[fundingfloor]

Hey Archie,

Each deal can only be submitted to the platform once in a given time period based on a few factors. If you are the first to upload the deal, the next broker to submit the deal will have it rejected during the exclusivity period. There can never be the same deal on the platform with more than one broker, our software won't process that.

[MCNetwork]

Yes but I was referring to the other brokers who are NOT on the Funding Floor platform.

[fundingfloor]

didn't a company try this model and ended up funding deals themselves eventually and sent out all the low credit deals to other funders? I am not a fan of this model at all. an ISO should have his/her rolodex list of funders they have relationships with to submit deals to (some do soft pulls) and get the deals done direct without going through a portal like this.

https://www.lendio.com/


For IOS's it allows them to submit their deals to multiple lenders without the risk of getting backdoored and without destroying their merchants credit. - what data do the funders see to ensure deals won't get backdoored? Will your co PG that in writing?

Funders see everything they'd normally see except any information that would identify the identity of a merchant. You can take a look at a live deal here and see for yourself: [url]https://www.thefundingfloor.com/guests/deals/bxkv

For Funders it allows them to source more deal flow and filter the deal flow based on things like business type, revenue, location, etc. - funders are sending deals through you to mask their direct submissions to funders?

Funders cannot submit deals to the platform, only brokers can.

[Anthony@torro]

They reached out to me and I signed up as a funder on there, We'll see how it goes. From my understanding ISO's submit their deals into the portal and I am able to view each sub and make soft approvals on them based off the docs submitted.

[fundingsmbs]

fundera does this model as well and pays the broker 1/2 of their commission which comes out to 1% of the loan amount. this lending tree model is in play with several online platform companies already. it's a better fit for direct marketing and you can earn a referral fee for funders who sell the deals themselves and pay your co a small fee.

[MCNetwork]

Most funders have very similar underwriting criteria and buy rate matrices. Wouldn't you end up with a logjam of funders who are offering identical numbers? For example, YSC and Mantis offer the same types of terms for C/D paper.

It's really up to the broker to set the right commission to sell the deal.

[Michael I]

what will the commission be and how many credit pulls will merchant have ?

[fundingfloor]

Yup, 100% correct.

[fundingfloor]

The Funder submits the initial offer. They can create as many variations of offers per deal as they'd like. As part of that they can set any commission they'd like.

Brokers have the opportunity to accept or counter any of the deals as well.

Brokers decide what deal they want so it's up to them to get the best deal possible for themselves and their merchants.

As for credit pulls.. it's one pull per deal. We're trying to help merchants as much as possible here.

[WestCoastFunding]

1. What’s to stop a funder to place high bids for everything, knowing they are only soft offers and will require more DD?

2. What’s the process for resubmitting a file if a funder with a winning bid cuts their offer in half during DD?

3. Are the funders shown any proprietary and indentifying merchant info before/during placing bid?

4. Does an individual ISO agreement need to be established with each funder that places a winning bid?

5. Are funders who place initial winning bids, but are unable to close deals, allowed to contact the merchant after a grace period?

[Winning]

@fundingfloor

Can a merchant use it for them self?
Sort of how other consumer based lending data aggregators worK? IE Credit Karma, but geared more towards business owners?

[fundingfloor]

@fundingfloor

Can a merchant use it for them self?
Sort of how other consumer based lending data aggregators worK? IE Credit Karma, but geared more towards business owners?

Nope. This is strictly for brokers. We'd certainly love to offer more tools to brokers for their merchants, but this is not a direct to merchant software.

[fundingfloor]

1. What’s to stop a funder to place high bids for everything, knowing they are only soft offers and will require more DD?

We've got a few algorithms that look for irregularities. I.e. if it's your first day on the site and you throw bids greater than a % medium on a certain number of deals, your account will be suspended and the offers removed. Just one small example of how we fight fraud. We have a zero tolerance policy. We'd love to help Funders fund more deals but we won't allow anyone to manipulate the system or the brokers that use it.

2. What’s the process for resubmitting a file if a funder with a winning bid cuts their offer in half during DD?
.
Well, a Funders can always message a Broker saying "Hey we found X, we're going to have to change our offer." A broker can accept or cancel the bid. If a Funder cancels their bid the deal automatically reactivates, the broker sees all the previous bids and messages and can accept any of those, as well as any new deals the deal will now receive.

3. Are the funders shown any proprietary and identifying merchant info before/during placing bid?

Nope. I posted a guest link in an earlier post. This is what a Funder sees. https://www.thefundingfloor.com/guests/deals/bxkv
The functionality is removed unless you have an account. But you can still see the merchant information, bank statements, etc. with no way to identify the merchant.

4. Does an individual ISO agreement need to be established with each funder that places a winning bid?

When Funders sign up, they upload their ISO agreement. Once they win a bid, along with the contracts and stips, the funders ISO agreement is sent. Once it is signed, the system will not ask for the ISO agreement to be signed again between that Funder and broker. If there is already an ISO agreement in place, either side can click off that option and the system will store that none is required.

5. Are funders who place initial winning bids, but are unable to close deals, allowed to contact the merchant after a grace period?

We do have language around that to protect brokers but we do tend to defer to the individual ISO agreements that brokers and funders have with each other.

Again any questions feel free to email us anytime hello@thefundingfloor.com or DM me and I'd be happy to set up a call/demo