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05-15-2018, 03:04 PM #1
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Newby Questions
Quick question. What should a new ISO to the business expect starting out? One who bangs out the phones and emails daily? What were some of your early experiences.
David Fears
Business Development Mgr
GIGATT Business Solutions
dlfears@gigattbizsolutions.com
www.gigattbizsolutions.com
(602)935-3667
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05-15-2018, 03:27 PM #2
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That really depends on how proficient a salesperson you are and how relentless your follow up is. I'll assume that you are an above average closer and have a good work ethic. If you can commit to cold calling at least 100-150 names per day (from UCC lists), you can expect to close about 1% of the merchants you actually speak to. It will take at least 30 days to build a decent pipeline and you probably won't fund anything for the first few weeks. You should have at least a few months of living expenses saved up so you're not overly stressed out.
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05-15-2018, 03:51 PM #3
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- Jun 2015
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- 3,325
define new ? Are you a rep with someone training you ? do you have industry experience ?
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05-15-2018, 03:51 PM #4
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- Sep 2017
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Archie
Thanks and thats exactly what I thought. Its pretty much a numbers game and I learned that from my penny stock days many years ago. I work from a D&B lists and an internal client list from the accounting business side of my business. Are UCC's leads that much better?David Fears
Business Development Mgr
GIGATT Business Solutions
dlfears@gigattbizsolutions.com
www.gigattbizsolutions.com
(602)935-3667
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05-15-2018, 03:59 PM #5
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- Sep 2012
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- New York, NY
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UCC's have a higher conversion rate only because these merchants are already familiar with the product. The conversion rate from cold calling D&B lists or internal client lists will probably be half of that of a UCC list. It's not impossible but it will require a great deal of effort from your team. If you can provide ancillary services besides a cash advance and if you have a well rounded toolbox of lenders/funders then you'll be well positioned to monetize each contact. If you're only offering an MCA or short-term business loan, then you'll find yourself at a disadvantage.
If you only have a hammer, every problem looks like a nail. Make sure you have other tools in your belt. You should be able to service a wide spectrum of financing needs in order to bring the most value to the table.Last edited by MCNetwork; 05-15-2018 at 04:03 PM.
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05-15-2018, 04:24 PM #6
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- Sep 2017
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- Scottsdale, AZ
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- 36
Archie
Your feedback is gold and thanks again.Yes we are accountants by design. Our internal clients are our first targets then we move to cold calling other businesses who may need financing as well. Sometimes we will find a prospect that doesnt need accounting but needs financing and vice versa. I questioned this business model initially but you have confirmed Im on the right track. Ive just got to put in the numbers and build a pipeline. I currently have a pipeline (solid leads) with loans totaling $1.2mm. They are comprised of (3) real estate (3) working capital and (1) MCA type loan. Im thinking of bringing on an appointment setter to do the front end contact and I will work on getting the prospect closed. I also work Phoenix exclusively which I know limits my prospects but its where I think its best to start.David Fears
Business Development Mgr
GIGATT Business Solutions
dlfears@gigattbizsolutions.com
www.gigattbizsolutions.com
(602)935-3667
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05-15-2018, 04:40 PM #7
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- New York, NY
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Yes you're on the right track. There are many ways to skin a cat and yours is one of them. The advantage of focusing on your local market is that you can build better rapport when you're face to face, as opposed to over the phone. These types of contacts tend to be better performing from a renewal and repayment standpoint than a random name on a national list. You also have the advantage of having social proof on your side ("Mr. Merchant, I happen to work with many Phoenix businesses. Are you familiar with XYZ Company on Main Street? I am their preferred working capital provider"). Be sure to deliver massive amounts of value to your clients, get referrals to back you up and you'll be in good shape! Best of luck to you and if you ever have questions, feel free to shoot me a message or call!
Last edited by MCNetwork; 05-15-2018 at 04:45 PM.
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05-15-2018, 04:53 PM #8
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Will do and probably a few deals as well.Thanks again.
David Fears
Business Development Mgr
GIGATT Business Solutions
dlfears@gigattbizsolutions.com
www.gigattbizsolutions.com
(602)935-3667
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05-15-2018, 04:57 PM #9
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- Mar 2016
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05-15-2018, 05:21 PM #10
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- Oct 2016
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Personally, I like focusing on the conventional stuff like bank financing, SBAs, real estate loans, A/R lines, equipment leasing, etc.. Approval rates for those products range from 20-60%. The company's that seek-out more conventional stuff, but don't get approved end up making prime MCA candidates. So much better to fund a company doing $2.6M a year a $200K 1st position MCA, than dealing with company's doing $12,000 monthly already stacked with 3 positions.
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05-15-2018, 06:43 PM #11
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^^good point. That's how you find nice 1st position deals. Classic blue ocean strategy!
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