[Karen37a]

magic 2 deleted

[J.Celifarco]

it will continue to get harder for brokers to fund A paper deals unless you have a relationship with the merchant already providing other services and can come in relatively similar in costs for funds which will reduce commissions significantly. The broker may be better positioned to handle A- down paper as these companies keep pumping marketing and direct sales as their strategies. There will always be deals that A paper funders will pass on that are still good deals for others.

I have to disagree. I do primarily 1st position deals A and B paper. I am in the industry over 10 years and I dont think there is that much difference on the first funding. What has changed is renewals are harder to get done because of stacking, but on the first funding if you have the right bank relationships these deals get done and you can make plenty of money doing them.
Yes once in a while you will run into swift and lose. If this starts happening often then you need to adjust your lead sources so you are competing with companies that have you on a level playing field. If you see you are coming up against swift on a lot of deals drop that lead source and move on to something else. Giving up on better quality deals sounds crazy to me.

[capaxess]

Cover your ass and work multiple angles. They want a conventional loan, and are fine with the slow due diligence process — right up until the moment they cal saying “I need $100,000 by tomorrow!!!” Have those 1st position offers on standby, and plant the seed.

“John, I’ve submitted all the paperwork to the SBA lender, and we’ve just got to wait a few days for the next step. Just to let you know, I also have $100,000 working capital ready to go should you need it. Getting the SBA should be the main focus, tho. Just wanted to let you know the other approval because, ethically, it’s important for me to present all offers”

Good advise, I have a few more of those "I don't mind waiting files" I could use that on, many thanks WC!

[Shorebird]

I like that line also.

[Karen37a]

more out of business before they started

[Karen37a]

I hope some of you realize when you are "waiting on the file" with some companies you are being nailed off the back end by a closer who will fund a mca

So keep on keeping on...

Last charitable advice

Salespeople get paid $$$ for a reason. We turn the NO into yes...we do not let them say I want 500k for 5% and 10 years monthly payments. ( everyone wants that) Or I am going to wait. you lose your sales in the waiting period....(this is why some succeed with some isos and not others...they walked into a sales closers place.)

No one needs you to do that...that's what customer service is for. That's a clerks job...take in a laydown application...then you get 1 percent.

Salespeople find clients...not the laydowns, you CANT COMPETE with TRILLION dollar organizations..if you want that you go get paid a salary.

Salespeople find the merchants and close...you keep following bank "ideas" go to the bank or big people who give you 1-2%..or head the Venture capital way and make $$$

Anyway good luck

[abfunders]

Cover your ass and work multiple angles. They want a conventional loan, and are fine with the slow due diligence process — right up until the moment they cal saying “I need $100,000 by tomorrow!!!” Have those 1st position offers on standby, and plant the seed.

“John, I’ve submitted all the paperwork to the SBA lender, and we’ve just got to wait a few days for the next step. Just to let you know, I also have $100,000 working capital ready to go should you need it. Getting the SBA should be the main focus, tho. Just wanted to let you know the other approval because, ethically, it’s important for me to present all offers”

WestCoast - So true. Ideally make sure the funder you use as backup is really able to fund "today" (and get all the stips you might need in the meantime) and that you have a good relationship with them so that they don't keep bugging you, "When can we fund?" Bluevine in the meantime is also good, shows them that you're for real. Ideally keep the hard credit pulls to a minimum, especially when dealing with traditional finance!

[fundingsmbs]

I have to disagree. I do primarily 1st position deals A and B paper. I am in the industry over 10 years and I dont think there is that much difference on the first funding. What has changed is renewals are harder to get done because of stacking, but on the first funding if you have the right bank relationships these deals get done and you can make plenty of money doing them.
Yes once in a while you will run into swift and lose. If this starts happening often then you need to adjust your lead sources so you are competing with companies that have you on a level playing field. If you see you are coming up against swift on a lot of deals drop that lead source and move on to something else. Giving up on better quality deals sounds crazy to me.

My guess based on numerous talks with shops is at least 20% on low side depend on stacking to survive on up. Some 50% or more. It's a significant part of the business now whether politically you want to admit it or not. If you are losing renewal income, you have to continue to originate more and more new deals which put's a strain on a lot of brokers models. Also, if those customers took a second from a random solicitation, the loyalty aspect of the business isn't there either. I think today, you have to arm yourself with all the options made available. Even direct funders have brokering arms to earn revenues to stay in the black when their own credit box doesn't fit the customer.

[Karen37a]

My guess based on numerous talks with shops is at least 20% on low side depend on stacking to survive on up. Some 50% or more. It's a significant part of the business now whether politically you want to admit it or not. If you are losing renewal income, you have to continue to originate more and more new deals which put's a strain on a lot of brokers models. Also, if those customers took a second from a random solicitation, the loyalty aspect of the business isn't there either. I think today, you have to arm yourself with all the options made available. Even direct funders have brokering arms to earn revenues to stay in the black when their own credit box doesn't fit the customer.

I just have a quick honest question.

If commission can be 10pts...100k = $10,000 500k = 50k

How are people not able to survive?

Is that the w/2 model?

I seriously feel like I am in another world than most


1 million in renewals ? give you x? you could be sitting on the beach or a boat collecting money

[Karen37a]

I had a merchant who was making 10k take out an advance, big avg daily balances.. I lowered the payments...got her out to 7months? 18500 ...got 14 points...

2 months later she is shooting the breeze with me saying hi...she double her revenue...wanted 10k more to do a renovation on the back... I asked if there was room for more money...big fat avg daily balances.. I think 6-10k

renews... paid $10 more a day? more commission

Big construction..89k avg daily balance...150k...comes back( 30% more revenue to 600k a month) ...add on 100k...now I am pulling it all in 10 more days back to the top

another renewal 48k

That's just 3 merchants last week , one day only, my personal sales( not team) on Friday funders on these boards

I really do not know what people are doing.

[J.Celifarco]

I just have a quick honest question.

If commission can be 10pts...100k = $10,000 500k = 50k

How are people not able to survive?

Is that the w/2 model?

I seriously feel like I am in another world than most


1 million in renewals ? give you x? you could be sitting on the beach or a boat collecting money

who said anything about not surviving? People were talking about moving away from the higher quality deals and I said the opposite that you absolutely can survive focusing on that aspect of the business. Is that all of your business, no. Is it the majority of my business yes. You dont need to fund 3rd-6th positions all day to make money. Its about the model you have and the leads you are calling

[Karen37a]

who said anything about not surviving? People were talking about moving away from the higher quality deals and I said the opposite that you absolutely can survive focusing on that aspect of the business. Is that all of your business, no. Is it the majority of my business yes. You dont need to fund 3rd-6th positions all day to make money. Its about the model you have and the leads you are calling

He said stacking to survive...it isnt to survive its for greed.

There are healthy seconds..maybe a 3rd to pull someone out( which I dont do)...the rest can kill them bury them

And these brokers shouldnt be salespeople some of them( let alone a mouthy iso)...thats the real reason. I am off..not debating

[capaxess]

I hope some of you realize when you are "waiting on the file" with some companies you are being nailed off the back end by a closer who will fund a mca

So keep on keeping on...

Last charitable advice

Salespeople get paid $$$ for a reason. We turn the NO into yes...we do not let them say I want 500k for 5% and 10 years monthly payments. ( everyone wants that) Or I am going to wait. you lose your sales in the waiting period....(this is why some succeed with some isos and not others...they walked into a sales closers place.)

No one needs you to do that...that's what customer service is for. That's a clerks job...take in a laydown application...then you get 1 percent.

Salespeople find clients...not the laydowns, you CANT COMPETE with TRILLION dollar organizations..if you want that you go get paid a salary.

Salespeople find the merchants and close...you keep following bank "ideas" go to the bank or big people who give you 1-2%..or head the Venture capital way and make $$$

Anyway good luck

You know I can't really disagree Karen, you're probably right. I've always tried to work hard and earn trust with the prospect, respecting his/her wishes, search for optimal funding, go to bat for better terms, not be annoying. Then I call back to find out some good closers got him into the very thing he told me he didn't want. Maybe I need to take a different approach and just slam them into whatever I can convince them they need now, what do I know?

[Karen37a]

You know I can't really disagree Karen, you're probably right. I've always tried to work hard and earn trust with the prospect, respecting his/her wishes, search for optimal funding, go to bat for better terms, not be annoying. Then I call back to find out some good closers got him into the very thing he told me he didn't want. Maybe I need to take a different approach and just slam them into whatever I can convince them they need now, what do I know?

I don't slam people... I sell them into what is best for them...they cant qualify for the things they want

And I have a 95% renewal ratio and my merchants like me.

You will learn as you go along


Its kind of like some kid at McDonald's with a 750 credit score saying he wants a 1 million dollar house because he has a 750 credit score... it doesn't work that way... it's more like "tough love"

like a financial planner or fiduciary

[WestCoastFunding]

I don't slam people... I sell them into what is best for them...they cant qualify for the things they want

And I have a 95% renewal ratio and my merchants like me.

You will learn as you go along


Its kind of like some kid at McDonald's with a 750 credit score saying he wants a 1 million dollar house because he has a 750 credit score... it doesn't work that way... it's more like "tough love"

like a financial planner or fiduciary

There's something to be said about playing-out the process of attempting to get a merchant into the best loan possible -- even if the success rate is 20-30% (which is the approval rate for Wells, Citi, etc). These guys are getting slammed by brokers every day (and we all know most of these guys can sound kinda street). So when you aren't trying to pressure them into a MCA, they take notice, and builds trust. If they're eventually declined for a conventional, SBA, ABL/Factoring, they go through their moment of grief, but often come around to accepting a nice A-paper MCA. Takes patience but i find its also important to have a MCA on backup (with a funder that only does soft pulls) so it can be presented early to the merchant, so when the next broker makes contact, they're less likely to sell the merchant on whatever MCA they are offering.

[Karen37a]

There's something to be said about playing-out the process of attempting to get a merchant into the best loan possible -- even if the success rate is 20-30% (which is the approval rate for Wells, Citi, etc). These guys are getting slammed by brokers every day (and we all know most of these guys can sound kinda street). So when you aren't trying to pressure them into a MCA, they take notice, and builds trust. If they're eventually declined for a conventional, SBA, ABL/Factoring, they go through their moment of grief, but often come around to accepting a nice A-paper MCA. Takes patience but i find its also important to have a MCA on backup (with a funder that only does soft pulls) so it can be presented early to the merchant, so when the next broker makes contact, they're less likely to sell the merchant on whatever MCA they are offering.

Yes. I understand I did sell Loans since 2000 and investments from the 80s .
I know many people who sell this way or get denied for term loans then go for other things.

I choose not to do it this way. I wind up having a very high closing ratios just cold calling for mcas and cant be playing games with people, we have deals to fund renewals...pipelines to follow up on, underwriting docs missing, funding calls..I TO a lot of my team's sales if something goes haywire.

I just like to cut to the chase and find people who fit my funders parameters...chasing documents and babysitting is so time-consuming.

And you have to have the patience to wait for renewals or underwriting guidelines to clear, balances, nsfs...stips to clear...and follow up with a pipeline.

to each their own

[Karen37a]

Most of the people we talk to in no way shape or form can get approved for those types of loans. To hold out hope is ridiculous to me. I do understand the underwriting guidelines so I can see when they are going to get denied. I can also tell when someone isn't A paper ...So what is the truly ethical thing to do?

Explain to the merchant why they cant qualify...not pacify them by saying let's see if you can qualify ( when they have no chance) ...then get them into a d paper program or c or b or a and advise them on what to do to fix their situation.

Now, this is very hard to do because the merchants are nasty...and told lies.

So learn how the products work...this way you have a fighting chance when an educated boiler room broker gets on the phone with the merchants


( even some A paper funders cant get their own merchants that's why they backdoor)


I am not responding to this thread anymore

[WestCoastFunding]

Most of the people we talk to in no way shape or form can get approved for those types of loans.

Depends who you're targeting. If you're targeting retail stores selling t-shirts, chances are there are limited conventional financing options. But if you are targeting companies doing $2-10M in revenue, and they can exhibit a 1.0 DSCR, a decent balance sheet, then why wouldn't they qualify for conventional financing (provided there isn't anything funky in their history)?

Personally, I like focusing on the lower-middle market type companies looking for A/R lines. If that falls through, they love $250-500K advances. And they're easy to close because you already have their tax returns, financials, debt schedule and A/R & A/P ready to go. Additionally, these companies don't hit you with the surprises that you get with the smaller merchants. They have their act together.

[Karen37a]

Depends who you're targeting. If you're targeting retail stores selling t-shirts, chances are there are limited conventional financing options. But if you are targeting companies doing $2-10M in revenue, and they can exhibit a 1.0 DSCR, a decent balance sheet, then why wouldn't they qualify for conventional financing (provided there isn't anything funky in their history)?

Personally, I like focusing on the lower-middle market type companies looking for A/R lines. If that falls through, they love $250-500K advances. And they're easy to close because you already have their tax returns, financials, debt schedule and A/R & A/P ready to go. Additionally, these companies don't hit you with the surprises that you get with the smaller merchants. They have their act together.

I have a lot of clients who make 2-10 million a year... I Have a VERY high dollar amount funded per sale.

30k-150k is my target range

When newbie brokers start they cant get to "the high end" merchants because they are not breaking thru the gatekeeper and they are looking for automated applicationsThey also cant get well qualified people to talk to them "low hanging fruit" speech

I learned how to get to accredited investors as a stockbroker....millonaires. I just apply the same phone techniques...smoothed over and refined for cash advancesAnd the best target market would be making 20k-100k or 25k to 75k ,,,they fund fast , next next-next, then they start renewing...i sprinkle a few 150/200k a long the way

West you are preaching to a mca broker who in everyone imaginary mind thought they sold cash advances because they were barred from securities...one that has 5 defaults to date and 95% renewal ratios.

I like sales. I do not struggle on the phone so its easy for me and i do not see it as drudery...i also trained my mind to not see the phone as a job and that every no is one step closer to a yes

I tried to explain to people "for free" some of the techniques and strategies implemented..I believed that it would make the cash advance industry stronger as a whole and stop the onslaught from the people who want to regulate and drag us down to 1 % commission.

At this point I do not care....like I said before ...everyone has to sink or swim. Il be busy for the week carry on without me.

West you seem reserved. I have to show up one day live and ruin the rest of your day...good looking woman dark hair and eyes with her christian louboutin stilettos on stepping out of a black bmw lol

[MCNetwork]

West you seem reserved. I have to show up one day live and ruin the rest of your day...good looking woman dark hair and eyes with her christian louboutin stilettos on stepping out of a black bmw lol

Love is in the air

[Karen37a]

Love is in the air

girl in bmw.jpg


one in a million

https://www.youtube.com/watch?v=MYycDyAxgb0

Love had played its game on me so long.
I started to believe I'd never find anyone.
Doubt had tried to convince me to give in,
Said you can't win.
But one day the sun it came a shinin' through.
The rain had stopped, and the skies were blue.
And oh, what a revelation to see.
Someone was saying "I love you " to me.
A one in a million, chance of a lifetime.
And life showed compassion.
And sent to me a stroke of love called you.
A one in a million you.
I was a lonely man with empty arms to fill.
Then I found a piece of happiness to call my own.
And life is worth living again.
For to love you to me is to live.
A one in a million, chance of a lifetime.
And life showed compassion.
And sent to me a stroke of love called you.
A one in a million you.
A one in a million, chance of a lifetime.
And life showed compassion.
And sent to me a stroke of love called you.
A one in a million you.

[ryan $]

Karen, that is you?

[Karen37a]

Karen, that is you?

NO, i am older but thats what I looked like when i was younger...

looks shouldn't matter...but alas they do

[J.Celifarco]

and this thread has officially gone off the rails

[Karen37a]

and this thread has officially gone off the rails

Things went off the rails...months, years ago with the lunatic chasing me