[michaelh]

So A Snap rep in Final is on the phone with a customer! we had contracts in 50 for 70 payback 18 month deal 190 a day. Customer has a bank that decision logic doesn't work on. We get the month to date set up conference call with bank customer and Snap to verify the account. At the end of the conversation the customer asks what is the interest rate on the loan. The idiot from snap tells the customer 40 percent. Customer hangs up. Nice training. So then we go back to Snap and complain and they have the same rep call the customer back and tell the customer that he was wrong and it's a fee based loan. Customer says she wants nothing to do with this loan. We call the customer back and she says she want's nothing to do with us as our reps are poorly trained and incompetent.

[Michael I]

So A Snap rep in Final is on the phone with a customer! we had contracts in 50 for 70 payback 18 month deal 190 a day. Customer has a bank that decision logic doesn't work on. We get the month to date set up conference call with bank customer and Snap to verify the account. At the end of the conversation the customer asks what is the interest rate on the loan. The idiot from snap tells the customer 40 percent. Customer hangs up. Nice training. So then we go back to Snap and complain and they have the same rep call the customer back and tell the customer that he was wrong and it's a fee based loan. Customer says she wants nothing to do with this loan. We call the customer back and she says she want's nothing to do with us as our reps are poorly trained and incompetent.

what an idiot he was the apr is around 50% . got to love on deck and quarterspot and the such that put what the true apr is on the contract

[ryan $]

If its an Advance it cant be converted

[abfunders]

If its an Advance it cant be converted

Ryan, what about this?
https://www.breakoutfinance.com/apr-calculator/

There was a thread here about a year and a half ago about APR. That was thorough.
http://dailyfunder.com/showthread.ph...to-APR-Formula

[michaelh]

The biggest issue is the Snap - Senior Credit underwriter should not have answered it at all and told the customer to call his sales rep to get that information and second after we complained to Snap they had the same guy call the customer back!

[J.Celifarco]

you nailed it that is just poor training

[ryan $]

Ryan, what about this?
https://www.breakoutfinance.com/apr-calculator/

There was a thread here about a year and a half ago about APR. That was thorough.
http://dailyfunder.com/showthread.ph...to-APR-Formula

Breakout Offers Loans.

If it's APR, the Math on a Daily Payment would kind of suck. Im not doing it. Have Fun.

Its always "Approximate"

And by CANT i meant shouldn't.
Flat Cost for Money. No APR.

[WestCoastFunding]

Next, the rep will call you and ask what the funder will say if the merchant calls back seeking a lower rate. That’s what happened with me when a rep (another company) pulled the same crap.. Worst is that they called the merchant without telling me or giving a heads. But here’s the worst part: Did they call when they received contracts? Nope. They called the merchant when I REQUESTED CONTRACTS.

[MCNetwork]

I would have said there is no interest rate but the cost of capital is 2.2% per month.

[abfunders]

This is why I always interview the client, and figure out what the ROI on a loan will actually be. That way, when they do ask about it, I have ammo to explain back why this works for them. It's always good to know how the business model works and see that every dollar they invest in the business makes ROI of X dollars over Y period of time... get them to justify an MCA themselves. If it's not justifiable, don't push them.

When they balk at the price, tell them how it's justified, and that the rate isn't the focus, rather the amount of dollars in their account at the end is the focus. Also gives you an idea if you can sell them on 12 points upsell, or if only 4.

If that doesn't work, then back it up with other non-MCA opportunities.

Maybe I'm just a bad salesman....

[skideeppow]

i just had a deal that they had revise the paperwork 5 times. Pretty amazing. The merchant had to sign 5 different agreements.

You can not make this **** up

[Sachip24]

I would have went ape sh*t on them

[channin19]

i just had a deal that they had revise the paperwork 5 times. Pretty amazing. The merchant had to sign 5 different agreements.

You can not make this **** up

oh they must have been poaching staff from Lendini

[Fundyman]

oh they must have been poaching staff from Lendini

Gat damn... shots fired, son!

[Don Dolla]

obviously u didn't close the merchant on the terms of the deal and are shifting the blame to a frontline underwriter who doesn't give a **** when it's 100% your fault. if the merchant wasn't comfortable on the terms, you didn't close, bottom line.. what's the name and number for the borrower?

[rmckellar]

It's not the UNDERWRITER's job to close YOUR merchant. If you are getting merchants to sign docs while they are willfully ignorant of the cost of funds, you don't belong doing business in this industry. I can't comprehend why an underwriter for a large direct funding company would respond "oh you know what, I'm not sure, I think you have to call your rep about the cost of funds' when being asked what the rate was unless they were looking to lose their job and never work as an underwriter again. On a funding call, an underwriter is supposed to go over the terms of the agreement, which includes the amount being purchased, how much that purchase of receivables will cost the merchant, and the daily amount or split percentage being taken from their sales. You do realize that most people would assume A) you've sold the merchant on the contract YOU GOT HIM TO SIGN, and B) that if they are going over the terms of the agreement, where it's printed in black and white, that the merchant isn't a complete ****ing idiot and can do the math themselves.

Also, a merchant cash advance is not a loan, it is a purchase of future receivables for a discounted price. 40% is the discount aka factor rate. Sure you can 'convert' it to an APR, but A) that APR is not going to be the same as the factor rate, and B) interest is not being collected so providing an APR is misleading and selling the funding company short.

Do your job. It's not ANYONE at Snap Advance's job to mislead or white lie to the merchant for you, nor is it anyone's job to sell your merchant. And stop calling this product a loan.

OP's post right here speaks to some of the most blatant truths about this industry.

edit: I just read this ****:

The idiot from snap tells the customer 40 percent. Customer hangs up. Nice training. So then we go back to Snap and complain and they have the same rep call the customer back and tell the customer that he was wrong and it's a fee based loan. Customer says she wants nothing to do with this loan. We call the customer back and she says she want's nothing to do with us as our reps are poorly trained and incompetent.

Who the hell trained YOU? The only people here who are incompetent or poorly trained are the people on your team. I have worked with Snap on and off for 6 years and have no complaints compared to the **** shows that are a lot of other companies, but that is besides the point. IT IS NOT A LOAN. No one from SNAP should have had the call the merchant back and explain what a purchase of future receivables is, THAT IS YOUR JOB. Underwriters aren't trained to help you manipulate a merchant into an advance they didn't want or understand. What planet do you live on?

[Karen37a]

So A Snap rep in Final is on the phone with a customer! we had contracts in 50 for 70 payback 18 month deal 190 a day. Customer has a bank that decision logic doesn't work on. We get the month to date set up conference call with bank customer and Snap to verify the account. At the end of the conversation the customer asks what is the interest rate on the loan. The idiot from snap tells the customer 40 percent. Customer hangs up. Nice training. So then we go back to Snap and complain and they have the same rep call the customer back and tell the customer that he was wrong and it's a fee based loan. Customer says she wants nothing to do with this loan. We call the customer back and she says she want's nothing to do with us as our reps are poorly trained and incompetent.

Just call back and say ...there was a confusion and I want to explain clearly, I aplogize for not explaning in detail enough..or getting the wires crossed somehow

its not interest because its not a bank and apr cant be compared to a factor rate...especially since the apr is based off of 12 months and this was 18

So 40 over 18 isnt 40 over 12 ...blah blah

[Richard Gomez]

Good wrap Karen, then tell them the benefits of working with you for the long haul, not to stay stuck on the rate this first time around, etc etc. #Bulletbenefitclose

[Lmonus]

[QUOTE=rmckellar;97389]It's not the UNDERWRITER's job to close YOUR merchant. If you are getting merchants to sign docs while they are willfully ignorant of the cost of funds, you don't belong doing business in this industry. I can't comprehend why an underwriter for a large direct funding company would respond "oh you know what, I'm not sure, I think you have to call your rep about the cost of funds' when being asked what the rate was unless they were looking to lose their job and never work as an underwriter again. On a funding call, an underwriter is supposed to go over the terms of the agreement, which includes the amount being purchased, how much that purchase of receivables will cost the merchant, and the daily amount or split percentage being taken from their sales. You do realize that most people would assume A) you've sold the merchant on the contract YOU GOT HIM TO SIGN, and B) that if they are going over the terms of the agreement, where it's printed in black and white, that the merchant isn't a complete ****ing idiot and can do the math themselves.

Also, a merchant cash advance is not a loan, it is a purchase of future receivables for a discounted price. 40% is the discount aka factor rate. Sure you can 'convert' it to an APR, but A) that APR is not going to be the same as the factor rate, and B) interest is not being collected so providing an APR is misleading and selling the funding company short.

Do your job. It's not ANYONE at Snap Advance's job to mislead or white lie to the merchant for you, nor is it anyone's job to sell your merchant. And stop calling this product a loan.

OP's post right here speaks to some of the most blatant truths about this industry.

edit: I just read this ****:


Who the hell trained YOU? The only people here who are incompetent or poorly trained are the people on your team. I have worked with Snap on and off for 6 years and have no complaints compared to the **** shows that are a lot of other companies, but that is besides the point. IT IS NOT A LOAN. No one from SNAP should have had the call the merchant back and explain what a purchase of future receivables is, THAT IS YOUR JOB. Underwriters aren't trained to help you manipulate a merchant into an advance they didn't want or understand. What planet do you live on?[/QUOTE
This^^

[golf2014]

Don dolla 100 percent correct

[fundingsmbs]

There is a lot of misrepresentation out there. This is why the welcome calls are recorded and the terms and conditions are run down by the UW and Merchant. The funder who takes the risk cannot engage with a customer who thought it was one thing and learns its another. We ran into this with a few brokers who promised things that didn't exist and the welcome calls revealed it all. Promising weekly when daily was only an option, telling merchants they HAD to borrow the max amount no less or the deal would be killed, etc etc.

[golf2014]

Industry full of scammers

[Christian]

[QUOTE=Lmonus;97473]

It's not the UNDERWRITER's job to close YOUR merchant. If you are getting merchants to sign docs while they are willfully ignorant of the cost of funds, you don't belong doing business in this industry. I can't comprehend why an underwriter for a large direct funding company would respond "oh you know what, I'm not sure, I think you have to call your rep about the cost of funds' when being asked what the rate was unless they were looking to lose their job and never work as an underwriter again. On a funding call, an underwriter is supposed to go over the terms of the agreement, which includes the amount being purchased, how much that purchase of receivables will cost the merchant, and the daily amount or split percentage being taken from their sales. You do realize that most people would assume A) you've sold the merchant on the contract YOU GOT HIM TO SIGN, and B) that if they are going over the terms of the agreement, where it's printed in black and white, that the merchant isn't a complete ****ing idiot and can do the math themselves.

Also, a merchant cash advance is not a loan, it is a purchase of future receivables for a discounted price. 40% is the discount aka factor rate. Sure you can 'convert' it to an APR, but A) that APR is not going to be the same as the factor rate, and B) interest is not being collected so providing an APR is misleading and selling the funding company short.

Do your job. It's not ANYONE at Snap Advance's job to mislead or white lie to the merchant for you, nor is it anyone's job to sell your merchant. And stop calling this product a loan.

OP's post right here speaks to some of the most blatant truths about this industry.

edit: I just read this ****:


Who the hell trained YOU? The only people here who are incompetent or poorly trained are the people on your team. I have worked with Snap on and off for 6 years and have no complaints compared to the **** shows that are a lot of other companies, but that is besides the point. IT IS NOT A LOAN. No one from SNAP should have had the call the merchant back and explain what a purchase of future receivables is, THAT IS YOUR JOB. Underwriters aren't trained to help you manipulate a merchant into an advance they didn't want or understand. What planet do you live on?[/QUOTE
This^^

So you believe that it is correct to train someone conducting a pre-funding call to give out an APR for a product that does not have an APR? Maybe train them to also refer to the advance as a "loan" just to make the merchant comfortable too?

[DonMcGrath]

This is why I always interview the client, and figure out what the ROI on a loan will actually be. That way, when they do ask about it, I have ammo to explain back why this works for them. It's always good to know how the business model works and see that every dollar they invest in the business makes ROI of X dollars over Y period of time... get them to justify an MCA themselves. If it's not justifiable, don't push them.

When they balk at the price, tell them how it's justified, and that the rate isn't the focus, rather the amount of dollars in their account at the end is the focus. Also gives you an idea if you can sell them on 12 points upsell, or if only 4.

If that doesn't work, then back it up with other non-MCA opportunities.

Maybe I'm just a bad salesman....

You are a good salesman if you do this, don’t smack yourself around too much. No honest, for reals reals..... Our slowest clients at www.dumbleads.com who practice this are also our best clients, ‘cause they get the best returns.

[DonMcGrath]

Merchant comfort is so overrated. You gotta keep them pressurized, you don’t want al dente, you need them feeling roasted charcoal down their pants.
This is a speed game; create urgency and make them commit.

At www.dumbleads.com, you can smell the discomfort with every merchant you speak to. They just want it to be over. Are you man enough to give it to them?









[QUOTE=Christian;98822]

So you believe that it is correct to train someone conducting a pre-funding call to give out an APR for a product that does not have an APR? Maybe train them to also refer to the advance as a "loan" just to make the merchant comfortable too?