[patrickw]

Hello everyone,

Just looking for few tips and tricks to boost up my sales team. I have 8 sales rep working under me for leads and deals. I know this might be a silly question but would really appreciate your suggestions which could help me or any new broker in this forum.

"What is the interest rate?"

What rebuttable would you use here to bring the paperwork?

I know the interest rate varies from business to business depends on the sales volume credit daily balances, can't tell you unless I see the paperwork.
Still if the merchant push for the rates?

[StipMeBabyOneMoreTime]

Hello everyone,

Just looking for few tips and tricks to boost up my sales team. I have 8 sales rep working under me for leads and deals. I know this might be a silly question but would really appreciate your suggestions which could help me or any new broker in this forum.

"What is the interest rate?"

What rebuttable would you use here to bring the paperwork?

I know the interest rate varies from business to business depends on the sales volume credit daily balances, can't tell you unless I see the paperwork.
Still if the merchant push for the rates?

You can't handle the interest rate!

[MCNetwork]

"What is the interest rate?"

If it's an MCA - "There is no interest rate. Nothing is accruing over time like on a conventional loan. You pay a flat fee for the funds. Essentially, you're selling us a portion of your future receivables at about a 20-25% discount in exchange for upfront capital. For example, if I were to come to your store/restaurant and purchase six months worth of product for a lump sum payment today, would you give me a 25% discount? Yes? Well that's essentially what a cash advance is. We don't require any collateral and you can receive your funds in as little as 24 hours. In order to get you an accurate quote, we'd need to review your paperwork so we can customize a program that fits your needs."

If it's a loan product - "The interest rate ranges from as low as 15% and up. This is simple interest and nothing is compounding over time like on a typical bank loan. You know exactly how much the money will cost you upfront. Yes...the rates are higher than bank loans but that's because we don't require any collateral and you can receive your funds in as little as 24 hours. We can do things that banks can't do and you're paying a premium for the speed and convenience. In order to get you an accurate quote, we'd need to review your paperwork so we can customize a program that fits your needs."

[abfunders]

I try to 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 (insert Archie's pitch), 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 and start a relationship.

Maybe I'm just a bad salesman.... and Patrick, you were asking for simple rebuttals, but this thread is a very very good use of the forum none-the-less.

[MCNetwork]

I agree with Micah. Use of funds and expected ROI should be the center of the pitch. This way, the interest/factor rate really becomes secondary.

[WestCoastFunding]

I honestly find a factor rate is the easiest concept for business owners to understand. “For every dollar you get, you will pay back this amount plus these fees.” Unless someone rainman, it’s hard for them to figure out the exact dollar amount they’ll pay over the amortization period off the top of their head using interest rates.

So if a merchant that’s been presented with a MCA option asks about the interest rate, I tell them there isn’t an interest rate. It’s not a loan, it’s the sale of future receivables. A b2b sale. For this amount of money, you agree to sell this amount of receivables.

[abfunders]

So if a merchant that’s been presented with a MCA option asks about the interest rate, I tell them there isn’t an interest rate. It’s not a loan, it’s the sale of future receivables. A b2b sale. For this amount of money, you agree to sell this amount of receivables.

WCF is also correct in one way. A 30-year mortgage is also a 1.50 factor rate, but since it's over 30 years, nobody blinks an eye. It's a matter of perspective and turn-around time and the ROI. How quickly can the client turn over $1 and make into $2?

Clients love describing how great their business is and how "If they only had $X, they'd be able to take it to the next level." Watch out on the interview... sometimes you'll hear nightmares and they're ramble on and on and on... just be ready for it and listen carefully. If you listen properly, and you know a bit about finance, you'll realize that you might have an easier close if you send them to Bluevine or a collaterized (A/R, Real estate, SBA, or whatever) deal.

My problem is that I know too much, and sometimes the client's get confused, and want what's "easy" rather than what's proper for their business.

[WestCoastFunding]

WCF is also correct in one way. A 30-year mortgage is also a 1.50 factor rate, but since it's over 30 years, nobody blinks an eye. It's a matter of perspective and turn-around time and the ROI. How quickly can the client turn over $1 and make into $2?

Clients love describing how great their business is and how "If they only had $X, they'd be able to take it to the next level." Watch out on the interview... sometimes you'll hear nightmares and they're ramble on and on and on... just be ready for it and listen carefully. If you listen properly, and you know a bit about finance, you'll realize that you might have an easier close if you send them to Bluevine or a collaterized (A/R, Real estate, SBA, or whatever) deal.

My problem is that I know too much, and sometimes the client's get confused, and want what's "easy" rather than what's proper for their business.

I’ve found that the first thing I look at when a merchant sends their docs is not the bank statements or revenue stated on the app, but whether they lease or mortgage. If it says mortgage, I get excited. If there’s legit equity there, I know I can both help out the merchant in a real way, and can make a good chunk of money.