Results 26 to 39 of 39
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08-08-2018, 09:14 AM #26
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,513
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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08-08-2018, 09:17 AM #27
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08-08-2018, 09:21 AM #28Karen37aGuest
Lets get down to the nitty gritty
I can point out 5-6 MCA brokers who made 10 million( in total) 1099....but I won't
And people can keep changing the model...investors and wall st watch...how long does it take to make a profit ...geezus
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08-08-2018, 09:26 AM #29
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,513
No-getting cheaper funds from financial institutions that also send them customers rather than relying on funds from the secondary market like they did in the beginning. Get money from a large bank-Yeah we will give you $50Mil at LIBOR + 2 if you deploy that capital to the clients we send you. Vs. Hedge fund at LIBOR + 8 with an equity kicker and spend boat loads of money marketing for customers.
We do something similar. We provide lines to smaller factors and ABL shops that do smaller deals we will not do. It does not make sense for me to write a $50K factoring facility due to the size and scope of our firm. It just does not move the needle.... It does make sense for me to deploy $10Mil to a company that focuses on smaller deals and does it well. If a referral source calls me with a smaller deal....I refer them to a company that has a line with us. I don't make any money on that deal, but they hopefully will deploy my capital and when the Company grows to as size that makes sense for us....flip the client back to us.Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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08-08-2018, 09:28 AM #30
- Join Date
- Oct 2016
- Posts
- 4,318
I love working with OnDeck. Hard to beat their pricing in this space.
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08-08-2018, 09:29 AM #31
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,513
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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08-08-2018, 09:32 AM #32Karen37aGuest
Great
They will make more money because they expanded into Australia and Canada ...and when those numbers come in I do not want them added into the USA numbers.
Cheaper costs of funds are always better...but we are not the Bank.
The cheaper cost of funds is reserved for A plus paper, a paper ( or secured instraments) to keep the defaults down.( they tightened their requirements as well)
The other grades HAVE to cost more, more risk = more return...simple investing concept or people do things like that french guy from lc club or the big short...( they hide the risk grade of paper= fraud)
If peoples business model is not working...that is on them...other people are very successful, dealing with riskier grades.
its very simple everyone should stay on their side of the streetLast edited by Karen37a; 08-08-2018 at 09:39 AM.
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08-08-2018, 09:41 AM #33
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,513
So what happens when the model of cheaper cost of funds and direct access captive customers leads to them reaching out to the same base for a riskier deal? Again....ONDK is deploying the capital, not the bank that has given them the line. If ONDK wishes to leverage the customer base and it makes sense, I bet they will gladly write a C paper deal with their cheap money.
Kinda like a factoring company that is owned by a bank does a facility for a company that has an ugly balance sheet and a tax lien. If it is a good client and you can manage the risk the deal gets done.....not at the same price as a cleaner company, but the deal gets done. There is nothing preventing any advance company from doing the same....so long as they are good at managing the risk.Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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08-08-2018, 09:43 AM #34Karen37aGuest
They need to fix whatever their issues are of stacking etc
I know the answers and hold the stacks down to almost nil...even on D paper
I will not disclose to competition on a message board
but its like you are saying, this credit card was 9 % and another one gave them one at 29%
or they took out a first mortgage and someone took a second
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08-08-2018, 09:45 AM #35
- Join Date
- Mar 2017
- Location
- Nunya
- Posts
- 830
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08-08-2018, 09:48 AM #36Karen37aGuest
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08-08-2018, 09:58 AM #37
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,513
Fixing issues from when they started is part of the story that needs to be noticed. How many brokers from this board has an agreement with ONDK and others that can no longer do business with them for any paper and what happens when the clean up some of their past issues/reasons for the losses and expand their risk profile with a very large balance sheet. You don't survive in capital markets and financial services for long without evolving......
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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08-08-2018, 10:00 AM #38
- Join Date
- Mar 2017
- Location
- Nunya
- Posts
- 830
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08-08-2018, 10:09 AM #39Karen37aGuest
There are Lenders who run hybrid models...successfully
The problem is you can't get rid of commissioned salespeople
Anyway, people can keep trying to do whatever ...wish for regulation and w/2 to save them
I am going to be the 1099 gal the whole way...and if it changes ...ill licence up..pass any future exams in a day and pay out w/2 ( less money) to everyone who works for me ( Because of increased operational costs and compliance)Last edited by Karen37a; 08-08-2018 at 10:27 AM.
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