[J.Celifarco]

And I know some solutions. I will never print them on here.( so everyone can say it was their idea and make more competition for me)

Hannibal over there told me to let everyone kill themselves


Last time I told someone to create this calculator not only did they not say thank you they were bragging to me about it until I said " do you recall I gave you the idea" and they said " you cant prove it"i said ...i still have the emails alonmg with the regulation threats. As if i wanted something for some stupid idea

gl

I really have no idea what any of what you just said has to do with this thread or what we are talking about. You keep saying the same things over and over but refuse to acknowledge that like it or not regulation in one form or another is coming. It already is almost passed in California and if you think thats the end of it then you are blind

[Karen37a]

I really have no idea what any of what you just said has to do with this thread or what we are talking about. You keep saying the same things over and over but refuse to acknowledge that like it or not regulation in one form or another is coming. It already is almost passed in California and if you think thats the end of it then you are blind

You are not losing me money...

People can see what is what...everyone can do whatever they want to do now

[Kevin Henry-Seacoast]

Regulation is usually put in force when something bad happens or the customers scream load enough that they are being treated unfairly. Regulators usually put rules or regulations in place while looking at their view mirror....after something happens. Regulation is typically put in place to protect the customer first, the stability of a market second, the stability of the market participants third, and then the people that are selling products and services.
If you want to survive in financial services or capital markets never forget the customer is first. Always has.... always will . If you don't get ahead of the curve and acknowledge who the bad actors are, what they are doing, and how they can affect the market by a regulator looking into a rear view mirror, you will be left in the dust.
You have to adjust, adapt, and put the customer first. You can and will have a great career by treating customers right and making your partners look good in front of their customers.

Best,

Kevin

[Karen37a]

Regulation is usually put in force when something bad happens or the customers scream load enough that they are being treated unfairly. Regulators usually put rules or regulations in place while looking at their view mirror....after something happens. Regulation is typically put in place to protect the customer first, the stability of a market second, the stability of the market participants third, and then the people that are selling products and services.
If you want to survive in financial services or capital markets never forget the customer is first. Always has.... always will . If you don't get ahead of the curve and acknowledge who the bad actors are, what they are doing, and how they can affect the market by a regulator looking into a rear view mirror, you will be left in the dust.
You have to adjust, adapt, and put the customer first. You can and will have a great career by treating customers right and making your partners look good in front of their customers.

Best,

Kevin

I agree with this

Some of our merchants are nasty though...i have to protect the Funders from some/most of them

Also its a very risky business model

"It's often said that more than half of new businesses fail during the first year. According to the Small Business Association (SBA), this isn't necessarily true. The SBA states that only 30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first 10."

https://www.investopedia.com/slide-s...sinesses-fail/

** those are the better statistics...add in bad credit...bad management etc ...this business is not for everyone and you cant regulate to make sales appear in your mailbox

[Kevin Henry-Seacoast]

I agree with this

Some of our merchants are nasty though...i have to protect the Funders from some/most of them

No you don't..... It is up to you to chose who you do business with. If you are dealing with a nasty owner of a business, why would you even put them in front of a funding partner or any institution. You spend years building relationships with customers and financing partners, why bother tarnishing a relationship on either side because somebody is nasty.

[J.Celifarco]

Regulation is usually put in force when something bad happens or the customers scream load enough that they are being treated unfairly. Regulators usually put rules or regulations in place while looking at their view mirror....after something happens. Regulation is typically put in place to protect the customer first, the stability of a market second, the stability of the market participants third, and then the people that are selling products and services.
If you want to survive in financial services or capital markets never forget the customer is first. Always has.... always will . If you don't get ahead of the curve and acknowledge who the bad actors are, what they are doing, and how they can affect the market by a regulator looking into a rear view mirror, you will be left in the dust.
You have to adjust, adapt, and put the customer first. You can and will have a great career by treating customers right and making your partners look good in front of their customers.

Best,

Kevin

I agree with every word you said here

[Karen37a]

No you don't..... It is up to you to chose who you do business with. If you are dealing with a nasty owner of a business, why would you even put them in front of a funding partner or any institution. You spend years building relationships with customers and financing partners, why bother tarnishing a relationship on either side because somebody is nasty.

Thats why people cant make sales very easily( not because of regulation) ...we have to sift thru them...and I am sure you know this looking for brokers and sales

[Karen37a]

This business is harder because every processor and pay pal and Amex , square , etc are bringing BILLIONs into the game...giving cash advances

and referrals from credit repair and banks

Not because of small funding numbers from 1099 isos

Its a big dream.....some will STILL never make any sales. They are only going to force compliance and regulation and additional costs on someone like me.

I do not care I've been a compliance officer or in compliance my whole life ...they are the ones who are going to fold.

So again...have at it. I explained the results and the motives for some peoples madness

[Kevin Henry-Seacoast]

Thats why people cant make sales very easily( not because of regulation) ...we have to sift thru them...and I am sure you know this looking for brokers and sales

When you treat your customers well and your partners well, deal flow finds you.....you don't have to find them. People from this forum don't call me because I post on the forum occasionally. They call because they know I am on an institutional level, conduct myself professionally, and try to help their customer.

[Karen37a]

When you treat your customers well and your partners well, deal flow finds you.....you don't have to find them. People from this forum don't call me because I post on the forum occasionally. They call because they know I am on an institutional level, conduct myself professionally, and try to help their customer.

Well I am an super iso so I teach small isos and brokers how to cold call get warm calls referals, face to face etc ....and i do it personally as well.

Most are not going to make it out...but I will

I can can close 1 million a month from cold calling personally

[Kevin Henry-Seacoast]

Well I am an super iso so I teach small isos and brokers how to cold call get warm calls referals, face to face etc ....and i do it personally as well.

Most are not going to make it out...but I will

I can can close 1 million a month from cold calling personally

So what I don't understand.... If you can close $1mil/month yourself, think of how much more you could do without having to teach someone what you know only for them to take your knowledge elsewhere or fail. I am in the business of developing long lasting relationships with customers and institutional partners not trying to educate someone who will fail or someone who will take my knowledge and compete against me.

[Karen37a]

So what I don't understand.... If you can close $1mil/month yourself, think of how much more you could do without having to teach someone what you know only for them to take your knowledge elsewhere or fail. I am in the business of developing long lasting relationships with customers and institutional partners not trying to educate someone who will fail or someone who will take my knowledge and compete against me.

You are right. I never thought it would be this hard. I used to have a team of 500 licenced brokers

[Karen37a]

One good thing.....When you regulate they cant lip off to you....they have to "hang" their licence somewhere lol

And they will have new iso contract and quotas...it will be like a nuclear bomb went off

It will be easier for me to step in as a Funder....which I do not want to do

[Kevin Henry-Seacoast]

You are right. I never thought it would be this hard. I used to have a team of 500 licenced brokers

Allen & Company vs. Merrill Lynch. In the 80's and 90's anyone with a brain in their head would kill to work for Allen & Company. Smart guys and took care of their customers. They did not have to go out and find business.....it found them.

[Karen37a]

Allen & Company vs. Merrill Lynch. In the 80's and 90's anyone with a brain in their head would kill to work for Allen & Company. Smart guys and took care of their customers. They did not have to go out and find business.....it found them.

Its a bit harder in cash advance..less of a pool..less money...bad credit etc etc. Only so many people are going to pay higher rates and then they need to have the money....need not want. So you have to be pro pro active and follow up until they buy or die


( one call close on stocks ...that is gone in cash advance)

[Kevin Henry-Seacoast]

Its a bit harder in cash advance..less of a pool..less money...bad credit etc etc. Ony so many people are going to pay higher rates and then they need to have the money....need not want

What are you talking about? I am providing a facility right now for a manufacturing company with no equity, a tax lien, and huge customer concentration. Bad things happen to good companies..... picking the ones you chose to do business with is the trick.

[Karen37a]

What are you talking about? I am providing a facility right now for a manufacturing company with no equity, a tax lien, and huge customer concentration. Bad things happen to good companies..... picking the ones you chose to do business with is the trick.

you are a bank

We are isos..

End of Thread for me

[MCNetwork]

End of Thread for me

Promises, promises...

[Kevin Henry-Seacoast]

you are a bank

We are isos..

End of Thread for me

Yes, I am owned by a bank, but can still work with challenged credits. There are a few bank owned factoring companies in the US. And some banks that are extending facilities to cash advance companies so in turn those companies can help their clients.

[Karen37a]

Yes, I am owned by a bank, but can still work with challenged credits. There are a few bank owned factoring companies in the US. And some banks that are extending facilities to cash advance companies so in turn those companies can help their clients.

We are PROSPECTING to FIND the person.

Did someone send you the deal or you cold called? Networked?

im out...kick Archie **

[abfunders]

Kevin is not 100% correct, IMHO. If he was, then why would you be able to charge 10 points on an MCA deal? If you truly are working for the client, then make the client pay you 100% from a separate fee agreement, or let him pay you a salary as a consultant, even if you didn't procure a loan. It's a lie that you the needs of the client come before your needs - the customer is always right when they tell you, "I want this for free."

The "classic" broker isn't in sales. The "classic" definition of a broker is someone who builds relationships between lenders and borrowers, acts as the go-between, like a matchmaker.

There are people who "sell cash on the phone," but there are some of us who don't like doing that. Maybe we make less "sales," but maybe we also maintain some integrity (some people don't care - they're salesmen), maintain sanity, and more importantly, I don't feel bad telling a lender "no, I went with another one because the rate was better or I am getting more points from them" since I'm not working for the lender, or for up-selling the client, nobody's offended. I'm working for myself, keeps me totally clean. And I can charge both or either side if I feel I need to.

Sometimes an MCA is the best idea, sometimes the merchant himself doesn't realize there's another option, but wants an MCA - you're going to argue and only take 2 points? If you worked for him, you would argue with him to get him a better term. Instead, I'm a middleman who helps the lender find where to disperse money, and helping a merchant/client (or even broker!) find where to get it from on terms both of them can live with. I have funders who'll give me overrides.... I have a client who does online marketing who wanted to get his client a loan, asked me for help. I sent him through Bluevine instead of an MCA. After not speaking for months after taking a draw, they started speaking again, and now they have a real marketing relationship - merchant is paying my ISO much better than if we'd taken 10 points, and he's drawing from Bluevine now monthly because he has a digital marketing expert.

As long as the borrower likes the funder and the funder likes the borrower, and then the rate/terms (with my fee mixed in) is a deal the client can live with, then it's a win-win.

Otherwise, you're a salesman working for many funders. Which is fine, it's just not my business model.

[MCNetwork]

Putting a customer first and charging 10 points on the deal are not mutually exclusive. You can do both. We are in this business to make money so we aren't obligated to work for free or drop factor rates to the bone. Our merchants don't work for free either so they understand our position. We don't have to be apologetic for being brokers. We're here to provide a valuable service and deserve to be compensated fairly. As long as the customer is treated with utmost courtesy, professionalism and transparency and is agreeable to the terms of the loan/advance, then you've done your job.

Now if a customer is approved for a 1.15 loan and you steer him to a 1.49 advance then you're no longer putting the customer first. You're putting yourself first...

[abfunders]

Putting a customer first and charging 10 points on the deal are not mutually exclusive. You can do both. We are in this business to make money so we aren't obligated to work for free or drop factor rates to the bone. Our merchants don't work for free either so they understand our position. We don't have to be apologetic for being brokers. We're here to provide a valuable service and deserve to be compensated fairly. As long as the customer is treated with utmost courtesy, professionalism and transparency and is agreeable to the terms of the loan/advance, then you've done your job.

Now if a customer is approved for a 1.15 loan and you steer him to a 1.49 advance then you're no longer putting the customer first. You're putting yourself first...

Archie, 10 points is not commensurate to the work done for an MCA. We are just milking it because that's the retail price. If you know you can get it for cheaper, and your mind is only on the merchant, you would shop elsewhere. If you worked for the merchant, you should charge the client directly, and not get paid from the lender for going and getting 12 points vs 10 points at a better rate. As a true middleman, I'm a little bit on the merchant's side, a little bit on the funder's. A salesmen is working (independently) for the source of the product, and convincing the buyer to buy it, whether or not it's a good idea.

Many people sell useless pieces of plastic and it's fine. Here, you're dealing with people's lives, so we need to be a bit more careful. I'm not against stacking in certain instances - for example, if the client has contracts from a 3rd position and will take it if I don't beat it, I will try (did that 2 weeks ago), but it needs to be done without stepping on anyone's toes and no-stack clauses, intercreditor agreements, etc etc etc.

It may just be semantics, but I feel I can maintain my relationships and not offend anybody easier this way of thinking about it. Also, I'm not lying when I ask for a PSF, and I'm not claiming, "I'm a consultant" when I'm selling one product (MCAs). And also if I find out that OnDeck (for example) would be a better fit for the client, but I'm not signed up with them, and I can't offer it, I'm also 100% clean since I didn't try to get an OnDeck offer.... I'm just creating the relationship with a source of money.

ISO = Independent

[fundingsmbs]

I agree with some of this. We have lost deals when the sub broker insisted on highest commission possible and not what's best for the customer. It is usually always, max max max on funding size and commissions. The direct sales side of the business doesn't have this pressure. They can undercut brokers all day long with lower rates and retention is better. I understand everyone has to get paid for their work, but, there is a breaking point where it isn't about the merchant, rather, compensation first. We see less issues when its a lower credit file or high risk SIC on rates, but, on clean deals, upselling 10-12 points is a recipe to get undercut with so much online data out there for the merchant to explore. If the merchant isnt aware round 1, they will be come time for renewal of what's out there

[MCNetwork]

Only the broker knows if there's 10-12 points built into an offer. The merchant doesn't have access to buy rates so he doesn't know what the wholesale/retail numbers are. The broker's job is to present the funding amount, the payback amount and the daily payment and just sell the deal. If there is a competing offer on the table, then you start lowering rates by playing good cop (you) and bad cop (your underwriter) until you're in position to win the deal. But you don't start your sales presentation by lopping off a bunch of points just because you feel uncomfortable or feel like you'll be undercut by someone else out there. There's no room for fear and self-limiting beliefs in this profession. These psychological hang ups will prevent you from being an effective salesperson and maximizing your commissions.