[Karen37a]

Again, we're experimenting with the idea. Mostly it's a matter of perception. You offer the merchant funding at say 1.30 +10, gives the merchant a factor rate of 1.4,
I offer same with a 5-7% of funded amount (with fees built in on top of what he wants netted out) at 1.30.

Not that dissimilar from mortgage days when homeowners would prefer a loan with discount points and a lower rate vs 0 discount points at higher rate.
They focus on rate, not cost of funds (and they got GFE's and HUD-1's)

We are moving the rates and fees around to a certain extent already...thats what the person who is placing the deals does

I already " pre sell" the merchant on what i believe they will fit into( with a range and no guarantees)...then find my funders who construct the option the way that i need it to get it done.

I know the algorithms and metrics ...so it usually works..if not I either beg ( half joking) or call back to say this isnt going to work out and this is why

The deals can blow up when something additional is found in the back end underwriting that I didn't see, so I try to get it all done on the front...not just shop out files ( which is a recipe for backdooring and stacking)

Most brokers sign on with 10 funders and shotgun it out