[Emoney]

Guys I think this is an excellent discussion , mind if I chime in?



The only issue with this Archie is that we are now dealing with an open marketplace on the internet where many companies are properly quoting merchants based on their Paper Grade. Now if the merchant does absolutely no shopping whatsoever and only talks to you, well, you could get away with (for example) pricing A Paper as if it's C Paper, so you can make 10 - 15 points on it. But if that merchant shops this around, if he's A Paper he's going to see A Paper offers out there and ask you to either become more competitive or just mark you off the list altogether.

I think it's a good recommendation (especially with today's competitive market) to "assume" a merchant might shop and to price within his Paper Grade. So if you pre-qual him and he's clearly A Paper, he has no business getting an offer for a 6 month 1.25 - 1.30. He should be priced anywhere from 1.12 to 1.18.



Great point! This is also why a lot of the A and B Funders/Lenders are doing away or minimizing their external Broker Model in some capacity. They realize that properly pricing a merchant based on their Paper Grade leads not to just winning the initial deal, but offers a higher probability of a renewal stream of additional deals for the next 12 to 60 months.

Funders/Lenders with in-house agents are able to operate like this in a profitable manner, however, the external Broker shops (in which most of them are poorly ran) need to get 10 points on nearly every deal to even attempt to survive.

Didn't you leave the business? Just wondering....