[jotucker1983]

John, most merchants don't have the faintest clue where to begin shopping around. Most don't know who On Deck Capital is. The first quote they receive may well be from Yellowstone and they'll think that's the factor rate they're entitled to. They won't know where else to turn to because there are 750 other companies that pop up when you do a Google search for "business loan" and 90% of them are brokers. It's a minefield out there and merchants don't want their private information circulating in cyberspace. It's our job to help them navigate through the process, come up with a variety of funding options, tie them up with a nice red ribbon and present them.

I don't know if I completely agree with that lol. You can look up various reports about where most of the funding volume is going these days and where it's being generated, it's not coming from the traditional "cold calling" external broker model. The A/B Paper Funders are where the majority of the volume of the space is being generated with a large chunk of that coming from in-house origination, then many of those Funders have direct relationships with C/D Papers to send declines to.

I just disagree with the notion that a client with a 650 - 700 credit score, solid banks, no liens, and solid sales revenues, is just going to "take" whatever offer is first spit out at him without trying to get some sort of idea of what the marketplace is likely to price.

archie according to him on deck is a bad lender as i did a deal this week where they gave him 40% of gross.

So just to clarify, you sent a deal to On Deck this week with let's say the annual gross sales being $500,000 and they approved him for $200,000? If so, can you PM me the name of your On Deck Account Rep because I might need a new one lol.

The highest 1st position approvals I've seen were at 10% to 15%.

[Michael I]

So just to clarify, you sent a deal to On Deck this week with let's say the annual gross sales being $500,000 and they approved him for $200,000? If so, can you PM me the name of your On Deck Account Rep because I might need a new one lol.

The highest 1st position approvals I've seen were at 10% to 15%.

No merchant does 100k a month (1.2 million a year) they approved him for 185k where payments were 40k a month on the 6 month approval. I actually funded him 200k on a 12 month to be honest but the approval was there on the 6 month

[Karen37a]

No merchant does 100k a month (1.2 million a year) they approved him for 185k where payments were 40k a month on the 6 month approval. I actually funded him 200k on a 12 month to be honest but the approval was there on the 6 month

Good job...you were always great at placement...algorithms

[jotucker1983]

No merchant does 100k a month (1.2 million a year) they approved him for 185k where payments were 40k a month on the 6 month approval. I actually funded him 200k on a 12 month to be honest but the approval was there on the 6 month

Okay I see now, so they approved the client for 15% to 16% of their annual sales and they included a payment option in there were the payments would equate to about 40% of the monthly sales gross? I see now.

Well, this is a discussion forum and we are all just providing our "opinions" lol. I personally think payments on an MCA related deal being more than 20% of monthly gross starts to get into a little bit of shaky territory, but that's just my "opinion".

Since about 2016 I would say, On Deck has honestly been throwing out some crazy offers every now and then. I think they are used to being stacked on like hell and are throwing out crazy offers in an attempt to at least avert being stacked.

[fundingsmbs]

No merchant does 100k a month (1.2 million a year) they approved him for 185k where payments were 40k a month on the 6 month approval. I actually funded him 200k on a 12 month to be honest but the approval was there on the 6 month

Without knowing what type of business this is, most retailers and mom pops could not afford to have 40% of their monthly sales used to repay a debt after taxes and overhead. Most are lucky if they operate on a 20% profit margin and some operate <10%. Hopefully they used that money for the right ROI and it gets paid back, but, ODC can sell off large chunks of loans through securitization as evidenced through their historical off loading of loans. This works out well for the broker if they are funding everything and making it easy. That places a lot of pressure on the rest of the competition that may not be able to do this model. What usually happens is the merchant that didn't add addtl revenues with the loan, they borrow from other companies to repay the debt and the cycle begins of endless borrowing. The ADBs must have been very strong

[Karen37a]

Without knowing what type of business this is, most retailers and mom pops could not afford to have 40% of their monthly sales used to repay a debt after taxes and overhead. Most are lucky if they operate on a 20% profit margin and some operate <10%. Hopefully they used that money for the right ROI and it gets paid back, but, ODC can sell off large chunks of loans through securitization as evidenced through their historical off loading of loans. This works out well for the broker if they are funding everything and making it easy. That places a lot of pressure on the rest of the competition that may not be able to do this model. What usually happens is the merchant that didn't add addtl revenues with the loan, they borrow from other companies to repay the debt and the cycle begins of endless borrowing. The ADBs must have been very strong

I had people at 40%...it was a choice, 40% or the business goes under. I have to make the determination if the money will get paid back...and i am using my street smarts and book smarts...and then I am not the finanal decison maker..The Funder is

No matter what anyone says ( not directed at you fundingsmbs) Business get in financial trouble for numerous reason other than them being inept like some of the cash adbance brokers on this site who went out of business yet keep coming back to stir up trouble.
And this isnt a perfect world...some of them have cash or a second business ( structured thinkers saying box and vertical on the phone never really get to know their merchant)


So it comes right down to the nitty-gritty ...no one would take a cash advance EVER not even from A paper if they were in a great position. They wouldn't need a loan or advance.There are numerous legitimate reasons someone would want to stack... a vendor doesn't pay them ...rolling 90-120 days late on collections

Working capital
a hurricane
construction on the road in front of your restaurant, diverting traffic away.

I even had a lady whos town got flooded because the Dam broke.,... I actually sent in the weather papers and the reports to show it actually happened.

* MOst cant find out the real reason they want money( because they are not real salespeople and they are not smart enough to care because it isnt their money) and just say "inventory" "renovation"...meanwhile inventory really meant Mistress, renovation = casino

So now...you think it's unethical for me to get that woman more money? If her business wasnt flooded but just lost foot traffic for 2 weeks?
( I am pre underwriting the files..making MY decision if I want it funded...then telling the funders the crazy stories...they do not even want to know them anymore)

What is unethical is the brokers who can't think out of the box and only think about numbers and have no street smarts. Not smart enough to get down to the real root cause of the issue and determine if this person really deserves more money.
Some can't do it because you are BAD SALESPEOPLE... you think sales is a bad profession ...meanwhile sales = consulting and you will never ever never ever never ever get that idea no matter how many people tell it to you.

This is why I do not hire structured people ( technical is fine)... I can promise you I give this personality test and tell them ( this business will not be for you) for over 30 years ...I will not make an attempt at training them anymore.

Some of us actually work with the funders and lenders and say " this person actually had a dam break and I am not joking what do you want me to do"But I am in contact with the merchants, they like me. It wasn't a wham bam thank you mam ( I do not care that I print this only 5-10 % are going to make it and you cant dent my wallet...big lenders( banks) can dent us all)

Another thing...If the world was perfect I would be of NO VALUE to merchants...stop complaining and find the merchants who need help that will want to talk to you.


This is all flawed logic...if you use someone's logic no one would have a credit card or take out a personal loan or a mortgage from the bank without 20-30% down. And that is not my opinion its a fact


Where is the sell it like ser guy...get him here so he can teach me how to put on a Banna outfit and jump up and down to gain attention in the street