[Karen37a]

A few other points. There are many variables here we aren't given. Is merchant simply wanting to recontract the existing balance, or are they looking for additional capital
on top of it. Where is the merchant located. How long have they been in the kabbage funding. Is 80K the funded amount or the payback amount.

I understand Karen's point, however, I'm simply saying you're not competing for new business, he's trying to flip an existing funding (going by the little info given.)

I do agree with the "trusted advisor" mentality. I've beaten numerous offers by digging deeper into the needs of the merchant, what they are trying to accomplish, etc.

Example recently had a merchant with an offer of $75K funding over 12 months, terms are irrelevant. I simply asked ok, what's the purpose of the funds. Is this what he needs for the upcoming year or is $75K the bottom line needed. Turns out it wasn't (in funding merchants often think in terms of -best to get all they can now.

Come to find out he only needed $35K immediately. Countered with $35K over 6. Obviously rate is less, advised that after approx. 4 months we can address what additional capital may be needed, but in the meantime he hasn't locked himself out for 12M's, and he can adjust up or down at the 4-6 Month point.

The interesting question was, "Why didn't the other funder offer this."

Got the funding and future renewal, still at max points.

And that is how you do it. Not call people up and say HI I can lower your rate and BTW I am a DIRECT LENDER! ....click dial tone

And that is also how you hold low defaults ...that and other things


** But only salespeople can do this. And this is why we are proud of the "salesperson" title

And Kab called us "boiler room isos " numerous times and said we can ruin his "brand" ...so far off base and delusional.


( people who sell on rate and rate alone have been torturing me as a sales trainer...pls stop)


Add**The problem is new salespeople or non-coachable ones ( with many years in the industry) will not take the time to understand how money works or need-based selling, consultative selling. BUT the reality is someone behind the scenes like me is screening those files and finding the need then passing them on...and the companies that just shoot out applications. The FUNDER is doing it because it's their money and do not want to lose it. The ones who do not understand these concepts get major defaults

This cant be recreated thru automation...it will never work long term... true salespeople are always needed. And because I have a computer science degree, the algorithms are created by someone like me...someone like me without a sales background( and sometimes finance), so they are sometimes inaccurate ( the metrics are off) , they do not take the human element into the equation....I can make numerous examples ...advanced underwriting /algorithms

I cant imagine what the metrics will look like in Calif if someone doesn't step in

ADD ** And most brokers want to one call close someone..this is why I do not care what ideas I give out ( a few a keep secret) because most will not listenm they want to close by Friday and to do consultative selling you nned patience and to put the merchants needs ahead of your immediate needs ( which is why I hold an over 90% Renewal ratios, I didn't stack and didn't let them stack and when those 2 million rollover, from all my hard work and coaching ...i laugh a bit and do a happy dance...send a snoopy happy dance to my funders )


This is the way to get high renewals and low defaults...

Renewal Dance https://www.youtube.com/watch?v=_gRpyAGCsiw