[Christian]

ugh

[fundingsmbs]

^ best advice. they are an LOC like Bluevine. Don't compete, get them more capital. quit trying to beat rates. it's a one way ticket to broke. get creative... If you want to fight against rates all day, go work in credit card processing svc' as that is an ugly battle daily.

[jdlaw]

Hello, I have a client who does about 1.4 million a year. They have a kabbage loan for 80k. Kabbage takes out 10k a month. I would like to get the client a better deal. Who can compete?

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.

[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

[Christian]

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

You claim this can't be automated, yet based solely on your "posting to word count to time" ratio we know that Karen37a must be a sophisticated yet slightly irritable algorithm.

[ryan $]

In what world are any of those MCA funders competing with a Kabbage monthly term loan?

Kabbage does monthly term Loans?

Fundation, and Breakout do.

Kabbage LOC is weekly payments - and the answer is BlueVine - Bluevine competes with Kabbage

[matt.estes]

We (BlueVine) fund 6-month weekly payment LOCs and 12-month monthly payment LOCs. We do compete directly with Kabbage.

Email us at partners@bluevine.com

[arealfundguy]

Your Highness if he does 1.4 mill a year and has a 80k balance Kabbage isnt getting him more money any time soon. Any of the above mentioned companies can get him more money then Kabbage right now try addressing some needs see if he will take a another funding. If paying 10k a month is his problem he has 8 months left on his term full consolidation could be tricky to pull off especially if hes worried about cost of capital.

[ryan $]

^ best advice. they are an LOC like Bluevine. Don't compete, get them more capital. quit trying to beat rates. it's a one way ticket to broke. get creative... If you want to fight against rates all day, go work in credit card processing svc' as that is an ugly battle daily.

Credit Card Processing Rates have just gotten lower and lower and lower - its a race to the bottom and is killing profitability.

Credit Card Processing and Terminal Leasing was how I got my start in this Industry. The leasing game used to be a HUGE MONEY MAKER

[ryan $]

You claim this can't be automated, yet based solely on your "posting to word count to time" ratio we know that Karen37a must be a sophisticated yet slightly irritable algorithm.

Karen is a Character. So much Energy. I have been on the phone with her maybe twice - and she sounds like a machine - Her and Richard from Florida from this Board both have SERIOUS talk games - I can see how they are both successful in this Industry. When I have Coffee im almost up there with them, but i am more so consultative, im your best friend and im getting the best deal for us - we are in this together type of salesman.

[Karen37a]

Karen is a Character. So much Energy. I have been on the phone with her maybe twice - and she sounds like a machine - Her and Richard from Florida from this Board both have SERIOUS talk games - I can see how they are both successful in this Industry. When I have Coffee im almost up there with them, but i am more so consultative, im your best friend and im getting the best deal for us - we are in this together type of salesman.

Its 2 pots of coffee not one cup and this isn't for you in particular but Its very hard to listen to broker after broker or whitle label funder with little or no experience or success tell you what's what.

First, the questions come in for leads, then emails, then SEO, then inbound, then how do you fund defaults, then how do you do consolidations then I am a direct funder send me deals, then I cant beat your rates blah blah out of business , curse everyone out , say sales sucks, everyone is a rip off artist and we need regulation.


And just to let you know you cant make sales talking OVER people...you have to ask leading questions, tie-down questions then closing questions and then shut up and listen ( so yes I am a closing machine..i studied long enough....most never picked up a sales book, or they didnt interaloize it thru massive dials and practice )_

people become enlightened as time goes by...the only thing is, it's too late for most to recover from the monetary losses

So the next step up to the plate and the former write a book

30 years of this and you will lose your patience as well


Add * I also have no respect for people who do not have a true marketing plan and their only plan is to put on a big front and bully people to send them deals while they have no sales or marketing ability then backdoor unsuspecting newbies( who are cocky mfs) or terminate to take over their book of business

this also has been going on since the year of the flood

[DonMcGrath]

The consulting part of the deal cannot be automated (yet).
What can be automated is increasing the amount of people per hour who legitimately want to hear your pitch and can be consulted with. That can also be scaled so that you or your reps spend most of the day talking to people who legitimately want to hear you, and not just voicemails, gatekeepers, disc. Numbers, etc.

[Karen37a]

The consulting part of the deal cannot be automated (yet).
What can be automated is increasing the amount of people per hour who legitimately want to hear your pitch and can be consulted with. That can also be scaled so that you or your reps spend most of the day talking to people who legitimately want to hear you, and not just voicemails, gatekeepers, disc. Numbers, etc.

It can never be automated ever on a long-term sustainable basis.A nd since I Have a computer "science" degree, not a programming degree or SEO certificate ( and a background in Finance/underwriting/compliance/ investments/loans/sales like no one you are ever going to meet in real life ever.)

the consultation should be backed by a person who technically has some type of fiduciary responsibility to give the best advice to the clients /merchants and also to protect the investor's money from default and fraud.

Nothing else can work...period the end. You can have people temporarily giving out money but its like musical chairs the music will stop one day like that company that stole 300 million in Florida from old people and their iras or Bernie Maddof etc etc and there will be a reckoning


Add. And people trying to create regulation with the wrong solutions to the issues need to stop already. This has been an embarrassing display of pompous arrsehol* shill names...thinking they know more than me and correcting my spelling and grammatical errors, bragging they are ex regulation but cant formulate a response to my valid points and arguments because I was 100% right( not intended for the OP)

None of these problems, concepts ideas, sales strategies, monetary strategies , client acquisition strategies, client retention strategies etc are new..all repeated for decades

And the first time I felt the need to change my screen name to Karen37a and run, to not have someone elses actions get me in trouble...was leaving a boiler room in the early 90s...get it ????... I was 37 and created a firm to clear a hurdle...now its 37 a

( people going on and on and on about me hiding from a dui,, what are you friggin nuts?)


** That Regulation language as presented would and will have people getting fined with criminal charges attached to it, and I am saving cocky disrespectful morons for free...which is why I said numerous times" I am not joan of arc"

[Christian]

Your Highness if he does 1.4 mill a year and has a 80k balance Kabbage isnt getting him more money any time soon. Any of the above mentioned companies can get him more money then Kabbage right now try addressing some needs see if he will take a another funding. If paying 10k a month is his problem he has 8 months left on his term full consolidation could be tricky to pull off especially if hes worried about cost of capital.

Yeah this was such an easily answered question I’m amazed it generated so much discussion!

[Karen37a]

Am I "your highness"

This is all stupid ...and REAL salespeople know that someone will choose a franchised boilerplate accounting company for help, some do their taxes themselves and some go to top accountants and CPAs , enrolled agents

And some go to the accountants like the guy in the movie the accountant...who know how to move your money offshore


When you are really good at what you do...people pay extra to be with you, just for your advice, or because they trust you ( this doesn't mean to rake them over the coals, you wil never have renewals)

I bet people will pay higher rates to do business with Trump, Soros or someone of higher quality...if they sold cash advances over the phone

People who are not real salespeople or consultant like never understand this and they rely on dropping the rate to make sales.

it's tough to watch people brag about their expertise and drop their drawers in one swift move...blech

The top 1 % of the 5 % of salespeople who don't quit cross over to " the enlightenment"

See you at the top, because the bottoms way too crowded
__

Add ***I am glad that I had faith to believe someone ( and in myself) when I was 17, that sales are an art or a science that's learned

And I recall the day a lightbulb went off ( it took about 3-6 months, because no one was teaching me...this was in the stone age before the internet and cell phones)...I dropped to my knees looking up at the sky saying "I can sell anyone anytime, thank God I am a good person because this is dangerlous" ( and you really can't sell everyone)

it was like the day you understood calculus or trigonometry ...or binary code or hexadecimal...pl1vs Fortran vs cobal vs assembler machine language

Most are never going to try to learn...job security

__


And the reason you are splitting your commission or giving away 2-5 is you are not the ones placing the deal, you are using someone else contacts, knowledge and relationsips to get the job done, you most likely will not get it done with out them

[LoanMe]

when you advertise you should straight forward and put instead of "multiple positions ok", if merchant was funded within 90 days you have to pay them off if there is no room for additional position, and if you pay anything off regardless of amount paid off merchant is not allowed to net any money.

That's not entirely accurate. When a merchant has recent funding within the last 90 days this does artificially inflate their ADB on the 90 days we look at. However, if they already have strong ADB's (without the additional "new funds") it is still possible to fund them without paying off/consolidation. Yes, it is harder to fund multiple positions with us if they JUST received a new loan or advance within the last 90 days, it isn't unheard of. Any position outside of 90 days doesn't throw off the 90 days we are looking at for affordability.