[J.Celifarco]

And no one needs to keep talking about lowering rates below par value OR protecting them( from brokers constantly)...50% of them are liars and frauds

This isnt happy la la land....its money...people will do a lot for 100k including kill their family for a insurance policy

Do we have bad brokers...yes...bad merchants yes...bad funders yes bad politicians yes bad bankers yes

This is just the reality of wall st and finance..I wish it wasnt

Regulation is a bad bad move...people will see why

this has nothing to do with regulation.. Yes there are bad merchants, this isn't news to anyone here. I just am trying to see what that has to do with regulation.. They pass laws because this industry has gone unchecked for years and has done nothing to regulate itself, so now states are stepping in to do the job. We are not some small thing anymore, the industry is now lending billions of dollars a year,. With numbers like that people are going to start paying attention.

That said what that has to do with a bad merchant who according to your post is killing his family for 100k alludes me. Also 50% of all merchant are not liars and frauds unless you are working on the lowest quality **** deals on the planet. Some merchant are bad always have been always will be but nowhere near what you are making them out to be

[Karen37a]

this has nothing to do with regulation.. Yes there are bad merchants, this is news to anyone here. I just am trying to see what that has to do with regulation.. They pass laws because this industry has gone unchecked for years and has done nothing to regulate itself so now states are stepping in to do the job.
What that has to do with a bad merchant who according to your post is killing his family for 100k alludes me. Also 50% of all merchant are not liars and frauds unless you are working on the lowest quality **** deals on the planet. Some merchant are bad always have been always will be but nowhere near what you are making them out to be

read the statistics on the business that go under and defaults

I only have 4/5 I am kicking them out

Massive defaults and no profits for many companies...many isos are under, funders under

( but we need to regulate to protect the default artists and lower the rate)

not many of us left

I won't be going under

...end of the subject...some will never understand

[Kevin Henry-Seacoast]

read the statistics on the business that go under and defaults

I only have 4/5 I am kicking them out

Massive defaults and no profits for many companies...many isos are under, funders under

not many of us left

I wont be going under

...end of the subject

Did you ever stop to think that maybe...just maybe the customer could never afford the financing? Most business owners have no idea what they are really signing and have no idea the true cost of the capital.

[Karen37a]

Did you ever stop to think that maybe...just maybe the customer could never afford the financing? Most business owners have no idea what they are really signing and have no idea the true cost of the capital.

I agree with this

But then its a choice of taking funding and trying to stay open ...or going under right then and there

the funders do not have to yield...they are not partners in their future doom

There is a risk factor on the money take it or leave it. They are taking a chance not getting it back...they are not the bank

So I made an ethical decision to screen them and try to get the ones I think can bounce back from something temporary or renovate expand etc

That is not what most people are doing shopping out their **** files that I turned down 4 times

Most cant underwrite files correctly or do not care because it isn't their money

[Karen37a]

These people take money when its one of those ...take the money for payroll or they are out of business ( and they still may go out of business it's a blind educated guess )

THEN when its 3 months down the road they are saying " i paid too much for it"

tough ****

You cant lend or fund into a very risky pool, people go under and then the ones who make it say...hey that cost too much

The rate has to be high enough to cover the defaults, operation expenses etc etc

And I can promise you id never put 30 million on the line( unsecured ) to get 50k back after all is said and done

You are chasing investors away

[J.Celifarco]

These people take money when its one of those ...take the money for payroll or they are out of business ( and they still may go out of business it's a blind educated guess )

THEN when its 3 months down the road they are saying " i paid too much for it"

tough ****

You cant lend or fund into a very risky pool, people go under and then the ones who make it say...hey that cost too much

again this has what to do with regulation.. They aren't regulating us because a % of our customers are ****bags. They are regulating us because we have gotten to big to stay in the shadows and when we had an opportunity to self regulate so that the states didnt step in we did nothing. Now we have to deal with what is being done and do everything in our power to mitigate the damage that is done

[Karen37a]

again this has what to do with regulation.. They aren't regulating us because a % of our customers are ****bags. They are regulating us because we have gotten to big to stay in the shadows and when we had an opportunity to self regulate so that the states didnt step in we did nothing. Now we have to deal with what is being done and do everything in our power to mitigate the damage that is done

kevin made a comment and I was answering him



and what is had to do with regulation is

if the rate goes DOWN Funders are going to fold...add in additional compliance costs and lawyers ( i said this 2000 times on these boards already)

regulators are lawyers coming for you with the full power of the State and their deep pockets...you will never survive

for anyone to have wished this on us was crazy

if you do not understand this...that is not my concern( because you do not want to, you want to argue) . usually people have to climb up a ladder to see the view from the top

nothing wrong with it...ive just seen alot more

[Kevin Henry-Seacoast]

kevin made a comment and I was answering him



and what is had to do with regulation is

if the rate goes DOWN Funders are going to fold...add in additional compliance costs and lawyers ( i said this 2000 times on these boards already)

regulators are lawyers coming for you with the full power of the State and their deep pockets...you will never survive

for anyone to have wished this on us was crazy

if you do not understand this...that is not my concern( because you do not want to, you want to argue) . usually people have to climb up a ladder to see the view from the top

nothing wrong with it...ive just seen alot more

How do you know you have seen more than anyone else on this board? I know you claim you have on a regular basis.

I never said that rates are going down because of regulation in this tread. I said costs will go up if this is done on a state level and not federal. The cost will affect margins and in turn institutions will have to cut costs.

[Karen37a]

How do you know you have seen more than anyone else on this board? I know you claim you have on a regular basis.

I never said that rates are going down because of regulation in this tread. I said costs will go up if this is done on a state level and not federal. The cost will affect margins and in turn institutions will have to cut costs.

I was taking to HIM ( John ) not you on that comment. Stop tag teaming the conversations as usual

I said that Rates go down they are Capped ...usuary...and costs go up
period the end

you usually have 4 more people jump in at this point

Address what I posted to you or nothing at all

hese people take money when its one of those ...take the money for payroll or they are out of business ( and they still may go out of business it's a blind educated guess )

THEN when its 3 months down the road they are saying " i paid too much for it"

tough ****

You cant lend or fund into a very risky pool, people go under and then the ones who make it say...hey that cost too much

The rate has to be high enough to cover the defaults, operation expenses etc etc

And I can promise you id never put 30 million on the line( unsecured ) to get 50k back after all is said and done

You are chasing investors away

West coast jump in "karen is talking to herself"


** I am off ...Advanced Funders know what I said is true and Venture Capital and hedge funds.. ask them

[mcaguru]

only a matter of time
for every state

need to look into a new industry other than MCA

calm down even pay day that they claim (not certain!) took milk out of baby's tummies was legal in 36+ states!

[HDF]

^ Just amazing that you can type that at this point.

[Karen37a]

calm down even pay day that they claim (not certain!) took milk out of baby's tummies was legal in 36+ states!

Yes, you know how these things work. They pass a law, takes a bit for it to go into effect but then it will make itself to the actual court systems and then it is either challenged and held up or kicked out

[WestCoastFunding]

Hurricane Karen is now a Category 5

[WestCoastFunding]

calm down even pay day that they claim (not certain!) took milk out of baby's tummies was legal in 36+ states!

How will Mantis/Cresthill employee PSFs be reflected in the cost of financing?

[Karen37a]

Hurricane Karen is now a Category 5

lol ...I am going to just sit back and watch. I can sell with a disclosure on it or without. This pro-regulation / anti-regulation thing will go down in history. One good thing100% chance that I am right

If they take it to the next level to pass laws on companies domiciled in NJ as well

2 companies are invited to Tampa Bay...low taxes..lower cost of living..its beautiful you just run from a hurricane or 2 every so often

Beautiful sunsets...hard to stay focused working

Florida sunsets1.jpg

[Mynameisbob]

Just curious Karen. What is your response when a merchant asks you what the interest rate is on an advance?

[Karen37a]

Just curious Karen. What is your response when a merchant asks you what the interest rate is on an advance?

That's a buying signal you are one step away from the close ( most brokers are scared of this* not you** and try to avoid it.)..hit it straight on...ask for it, welcome the question...if they are not asking it they are not moving forwards...so the key to sales is to get them to say it or ask it...or say" loan shark" etc etc

So get past "trust" then ...whats the interest? or cost

( if you can't find the problem you can't find the solutions...if there are any)

( checkmate)


Ill say ..Legally it is not interest because we/they are not the bank but ******edit line.. ill go over the numbers with you so you understand

Then if itis 1.40 or .1.50 I will say

That is effectively 40 % or 50% but technically if you are doing that twice a year ( 2 advances ) its really 100% and if you are doubled dipped 200% But that's the cost of money and as I said they are not the bank so let me ask you a few quick questions to see if I can help you lower the cost of money and if I cant I can possibly tell you where you are going wrong. Now none of this will makes sense unless you really want the money, so do you see a need for additional capital any time in the near future

*** RIGHT HERE is where they are going to say yes and how soon can yousend it , to me and thats why it was a suckers bet to bet me on leads, especially leaving voice mail...i can get 100 people in a day to say yes( from the yellow pages or manta)...how many will really qualify and how many are taking money to then skip off to costa rica the next day **** I use to teach a course "cold calling with qualification in mind, " get tiring talking to a wall and newbies and people who have years in the business who always know more than you. ( not the person asking the question bob its obvious he is one step away from making big money $$)This is how the boiler rooms got arrested , phones tapped and I walked out of there, they heard us on the phone. They did ask me why I would be working with these types of peope.

** if they call you a loan shark ( big smile comes on my face) or anything like that it skips straight down to( checkmate) ... **edit response*** cant has the whole country saying my lines **edit edit ** let me show you how it works.
__
I am 100% transparent with merchants and tell them why they are where they are (I've printed it on the DF in long word salad over and over debating people)...I will also say " do not take this money to put it under your mattress...you must have a need for it, it's too expensive "My bluntness and honesty have made me a better salesperson. It is also the reason that I do not have any marks on my licence..

These disclosures will not hurt me or my team or anyone I trained personally...they are used to going over numbers ( the money and funders will be hurt)

( which is why by the time they get to the merchant interview 99% are saying yeah yeah yeah I know. And also why when they went to backdoor me I was instantly alerted by most merchants )

Backdooring made me a stronger closer, firm everything you can up on the front...first 2 days in the business a lawyer said " they are trying to take my business away from you"...i tightened up my closing more at that point.

*** this is an opposite closing strategy than shooting out your applications to 5-10 funders getting quotes then closing. Most lost their sale if they just shotgun out the file ( this is where the Super Isos Caught the files and held them, did the underwriting, chose the trusted funder that is right for the file and made sure the Isos got paid)...too many people have their hands on it, you will be backdoored sometimes and think its legitimate competition. Also if I do not shotgun it out...keeps the stackers away from me and I keep my renewals..online applications are not 100% safe...


I do not object to Disclosures like the flow of funds or the smarter box. ( i like them..everyone is on the same page ) I object to someone making me ILLEGALY explain Apr or Interest

I can't see me hemming and hawing on the phone saying ..."well errr it's not really apr even though it says it is". Regulators are pushing it through they will be the ones legally responsible not me
--


The merchants know what's going on( the ones who plan on paying it back). They send me spreadsheets of the balances and price point and the double dip( which is why I rarely call for balances and sometimes I say the client said $ 87975)..if anyone would like to bet me ...ill get a client(s ) to tell you about the flow of fund etc. Disclosures etc One of my clients cousins want to do mca , he can explain it too lol This is also why Funders are hearing from brokers after the funding...the 3 payments that are trailing the clients are always yelling about it because they are aware to the penny


Disclosures are going to turn so-so sales people ( order takers ) into KILLER closers

__


You Have Bled With Wallace , Now Bleed With Me

https://www.youtube.com/watch?v=eclbaC3q94k

[Karen37a]

The above is why some brokers are violent with me

I am looking for solutions...possibly save them money and they want to slam them into the highest commission, largest size

I take the A paper to A and B to b , c to c and D to D

And when D paper funds me... I do not yell at them for the high rate

The only thing that will happen if you cant charge certain rates is that thousands of merchants won't be funded and they will go out of business sooner than later

Also if C/d paper start funding A/b ...you created more competition for A and B... adapt, right?

[fundingsmbs]

never hide behind the cost of money. it will only lead to problems. Even saying 1.45 or 1.25 doesn't mean anything to a merchant in terms of knowing what the cost is. the factor rate doesn't compute with merchants. From where they are sitting, this is very expensive money and they want to know specifics including all the addtl fees that go into the mca. Also, broker's should be prepared for heavy heavy arsenal of direct sales undercutting their upsells. it's been happening and will continue to happen, especially in states where it's getting touchy. you markup 15 points, you are toast if a direct sales rep gets a hold of that merchant. If you follow some of the larger players, some are starting to spread around the #5 as a commission for lower rate programs. Will we get to a point for A paper where 5 is the new 12?

[WestCoastFunding]

never hide behind the cost of money. it will only lead to problems. Even saying 1.45 or 1.25 doesn't mean anything to a merchant in terms of knowing what the cost is. the factor rate doesn't compute with merchants. From where they are sitting, this is very expensive money and they want to know specifics including all the addtl fees that go into the mca. Also, broker's should be prepared for heavy heavy arsenal of direct sales undercutting their upsells. it's been happening and will continue to happen, especially in states where it's getting touchy. you markup 15 points, you are toast if a direct sales rep gets a hold of that merchant. If you follow some of the larger players, some are starting to spread around the #5 as a commission for lower rate programs. Will we get to a point for A paper where 5 is the new 12?

Great post.

[BROKER TIME]

never hide behind the cost of money. it will only lead to problems. Even saying 1.45 or 1.25 doesn't mean anything to a merchant in terms of knowing what the cost is. the factor rate doesn't compute with merchants. From where they are sitting, this is very expensive money and they want to know specifics including all the addtl fees that go into the mca. Also, broker's should be prepared for heavy heavy arsenal of direct sales undercutting their upsells. it's been happening and will continue to happen, especially in states where it's getting touchy. you markup 15 points, you are toast if a direct sales rep gets a hold of that merchant. If you follow some of the larger players, some are starting to spread around the #5 as a commission for lower rate programs. Will we get to a point for A paper where 5 is the new 12?

so your saying not to max upsell?
sounds like you can potentially leave extra $ on the table for the fact that you are nervous of the deal getting stolen

IMO if someone considers them self a good salesperson and makes it more about the relationship they build with the client they wont lose them

[HDF]

IMO if someone considers them self a good salesperson and makes it more about the relationship they build with the client they wont lose them

Good theory, but it happens to everyone regardless. The punk who calls your UCC and can position you as ripping that merchant off can win the deal whether or not you know their birthday and kid's names.

[BROKER TIME]

Good theory, but it happens to everyone regardless. The punk who calls your UCC and can position you as ripping that merchant off can win the deal whether or not you know their birthday and kid's names.

true but i dont agree with selling less than max points to be scared of the deal getting stolen away

[HDF]

true but i dont agree with selling less than max points to be scared of the deal getting stolen away

Very fair, and a personal preference on how to run your business.

However, the market shift is going counter that practice for numerous reasons.

[Sachip24]

No one cares about expensive money. If they did luxury would not exist. We do not sell money, we sell the value of that money to the business. Our job to attach enough value to the money on that phone call to out weigh the cost. If they see value they won't go anywhere else who is just pitching them lower rate or payment. Sell profit not debt. Yellowstone pushing out 65million a month at 1.45-1.49 you think people care about how expensive money is. If they are making enough profit on the expensive money its a good deal, case closed.