[BuildaLoanBuilder]

Anyone working the Idea Financial Credit Line product? What are typical rates-terms & commission? Any other Credit Lines out there worth selling?

[Kevin Henry-Seacoast]

BuildALoanBuilder,

We offer flexible working capital solutions in the forms of factoring and asset based lines of credit. www.seacoastbf.com We are a division of Seacoast Bank.

Yes-we pay referral fees.

KH

[BuildaLoanBuilder]

Thanks Kevin - It's easy finding an ABL/Factoring Shop paying 10%-15% of revenue resids....It's an endless list ... New Century, Interstate, Vertex, Porter, UC Funding, Summit, Marquette, TAB, LSQ, Crestmark...on & on. What we are talking about here is Credit Line Shops not taking A/R as collateral - paying resides. Let's make that list

[matt.estes]

My direct competitors are Kabbage, OnDeck (LOC), Headway, Fundbox, and Idea Financial. If there is someone else I should be thinking about, let me know

When competing for a merchant:
- I see Kabbage often
- I see OnDeck (LOC), Fundbox, & Headway infrequently
- I see Idea very rarely


Matt Estes
BlueVine
partnerinquiry@bluevine.com

[BuildaLoanBuilder]

Thank you. You're a stand-up guy - willing to disclose who the competitors are. Bravo. Others just use this board to fish for leads.

[matt.estes]

Thank you. You're a stand-up guy - willing to disclose who the competitors are. Bravo. Others just use this board to fish for leads.

My pleasure. I don't see any reason to hide our competition. The reality is:

- Kabbage doesn't work with ISOs
- OnDeck pays well-below-market commission on LOCs (although their term loan is obviously an incredible product)
- Fundbox works well for micro-deals --also, I think they've shifted their strategic focus away from pure credit and over towards their B2B "Fundbox Pay" product
- Headway: I've commented some in this thread
- Idea: I honestly don't know much about

When we're competing in the ISO channel, it tends to be either with (1) Kabbage where the merchant went direct to Kabbage and/or (2) against a term loan / MCA type product.

Matt Estes
BlueVine
partnerinquiry@bluevine.com

[abfunders]

Matt, two deals in one week we lost to PayPal. You guys offered about $75,000 with a monthly payback, 22% APR, and PayPal offered like $150,000 on a year term. LOC is mostly going to be a better product IMHO, but some clients just say, "I want as much money as possible."

[brokerCompany]

Matt, two deals in one week we lost to PayPal. You guys offered about $75,000 with a monthly payback, 22% APR, and PayPal offered like $150,000 on a year term. LOC is mostly going to be a better product IMHO, but some clients just say, "I want as much money as possible."

Bluevine always has lower offers. Not many funds will beat paypal

[Sachip24]

almost no one can beat paypal

[matt.estes]

Matt, two deals in one week we lost to PayPal. You guys offered about $75,000 with a monthly payback, 22% APR, and PayPal offered like $150,000 on a year term. LOC is mostly going to be a better product IMHO, but some clients just say, "I want as much money as possible."

We're never going to beat Paypal on credit line size. LOC credit line size on average in the industry is 2/3 to 1/2 the size of your average term loan / fixed-daily-loan. This is simply a structural product thing.

If the merchant is leaning towards a Paypal offer, you should send that merchant to OnDeck or Funding Circle for a term loan to compete (IMHO).

[matt.estes]

Bluevine always has lower offers. Not many funds will beat paypal

This is only true if you're comparing our LOC offers to other term loan offers. Which you shouldn't.

[matt.estes]

almost no one can beat paypal

Agreed. Paypal uses their term loan as a loss-leader to acquire customers for higher-margin payments / merchant services revenue.

[brokerCompany]

Be careful with Bluevine. They declined a merchant of ours. Merchant ended up getting other MCA and then bluevine funded them after 2 other MCA!!! Amazing

[fin4all]

Be careful with Bluevine. They declined a merchant of ours. Merchant ended up getting other MCA and then bluevine funded them after 2 other MCA!!! Amazing

what do you have to say to that matt from bluevine ?

[matt.estes]

Be careful with Bluevine. They declined a merchant of ours. Merchant ended up getting other MCA and then bluevine funded them after 2 other MCA!!! Amazing

If we decline a merchant, our standard policy is that we won't re-review a merchant for 6 months (minimum). My assumption is that's what happened in this case.

Not only that -- we would have to re-acquire that merchant via new CPC ads or a new ISO submission. That merchant would have to click on a Google or Facebook ad or be submitted by a new ISO to be re-reviewed. We don't call "aged" ISO submissions...there is a Chinese wall between ISO & Direct channels.

I see nothing wrong with the situation above.

@brokerCompany -- If you'd like to discuss the specific situation, you're welcome to email me at 'matt.estes@bluevine.com' so we can find a time to chat live. In general, I always suggest you bring up 'attribution disputes' with your designated account rep. We're the 2nd largest ISO-channel lender after OnDeck, so we have transparent processes in place to address these situations.

Matt Estes
BlueVine
partnerinquiry@bluevine.com

[brokerCompany]

If we decline a merchant, our standard policy is that we won't re-review a merchant for 6 months (minimum). My assumption is that's what happened in this case.

Not only that -- we would have to re-acquire that merchant via new CPC ads or a new ISO submission. That merchant would have to click on a Google or Facebook ad or be submitted by a new ISO to be re-reviewed. We don't call "aged" ISO submissions...there is a Chinese wall between ISO & Direct channels.

I see nothing wrong with the situation above.

@brokerCompany -- If you'd like to discuss the specific situation, you're welcome to email me at 'matt.estes@bluevine.com' so we can find a time to chat live. In general, I always suggest you bring up 'attribution disputes' with your designated account rep. We're the 2nd largest ISO-channel lender after OnDeck, so we have transparent processes in place to address these situations.

Matt Estes
BlueVine
partnerinquiry@bluevine.com

Submitted to bluevine Dec 1 2018, deal declined because of low fico. A sales rep from Bluevine reached back out to merchant and funded merchant on 4/22/19. Even after they got more advances! Maybe they submitted under a different owner name and email. So it was a stack. My rep is out of town. Yes error on our part thinking we could not submit again to bluevine and we did not stay on top of that particular deal

[matt.estes]

@brokerCompany - Yep, those seem like reasonable hypotheses about what happened. We do many 2nd - 4th position fundings. We'll get the next one together!

[brokerCompany]

@brokerCompany - Yep, those seem like reasonable hypotheses about what happened. We do many 2nd - 4th position fundings. We'll get the next one together!

But yeah it was under 6 months and your sales team reached out. So just everyone is clear

[matt.estes]

December 1st to April 22nd is 5 months. We might make an exception for a client (who asked us to make an exception and has demonstrated marked improvement) that was submitted 5 months prior instead of waiting the full 6 months. I view that as perfectly reasonable.

Or it could have been submitted under a different owner, as you hypothesized.

If you want to know what the re-acquisition 'attribution channel' was, your ISO rep can answer this for you.


Matt Estes
BlueVine
partnerinquiry@bluevine.com