[Kevin Henry-Seacoast]

I received a call from a broker that after doing a little research also boosts about being a direct "lender".

Broker: Hey Man, you do factoring stuff right?
Me: Yes-We offer factoring and asset based lines of credit.
Broker: Hey Man-I got this guy a few advances and now he's having trouble making payments. Can you help him out?
Me: We might be able to provide a facility that pays off all the outstanding advances and provides a flexible working capital facility going forward. How many advances did you get him? What is owed ? What industry?
Broker: He had one before I got him three more. About $240K is owed in total. I am not sure exactly what they do. I think they manufacture stuff.
Me: Do you have a recent AR Aging or Income Statement & Balance Sheet that shows the AR outstanding? How much revenue did they do last year?
Broker: I have an income statement. They did 4Mil last year. He has $770K outstanding.
Me: We might be able to help, but I need to learn more about the Company. Can you see if they are available for a call tomorrow at 1PM?
Broker: Sure. Hey Man, How much do I get paid and if you can refinance all the stacks, can I stack you.

That's when I hung up.....

[Yankeeman07]

Typical uneducated broker - How much you want to bet each MCA Contract has a "No Stacking Rider"

[Michael I]

I received a call from a broker that after doing a little research also boosts about being a direct "lender".

Broker: Hey Man, you do factoring stuff right?
Me: Yes-We offer factoring and asset based lines of credit.
Broker: Hey Man-I got this guy a few advances and now he's having trouble making payments. Can you help him out?
Me: We might be able to provide a facility that pays off all the outstanding advances and provides a flexible working capital facility going forward. How many advances did you get him? What is owed ? What industry?
Broker: He had one before I got him three more. About $240K is owed in total. I am not sure exactly what they do. I think they manufacture stuff.
Me: Do you have a recent AR Aging or Income Statement & Balance Sheet that shows the AR outstanding? How much revenue did they do last year?
Broker: I have an income statement. They did 4Mil last year. He has $770K outstanding.
Me: We might be able to help, but I need to learn more about the Company. Can you see if they are available for a call tomorrow at 1PM?
Broker: Sure. Hey Man, How much do I get paid and if you can refinance all the stacks, can I stack you.

That's when I hung up.....

not sure the issue here .If you hung up after he said he stacked the guy 3 tines i get it , But asking if he can stack you is a fair question and good that he asked instead of doing it. asking what he gets paid is also a good question so you are all on the same page

[Kevin Henry-Seacoast]

not sure the issue here .If you hung up after he said he stacked the guy 3 tines i get it , But asking if he can stack you is a fair question and good that he asked instead of doing it. asking what he gets paid is also a good question so you are all on the same page

Michael,

I have no issue explaining commissions and how our referral partners get paid.

I do have a problem when somebody asks if I can deploy my firm's capital to clean up a mess created by them and then they turn around and start creating a problem all over again.

[OC Funder]

Classic. Has his income statement, AR, and stacked him 3 times without ever finding out what they actually do

[abfunders]

Listen, let's be honest here. What's a "sales floor" supposed to do?

What is a "sales floor" supposed to do? Pay them 3 points on Bluevine and how much stays in the company for profits, or to off-set cost of leads? I know a broker shop that pays $60-70k MONTHLY on Google adwords. They have a constant flow of sales guys in and out, and they get burned out.

As much we can say, "Make residuals great again" (the article on Debanked), how is a sales guy going to get paid on that when he quits? Or let's say he closes a $15mm line, and he doesn't need to work as hard anymore because he generated $2000/month in residuals for his business and he wants to go 1099. And he then has a dispute with his employers and is fired/leaves? Wha

I've got a big advantage - I'm a one-man shop. And even people who bring deals to me, I make sure to pay them on residuals. However, those are CEOs of other brokers shops asking me for help, and I'm paying CEOs.

There's a reason that I was told factoring companies are getting damaged by MCA funders.

I'm probably the biggest fan of factoring here, I love it. However, is there a solution to pay reps? Especially when MOST factors don't pay an origination fee on the "credit facility" since many private factors don't offer a "credit facility," they'll just factor any of it.

[Michael I]

Michael,

I have no issue explaining commissions and how our referral partners get paid.

I do have a problem when somebody asks if I can deploy my firm's capital to clean up a mess created by them and then they turn around and start creating a problem all over again.

dont confuse a question with an action.To me the fact that he asks means he would have went by what ever you answered. Of course you have the right to decide who you will like to do business with

[matt.estes]

@Kevin Henry - I feel your pain...

@Micah Markowitz - You make a great point. One of our biggest challenges at BlueVine when activating newly-signed Sales floors is helping CEOs & VPs of Sales figure out how to compensate their reps on the BlueVine LOC residual product.

It's a non-trivial Revenue Ops problem when 95% of the other products a floor sells are transactional. There are many solutions to the problem, though.


Matt Estes
BlueVine
partnerinquiry@bluevine.com

[RickyR3712]

Kevin you come everyday on an mca forum and are constantly complaining about the phone calls you get and how you are greater than all.Most people in the mca space do not understand how assets based credit line work.They think is is like a mortgage since you have the collateral so it is perfectly fine to get some other type of financing.

[Kevin Henry-Seacoast]

I guess the pay issue is the difference between a lower middle market, retail minded broker and the institutionally minded investment bank and/or advisor that focuses on larger deals. The investment banks and/or advisors typically are not asking the capital sources for a fee as they have formally engaged the client and are receiving a fee from the client at closing. With most of the broker firms including the one man shops they are rarely engaged with the client and are in fee agreements with the capital sources. That being said, I can certainly see it would be tough for some brokers to work on residuals that also have to pay another broker internally or externally. This really causes an issue with ISOs that are working on behalf of a broker that asked them to shop the deal for the prospect.

Micah-In some factoring deals we have charged a line fee so the broker can split more efficiently with the other broker involved and also split the residuals. Of course...the more fees you pile on a deal the higher the rate. It works very well when I am unseeding a high cost factor with a deal that was referred by a broker with multiple mouths to feed with fees. Example: I closed a $7Mil factoring fee where we saved the client in excess of 10% in annualized rate. There was certainly enough room in the deal to charge a modest line fee on top of the residuals of 15% of net spread.

We all want good clients. Good clients all come from great referral partners. You have to try and keep everyone happy or a deal will never close.

On the stacking issue..... You can't ask me to fix someone's problem you caused and then ask if you can do it again......

[Kevin Henry-Seacoast]

Kevin you come everyday on an mca forum and are constantly complaining about the phone calls you get and how you are greater than all.Most people in the mca space do not understand how assets based credit line work.They think is is like a mortgage since you have the collateral so it is perfectly fine to get some other type of financing.

RickyR3712-Sorry you feel offended.