Results 1 to 24 of 24
-
07-19-2019, 09:32 AM #1
- Join Date
- Nov 2018
- Posts
- 17
Shopify
Seeing more and more Shopify advances out there. Does anyone know if they are lending this directly, or if it is a high level white label? Do they shop any internal declines out?
-
07-19-2019, 09:46 AM #2
- Join Date
- Jan 2018
- Posts
- 353
-
07-19-2019, 10:35 AM #3
Their lending directly, unless youre asking about their investment banks, which for all intents and purposes doesnt matter. They operate like Square and Paypal, and since their platform is growing massively the amount of advances are growing.
Good luck getting declines from them or any other large player
-
07-19-2019, 10:52 AM #4
- Join Date
- Jul 2015
- Posts
- 168
They are a monster lately.
No white label but yes they have back-end facilities so their risk exposure is not 100%, but that's the same for any large funder, OnDeck and Kabbage included.
-
07-19-2019, 10:54 AM #5
- Join Date
- Dec 2013
- Posts
- 4,713
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
——————————————————————————
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
07-19-2019, 10:57 AM #6
Everyone is jumping in, square has the option built into the terminal for the merchant. the same applies for amazon, paypal, etsy etc.. square aggressively markets to the restaurants, and the equipment is offered for free in exchange for the processing that is directly tied into First Data of Omaha.
Jerry Starr
Insource Funding
433 Plaza Real,
Boca Raton, Fl 33432
P: 800-805-3391 Fx: 561-270-6895
insourcefunding.net
WHAT WOULD YOU DO " IF " YOU HAD THE CAPITAL
◆ 50% LTV - No Fico Required
◆ 90% CLTV on Purchases
◆ Investment Residential / Commercial Properties
-
07-19-2019, 11:13 AM #7
- Join Date
- Dec 2013
- Posts
- 4,713
Correct ...I believe many many large institutions will be offering Capital to business owners ...No one yet carved out a name like Heintz has done for Ketchup ... So in this Scenario a johnny late comer can pop up as a unit from CIT or Goldman or Shopify or GE or etc etc and win market share almost over night that Kabbage and etc's has been hustling for a decade on .... 3 Superbowl Ads about them offering business capital to Merchants and they can get a household name! ...now for Subprime and Super-Subprime (especally Super) that becomes harder to break-in late.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
——————————————————————————
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
07-19-2019, 11:45 AM #8
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,508
Right now there are massive balance sheets seeking yield.
-Large institutions are trying to find anyway possible to attract the small business owner.
-Large end customers are stretching terms with small vendors and then offering discounts for early pay.
-Bank are getting into the alternative lending market by deploying capital to their customer who normally don't qualify for financing through relationships/investments in alternative lenders. They have also acquire alternative lenders/factors-present company included!
-Large institutions are offering payables programs to their large customers that in turn offer early pay to vendors.
-QuickBooks offers loans to customers on their platform using Intuit's balance sheet.
If you talk to the business owner doing sub $50Mil/year in revenue, their frustration is accessing all of the various ways to finance their business in one place and in a cost effective manner. It reminds me of the stock brokerage business of the 80s and 90s. You could access products if you called your broker, but they would only offer their products at their rates. And then along came Chuck Schwab... Chuck ,through technology offered a way for investors to access all markets and all quality products in a quick and cost effective manner with a little unbiased hand-holding along the way. I think most will agree Chuck revolutionized the stock broker model and is still doing so today. I worked for Chuck for 15 years. It is an amazing company. What if Chuck offered a way for the business owner to access all types of financing for his business (all aspects of the balance sheet) through technology in a cost effective manner? In my opinion.....that is the game changer....Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
07-19-2019, 12:02 PM #9
- Join Date
- Dec 2013
- Posts
- 4,713
I think a few companies have tried/trying this like Lendio / the Lendvantage / Become /...will see ....
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
——————————————————————————
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
07-19-2019, 12:12 PM #10
Shopify is an ecommerce, website builder first, capital provider second. Thats why they and Square and anyone else doing it this way are different, they are already 'partners' with these ecommerce companies, by them essentially paying rent to operate using their platform. Not everyone can just get into that unless they merge or acquire, as previously mentioned by someone.
-
07-19-2019, 12:20 PM #11
- Join Date
- Dec 2013
- Posts
- 4,713
Amazon Sold Books ... American Express was a mail delivery company as well as many companies initial starts .... its very clear up in Ottawa to Harley Finkelstein,how the funding division is quickly coming an enormous profit machine and with Billions to acquire and / or build we may see them position themselves perhaps right into a leading position offering capital to business owners.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
——————————————————————————
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
07-19-2019, 12:22 PM #12
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,508
Marcus,
Yes-but they only offered select products in debt markets and not everyone had access because their platforms/audience is too small.
The models works well if:
-You have a vast audience of customers on your platform already that own small businesses.
-You are offering vetted products, but are unbiased because you are not making recommendations or deploying your own capital.
-You can access all markets: equity, debt, lease, etc....
-You can offer technology that makes the process easier.
-You can compare offerings to ensure cost effectiveness. You can compare capital provider to see if it is the right partner.
Best,
KevinKevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
07-19-2019, 12:44 PM #13
- Join Date
- Aug 2016
- Posts
- 486
The Writing's on the MALL
I mean WALL
Exactly! I wish there was a data aggregator that I could give access to my business financials and then it automatically show me offers that I am pre-approved for, or very likely to be approved for. Would like it to also have a business-2-business owner forum attached to the service where the Business owners can talk amongst themself about what approvals they have received, how it was dealing with the lender, and rate the lenders.
That exact software already exists for personal use.. Its called Credit Karma & Nerd Wallet... How come they can't create a version of that for Business owners.
Iv'e asked a software developer that is a member here on the forum (Fundingfloor) about making software available to the biz owner. But he replied they would rather make software for brokers to use, that will then be used to better serve the business owner.
This kind of reminds me of the old school manufacturer, distributor, retailer model.
Which is becoming harder and harder to keep going..
Even Nike is feeling the squeeze of that antiquated model..
https://www.forbes.com/sites/andriac...g-to-stay-no-1
Originally Posted by Forbes
Is there some reason why there isn't a Credit Karma type service but for business lending?Last edited by Winning; 07-19-2019 at 12:57 PM.
-
07-19-2019, 12:50 PM #14
-
07-19-2019, 12:55 PM #15
- Join Date
- Dec 2013
- Posts
- 4,713
I get it...lets see how Shopify plays out ..I am personally predicting them up their play in the capital to merchants space.... time will tell if i am correct.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
——————————————————————————
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
07-19-2019, 01:24 PM #16
- Join Date
- Aug 2016
- Posts
- 486
"Everything takes the path of least resistance: water, electricity, and Google maps."
So if they can make money in that space quicker, faster, & easier why wouldn't they.
The only thing I could see that could put the brakes on even more huge companies going direct to there customer base is if there was some sort of future resistance added (IE. Government Regulation)..
-
07-19-2019, 01:29 PM #17
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,508
Winning,
Since a lot of the larger balance sheets that are seeking yeild are public companies with shareholders and audited financials, regulation actually gives them more of a blessing to jump into the business.
Some have held back from offering non bank products to customers because it is not regulated....
KHKevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
07-19-2019, 02:01 PM #18
- Join Date
- Aug 2016
- Posts
- 486
-
07-19-2019, 02:05 PM #19
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,508
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
07-19-2019, 02:25 PM #20
- Join Date
- Aug 2016
- Posts
- 486
-
11-25-2019, 02:28 PM #21
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,508
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
11-25-2019, 02:49 PM #22
- Join Date
- Dec 2013
- Posts
- 4,713
right behind Vangurd !
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
——————————————————————————
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
11-25-2019, 03:07 PM #23
- Join Date
- Apr 2018
- Posts
- 144
it will be full circle. these companies are going after people with credit scores above 700 and pumping out money to win their business. when there is a downturn or the faucet is turned off, there will still be plenty of business capital options in the C paper range. let them beat each other up by advancing money to everyone and be there waiting when those options are no longer available.
-
11-25-2019, 05:15 PM #24
- Join Date
- Oct 2013
- Location
- Designer
- Posts
- 597
Shopify doesn't have to rely on just credit score, if they can see healthy cash flow and tons of customer transactions.
Same thing with Square, especially as they focus on restaurants.
But the other more regulated entities do focus on that.
It's ironic that a lot of the big retailers saw what was going on with online
but didn't want to change their already working and successful business model.
Amazon brought their model originally to Toys R Us and they were exclusive
distribution partners at one point. Toys R Us rejected Amazon's full online strategy, electing to simply sell toys currently in their store online, like adding an extended bathroom, instead of taking advantage of massive warehouses and storing and providing 1000+ times more inventory.
We see where Toys R Us ended up, same as many other offline retailers.
www.UccRadar.com - Can any of your agents pitch 5-10 merchants at the exact same time, remain coherent, and still get the app? Can they do it while they're asleep?
Similar Threads
-
Shopify Capital fourth quarter of 2018
By mcaguru in forum Merchant Cash AdvanceReplies: 1Last Post: 02-12-2019, 06:28 PM -
Shopify
By fundingsmbs in forum Merchant Cash AdvanceReplies: 12Last Post: 05-03-2018, 04:11 PM -
Internet Based Clothing Business processing w/ shopify
By skideeppow in forum Deal BinReplies: 3Last Post: 12-27-2017, 05:11 PM