[Garth Butcher]

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?

[Cashman1]

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?

Seeing them a lot recently....have no clue how the lend or PB structure...I’m usually dizzy after the first month of watching them pull...

[cmarks]

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?

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

[Lendvo]

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.

[mcaguru]

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?

Shopify is not a white label ...Ill break it down this way Shopify Market Cap (meaning the value of the stock currently) is 37 Billion Dollars (yes 37 Billion with a "B") to Ondeck's Market cap of Only 297 Million !! think about that for a moment !!

[Jstarr]

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.

[mcaguru]

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.

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.

[Kevin Henry-Seacoast]

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....

[mcaguru]

I think a few companies have tried/trying this like Lendio / the Lendvantage / Become /...will see ....

[cmarks]

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.

[mcaguru]

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.

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.

[Kevin Henry-Seacoast]

I think a few companies have tried/trying this like Lendio / the Lendvantage / Become /...will see ....

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,

Kevin

[Winning]

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....

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

"Nike, like many other brands, is increasingly taking its destiny into its own hands in response to consumers' buying more online, declining U.S. mall traffic, and the bankruptcies and store closings of retailers including The Sports Authority. For the year, Nike brand sales, excluding currency impact, to wholesale customers including Foot Locker rose 2%, but its direct sales jumped 12%, to $10.4 billion, approaching a third of the total business. Online sales rose 25% for the year while comparable sales at its own physical stores climbed 4%. Nike Direct, including both e-commerce and its own retail sales, drove over 90% of its growth this past fiscal year."

That link pretty much sums up where we are today.. Direct to Consumer is King, and cut out as many middle men as possible.

Is there some reason why there isn't a Credit Karma type service but for business lending?

[cmarks]

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.

Yes Marcus, and Amazon profits more from their AWS by billions more than selling products, but Shopifys competitive advantage is their website builder and all the apps that come with it. Their cost of money is not unique.

[mcaguru]

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.

[Winning]

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.

"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)..

[Kevin Henry-Seacoast]

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....

KH

[Winning]

Some have held back from offering non bank products to customers because it is not regulated....KH

Interesting....
So why would not being regulated be a point of resistance?

Perhaps because they are scared of the wild wild west unpredictableness of it and can't properly assign risk?

[Kevin Henry-Seacoast]

Interesting....
So why would not being regulated be a point of resistance?

Perhaps because they are scared of the wild wild west unpredictableness of it and can't properly assign risk?

Headline and reputation risk if something goes wrong.

[Winning]

Headline and reputation risk if something goes wrong.

Touché.....

"All Money Ain't Good Money" as they say.

[Kevin Henry-Seacoast]

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....

Bump- Schwab/AmeriTrade is a game changer. If the merge is completed, the combined companies will service $5 Trillion in assets. Yes-$5Trillion!

[mcaguru]

right behind Vangurd !

[Atlas Financial]

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.

[Franklin]

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?