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02-18-2020, 09:56 PM #1
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- Mar 2019
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Patreon To Offer Cash Advances
https://hotpodnews.com/patreon-capit...ast-financing/
Patreon is to rollout cash advances. Curious to hear with large players (Shopify, PayPal, Amazon, etc) entering the space over the last few years if they view this as a positive.
In my opinion, it helps give merchants familiarity with the product and gets rid of the sticker shock or repayment model, even if they will always beat any offers we can provide.
I also can稚 imagine any of them will do so profitably.
Thoughts?
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02-18-2020, 10:37 PM #2
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- Sep 2019
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- 402
They'll be very profitable. Like Amazon, and Shopify etc, THEY HAVE ACTUAL FUTURE RECEIVABLES. And of course a sticky product. When we underwrite, with 3 months of bank statements, the best you can do is attempt to predict someones future sales let alone their behavior. These companies for the most part have sticky products, ecosystems and great projections on future sales.
But I agree, they're learning more about the product which is great. Though most of these companies, like true CC splits, offer splits.
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02-19-2020, 10:41 AM #3
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- Dec 2013
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- 4,713
i would imagine many firms that have golden handcuffs on a large merchant base will start offering capital as a service. I believe credit card processors which have really missed this opportunity may start jumping into the funding arena, followed by other service providers (think shopify) who already have the merchant as a client.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
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Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
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02-19-2020, 12:15 PM #4
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- Feb 2018
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- 1,349
of course, NAB did that awhile ago when they purchased a funder. AMEX is currently doing it, Square, etc etc
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02-19-2020, 02:39 PM #5
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- Jun 2014
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02-19-2020, 03:41 PM #6
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- Dec 2013
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for a while heartland had encore capital.... I think when i got involved in funding in 2005 processing companies did not like that merchants were taking capital at the 1.30 rates and i remember a few ceo's at large processing houses saying they did not want to partake in it --- they seemed to think anytime capital was over bank rates they did not want to be involved. -- not sure that truly ever changed.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
覧覧覧覧覧覧覧覧覧覧覧覧覧
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
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02-21-2020, 02:28 PM #7
- Join Date
- Feb 2018
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- 1,349
"Troy,MI-based North American Bancard (NAB) has been offering their customers merchant cash advances through a Troy-based subsidiary known as Capital For Merchants (CFM) for more than 10 years. And after seeing the growth of that segment, NAB went out and acquired Miami,FL-based Rapid Capital Funding (RCF) in late 2014"
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