Need a Funder or Vendor? START HERE

Results 1 to 7 of 7
  1. #1
    Senior Member Reputation points: 5633
    Join Date
    Mar 2019
    Posts
    104

    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?

  2. #2
    Senior Member Reputation points: 91418
    Join Date
    Sep 2019
    Posts
    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.

  3. #3
    Senior Member Reputation points: 54975
    Join Date
    Dec 2013
    Posts
    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)
    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

  4. #4
    Senior Member Reputation points: 86751
    Join Date
    Feb 2018
    Posts
    1,346

    of course, NAB did that awhile ago when they purchased a funder. AMEX is currently doing it, Square, etc etc

  5. #5
    Quote Originally Posted by fundingsmbs View Post
    of course, NAB did that awhile ago when they purchased a funder. AMEX is currently doing it, Square, etc etc
    Which funder did NAB buy? Or are you talking about Capital for Merchants?

  6. #6
    Senior Member Reputation points: 54975
    Join Date
    Dec 2013
    Posts
    4,713

    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

  7. #7
    Senior Member Reputation points: 86751
    Join Date
    Feb 2018
    Posts
    1,346

    Quote Originally Posted by BB_Cooper View Post
    Which funder did NAB buy? Or are you talking about Capital for Merchants?
    "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"

Similar Threads

  1. Business Cash Advances
    By Yankeeman07 in forum Promotions
    Replies: 0
    Last Post: 11-23-2016, 06:08 PM
  2. 4 cash advances looking for consolidation
    By gail_waters in forum Deal Bin
    Replies: 6
    Last Post: 09-14-2016, 10:56 AM
  3. Low Rates on Cash Advances
    By bruce@bdfunding.com in forum Merchant Cash Advance
    Replies: 4
    Last Post: 08-07-2014, 05:05 PM
  4. Paypal to offer merchant cash advances
    By blindbid in forum Merchant Cash Advance
    Replies: 17
    Last Post: 07-23-2014, 10:11 AM
  5. Are Faster Cash Advances Better?
    By isaacdstern in forum Merchant Cash Advance
    Replies: 29
    Last Post: 10-21-2013, 05:14 PM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


INDUSTRY ANNOUNCEMENTS

BoA launches business loan marketplace
Quickbooks adds new LOC product
Dext Capital upsizes corp note


DIRECTORY