Results 1 to 14 of 14
Hybrid View
-
06-22-2020, 11:23 AM #1
- Join Date
- Oct 2014
- Location
- Naples, FL
- Posts
- 474
Hanna, many good questions here...
YES - many businesses, including high risk funders, will go out of business / consolidate / sell off their portfolio's. It's a buyers market. Go after those buyers.
YES - leads, is going to be an uphill battle. I said this at the start of the pandemic SBA/PPP situation: this is a lead grab for large players thinking long term. The solution? Find a way to mine then maintain lead relationships. Long term is the name of the game. The days of stacking, wham bam thank you maam, low hanging fruit and high commissions is over.
MCA firms will DEFINITELY be able to compete with 0 / low interest loans backed the government... YES - the pool is smaller... but the need is still great. You're going to have to "Blue Ocean Strategy" that one for yourself but the general question is: who will your business serve?
New types of businesses will pop up due to our new realities. Many people want to support local (or I read this morning, black owned businesses). They all will need financing. Again, think LONG term. No need to earn 15 points on one deal.
The second part is keeping the relationship alive. Why would a business owner stick with you over the next funder? Super broker? ISO?
You need to add value to their business.
I have recently been working with a program that you can offer your clients that:
- Will Save them Money EVERY month on their merchant processing WITHOUT having to change anything or anyone (easy).
- Cost them nothing to see how much money they can save. (free money back in their pocket!)
- Cost them nothing every month out of pocket if they do not save anything that month. (keeps them saving money every month)
- Earns you a residual commission every month (for up to 5 years).
It will help them save money every month (and a reason to talk to them and keep the relationship going strong)...
It will earn you a little something every month for the entire 5 years they are saving money....
You will keep them in your pocket because you are adding value EVERY month.
I am introducing a few super brokers and funders to the company offering this program as they are seeking to add on another 1 or 2 volume accounts.
But yes, things will bounce back. And get stronger than before. It's the time to plan and execute - if you have not already.
I'm available to discuss!
Steven Ruiz
Presto Prestamo, LLC
MoreBottomLine.Com
786-712-4900
steven@prestoprestamo.com
-
06-22-2020, 02:45 PM #2
- Join Date
- Jun 2015
- Posts
- 3,322
Do we know of any that officially went out of business yet?Did everyone really get killed when you look at a year? I can tell you that i syndicate on deals and obviously got "killed" the last 3 months . but when i ran number for my fiscal year of july to july i made money on syndicating.
I feel for all industries including ours that anyone who was struggling before covid is done for now and anyone who was doing really well will weather the storm.
-
06-22-2020, 03:02 PM #3
- Join Date
- Oct 2014
- Location
- Naples, FL
- Posts
- 474
Some big name funders have yet to come back online... I doubt they will say "we're done" until they recoup as much of their portfolio as they can. Anyone who's been around knows the rampage of portfolio information being sold when CAN took a break back in 16-17 or when 1st Global went under. People are waiting to pillage those leads.
And yeah, you can make money in bear and bulls, so I believe you did make money on your syndications... but, I'm sure they were much cleaner type of deals!
-
06-22-2020, 03:30 PM #4
- Join Date
- Jun 2015
- Posts
- 3,322
has nothing to do with cleaner or not (proof is on deck) if you were running a high risk shop with a 1.35 buy rate and having a 5% default rate flipping the money 3- 4 times a year . than you will still be profitable even if all the money you had out during covid does not return.(based on fees)
If you were running a 15-20% default rate before covid you were making some money and scraping by but chances are now you way in the hole and either need to find a new sucker to invest their money or say bye bye
-
06-24-2020, 02:35 PM #5
- Join Date
- Apr 2015
- Posts
- 159
Similar Threads
-
Future Contract Funding?
By skideeppow in forum Deal BinReplies: 2Last Post: 05-02-2019, 01:21 PM -
MCA on a future business purchase for $1.3MM
By aak723 in forum Deal BinReplies: 6Last Post: 10-10-2018, 01:03 PM -
Future Business Capital
By StackMonster in forum Merchant Cash AdvanceReplies: 3Last Post: 06-02-2017, 01:06 PM -
Future Recievables
By Yankeeman07 in forum PromotionsReplies: 0Last Post: 12-22-2016, 12:05 PM -
The future of brokers
By Zach in forum Merchant Cash AdvanceReplies: 70Last Post: 11-18-2016, 04:46 PM