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05-19-2021, 07:42 PM #1
- Join Date
- Apr 2021
- Posts
- 11
Newbie (I need your expert advice)
Greetings all!
This is my first post but I have been lurking around for a few weeks. Just need assistance with a few questions:
1. What is a buy-in rate? I Googled to the end of the world but couldn't find anything. I understand points but the buy-in rate is throwing me for a loop.
2. Should we use our own portal to submit deals OR should we partner with a marketplace like NAV and submit deals directly through them? Also, does NAV service A-E?
3. If we opt to use our own database of funders is this a good list to start with (this list was found on DF):
A: OnDeck, Credibly
B/C: Everest, Knight
D: Mantis, LCF
High-Risk: East Shore Equities
We definitely want to keep our go to lenders list short. I'm all about simplicity and efficiency. The idea of the shotgun approach triggers my anxiety lol. We just need a short and solid list of reputable funders that can assist our A-E leads.
Thank you all in advance for your help!
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05-20-2021, 02:33 AM #2
- Join Date
- Jul 2014
- Posts
- 70
Is this a serious post?
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05-20-2021, 08:10 AM #3
- Join Date
- Apr 2020
- Posts
- 130
Divide the payback by the loan amount - that gives you the factor rate. The "buy rate" is what's issued when an approval is sent over. That is the number in which the funder will provide the financing at for your customer with zero commission.
Now you upsell your commission from there. If it says for example "1.28 buy rate" and you can upsell 10% - then your max "sell rate" can be 1.38 - which would include 10% commission for you. That doesn't mean you have to sell at the 1.38(sell rate) as you can go all the way down to a 1.29 and still make 1% commission without having to ask them any questions.
The funders also charge fees which you have to take into account as well so always ask how much will the customer net until you become familiar with which funders charge fees, which don't, which are high, etc.
Hope this helps
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05-20-2021, 09:36 AM #4
- Join Date
- Nov 2013
- Posts
- 600
1. Buy Rate is your wholesale costs, any points above that is your commission. So for instance a 1.34 BR + 10pts = 1.44 sell rate.
2. If you use a platform like Nav then you will likely make less commissions because they do dont shop your deal for free. Get your own CRM to track deals etc
3. Plenty of funders on here and advertise to the right of this page to start with. Your A paper looks fine, may want to add 1-2 depending on your niches and credit types etc.
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05-20-2021, 11:19 AM #5
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 3,001
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
Office: 727-233-1111
Skype: fc-financial
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05-20-2021, 09:26 PM #6
- Join Date
- Apr 2021
- Posts
- 11
Wow. You took time out of your precious day to be unhelpful. Moving along...
Last edited by TheWhosWho; 05-20-2021 at 09:32 PM.
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05-20-2021, 09:26 PM #7
- Join Date
- Apr 2021
- Posts
- 11
Definitely not an option. I run my own business already. Thanks though.
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05-20-2021, 09:29 PM #8
- Join Date
- Apr 2021
- Posts
- 11
Oh I see it now! Thanks for breaking that down to me.
I notice that there are many funders. I'll do more research throughout this forum and try a few. Thanks again!
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05-20-2021, 10:11 PM #9
- Join Date
- Apr 2021
- Posts
- 11
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05-20-2021, 10:11 PM #10
- Join Date
- Apr 2021
- Posts
- 11
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05-25-2021, 01:26 PM #11
- Join Date
- Apr 2015
- Posts
- 159
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