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  1. #1

    Question 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!

  2. #2
    Is this a serious post?

  3. #3
    Senior Member Reputation points: 14313
    Join Date
    Apr 2020
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    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

  4. #4
    Senior Member Reputation points: 23085
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    Quote Originally Posted by TheWhosWho View Post
    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!

    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.

  5. #5
    Senior Member Reputation points: 81655
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    Mar 2014
    Location
    Florida
    Posts
    2,854

    Quote Originally Posted by TheWhosWho View Post
    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!

    Go to work for a Funder for a few years and learn the business.
    Dave Lambert, Business Development
    dave@fcbankcard.com
    Merchant Services Consultant
    High Risk Merchant Payment Solutions
    SBA 7(a) Loans & Short-Term Funding
    T/VM: 727-291-7890
    Office: 727-233-1111
    Skype: fc-financial

  6. #6
    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.

  7. #7
    Definitely not an option. I run my own business already. Thanks though.

  8. #8
    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!

  9. #9
    Quote Originally Posted by brandon_ View Post
    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
    Excellent explanation! Thank you Brandon!

  10. #10
    Quote Originally Posted by FCF Fund View Post
    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.
    Thank you! I get it now!

  11. #11
    Senior Member Reputation points: 8723 helpinghand's Avatar
    Join Date
    Apr 2015
    Location
    Cleveland
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    157

    Quote Originally Posted by TheWhosWho View Post
    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!
    Wow good for you. Just jumped in the shark tank
    Hanna Kassis, JD/CPA

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