[PROVENTURE_CAP]

Whatever happened to them? I heard they ran out of money.

[Ericr123]

Still in business. Funding deals with them currently.

[Velocity Capital Group]

Whatever happened to them? I heard they ran out of money.

Not sure where you got that info from, but we actually had one of our largest months this month!!! We are here, alive and well pumping away!!!!!!

Plenty of money and still not sure where people get that from.

Send us your deals!!!

Jay

[Ifunddaily]

Not sure where you got that info from, but we actually had one of our largest months this month!!! We are here, alive and well pumping away!!!!!!

Plenty of money and still not sure where people get that from.

Send us your deals!!!

Jay

So half of your staff didnt quit on you bc you stopped paying them???

[Alex_Goldman]

Funded 460K with them on the 24th they got cash.

[Velocity Capital Group]

Either your trying to make stuff up, or your extremely misinformed. I think You should verify your information before saying anything. No one in the history of VCG has ever been not paid. In fact we were one of the only funders to have actually paid EVERY employee during Covid when we were closed and not funding. So Please ..

[LYC]

I can't imagine how long the list of stips were in that alleged $460K deal. Last deal I tried to do with them, they want an A/R report and a plethora of stips for a $20K deal.

I can't say if they pay or not, but I can say they require way too many stips for a 5-7 month 1.45, when you can get the same deal done anywhere else with half the stips

[Alex_Goldman]

I can't imagine how long the list of stips were in that alleged $460K deal. Last deal I tried to do with them, they want an A/R report and a plethora of stips for a $20K deal.

I can't say if they pay or not, but I can say they require way too many stips for a 5-7 month 1.45, when you can get the same deal done anywhere else with half the stips

On smaller deals, everyone is generally the same, VC DL POO - AR or CC statements, not sure what they asked of you on a 20K besides for that unless it was hairy.

On Larger deals 350K+ it's a given that stips are going to be up the wazooooo. But yes the 460K was stip heavy, but understand why.

[LYC]

On smaller deals, everyone is generally the same, VC DL POO - AR or CC statements, not sure what they asked of you on a 20K besides for that unless it was hairy.

On Larger deals 350K+ it's a given that stips are going to be up the wazooooo. But yes the 460K was stip heavy, but understand why.

I always believed A/R was the dumbest stip in history. Unless the funder is planning on verifying the A/R and calling each company individually, what is the freaking purpose of the damn A/R report? The merchant can literally type in whatever he or she wants into the A/R report. Does it make the underwriter feel better about the deal? An A/R report that is not verified is useless.

That being said, I can understand the additional stips on a $400K deal. But does anyone serious expect a client that qualifies for $15K - $25K to keep an A/R report? There is a reason why they are in the situation they are in and why they pay a 1.45 for 100 days

Either way, there are dozens of funders that will do any deal under $75K at typically better rates and terms than VCG without the A/R report and the EXTRA stips they ask for. And let's got get started on their backwards underwriting on the backend....

I personally find VCG as useful as Greenbox. No reason to entertain their offers unless you have absolutely nothing remotely close to what they are offering. And even then, take a deep breath and don't expect the deal to go through without hiccups.

[mca2150]

I always believed A/R was the dumbest stip in history. Unless the funder is planning on verifying the A/R and calling each company individually, what is the freaking purpose of the damn A/R report? The merchant can literally type in whatever he or she wants into the A/R report. Does it make the underwriter feel better about the deal? An A/R report that is not verified is useless.

That being said, I can understand the additional stips on a $400K deal. But does anyone serious expect a client that qualifies for $15K - $25K to keep an A/R report? There is a reason why they are in the situation they are in and why they pay a 1.45 for 100 days

Either way, there are dozens of funders that will do any deal under $75K at typically better rates and terms than VCG without the A/R report and the EXTRA stips they ask for. And let's got get started on their backwards underwriting on the backend....

I personally find VCG as useful as Greenbox. No reason to entertain their offers unless you have absolutely nothing remotely close to what they are offering. And even then, take a deep breath and don't expect the deal to go through without hiccups.

AR reports can be useful to get a feel for the merchant's future cash flow. Never requested them on small deals as it's not really necessary, but when it comes to larger deals you want to have every tool so you can recognize if there are any bumps in the road. Also, there are funders that use the AR report to collect when a merchant goes default. You can collect directly from outstanding invoices if there's still a lot of money owed.

[Ericr123]

''somebody gonna call STIPHUNTERZ''

[LYC]

AR reports can be useful to get a feel for the merchant's future cash flow. Never requested them on small deals as it's not really necessary, but when it comes to larger deals you want to have every tool so you can recognize if there are any bumps in the road. Also, there are funders that use the AR report to collect when a merchant goes default. You can collect directly from outstanding invoices if there's still a lot of money owed.

All very true, assuming the merchant's A/R report reflect "real " receivables. What is to stop the merchant from listing fake receivables that are not owed to them?

Hence, why I have always felt that "unverified" A/R reports are useless

[DonMcGrath]

All very true, assuming the merchant's A/R report reflect "real " receivables. What is to stop the merchant from listing fake receivables that are not owed to them?

Hence, why I have always felt that "unverified" A/R reports are useless

They’re still useful, because there is always the “threat” of those receivables being verified. Secondly, most of the time when they are provided, they’re real. The majority of merchants who would provide fake ones is very small, so just asking for them and receiving them adds more credibility to the merchant.

Most of it is perception and deduction, but perception has always worked very well when tied to a potential “stick”.

[Kevin Henry-Seacoast]

They’re still useful, because there is always the “threat” of those receivables being verified. Secondly, most of the time when they are provided, they’re real. The majority of merchants who would provide fake ones is very small, so just asking for them and receiving them adds more credibility to the merchant.

Most of it is perception and deduction, but perception has always worked very well when tied to a potential “stick”.

If one is financing current or future receivables, one would think that SOMEONE better verify those receivables and review copies of invoices. One would also verify their accounts payables to make SURE the receivables are not contras or related companies to the payables.

I passed on a prospect not long ago where most of the receivables were to companies within a 2 mile radius. The company had a LOC of $6Mil from a national bank and was seeking a factoring relationship because AR ballooned to 20Mil. I did my work and discovered that all of the customers and some of the vendors (payables) were companies owned by relatives of the prospect. I declined as most of the 20Mil in AR outstanding was due to related companies. The company disappeared inside of 6 months and took their bank for most of the 6Mil. The bank never verified the customers, the vendors, did not demand control of cash on the receivables, and had no personal guaranty.

[Velocity Capital Group]

There are 2 Main reasons for AR.

#1. To understand the cash flow that the Client is getting in. This reason is to ensure that they have incoming dollars to be able to afford the advance. This gives your client the ability to keep paying and not have issues, as well as potentially get to a renewal where you the broker would get paid again. (The same or more than you initially got on the 1st time around, which many funders wont do.)

#2. Is to be able to verify the incoming receivables(Many times able to see that within logins as checks, wires, or ACH's Can be seen from the same companies. (Granted there is no guarantee that they are telling the truth unless you call to verify,) Yet if a merchant defaults, we know who to reach out to to make sure we get paid as soon as possible. (No matter the size of deal)

Now with stip's, I would say asking for 4 stip's, (VC, DL, AR/Processing, Login) is actually better than most. (Note that funders don't ask for stips to piss a broker or a merchant off. Its simply to understand the deal better, as MANY DEALS Are NOT clear cut, and need further information. I speak for all funders when we say that.

So before you say that we are asking for too many stip's, check this out.

The other day an iso came to me that a Funder, (Who'm I AM MOST positive about 70-80% of brokers fund with) asked for the following on a 55K 2nd position deal.

1. VC
2. DL
3. Proof of Ownership/ K1
4. AR/Processing
5. Tax Return
6. Site Inspection
7. Manual bank Login
8. WIP Report

We funded instead the same day with 4 Stip's. The same 4 stip's we ask for on deals below 100K.

Many funders out there say they also don't ask for stip's, but check on the backend how many of them are asking your merchants to send to them directly. We dont do that.


Happy Funding Tuesday to everyone, and Send us your deals for fast and easy approvals !!!!!!!

I always believed A/R was the dumbest stip in history. Unless the funder is planning on verifying the A/R and calling each company individually, what is the freaking purpose of the damn A/R report? The merchant can literally type in whatever he or she wants into the A/R report. Does it make the underwriter feel better about the deal? An A/R report that is not verified is useless.

That being said, I can understand the additional stips on a $400K deal. But does anyone serious expect a client that qualifies for $15K - $25K to keep an A/R report? There is a reason why they are in the situation they are in and why they pay a 1.45 for 100 days

Either way, there are dozens of funders that will do any deal under $75K at typically better rates and terms than VCG without the A/R report and the EXTRA stips they ask for. And let's got get started on their backwards underwriting on the backend....

I personally find VCG as useful as Greenbox. No reason to entertain their offers unless you have absolutely nothing remotely close to what they are offering. And even then, take a deep breath and don't expect the deal to go through without hiccups.