[abfunders]

#1 Spend $20k on leads to broker deals and understanding how MCA underwriting works and what's a good deal, what's a bad deal
#2 Start syndicating in the good deals [you are essentially funding...]
#3 Use a funder's platform and/or start white-labeling
#4a Get LendSAAS (or similar) and investors and hire underwriters
#4b Figure out how to get the deals in the door

I think that's pretty concise, but can be expanded on. There's also more ways in if you had more money.

[Winning]

#1 Spend $20k on leads to broker deals and understanding how MCA underwriting works and what's a good deal, what's a bad deal

Spend $20k on leads from who? You have links to companies that offer this service you speak of?
Does a funder have to broker deals? I thought brokers were the middle men between the Funder and the Merchant...??
Understanding what's a good deal and a bad deal. Is there certain mathematical formulas used to assist in ranking a deal? If so, like what? Or is it all subjective and gut feeling? Or is it a combination of both?

#2 Start syndicating in the good deals [you are essentially funding.

Syndicating... 1st lets make sure we understand what that even means..

Loan Syndication
https://www.investopedia.com/terms/l...yndication.asp

Loan syndication is the process of involving a group of lenders in funding various portions of a loan for a single borrower. Loan syndication most often occurs when a borrower requires an amount too large for a single lender to provide or when the loan is outside the scope of a lender's risk exposure levels. Thus, multiple lenders form a syndicate to provide the borrower with the requested capital.

So what you are saying for #2, is to start putting money with other peoples money and going in on deals together with other people.

So where would "I" find these other people who have been presented with deals to see if there is room for "me" to become a part of the deal?

#3 Use a funder's platform and/or start white-labeling

Please share link to funders platforms.

More lingo that we need to understand. White Labeling..

White Labeling = the ability to use someone else funds but show the borrower my name as the funding entity.

This brings up a new question. Could a person start syndicating using white labeled funds? Based on my understanding of both those terms, I don't see why you couldn't. The question would be, is if it would be profitable to do? But I guess that depends on how cheap you have access to white label funds, and how good the syndicated deals that you are a part of.

#4a Get LendSAAS (or similar) and investors and hire underwriters

https://www.lendsaas.com/

Hire Underwriters...
https://www.upwork.com/hire/underwriters/

Look like underwriters are about $75 to $115 per hour?

How many hours would you say an underwriter would need to spend on a $15/20K file?

[TheUnderwritingProdigy]

Spend $20k on leads from who? You have links to companies that offer this service you speak of?
Does a funder have to broker deals? I thought brokers were the middle men between the Funder and the Merchant...??
Understanding what's a good deal and a bad deal. Is there certain mathematical formulas used to assist in ranking a deal? If so, like what? Or is it all subjective and gut feeling? Or is it a combination of both?



Syndicating... 1st lets make sure we understand what that even means..

Loan Syndication
https://www.investopedia.com/terms/l...yndication.asp

Loan syndication is the process of involving a group of lenders in funding various portions of a loan for a single borrower. Loan syndication most often occurs when a borrower requires an amount too large for a single lender to provide or when the loan is outside the scope of a lender's risk exposure levels. Thus, multiple lenders form a syndicate to provide the borrower with the requested capital.

So what you are saying for #2, is to start putting money with other peoples money and going in on deals together with other people.

So where would "I" find these other people who have been presented with deals to see if there is room for "me" to become a part of the deal?



Please share link to funders platforms.

More lingo that we need to understand. White Labeling..

White Labeling = the ability to use someone else funds but show the borrower my name as the funding entity.

This brings up a new question. Could a person start syndicating using white labeled funds? Based on my understanding of both those terms, I don't see why you couldn't. The question would be, is if it would be profitable to do? But I guess that depends on how cheap you have access to white label funds, and how good the syndicated deals that you are a part of.



https://www.lendsaas.com/

Hire Underwriters...
https://www.upwork.com/hire/underwriters/

Look like underwriters are about $75 to $115 per hour?

How many hours would you say an underwriter would need to spend on a $15/20K file?

Hey, look man, not trying to be a dick here, but to even have the discussion of starting a funding company, without at least first working in the trenches for 3-5 years first, you're just not gonna have a good time. I worked in the industry as a junior underwriter, worked my ass off for several years up the ladder, being promoted as I did so, while moving across all of the top funding companies before I even considered starting my own shop. There's some experience that can only be gained through sweat equity. Being a successful funder is one of those. If you're truly interested, I would suggest starting with an entry-level position at any reputable funding shop. As someone who's owned their own funding company for 3 years now, I can tell you that nobody is your friend. Nobody will help you. Nobody will tell you what it takes to BE THEIR COMPETITION!

[Fetachini]

#1 Spend $20k on leads to broker deals and understanding how MCA underwriting works and what's a good deal, what's a bad deal
#2 Start syndicating in the good deals [you are essentially funding...]
#3 Use a funder's platform and/or start white-labeling
#4a Get LendSAAS (or similar) and investors and hire underwriters
#4b Figure out how to get the deals in the door

I think that's pretty concise, but can be expanded on. There's also more ways in if you had more money.

Can I respectfully say "uhhh no" to this?

Basic Funder start-up minus all the legal stuff:

#1) gain EXPERIENCE in the industry (as an underwriter most preferably) you need to know the game if you want to play it. There are risks involved.
#2) Figure out the type of funder you want to become whether you want to be a big funder, small funder, A paper, B-C paper (this is usually based on the amount of capital you have to work with) You need to have guidelines for the type of deals you fund so you don't fall of course.
#3) UNDERWRITING, this is probably the most important. Your underwriting determines the success of the business. The amount of companies I've seen fail simply due to not having good underwriting is remarkable. There are a lot of underwriters out there but do they actually know what they are doing? ( I've actually written a full underwriting manual/guide which has been praised by a small few)
#4) Find banking that allows business to business ACH and wiring, lot of banks won't allow due to industry but there are few out there.
#5) Get your tools (backround check, credit check, accounting softwares, crm etc.)
#6) Get ISO Reps or Sales team (Deal flow)
A) ISO Reps- To call on brokers and iso shops to get them to submit deals for you to fund
B)Sales team- to call on merchants to get deals sourced inhouse (less worry about competition) but then you need to get phones, leads, etc.
#7) Fund deals and hope they don't default
#8) Collections


This is pretty much a basic imo. Obviously there is more to it but I am not going to be too detailed with it. Hope this helps, I don't mind giving free advice but I do charge for consulting.

[abfunders]

Can I respectfully say "uhhh no" to this?

Basic Funder start-up minus all the legal stuff:

#1) gain EXPERIENCE in the industry (as an underwriter most preferably) you need to know the game if you want to play it. There are risks involved.
#2) Figure out the type of funder you want to become whether you want to be a big funder, small funder, A paper, B-C paper (this is usually based on the amount of capital you have to work with) You need to have guidelines for the type of deals you fund so you don't fall of course.
#3) UNDERWRITING, this is probably the most important. Your underwriting determines the success of the business. The amount of companies I've seen fail simply due to not having good underwriting is remarkable. There are a lot of underwriters out there but do they actually know what they are doing? ( I've actually written a full underwriting manual/guide which has been praised by a small few)
#4) Find banking that allows business to business ACH and wiring, lot of banks won't allow due to industry but there are few out there.
#5) Get your tools (backround check, credit check, accounting softwares, crm etc.)
#6) Get ISO Reps or Sales team (Deal flow)
A) ISO Reps- To call on brokers and iso shops to get them to submit deals for you to fund
B)Sales team- to call on merchants to get deals sourced inhouse (less worry about competition) but then you need to get phones, leads, etc.
#7) Fund deals and hope they don't default
#8) Collections


This is pretty much a basic imo. Obviously there is more to it but I am not going to be too detailed with it. Hope this helps, I don't mind giving free advice but I do charge for consulting.

We're saying the same thing, you just expanded on it more thoroughly, or came from a slightly difference perspective. My #1 - #3 are versions of your #1 "gaining experience." I skipped some detailed steps, like I assumed an MCA funder, but my #4 is your #3 - #8. If you have enough experience, those steps are obvious.

[Fetachini]

We're saying the same thing, you just expanded on it more thoroughly, or came from a slightly difference perspective. My #1 - #3 are versions of your #1 "gaining experience." I skipped some detailed steps, like I assumed an MCA funder, but my #4 is your #3 - #8. If you have enough experience, those steps are obvious.

kind of but not really.

@Winning I think you have enough on this thread to get a gist of what it takes.