[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.