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  1. #1

    Industries in the Current Environment

    Funders: What industries are you NOT funding right now and why?

    Brokers/Sales Reps: Are you noticing less offers coming back on certain industries?

  2. #2
    trucking

  3. #3
    Auto sales/leasing is a big no-no industry. Trucking is not as taboo as it once was, but stips are typically higher requirement than your average origination due to risk.

  4. #4
    Senior Member Reputation points: 7951
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    Trucking is very complex — Capybara Capital will fund trucking with 7 Trucks and doing over 200K In monthly deposits. Signup today! Marcus@capybarausa.com
    Marcus Clapman
    Capybara Capital
    marcus@capybarausa.com
    www.capybarausa.com
    www.victorysquaremanagement.com
    646-708-5986 (Text Friendly!)

  5. #5
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    Agreed trucking has only gotten worse and harder.

  6. #6
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    Fuel Is hurting many of the smaller ones
    Marcus Clapman
    Capybara Capital
    marcus@capybarausa.com
    www.capybarausa.com
    www.victorysquaremanagement.com
    646-708-5986 (Text Friendly!)

  7. #7
    Quote Originally Posted by NotALoan View Post
    Auto sales/leasing is a big no-no industry. Trucking is not as taboo as it once was, but stips are typically higher requirement than your average origination due to risk.
    I fund used car sales all the time and they're a cash cow for me... not sure why everyone else has so many problems with them, they're almost non-existent for me. I love used car sales.

  8. #8
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    Quote Originally Posted by TheUnderwritingProdigy View Post
    I fund used car sales all the time and they're a cash cow for me... not sure why everyone else has so many problems with them, they're almost non-existent for me. I love used car sales.
    What company would that be?
    Funded

  9. #9
    Quote Originally Posted by TheUnderwritingProdigy View Post
    I fund used car sales all the time and they're a cash cow for me... not sure why everyone else has so many problems with them, they're almost non-existent for me. I love used car sales.
    How are used car dealerships a Cash cow for you? don't you think there's a reason they are a restricted industry? I understand that you have many green boxes under your profile name but you must be pretty new to actually funding.

    Let's break this down:

    The National Automobile Dealers Association data shows that the average used-vehicle sale last year saw a gross profit of just over $2,000 - and that's GROSS profit, so you can have a merchant doing 500k a month in revenue with an average car being sold at 25k - making 40k a month in gross profit, that's before paying the lease on his property, sales reps, business insurance, general business overhead, and any employees he has on payroll.
    Additionally, most of these companies use floor planning since they cant afford the buy and hold the vehicle themselves, meaning they own NOTHING.
    car dealerships have a history of being serial defaults, they always were and they always will be. they can change the LLC and name of their company in a few hours hours, have ridiculously low profit markings, Zero AR, and nothing to go after since they don't own their vehicles.

    That said, good luck funding used car dealerships. what's the name of your funding company again? have some files to send you.
    Broker in NYC
    New York, NY

    Please don't send me Spam funder/ISO DM's or emails.

  10. #10
    Senior Member Reputation points: 52999
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    If you think about it, used cars make a little more sense to look at right now.

    Have you seen a full lot at your local New Car Dealer?

    Are they not begging to buy your car because there are no cars in their lots because factories have dramatically slowed down?

    I can tell you outright, when a fleet of new vehicles enter the lot, sales reps are jumping on the truck to get the vin and sell it right away. They literally are ambushing these new cars as fast, if not faster than brokers attacking fresh leads.

    Mind you, this isn't for luxury vehicles, this is more Toyota, Honda, Ford, GMC, ect.

    Used cars at the moment make sense to make safe/conservative offers.
    Joseph
    A Brokers Nightmare
    Florida-Based

  11. #11
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    Quote Originally Posted by Brokering View Post
    How are used car dealerships a Cash cow for you? don't you think there's a reason they are a restricted industry? I understand that you have many green boxes under your profile name but you must be pretty new to actually funding.

    Let's break this down:

    The National Automobile Dealers Association data shows that the average used-vehicle sale last year saw a gross profit of just over $2,000 - and that's GROSS profit, so you can have a merchant doing 500k a month in revenue with an average car being sold at 25k - making 40k a month in gross profit, that's before paying the lease on his property, sales reps, business insurance, general business overhead, and any employees he has on payroll.
    Additionally, most of these companies use floor planning since they cant afford the buy and hold the vehicle themselves, meaning they own NOTHING.
    car dealerships have a history of being serial defaults, they always were and they always will be. they can change the LLC and name of their company in a few hours hours, have ridiculously low profit markings, Zero AR, and nothing to go after since they don't own their vehicles.

    That said, good luck funding used car dealerships. what's the name of your funding company again? have some files to send you.
    if you haven't notice underwriterprodigy comes on to DF to brag and show-off, he thinks by doing that people will like him.. quite the opposite, everyone thinks he's a prick like most underwriters who think they're special.
    Funded

  12. #12
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    Funny how you see everyone and their Uncle saying "I fund this industry...I fund that industry", yet you never see them exhibiting/sponsoring at trade shows or even members of their respective trade associations.
    Hedley Lamarr......That's Hedley

  13. #13
    Senior Member Reputation points: 22304 Olderguy's Avatar
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    IOU used to do used cars. Don't know if they still do.
    Steve Benjamin
    Professional Business Loans

    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    949.228.1050

    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 6% and up
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