[Fetachini]

It seems like everyone uses Colonial for syndication. Are there any other platforms that can be used for syndication or even a collection management? What platform do you DF Members use?

[CashAdvanced]

Colonial is one of the better platforms that is used for Syndication and while it is a good platform, I would highly consider using Capital Stack's Platform. The reason, being that Capital Stack's Platform actually lets you see everything that is going on in the deal in regards to underwriting. I assume that you are interested in at least getting a brief synopsis of what the deal is like (time in business, monthly sales, judgments, tax liens, etc.) Capital Stack is also very on point when it comes to collections. If a merchant has an NSF or more than 2 days without a credit card payment, an e-mail is sent to every syndicate, and the sales representative who produced the deal. Another option is to try using both and see which one you feel more comfortable with. As for me, I would use Capital Stacks.

It seems like everyone uses Colonial for syndication. Are there any other platforms that can be used for syndication or even a collection management? What platform do you DF Members use?

[Fetachini]

Thanks CashAdvanced, I actually got the same response from someone else. I appreciate it.

[David Sederholt]

Thanks for starting this thread as it is a very important element of the emerging Syndication world. As many of you know Colonial is the servicing platform created by Strategic Funding to allow independent cash advance companies gain the benefit of a fully automated platform without investing the dollars and time needed to develop their own. We are currently servicing over $50M of other companies investments through our system annually processing thousands of transactions a day... do anyone think that these investors did so without being able to see the details of their deals?

I am sorry to say that "CashAdvanced" is incorrect in representing that Colonial (or Strategic) does not let you see the minute details of the merchant and underwriting process.... all you have to do it hit the button marked "Underwriting" and every single detail is listed (including time in business, monthly sales, judgments, tax liens, etc.)and the progression through the process which is all time stamped. If it was submitted, it appears on the site. Anything you need to know is at your fingertips.

One of the things that distinguishes Strategic and Colonial from other syndication opportunities is that the syndicate partners are paid every single day that we collect from the merchant. We don't float your money or use it to operate our business - it's your money and sent right to you. We know of other companies who only pay weekly - one or two weeks in arrears of the collection date.

Lastly, the technology is not the only consideration that distinguishes one platform from another. You need to ask where your money is flowing through. Whose bank accounts is your money sitting in, how solid are they and what that may mean for you. Is that company financially stable and do they have collateral agreements that might put your capital at risk in the event your service provider is in default with their lenders? Who is controlling your money and can they guarantee operations even through a disaster? NOTE: Through Hurricane Sandy Strategic and Colonial were fully operational, collecting remits, disbursing funds for thousands of merchants and hundreds of syndicate partners without missing a beat. No one was in our NYC offices for 2 days, yet we continued to underwrite, fund merchants and every single dollar arrived where it was suppose to. Our disaster recovery plan was a huge success with all personnel operating remotely.

Strategic has a strong balance sheet, is profitable, Bonded and Insured including cyber liability and has the best reputation in the industry. Oh yea, I forgot to mention - we provide loans to syndicate partners against their portfolio so that they can invest in more contract.

A lot to consider.

[Sean Cash]

wow. what a great first post David. Hard to argue with any of your points!

[isaacdstern]

We have been working with sfs since 09 and for syndication since early 2010, all the bells and whistles are important but one thing you need to consider before syndicating with a company is who I running that company and can you trust them with your hard earned money. Andy Reiser, David Sederholt and Adi Raviv are some of the most stand up people I have ever done business with. YSC has money in over 450 deals with SFS and I sleep like baby every night knowing my Ach for splits will be there in the morning!

[cashguy]

There is no comparison with the capital stack platform and colonial. Colonial is just a glorified database. Capital Stack system is very robust with multiple integrations through the system.

Speaking of underwriting you get a page with limited almost no data on Sfs site. With Cap you can pull credit and ruters/clear see live ach transaction ID's , have access to everything in underwriting and have a live feed I to the merchants bank account for daily view.

If your an actual funder or ISO that wants control and exceptional platform for underwriting and servicing etc. there's no comparison cap wins everyone.

[Joseph Esparza]

I’m blushing…, this is my first post. Hello everyone I’m Joseph, your Capital Stack BizDev guy.
Thanks for the compliments. Let’s get social.

[Ryan Shiroky]

Welcome to the board Joseph!!

[cashguy]

Yes welcome

[GRP Funding]

We built our participation system from scratch. Give me a call if you would like to schedule a demo.

[Eddie.deangelis]

I was Told you can only use colonial for deals you are syndicating with strategic only, is this not true ? Can we lease / purchase colonial and use this platform to syndicate deals with any and all lenders ?

[isaacdstern]

Eddie I would call David Sederholt at Sfs and discuss with him 212-354-1400

[BigBruce]

While Strategic/Colonial and the Capital Stack's system are really great systems, they are managed by the companies that made them.
If you're looking for something that allows you to track and manage your money, I would suggest you check out MCAtrack . It is a cloud based system that tracks your deals (both CC splits as well as ACH) while allowing you to give access to Funders, Syndicators, ISOs, Reps, Merchants and Underwriters.

Give me a call at 212 444 9566 to schedule a demo.

[greatlakesfunding]

We have done our homework. We have been using PSC for our syndication and are very happy with their service..

[Sean Cash]

We have done our homework. We have been using PSC for our syndication and are very happy with their service..

someone was telling me about these guys. is it true they have a monthly membership fee just to be a part of it?

[greatlakesfunding]

Yea they charge a small fee per month, but they provide you with the staff. It sure beats paying big overhead and babysitting employees.

[Eddie.deangelis]

Thanks Isaac !!

[MCNetwork]

I have to agree about PSC's syndication software. I've seen a bunch and theirs is the best!

[skideeppow]

How about MCA Track? These guys put a full page add on the back of the mag, saying "welcome to the big leagues" yet there is no phone number on the add or on the website. Doesnt instill a lot of confidence.

[Sean Cash]

How about MCA Track? These guys put a full page add on the back of the mag, saying "welcome to the big leagues" yet there is no phone number on the add or on the website. Doesnt instill a lot of confidence.

Yeah, they should probably include that information. MCA Track is operated by Benchmark Merchant Solutions.
Call Mike Jaffe at BMS, 212-444-9565, to learn about MCA Track.