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02-09-2023, 09:25 AM #1
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- Aug 2017
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From Broker To Funder
I've been an ISO/BizDev manager for direct lenders and funders for 8+ years and occasionally have referral partners ask me how they can become direct funders themselves. David Roitblat recently wrote an excellent article about that transition for DeBanked. While I know reputable companies to recommend for legal, collections, CRM, accounting (David) and processing, I don't know of anyone credible to point them toward for funding. Can anyone on this forum provide feedback regarding Banana Exchange, Lender Capital Partners, etc?
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02-09-2023, 01:14 PM #2
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those are high cost of capital . they charge like a 1.17 to 1.25 so figure out the interest you paying on that . If you do not put out all that capital each month and have under a 10% default rate with doing max 6 months on deals your screwed . Also i believe they require you to already be funding and they use your existing rtr as their collateral
If you do not have your own capital or a source to get cheap money than you can not really become a funder .
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02-09-2023, 02:20 PM #3
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02-09-2023, 02:26 PM #4
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02-09-2023, 02:28 PM #5
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- Apr 2015
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- Morristown, NJ
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Most funders have facilities or lines from all the same hedge funds or banks (theres a specific bank that offers lines of credit for MCA direct lending). If someone wants to get into direct lending, they should have the capital situation kind've figured out ahead of time or bring in a consultant/industry veteran who has helped build other companies in the past, whether it be as an employee or on behalf of investors. Someone like myself has experience in setting up all aspects of a direct lender, capital/investor attraction, and successfully executing and then managing the risk of the portfolio so that even if there is a high cost of capital, it can be overcome by the profitability of the portfolio.
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Rich McKellar
www.linkedin.com/in/richardmckellar
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02-09-2023, 02:52 PM #6
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02-09-2023, 03:32 PM #7
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- Apr 2015
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- Morristown, NJ
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I wouldnt really say banana exchange is comparable to where most of the lenders I am referring to get their capital. any time I've raised capital, I've run into the same hedge funds that have lines out to all the same lenders. a place like banana exchange is for someone who has started lending with their own money, needs more, but can't yet raise capital from a fund, family office, or angel.
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Rich McKellar
www.linkedin.com/in/richardmckellar
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02-09-2023, 04:03 PM #8
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02-09-2023, 05:32 PM #9
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- Dec 2021
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646-708-5986 text.
Marcus Clapman
Capybara Capital
marcus@capybarausa.com
www.capybarausa.com
646-708-5986 (Text Friendly!)
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02-09-2023, 09:17 PM #10
- Join Date
- Mar 2021
- Posts
- 187
There are many different structures. I know funders paying under 20% yearly. They make monthly between off 1.3-1.8% with rtr used as collateral.
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