[Big Mack]

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?

[Michael I]

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?

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 .

[RBcapital]

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 .

do you know funders that actually used banana service?

from what your saying and from what i have heard its way too expensive and makes no sense

[Michael I]

do you know funders that actually used banana service?

from what your saying and from what i have heard its way too expensive and makes no sense

i do not , but i doubt anyone will advertise it. The fact that they have multiple employees and are by every industry event ,you can assume that yes . Marcus keeps saying that he knows funders that pay mca rates , maybe that is what he is referring to

[rmckellar]

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.

[RBcapital]

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.

there is a diff of high cost of capital and mca rates
if u have to pay mca rates to fund, plus expenses and overhead, how do you make a profit? on fees? (fees are also used to pay overhead and expenses)

[rmckellar]

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.

[Michael I]

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.

curious what rates you generally see from those hedge funds

[MCA-VET]

646-708-5986 text.

[goatFunding]

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.