[closer129]

When a funder looks at the risk of the file and offers the rate and term good ones just do not look at the credit score. They look at the content which contains the usage levels late payments length of credit inquiries time frame of oldest accounts. They also look at the industry to see who that industry performs on their book and industry as a whole if they can. They look at the length of the term and dollar amount. They take all that into consideration and price the deal out on what there willing to risk. The longer the term goes out with more money there is more for them to loose of the deal goes bad in 6 months on a 12 month term for 100k than a 10 month term at 85k.

[kpeng]

When a funder looks at the risk of the file and offers the rate and term good ones just do not look at the credit score. They look at the content which contains the usage levels late payments length of credit inquiries time frame of oldest accounts. They also look at the industry to see who that industry performs on their book and industry as a whole if they can. They look at the length of the term and dollar amount. They take all that into consideration and price the deal out on what there willing to risk. The longer the term goes out with more money there is more for them to loose of the deal goes bad in 6 months on a 12 month term for 100k than a 10 month term at 85k.

Bingo. Every funder has a different risk appetite and expected ROR.

[closer129]

Bingo. Every funder has a different risk appetite and expected ROR.

To blast a funder on a forum for the risk they want to take so an iso can make more commission is bs. The iso probably hardly funds deals with that funder and wants them to pay him more on the file. They did not make money on prior deals with that iso and probably wont get more in the future to make up for some of the lose god forbid that deal defaults.

[CraaaCraaa Radio]

Lets do some math here (this is with a margin of error +/- $50)

85k at lets say max upsell of 12pts making it 1.32 for 10 months (200 days). That's a payment of around $560 daily ($2800 weekly) Commission of 10k if I'm not mistaken.

100k at 1.32 for 12 months (250 days). The payments are around $520 daily ($2600 weekly) Commission of???

100k at 1.32 12 months would pay us 5 points to the house as per funder. no up sell.

85k at 10 months at 1.20 buy rate with 12 point max up sell is more attractive but the term kills the deal for merchant

[CraaaCraaa Radio]

To blast a funder on a forum for the risk they want to take so an iso can make more commission is bs. The iso probably hardly funds deals with that funder and wants them to pay him more on the file. They did not make money on prior deals with that iso and probably wont get more in the future to make up for some of the lose god forbid that deal defaults.

did I mention any particular funder? now you are assuming...

[Zonefund]

I have a solid merchant that I have funded many many times in the past hit me up for capital.

Industry
Healthcare Facility

Time in Business
1988

No Postions

Monthly Revenue
75k+

Funder gives approval 85k over 10 months 1.20 buy rate.

I ask for a stretch in term as merchant fico is 650+

They come back to me with 100k over 12 months at 1.32 paying 5 points to the house.

This Funder now goes to my DNC FUNDER LIST

Sorry to hear that craa. Does elevate go out to 10 months? They must have improved greatly!

[BR-Nightmare]

Corrected.

[kpeng]

What you wrote.......

Peng so elevate gives me 85k over 10 months at a 1.20 buy rate and I ask for a term stretch and you come back wirh 100k and 12 months at 1.32 only paying 5 points.

Meanwhile I could fund the 85k at 10 months making 12 points double the commission.

so the funder built in 12 points to make 1.32 and increase 15k that I didn't ask for... and increase term by 2 months. that justifies 5 point commission on a solid file,

No I ll take it to Kapitus, Credibly, Mulligan, IOU and never use you again. And let all my iso's know to beware with the tactics used by this funder and the uw team.

if that's how you do deals Peng.. and you think it's normal....than now I understand why you really don't see alot of paper....

We (Elevate) did not give him that offer, we don't do business with him.

[closer129]

did I mention any particular funder? now you are assuming...

This is what your typed in one post.

Peng so elevate gives me 85k over 10 months at a 1.20 buy rate and I ask for a term stretch and you come back wirh 100k and 12 months at 1.32 only paying 5 points.

[kpeng]

This is what your typed in one post.

Peng so elevate gives me 85k over 10 months at a 1.20 buy rate and I ask for a term stretch and you come back wirh 100k and 12 months at 1.32 only paying 5 points.

He was speaking in hypothetical, we did not give him that offer and we do not work with him.

[closer129]

He was speaking in hypothetical, we did not give him that offer and we do not work with him.

When a broker or funder puts in a companies name hypothetical or not it is not good. Most people will jump to conclusions and no reason if it was not that company.

[CraaaCraaa Radio]

Sorry to hear that craa. Does elevate go out to 10 months? They must have improved greatly!

I don't send any files to elevate at all.
no exceptions. that is my personal preference. I will not divulge the funder that I had this experience with, because that's not me.

Just sharing with my fellow Funders the scenario.

I have been funding for a long time and this is just shady character in the industry.... but new reps deal with it and probably take the offer.

I am a living dinosaur in the market place and I know better

[CraaaCraaa Radio]

What you wrote.......

Peng so elevate gives me 85k over 10 months at a 1.20 buy rate and I ask for a term stretch and you come back wirh 100k and 12 months at 1.32 only paying 5 points.

Meanwhile I could fund the 85k at 10 months making 12 points double the commission.

so the funder built in 12 points to make 1.32 and increase 15k that I didn't ask for... and increase term by 2 months. that justifies 5 point commission on a solid file,

No I ll take it to Kapitus, Credibly, Mulligan, IOU and never use you again. And let all my iso's know to beware with the tactics used by this funder and the uw team.

if that's how you do deals Peng.. and you think it's normal....than now I understand why you really don't see alot of paper....

I was simply giving an example.

Elevate did not touch or see this file at all.

My apologies for the confusion

[CraaaCraaa Radio]

When a broker or funder puts in a companies name hypothetical or not it is not good. Most people will jump to conclusions and no reason if it was not that company.

when a funder engages on a thread...an example can be given afterwards.

but if you jump to conclusions... that is on you

[BR-Nightmare]

I was simply giving an example.

Elevate did not touch or see this file at all.

My apologies for the confusion

Noted and removed.

I apologize

[CraaaCraaa Radio]

If you are such a baller, fund it yourself. Charge a 1.20-1.30 for 100k, pull daily, weekly or monthly (most likely weekly or monthly since brokers cant sell daily to save their life lately even if merchant has 100x the daily payment amount as an average bank balance), whatever your little heart desires, and make 20-30k then. Why only make 5k or 10k?

you are a clown writing this statement. that shows you are not funding....

[CraaaCraaa Radio]

CraaaCraaa, "built in points" just means max upsell, you know that. They obviously weren't interested in doing it at 12 months.
Can I ask, why didn't you go back to your old funders you funded him with?

I funded him with Quarterspot couple of times and Mckenzie a couple of times and some other Funders I will not mention....but we know where these guys are at now. I received some way better offers today from A Paper Lenders. All is good.

Moral of the story, if you know the file than just do not accept any offer from the funder. And that takes years of experience.

My major goal with all my merchants is retention and providing the best offer possible.

That will give you a long lasting book of business.

A wise man once told me many many years ago the renewals is the mash and gravy. The new deals are the steak dinners. But you want to keep the mash and potatoes for as long as you possibly can. Than you will never starve in this industry......