[cardinalequity]

As Zach stated he's put a lot of money and time into this business. If he went through with the offer it's because it's something he couldn't refuse. Zach doesn't seem like the type to speculate about what may happen 3 years from now and make a decision based on that. I'm sure he left the closing table with his pockets pretty full. Congrats Zach!

[rphillips]

I see a lot of partially correct information about our ISO acquisition program on this thread. ISO owners wanting more detailed information should contact me to schedule a call. Ronald Phillips rphillips@wbl.com 212 271 8263

[Zach]

As Zach stated he's put a lot of money and time into this business. If he went through with the offer it's because it's something he couldn't refuse. Zach doesn't seem like the type to speculate about what may happen 3 years from now and make a decision based on that. I'm sure he left the closing table with his pockets pretty full. Congrats Zach!

Thank you Cardinal -- I can assure you we left the closing table well-fed and ecstatic. Every shop out there would benefit from this.

[mcaguru]

I know one thing the last time WBL management put a company public it had a value of the BILLION range. there are tens of thousands of bank branch locations that see business loans...i can see WBL get a chunk of that market deal flow.. i have no idea of the structure but if they take the thing public and someone has a million shares and its trading at 20 Bucks -- Do the math!

Zach don't forget about us little people down the road..perhaps if your not going to share the wealth send Cresthill capital some B/C/D Paper to fund hehe

[Zach]

I know one thing the last time WBL management put a company public it had a value of the BILLION range. there are tens of thousands of bank branch locations that see business loans...i can see WBL get a chunk of that market deal flow.. i have no idea of the structure but if they take the thing public and someone has a million shares and its trading at 20 Bucks -- Do the math!

Zach don't forget about us little people down the road..perhaps if your not going to share the wealth send Cresthill capital some B/C/D Paper to fund hehe

Exactly. Judging by how they performed with Mortgage IT.... should be a fairly profitable venture

[CreditGuy]

Exactly. Judging by how they performed with Mortgage IT.... should be a fairly profitable venture

Ummm...didn't Mortgage IT end with a bunch of people getting fined, some criminal prosecution, litigation, and sizable restitution payments?

[Paperchaser]

Ummm...didn't Mortgage IT end with a bunch of people getting fined, some criminal prosecution, litigation, and sizable restitution payments?

lmao this just keeps getting better

[cardinalequity]

I'm a little confused...do you love to see fellow members of the MCA business not succeed?

Not one person on here knows the exact details of the deal except for Zach but most if not all have something negative to say about it. Firstly, his deal doesn't affect us and all he did was post about the deal being complete out of sure excitement and accomplishment. Whether we believe Zach made the right move or not is irrelevant since we don't know the details. Now with that said out of sheer respect for Zach who selflessly adds value to this forum and answers the questions of the @paperchaser's of the world some respect should be shown.

How many times has he answered the.. Who does this? Where do I go with this? Let's be happy for the success of other gentlemen. God knows in this industry one's success does not prevent anothers. There is enough money to go around.

lmao this just keeps getting better

[ghostinthemachine]

sounds like a scam lol

[jotucker1983]

I would love to sit down and speak with WBL about this, because I am interested in how you can "acquire" a Broker Shop?

If they are a Broker Shop, they don't own their deals. Yes, they have the rights to their renewals to a certain limit, so are they acquiring a portion of their renewal commission? Or, does the Broker have some sort of side patented technology that's causing the valuation? Or, are the Broker Shops also building merchant processing portfolios and selling them off? I'm interested to know what is used as the basis for the valuation?

[Paperchaser]

I would love to sit down and speak with WBL about this, because I am interested in how you can "acquire" a Broker Shop?

If they are a Broker Shop, they don't own their deals. Yes, they have the rights to their renewals to a certain limit, so are they acquiring a portion of their renewal commission? Or, does the Broker have some sort of side patented technology that's causing the valuation? Or, are the Broker Shops also building merchant processing portfolios and selling them off? I'm interested to know what is used as the basis for the valuation?

im guessing its just stocks and rev share. most brokers shops barely have people with a community college degree so its not gonna be anything above 6 figures thats for sure

[MCNetwork]

Paperchaser always cracks me up

[Sean Cash]

You guys should talk to WBL before you speculate on what a deal with them might or might not include. Then you can decide for yourself if it makes sense. Lots of conjecture here.

[Zach]

im guessing its just stocks and rev share. most brokers shops barely have people with a community college degree so its not gonna be anything above 6 figures thats for sure

Paperchaser, a few days ago you argued that a 1.05 factor rate was the equivalent to 5% APR. Remember this conversation:


"I lost a deal to them with the following figures : $100,000 Loan , $105,000 Repay on 12 Months . I have a copy of the docs , merchant sent them to me when he got funded"


"no that's 5% apr" (paperchaser)


Remember how I had to explain it to you? Here's the quote in case you forgot:


"Borrowing 100K and paying back 105K over 12 months with daily payments is around 9-10% APR.


Borrowing 100K and paying back 105K over 12 months with NO payments (balloon pmt at end) is 5% APR."


Here is the link to what I'm referring to: http://dailyfunder.com/showthread.ph...9606#post19606


...if you can't even understand APR, how can you badmouth WBL's model? This same team built one of the largest (if not the largest) mortgage companies, sold it to a huge bank, and made everyone rich in the process. There's no need to hate -- this is the best opportunity any ISO can capitalize on right now.

Whether your volume is 500K/month, 2MM/month, or 20MM/month, this is a no-brainer for everyone involved. I recommend to call Ron Phillips using his info in the previous posts, and see what it's all about. I know I'm thankful I did.

[Paperchaser]

Paperchaser, a few days ago you argued that a 1.05 factor rate was the equivalent to 5% APR. Remember this conversation:


"I lost a deal to them with the following figures : $100,000 Loan , $105,000 Repay on 12 Months . I have a copy of the docs , merchant sent them to me when he got funded"


"no that's 5% apr" (paperchaser)


Remember how I had to explain it to you? Here's the quote in case you forgot:


"Borrowing 100K and paying back 105K over 12 months with daily payments is around 9-10% APR.


Borrowing 100K and paying back 105K over 12 months with NO payments (balloon pmt at end) is 5% APR."


Here is the link to what I'm referring to: http://dailyfunder.com/showthread.ph...9606#post19606


...if you can't even understand APR, how can you badmouth WBL's model? This same team built one of the largest (if not the largest) mortgage companies, sold it to a huge bank, and made everyone rich in the process. There's no need to hate -- this is the best opportunity any ISO can capitalize right now.

Whether your volume is 500K/month, 2MM/month, or 20MM/month, this is a no-brainer for everyone involved. I recommend to call Ron Phillips using his info in the previous posts, and see what it's all about. I know I'm thankful I did.

lol ok genius, then EXPLAIN how to calculate apr. show me the math

if i borrow 100 and pay back 105 over 12 months (ONE YEAR), that is 5% apr with daily weekly or monthly payments.

[MCNetwork]

lol ok genius, then EXPLAIN how to calculate apr. show me the math

if i borrow 100 and pay back 105 over 12 months (ONE YEAR), that is 5% apr with daily weekly or monthly payments.

Zach is confusing APR with APY which are different calculations

[MCALenders]

I heard Billy has not been in office two weeks. He scrambling because has not paid investors.

[MCNetwork]

Zach if you think paying 5,000 on top of 100,000 over 12 months equals 9 or 10% APR then you probably shouldn't be selling money lol. You're definitely overthinking this stuff. It's really basic math. That's like saying 1+1=3.

[cardinalequity]

When it's daily there isn't 365 in a year since it's Monday thru Friday so it's more. Zach is right!

Zach if you think paying 5,000 on top of 100,000 over 12 months equals 9 or 10% APR then you probably shouldn't be selling money lol. You're definitely overthinking this stuff. It's really basic math. That's like saying 1+1=3.

[isaacdstern]

Zach I hope you got a great deal with huge upside

[channin19]

This is great. Zach is correct about apr on that deal.

[Fetachini]

congrats Zach! you do what's best for you..."Haters gonna hate, ain'ters gonna ain't"

[Zach]

The reason why the rate is higher is because there is a smaller principal remaining after each payment.


Please follow this link to see a loan calculator for a 100K deal over 12 months at 5% APR paying back 102,729 with $8,560.75 monthly:

http://www.bankrate.com/calculators/...InMY=+Apr+2015


Please follow this link to see a loan calculator for a 100K deal over 12 months at 10% APR paying back 105,499.08 with $8,791.59 monthly:

http://www.bankrate.com/calculators/...InMY=+Apr+2015


From Investopedia:

"The APR

Annual Percentage Rate (APR) is a measure that attempts to calculate what percentage of the principal you’ll pay per time period (in this case a year), taking every charge – monthly payments over the course of the loan, upfront fees, etc. – into account."


And yes, the daily payment does change these calculations slightly, but the numbers should be fairly similar.


Please don't mock me and say I should not sell money; I've worked hard for what I have, and I am certainly more knowledgeable than someone who doesn't understand APR.

[MCNetwork]

Please don't mock me and say I should not sell money; I've worked hard for what I have, and I am certainly more knowledgeable than someone who doesn't understand APR.

I apologize for mocking you but I just can't agree with your statement that "Borrowing 100K and paying back 105K over 12 months with daily payments is around 9-10% APR." I understand how the APR formulas work but this statement is a complete mathematical impossibility, no matter which way you slice it. The total payback amount can NEVER be less than the APR multiplied by the principal. Paperchaser already said the total payback is $105,000, so if you apply the APR formula to back solve then the effective interest rate is actually less than 5%.

If the total payback is unknown and you know that the annual interest rate is 5% with interest being paid daily (or about 240 times per year like in a typical ACH deal), then you can apply the APR formula and you'll arrive at a higher total payback than $105,000. In this case the APR will be greater than the interest rate because of the 240 compounding periods. I think this is what you were basically saying but the example you used was faulty.

[jotucker1983]

If we are discussing the MCA product, I'm not sure why the debate centers around what an Interest Rate calculation would be anyway?

The MCA is a factoring based product that uses cost factors. Comparing Cost Factors and Interest Rates is like comparing apples to oranges, they are two totally different formulas for borrowing costs.

With Interest Rates you have a variety of types, from Compounding Interest Rates, Effective Interest Rates, Annual Percentage Rates, Effective Annual Percentage Rates, etc.

When a merchant inquires about the "APR" on an advance, I inform him that there's no APR formula associated with the advance, as the borrowing cost is calculated using a factor not an interest rate.

So if the deal is $100k with an established total payback of $120k, your "cost" is $20,000 to borrow the funds. The lender might give you 6 months, or 12 months to have the funds returned in full plus "cost," and might do so through a daily withholding of processing receivables. The $20,000 cost in this case represents a factor rate of 1.20.

That's really the only "cost" calculation that should be displayed if we are talking about an MCA product.