[Zach]

And thank you Isaac, Fetachini, and Cardinal! May we all succeed and make some serious money in this space.

[MCA]

Congrats Zach

[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.

[MCNetwork]

Touche. APRs have no place in a discussion about the MCA product. The only relevant cost measure is the factor. Since On Deck describes their product as a loan, then you can apply APR to them but they really just use simple interest in their calculations. Some other funders actually provide an amortization schedule for their loan products if it's requested (for tax return purposes).

[ghostinthemachine]

*eatspopcorn*

[Zach]

In case anyone is wondering... we are still acquiring more shops. Many more. If anyone wants to learn more about it or pick my brain, feel free and give me a call or email anytime. I think it is paramount to explore this opportunity soon.

[FUNd]

In case anyone is wondering... we are still acquiring more shops. Many more. If anyone wants to learn more about it or pick my brain, feel free and give me a call or email anytime. I think it is paramount to explore this opportunity soon.

What's the benefit in getting "acquired" by WBL when you can just send deals over? Are you suggesting they are making cash offers to buy out guys who rented some office space, slapped up a website, and brokered some deals? Doesn't seem very viable for WBL to do so when people can setup new ISOs with zero barriers to entry.

[Zach]

What's the benefit in getting "acquired" by WBL when you can just send deals over? Are you suggesting they are making cash offers to buy out guys who rented some office space, slapped up a website, and brokered some deals? Doesn't seem very viable for WBL to do so when people can setup new ISOs with zero barriers to entry.

That's a great question, one that I asked myself MANY times before I was acquired. It took me a lot of thinking to start "drinking the kool-aid."

Picture this: while all of your other funders get their lines of credit pulled, drop commissions, and go out of business/downsize... your residual banked portfolio with WBL will make you rich. You could broker deals to us, sure, but imagine all of that interest revenue on your books, fully secured. Month after month of consistent revenue, even if you fund NOTHING. I'll tell you, these past 6 months have been some of the most exciting in my life. I've never had an opportunity like this, and frankly I don't care if I am making myself a target for the plethora of naysayers out there.

[Chambo]

What's the benefit in getting "acquired" by WBL when you can just send deals over? Are you suggesting they are making cash offers to buy out guys who rented some office space, slapped up a website, and brokered some deals? Doesn't seem very viable for WBL to do so when people can setup new ISOs with zero barriers to entry.

they are acquiring stressed ISO's with no money up front..... full disclosure

[Zach]

ISO's do not need to be "stressed" to sell to WBL - my ISO was doing very well before I allowed them to acquire us.

I wanted the opportunity to grow at a more rapid pace than I otherwise could, have financial backing for anything I desired, and reap an exorbitant amount of money from banked interest revenue.

[PJLamar38]

Does WBL pay for your marketing?
Are you able to fund deals elsewhere?
Do Iso's reach out to WBL and say "hey we want to be one of you!"
In many ways isn't WBL competing against themselves?
What if an Iso is also a direct funder with inhouse underwriting?
What about CRM costs? Is it a streamlined system where everybody is WBL'd up via SalesForce etc?

Banked Interest Revenue? Can you explain this part? I must be misunderstanding you because banks yield next to nothing on personal money market accounts let alone business accounts.... so what is the trick here?

Thanks for filling in the blanks, I appreciate your time and the sharing of your experience so that I can better understand.

[mcaguru]

Just keep in mind WBL is a few years can be the Capital One of business lending and those that join them can perhaps down the line be part of an enormous Financial institution.
regarding marketing who knows they can flip a switch one day and youll be super bowl ads..Who knows?!!

The managing team behind WBL have the most experience of building Billion Dollar Enterprises.

[Zach]

Does WBL pay for your marketing?
Are you able to fund deals elsewhere?
Do Iso's reach out to WBL and say "hey we want to be one of you!"
In many ways isn't WBL competing against themselves?
What if an Iso is also a direct funder with inhouse underwriting?
What about CRM costs? Is it a streamlined system where everybody is WBL'd up via SalesForce etc?

Banked Interest Revenue? Can you explain this part? I must be misunderstanding you because banks yield next to nothing on personal money market accounts let alone business accounts.... so what is the trick here?

Thanks for filling in the blanks, I appreciate your time and the sharing of your experience so that I can better understand.

You have a lot of solid questions, most of which I can answer pretty easily with a phone call. Would you mind calling me to discuss?