[MCAESSENTIALS]

Who has the best rate for A paper? B-D paper?

[Chambo]

Buy rates change depending on quality of file, so this question cannot be accurately answered with cookie cutter repsonse

[blKC]

We (Kalamata Capital) are among the leaders. 12 month buy rates typically range between 1.12 and 1.25.

We have some deals under 1.12 for 12+ months as well.

This is only for A/A+ paper.

[Chambo]

you mean A+++

[blKC]

you mean A+++

Depending on the definition of A paper. I know there are a lot of different interpretations out there.

We lay out our requirements for our targeted submissions upfront during on-boarding and explain turn-down reasons (or approval reasons upon request). As long as the ISO understands the requirements, approvals are likely to fall in the 1.12-1.25 range.

[Zach]

WBL has a 1.13 for 12 months as of yesterday.

[ridextreme]

I would rather sell a 1.48 to the people who use the mca like crack and make more money. Yeah everyone wants the "best rate" but sometimes the merchant is the one who does the closing (if you let them) so they get a good rate, and the ISO makes less money.

I always find something to disqualify them from an "A" rate whether it's a score below 650, an NSF, less than 2yrs time in business, or a derogatory on the cbr.

Everyone is too programmed with "rate" by watching commercials on TV over and over again for car loans with 0.9% APR.

If this money was coming out of my pocket 100% and I am risking 50K I would want to make 50K back so all those 1.30's are a bargain since the funding companies are not banks that are lending money like they did in the 90's. It's a whole new ball game in this economy with much more risk (so sell them on the risk factor don't let them sell you on a "good rate")

/that is my sales tip of the day

[jotucker1983]

I would rather sell a 1.48 to the people who use the mca like crack and make more money. Yeah everyone wants the "best rate" but sometimes the merchant is the one who does the closing (if you let them) so they get a good rate, and the ISO makes less money.

I always find something to disqualify them from an "A" rate whether it's a score below 650, an NSF, less than 2yrs time in business, or a derogatory on the cbr.

Everyone is too programmed with "rate" by watching commercials on TV over and over again for car loans with 0.9% APR.

If this money was coming out of my pocket 100% and I am risking 50K I would want to make 50K back so all those 1.30's are a bargain since the funding companies are not banks that are lending money like they did in the 90's. It's a whole new ball game in this economy with much more risk (so sell them on the risk factor don't let them sell you on a "good rate")

/that is my sales tip of the day

This is great until your client gets a call from another guy named John Tucker that's offering more money and lower borrowing costs .

I always price a file based on risk based pricing. If I price A paper like it's C paper, due to the competitive forces in this market, I think I might end up losing it to another broker.

[FUNd]

you mean A+++

LMAO. Yeah EBITDA has to be so good that they don't even need to borrow money. Then they get a 60% effective APR. Give me a break.

[FUNd]

WBL has a 1.13 for 12 months as of yesterday.

Requirements? Is that the buy?

[CLucas]

If you price A paper as C paper how is your customer rentention rate?

[CLucas]

As a broker you may need to take a lower commission to get a better buy rate look at the long term value of your customer and assess how many times they will renew then, assess your marginal commission cut.

[MikeGreen-Quarterspot]

QuarterSpot has averaged a 1.20 over the past two years on our 12 month program. The new 18 month does not have enough data yet and it will be for the best clients who have 7 years in business. We anticipate 1.27 for the 18 month.

www.quarterspot.com/partners

Thanks
Mike

[blKC]

LMAO. Yeah EBITDA has to be so good that they don't even need to borrow money. Then they get a 60% effective APR. Give me a break.

I won't get into an in-depth conversation regarding underwriting, but that is not true.

EBITDA does not equal cash on hand, nor does it reflect the need to borrow money.

I would venture that most profitable companies have debt on their balance sheet.

In addition having a positive cashflow, EBITDA or profit does not mean that a company has no need for additional leverage for new projects, growth or working capital.

[J.Celifarco]

WBL has a 1.13 for 12 months as of yesterday.

but what are the requirements to qualify for it?

[Zach]

but what are the requirements to qualify for it?

Must collateralize your first born.

[Zach]

Lol.. solid credit and banks. Has to be an "A" paper deal, and we would prefer to use real estate as collateral.

[J.Celifarco]

Lol.. solid credit and banks. Has to be an "A" paper deal, and we would prefer to use real estate as collateral.

600-650 solid credit???? also what about time in business

[Zach]

600-650 solid credit???? also what about time in business

For that specific program, we prefer 700+ FICO (we can be flexible on this), 2 years in business, and no NSF's.

We also lend up to 3X their monthly deposit volume.