[Sean Cash]

great article. I like the contrast of opinions. Also Andy makes an interesting point here about this:

"Reiser says it’s like trying to get funding for two pizza restaurants: One makes good pizza, and one makes horrible pizza. Even though a lender might be less willing to give money to a company that reputedly makes bad pizza, that kind of information isn’t something you can incorporate into an automated cash advance application."

I think that to a degree, even that kind of determination can be automated thanks to yelp, google, and other review sites where customer feedback can be parsed, sorted, and analyzed. But still, having talked to thousands of merchants, it's incredible what you can learn just by talking to the owner, especially when you are the underwriter asking the tough questions. There are business owners with 750 FICO that haven't the slightest idea what they are doing. There are business owners with 500 credit, no social media presence, and a foreclosure that continue to crush the local competition because they know their business better than anyone else. I think no matter how automated things get, a merchant interview is a necessity.

[mfs01]

But again, a great tool for sales agents to use for submissions and give clients an approximate approval number until an actual underwriter can take a look at the file.