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08-25-2015, 04:29 PM #1
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Discussions on a Brand New Product
OK, I read everyone's comments regarding lack of new products on the market, lot's of new lenders promoting the same thing, and on and on.
Well, what if someone came to the table (me) with a huge amount of capital to form a new product? What would that product look like. Let's start a real communication thread that will result in something worthwhile for the ISO Community!
Suggestions: (1) Longer term monthly product, such as Funding Circle, but with transparent underwriting and more approvals, (2) Longer term cash advances to 36-48 months, (3) a fund for tougher SIC codes?
Hey, this is a forum, let's bounce some ideas around.
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08-25-2015, 04:32 PM #2
1) longer terms
2) all SIC codes
3) weekly/monthly payment options
4) when you say you do declines, MEAN IT
IMHO, this is a good start
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08-25-2015, 04:34 PM #3
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08-25-2015, 04:48 PM #4
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08-25-2015, 05:02 PM #5
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- Oct 2014
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"Should call it Default Capital"
LOL. Probably. The major problem of stretching deals out to longer terms? The multitude of stackers not filing UCC's but requesting COJ's to jump the line on the first position funder on the way to a judgment. The first, with a no-stack agreement, potentially can negate the COJ by suing the borrower and invalidating the claim. If I came out with a long, unlimited SIC code Product, how could I be assured that no stacking would be really in effect?
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08-25-2015, 05:10 PM #6John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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08-25-2015, 04:58 PM #7
I agree with #4 everyone has the banks they do the majority of their deals with but when people say they do declines most of the times they just mean they want to do deals for no longer then 2-4 months but not actual low quality files. (sub 500 credit, less then great banks, and the really tough sic codes)
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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08-25-2015, 07:13 PM #8
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Discussions on a Brand New Product
You quite clearly have no grasp on the market we work in. Save the novel-like post and unrealistic outlook for another time, thanks. I'm too busy stacking 4 positions on top of the guy who you advised against taking a second.
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08-25-2015, 07:33 PM #9
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08-25-2015, 07:45 PM #10jotucker1983Guest
If that's the "market" you work in, maybe it would be best if you found another "market"? Just know that if a lot of your merchants start going out of business or having serious cashflow issues as a result of your four stacks, it could come back to bite you in the rear very hard.
Last edited by jotucker1983; 08-25-2015 at 07:47 PM.
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08-25-2015, 08:49 PM #11
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Monthly payments, no junk fees, -.10 on buys across the board, 24-36 month terms. Make it palatable. $5,000-$15,000 per month in payments is a very hard pill to swallow for much of the untapped market, which is one of the reasons why they don't entertain the product, regardless of how badly they need cash.
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08-25-2015, 08:46 PM #12
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- Sep 2014
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Discussions on a Brand New Product
I thought people might be able to realize that I was exaggerating to make a point. Suggesting that one should "make a case" for a second position is absurd. And Credit Guy, I'm here for the long run. In all reality I run a tight ship, no junk fees, primarily A paper, and quality clients - but I will gladly issue a 3rd if it makes sense for our clients. Or yours.
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08-25-2015, 10:44 PM #13jotucker1983Guest
No, it's not absurd.
2nd positions should be viewed on a case-by-case situation, depending on how much the payments combined with the 1st and 2nd position will be taking from the merchant's monthly gross. Under no circumstance should a merchant be getting a 3rd, 4th, etc. position, the 1st and 2nd positions should already be taking "enough" of the merchant's monthly gross sales deposits.
But like I said, if that's how you operate your shop, if these merchants run into issues as a result of your stacks, you could be in for some trouble down the line.
This is why we need to do something in terms of regulating our industry because, it's "deliberate" actions like this that do nothing but invite Regulators to come knocking on the door if more merchants fall into issues due to these stacks.
A lot of these Brokers just want to make money in an extremely competitive industry, and a lot of the Merchants doing the stacks just want to get some additional capital. It's the Funders that are funding these positions that need to be called out on the carpet so the nonsense stops.
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08-26-2015, 05:51 AM #14
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Discussions on a Brand New Product
I think we are well past the point of drawing regulatory attention to the industry.
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08-26-2015, 07:49 AM #15
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08-26-2015, 08:07 AM #16
Kabbage has that product.
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08-26-2015, 09:19 AM #17
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True. But I'd probably focus it on start-ups in the retail and hospitality field.
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08-26-2015, 09:42 AM #18
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08-26-2015, 12:09 PM #19
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- Oct 2014
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I want to thank al of you for your comments. I am going to wait a few days before aggravating these ideas and offer a new product....stay tuned.
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