[The Money Guy]

I am the ISO Relationship Manager for World Business Lenders Frisco, TX Branch. I am looking for solid ISO partners who are reliable and honest. We pay up to 8% on all banked deals and up to 5% on our Interest Only payment programs. We also lend up to 36 months and fund 25K - 2 Million. Bad credit is not a deal breaker because we use collateral to secure the deal. Give me a call if you are interested in becoming a partner. I would like to visit with you about our programs. Thanks


Denny Applewhite
ISO Relationship Manager
World Business Lenders - Frisco Branch
rapplewhite@wbl.com
972-935-1489

[FUNd]

I am the ISO Relationship Manager for World Business Lenders Frisco, TX Branch. I am looking for solid ISO partners who are reliable and honest. We pay up to 8% on all banked deals and up to 5% on our Interest Only payment programs. We also lend up to 36 months and fund 25K - 2 Million. Bad credit is not a deal breaker because we use collateral to secure the deal. Give me a call if you are interested in becoming a partner. I would like to visit with you about our programs. Thanks


Denny Applewhite
ISO Relationship Manager
World Business Lenders - Frisco Branch
rapplewhite@wbl.com
972-935-1489

You are a day late and a dollar short on this forum bro. Zach and the boys over at WBL Westminster have this street locked down tight from the WBL gang. Too bad you guys only do real estate as collateral now though, I just signed an ISO agreement last month and was going to ****can Dakota...bah...I better call them and apologize...

[Zach]

You are a day late and a dollar short on this forum bro. Zach and the boys over at WBL Westminster have this street locked down tight from the WBL gang. Too bad you guys only do real estate as collateral now though, I just signed an ISO agreement last month and was going to ****can Dakota...bah...I better call them and apologize...

Sorry about that man! Maybe we can ask them if they have any friends with real estate :-)

[FUNd]

Sorry about that man! Maybe we can ask them if they have any friends with real estate :-)

Lol, will do. I'm sure the decision came from some meeting you guys weren't at. What's the story though? Why such a radical change of direction when all I've heard for over a year is to bring you guys my working capital deals collateralized by equipment? I'm assuming heavy losses on that portfolio, but to me, this says something more about the industry as a whole. I mean, if you guys won't even loan with yellow iron as collateral, what about the ACH products that are essentially signature loans...

[J.Celifarco]

Sorry about that man! Maybe we can ask them if they have any friends with real estate :-)

Zach I was curious what your thoughts were on this.. WBL has a small box to begin with and now limiting what can be used as collateral seems like getting a deals donefor you in house has got to be a real challenge right now

[CpepeWBL]

John I know we spoke briefly over the phone regarding this yesterday and understand your concerns, but wanted to add my thoughts here. Yes its's true we are limited to real estate only as of last week, but the fact is we have never been busier.

Most (not all) of the deals we fund are scenarios where the ISO is having a difficult time getting them normal funding elsewhere because of various reasons such as but not limited to:

1) Too many returned items / negative days
2) Consolidations since we do not have a net cash minimum rule for the client
3) Looking for a larger loan amount 2x - 5X average monthly deposit (which merchant isn't looking for a larger loan amount)
4) No minimum number of deposits required
5) Open to lending to almost every industry since we have collateral
6) Larger deals are our specialty 350K - 2 million
7) Looking for a lower interest only daily or weekly payment (especially popular on our consolidations)
8) No minimum balance requirements
9) In business as little as 3 months ok as long as deposits are 25K or more per month

Since we have the collateral it gives greater flexibility where other lenders may not have. Although the process may take a little longer, sometimes it's worth to ask the questions of whether they own and are willing to use real estate, then throw the deal in the garbage.

Chris Pepe
Vice President
World Business Lenders
120 West 45th Street Floor 29
New York, NY 10036
Tel + 1 212 293 8210
email: cpepe@wbl.com

[Jared_Weitz]

John I know we spoke briefly over the phone regarding this yesterday and understand your concerns, but wanted to add my thoughts here. Yes its's true we are limited to real estate only as of last week, but the fact is we have never been busier.

Most (not all) of the deals we fund are scenarios where the ISO is having a difficult time getting them normal funding elsewhere because of various reasons such as but not limited to:

1) Too many returned items / negative days
2) Consolidations since we do not have a net cash minimum rule for the client
3) Looking for a larger loan amount 2x - 5X average monthly deposit (which merchant isn't looking for a larger loan amount)
4) No minimum number of deposits required
5) Open to lending to almost every industry since we have collateral
6) Larger deals are our specialty 350K - 2 million
7) Looking for a lower interest only daily or weekly payment (especially popular on our consolidations)
8) No minimum balance requirements
9) In business as little as 3 months ok as long as deposits are 25K or more per month

Since we have the collateral it gives greater flexibility where other lenders may not have. Although the process may take a little longer, sometimes it's worth to ask the questions of whether they own and are willing to use real estate, then throw the deal in the garbage.

Chris Pepe
Vice President
World Business Lenders
120 West 45th Street Floor 29
New York, NY 10036
Tel + 1 212 293 8210
email: cpepe@wbl.com

couple questions here. Only 3 really:

1) Too many returned items / negative days-------An advance doesn’t always fix this problem, if it doesn’t then isn’t the ISO just making the merchant lose their property for now cents on the dollar to you?
2) Consolidations since we do not have a net cash minimum rule for the client------makes sense
3) Looking for a larger loan amount 2x - 5X average monthly deposit (which merchant isn't looking for a larger loan amount)------owning a property doesn’t make a merchant be able to afford more, tough to again put someone in a scenario where they will most likely default and lose the only thing they had4) No minimum number of deposits required------makes sense
5) Open to lending to almost every industry since we have collateral------makes sense
6) Larger deals are our specialty 350K - 2 million------makes sense
7) Looking for a lower interest only daily or weekly payment (especially popular on our consolidations) ------makes sense
8) No minimum balance requirements----I still fail to see how if a merchant keeps a 100 daily balance why having property now makes them afford 600.00 a day as an example
9) In business as little as 3 months ok as long as deposits are 25K or more per month------makes sense

[jotucker1983]

Chris,

I'm interested in learning more about number two, Consolidations since we do not have a net cash minimum rule for the client.

This is something I haven't been able to find, I'm hearing lately that there are some of the newer lenders doing this, but I honestly try to not work with newer lenders because of all of the issues with back-dooring going on in the industry, mainly from the newer lenders (which a lot of times are just brokers).

The only issue I would have is, does the client have to put their House on the line to get the financing? If the answer is Yes, does the factor rate go down to something closer to conventional financing or, let's say, what a Funding Circle would charge? Or, even with his House on the line, is he still paying 1.20 - 1.40 factor rates?

Because one of the justifications I use personally to prospective merchants in relation to the "cost", is for the fact that we aren't putting his assets on the table as security to the financing. Instead, we are mainly just lending on the simple "hope" that he will remain in business as he has previously, over the course of the next 6 - 18 months.

[MCNetwork]

1) Too many returned items / negative days-------An advance doesn’t always fix this problem, if it doesn’t then isn’t the ISO just making the merchant lose their property for now cents on the dollar to you?

8) No minimum balance requirements----I still fail to see how if a merchant keeps a 100 daily balance why having property now makes them afford 600.00 a day as an example

Looks like an inexpensive way to build up a real estate portfolio...

[FUNd]

..

[FUNd]

You've never been busier? You've just alienated most of your ISO base by dropping the ability to collateralize equipment. LMAO. Come on.

[CpepeWBL]

couple questions here. Only 3 really:

1) Too many returned items / negative days-------An advance doesn’t always fix this problem, if it doesn’t then isn’t the ISO just making the merchant lose their property for now cents on the dollar to you?
2) Consolidations since we do not have a net cash minimum rule for the client------makes sense
3) Looking for a larger loan amount 2x - 5X average monthly deposit (which merchant isn't looking for a larger loan amount)------owning a property doesn’t make a merchant be able to afford more, tough to again put someone in a scenario where they will most likely default and lose the only thing they had4) No minimum number of deposits required------makes sense
5) Open to lending to almost every industry since we have collateral------makes sense
6) Larger deals are our specialty 350K - 2 million------makes sense
7) Looking for a lower interest only daily or weekly payment (especially popular on our consolidations) ------makes sense
8) No minimum balance requirements----I still fail to see how if a merchant keeps a 100 daily balance why having property now makes them afford 600.00 a day as an example
9) In business as little as 3 months ok as long as deposits are 25K or more per month------makes sense

See below for answers to the questions:

1) Too many returned items / negative days-------An advance doesn’t always fix this problem, if it doesn’t then isn’t the ISO just making the merchant lose their property for now cents on the dollar to you? - I agree, however we do extensive research and diligence as to why they are going negative often, and ask alot of questions during the merchant interview. Regardless of the collateral if underwriting feels its not in the best interest of the client to take the money, of course we aren't forcing them into it. If the use of proceeds makes sense, we can verify it (to the best of our ability), and the funds will help them get to a place where the returned items / negative days decrease then our proceeds went to good use[/B]

3) Looking for a larger loan amount 2x - 5X average monthly deposit (which merchant isn't looking for a larger loan amount)------owning a property doesn’t make a merchant be able to afford more, tough to again put someone in a scenario where they will most likely default and lose the only thing they had - Let's be clear here, just because we have real estate doesn't mean we are lending larger amounts without caring about their ability to repay. It's actually quite the opposite as we care very much how they are going to pay us back and what their plan is. One recent example was a merchant who had 6 advances totaling 140K in balances and paying out 2,800 a day. She was depositing 110K a month, and gave us a 365K residential property free and clear. We qualified her under our interest only program for 180K and paid off all her advances. She netted around 40K in cash, paid off everyone in full, and lowered her daily payment from 2,800 down to around 600 a day which was her interest only daily payment. This saved her around 2,200 a day, and the merchant had a verified plan on how they were going to pay the full balance back after 6 months. As you can imagine she couldn't WAIT to signed the closing docs. Yes I agree owning real estate doesn't mean they can afford more, but in this scenario it enabled her to save alot of money per day and possibly save her business[/B]

8) No minimum balance requirements----I still fail to see how if a merchant keeps a 100 daily balance why having property now makes them afford 600.00 a day as an example - Again we still are careful with the amount we approve the merchants for if they have alot of pass through income, or keep low balances, to make sure they can afford their obligations, but if the real estate collateral is strong it won't stop us from making a loan because of low balances

Hope this helped a bit!

Chris Pepe
Vice President
World Business Lenders
120 West 45th Street Floor 29
New York, NY 10036
Tel + 1 212 293 8210
email: cpepe@wbl.com

[Zach]

You've never been busier? You've just alienated most of your ISO base by dropping the ability to collateralize equipment. LMAO. Come on.

FUNd, I assure you that we are much busier than ever before. Not too many of my submissions were vehicles in the first place. Equipment we rarely used as well, although we would get the occasional submission for it. Right now my pipeline is full of nice, meaty real estate deals ;-)

As a side note, if you're looking for a home for equipment and vehicle deals, I highly recommend Financial Pacific and Pawnee Leasing. They offer 2-5 year term programs, and pay 14-20 points.

[CpepeWBL]

You've never been busier? You've just alienated most of your ISO base by dropping the ability to collateralize equipment. LMAO. Come on.

Nothing was alienated as equipment made up a small fraction of submissions.

[FUNd]

FUNd, I assure you that we are much busier than ever before. Not too many of my submissions were vehicles in the first place. Equipment we rarely used as well, although we would get the occasional submission for it. Right now my pipeline is full of nice, meaty real estate deals ;-)

As a side note, if you're looking for a home for equipment and vehicle deals, I highly recommend Financial Pacific and Pawnee Leasing. They offer 2-5 year term programs, and pay 14-20 points.

Our core business is equipment leasing. Very familiar with FinPac and their sidekick Pawnee. I know a lot of people in the business and see a lot of submissions. We run across a lot of prospects looking to use their equipment as collateral for working capital, WBL called my office for a year promising you could handle those deals. Without a warning, you cut off that channel. Not a great way to do business. Any meaty real estate deals we see are going to my mortgage banker.

[Zach]

Our core business is equipment leasing. Very familiar with FinPac and their sidekick Pawnee. I know a lot of people in the business and see a lot of submissions. We run across a lot of prospects looking to use their equipment as collateral for working capital, WBL called my office for a year promising you could handle those deals. Without a warning, you cut off that channel. Not a great way to do business. Any meaty real estate deals we see are going to my mortgage banker.

I understand how you feel. I'd probably feel the same way if my core business was equipment as well; obviously our cutting equipment deals would affect you disproportionately more than MCA brokers. If the day comes when there's a deal that your mortgage banker for some reason can't service, we'd love the opportunity to take a crack at it!

[KTK]

I do realize that them not taking vehicles mainly, more so than equipment IMO, really does suck.

That said, I really don't see the need to bash these guys out and scrutinize their niche. They aren't for every merchant. They never were before this change happened.

Me? I look at them as a home run for exactly what it is they do. When I have a client that nobody in the unsecured space will fund at that particular moment, and they have a need at that particular moment - well, if they have real estate assets they are willing to pledge then it is real nice to have WBL in your arsenal. Consolidations are a perfect example of that, getting around net 50.

Additionally how many times a DAY do you all talk to somebody that is averaging $60K a month and the convo goes like this:

"You can't help me. I have talked to 100 guys before you. I need $100K and not a penny less. My credit sucks and everyone else says they can do it but all they do is come back with $45K offers for me. It does not help me and you can't either"

It's very nice when you are able to turn it into:

"Well Mr Business owner do you have any real estate you would be willing to pledge, with over $135K in equity"

"Yes I do"

"Well it will take me 2 weeks instead of 2 days but I can certainly secure the funds you need. Tell me a bit about the property, fill out this app, and I will let you know for sure by the end of the day"

Anyway, that's my 2 cents

[Zach]

I do realize that them not taking vehicles mainly, more so than equipment IMO, really does suck.

That said, I really don't see the need to bash these guys out and scrutinize their niche. They aren't for every merchant. They never were before this change happened.

Me? I look at them as a home run for exactly what it is they do. When I have a client that nobody in the unsecured space will fund at that particular moment, and they have a need at that particular moment - well, if they have real estate assets they are willing to pledge then it is real nice to have WBL in your arsenal. Consolidations are a perfect example of that, getting around net 50.

Additionally how many times a DAY do you all talk to somebody that is averaging $60K a month and the convo goes like this:

"You can't help me. I have talked to 100 guys before you. I need $100K and not a penny less. My credit sucks and everyone else says they can do it but all they do is come back with $45K offers for me. It does not help me and you can't either"

It's very nice when you are able to turn it into:

"Well Mr Business owner do you have any real estate you would be willing to pledge, with over $135K in equity"

"Yes I do"

"Well it will take me 2 weeks instead of 2 days but I can certainly secure the funds you need. Tell me a bit about the property, fill out this app, and I will let you know for sure by the end of the day"

Anyway, that's my 2 cents

Thank you for the kind words. That's exactly the segment of the market we'd like to penetrate. If anyone else can use a product like that... You know how to reach me

[The Money Guy]

You are a day late and a dollar short on this forum bro. Zach and the boys over at WBL Westminster have this street locked down tight from the WBL gang. Too bad you guys only do real estate as collateral now though, I just signed an ISO agreement last month and was going to ****can Dakota...bah...I better call them and apologize...

You can never be a day late and a dollar short. In this business, if you live by that rule, you are done. Some people like working with some Reps better than others. I have a lot of good ISO partners that I deal with and some are dissatisfied with the current ISO Relationship Managers from a lot of different lenders including us. They ask all the time, if they can send me a deal. That leaves he door wide open for me. Thanks for your feed back though.

[unitax58]

I am working for this guy that quotes everything at 37 percent then he tacks on underwriter fees for about $1,600 last week had a guy wanted $100,00 we came back at $66,600 $1600 underwriter fees and pay back over 14 months 91,000! The guy has been in business five years does close to fifty thousand a month! I also meed real estate loans refinance ect who can help wasting time

[Zach]

I am working for this guy that quotes everything at 37 percent then he tacks on underwriter fees for about $1,600 last week had a guy wanted $100,00 we came back at $66,600 $1600 underwriter fees and pay back over 14 months 91,000! The guy has been in business five years does close to fifty thousand a month! I also meed real estate loans refinance ect who can help wasting time

Welcome to the working capital space.

[unitax58]

That was helpfull

[FUNd]

I am working for this guy that quotes everything at 37 percent then he tacks on underwriter fees for about $1,600 last week had a guy wanted $100,00 we came back at $66,600 $1600 underwriter fees and pay back over 14 months 91,000! The guy has been in business five years does close to fifty thousand a month! I also meed real estate loans refinance ect who can help wasting time

Close to fifty thousand a MONTH? No way bro!

[unitax58]

I am not worried about $100,000 The 37percent plus $1,600 originator fees with a guy who has pretty good credit

[Sean Cash]

I am not worried about $100,000 The 37percent plus $1,600 originator fees with a guy who has pretty good credit

Ok, does he have healthy cash flow? Does he keep a cushion in the bank every day? What type of business does he have? What does he need the money for? Has he tried a bank?

37 percent is really not that crazy, nor is the origination fee you mentioned.