[mcaguru]

Bottom line is the companies that are going to get approved for 100K-500K are not answering the phones themselves (or for that fact the majority of business owners) so the phone dialer campaigns don't work for receptionist or auto response pick ups at most larger companies, direct mail gets killed by the receptionist (I am sorry but ondeck and pizza hut post card carry same importance at a company with 30 employees). the fact is one of my best ISO's get the largest deal flow by calling and talking to the president of companies doing over 5M a year, his trick he calls and talks to the president of the firm like a banker in 1973. - that model is as wide open.

[Kevin Henry-Seacoast]

It reminds me of the wholesale trading days in the mid-90's. There were a lot of trading firms with lots of capital chasing order flow. There was major consolidation in the industry stemming from banks buying brokerage firms and wire houses buying wholesale trading platforms to grab customers. Competition was fierce! Then along came new regulations, technology and the customers got smarter. Pricing was compressed due to regulation, customer knowledge,technology and too many dollar chasing a few customers. In the end, the larger firms with cheap capital were able to compete in a low margin business forcing many out of the business. Others tied up masses about of capital chasing customers and eventually blew themselves up because they moved too quickly deploying capital without doing their homework. I see the same thing happening across the lending industry and private equity/venture capital industry.