Results 51 to 75 of 76
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10-01-2015, 10:59 AM #51
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Well you and I worked together at NLF/MCC years ago so we know what type of leads a good marketing budget can buy. Many of the people on this forum can't relate
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10-01-2015, 11:53 AM #52jotucker1983Guest
MCN and John,
Yes, see I totally agree that there's a sea of prospective clients out there that have never taken out an MCA (or Alt. Loan). But my question is, are they entertaining the product after seeing the cost and short term payback cycles? How are your conversion rates on these types of prospects?
For example, I would run into problems regularly where I receive referrals/leads of merchants who are currently in the market seeking business capital in general for (insert whatever project here). But the referral/lead a lot of times are merchants who tried a conventional source but didn't get approved for whatever reason.
So I get the referral/lead, pitch my alternative products depending on which one(s) are applicable, including the MCA, and for the bulk of these referrals the moment they see the cost and very short term payback cycles, they pass on it.
A small percentage of them continue to move forward, but not the bulk of them. So when you guys are targeting a lot of these clients that have never taken out an MCA, are you getting a decent conversion rate on these guys?Last edited by jotucker1983; 10-01-2015 at 12:00 PM.
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10-01-2015, 11:59 AM #53jotucker1983Guest
Cardinal Equity,
I'm totally with you on the lack of creativity in the industry, with everybody seeking to do the same thing. I think this is a good discussion we are having here, because my point of view is to try to truly "estimate" how big is the "real market" for MCAs in the US?
Yes, there's 28 million entrepreneurs, but only about 5 million would qualify generically for an MCA product. But how many of those 5 million would ever truly entertain a product with very high costs and short payback cycles?
Is the reason for there being so many virgin MCA merchants (never took an advance out prior), because they have never heard of the product? Or is the reason because the product is too high and the payback cycles are too short?
I tend to side on the camp that says it's because the product is too high, which means of that 5 million that generically qualify, how many of these businesses would realistically under certain circumstances, take out an advance? I say the range would be no higher than 2% (100,000) to as low as 0.5% (25,000).
But I could be wrong though.Last edited by jotucker1983; 10-01-2015 at 12:01 PM.
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10-01-2015, 12:15 PM #54
Conversion rates are good. Yes our terms are shorter then a traditional loan, but for high quality merchant i can get 15-24 month options that work for my customers. For the ones that dont qualify for those programs you need to understand the underwriting at the banks you work with and be able to fit a program to what will work for the merchant. If you partner with the right banks and are knowledgeable about the products we sell and understand underwriting at those banks it is not that hard to find programs that fit your customers needs.
If the conversion rates weren't good we wouldn't be able to afford to marketing it takes to get these merchantsJohn 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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10-01-2015, 12:42 PM #55
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The issue is that you're presenting the merchant with too many choices. It's easy to pass on the MCA when you're also including long term, lower rate options in the conversation. I just focus on the MCA and tell them why it's better than any other alternative. I find out the merchant's pain points and show them why the MCA will work. Solving the problem is the immediate goal. It also helps that I have the ability to sell a 6 month 1.15 or 15 month 1.27 deal so I can blow most of my competitors out of the water anyway.
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10-01-2015, 12:45 PM #56
Lets take a look at what spawned the need to MCA...Banks not lending, economy was bad at the time 2008 housing crash, and stock market crash. These opened a wide door for MCA industry. As banks get into the action (MCA business) and the economy rebounds merchants will have more options. Hence closing the window for such expensive capital. Those who are not creative or adjust for the times (lower interest rates longer terms etc) will not be in business for the long run. **Side note: I think what has changed drastically is the way to sell MCA, no longer this aggressive "take this or that because of this or that or pushing a deal on a merchant", its more listening to the merchants needs and applying it to the product that makes sense for them. The educated merchant.
Last edited by TheShitzuofMCA; 10-01-2015 at 12:48 PM.
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10-02-2015, 10:49 PM #57
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Feeding in the gutter on merchants that do 1 or 5 million a year has certainly being done.
Think about it. A guy that does 100 grand a month is barely a business in all reality.
500k?, same challenges meeting their cash flow challenges.
The smart ISO shops are going to move up the food chain into a world of higher quality, lower rates with lower rips on larger deals.
There are hundreds of "private non-bank lenders", big money lenders, that have money to lend and have NEVER had any real sales force feeding them leads.
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10-03-2015, 03:49 PM #58Zachary Ramirez CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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10-04-2015, 01:16 PM #59
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- Florida, First MCA sold in 85/ WS in 76. CFP/RIA, series 3,6,7,8,10,63,Ins218,220.
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That's really not correct. MCAs have been around since 1985. They just weren't called MCAs. IGT and Transmedia would give the merchant 50% cash immediately and sell the merchants product for 75%.
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10-06-2015, 05:55 AM #60
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I find lots of great up-to-date info right here in the Rain...and you are included in that--thank you! I wonder how you shoot this. Special camera needed by the photographer or agent? Cloud Computing Training in Chennai
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12-03-2015, 08:33 AM #61Karen37aGuest
People who think negatively will never make sales. Was it Yogi Berra who said , baseball in 90% mental?? Its like stepping up to the plate thinking..im going to strike out, im going to strike out . I am not the motivational coach here but I know this if you think you can you can, if you think you cant you cant.
Some of you are like the Glengarry Glen ross movie...the leads are coming !! the leads are coming !!!
Now I am here yelling ...PUT THAT COFFEE DOWN COFFEE IS FOR CLOSERS!!!!
Most of you have great insight and make great comments, but some of you geez. I cant even respond anymore drains my energy and makes me negative.
IMO, Id worry more about regulation coming down the pipeline ,(with full transparency on commissions), max commission guidelines etc; then not finding clients and funders not wanting loans .
There will always be new people going into business and guess what, there will be a time when they are no longer new and they need a loan for whatever reason. Then they will die and their grand kids will need a loan for whatever reason, or the people their greedy grand-kids sold the business off too will need one.
And then their were Renewals.....
PS Yogi Berra also said .......This is like deja vu all over again
Dont anyone say the "time in business is too short " because ill just wait it out like a conveyor belt and ill catch it 6 months down the road
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12-03-2015, 09:07 AM #62
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12-03-2015, 09:42 AM #63
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Whats the next big thing for brokers?
Older thread but since I was in the first time around I'll update. Is there a client pool looking for advances? Yes. Is there crazy competition? Sure. But the 80/20 rule applies to this sale as much as it does in any other industry. The top 20% of salespeople and organizations will close 80% of the business and the remaining 80% will fight over the 20% of deals left on the plate.
It's about ability, knowledge, strategy, attitude, capital, creativeness, tenacity, and a mix of other attributes when it comes to being the best and making a mark here. At one point, it was easy money, lets admit it. The space has changed and it's no longer low hanging fruit, you have to reach for every bite. The weak will wash out, the strong will survive. As it was and always will be. Have a successful day.
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12-03-2015, 10:24 AM #64
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12-03-2015, 10:46 AM #65
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FUNd I agree with you whole heartedly but I would add that the ability of a broker to know when something isn't working and switch gears is a very vital trait/skill. Far to often you'll see brokers that have genuine skill banging their heads against the wall wondering why they aren't closing more when they are calling the same UCC's that the guy who left the company 2 weeks earlier was calling. Knowing when to switch strategies can save a lot of aggravation.
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12-03-2015, 11:42 AM #66
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All real brokers will need to join that coalition Issac at Yellowstone is heading up with a few other people for funders and brokers
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12-03-2015, 11:43 AM #67
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LOL! Love it^^
Andrew J. McDonald
Director of ISO Development
Yellowstone Capital LLC
1 Evertrust Plaza
Suite 1401
Jersey city, NJ 07302
PH - 347.464.0785
FX - 646.213.1790
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12-03-2015, 11:45 AM #68
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Whats the next big thing for brokers?
In my opinion, the next big thing is to try and create a relationship with the client you have on the phone. To really understand the industry, their pain and their business before you sell them, to sell the benefits of your product and not just mass sell, to take your time on each call and understand the why's of each prospect, to really learn the product and sell based on benefits and not commissions and set the client up for next steps.
I strongly believe that if you take the client by the hand and show them how to grow and provide an exit strategy to a better funding program, you'll have a long lasting client that will constantly call you, despite of how many competitors jump into the arena. If you just close the deal, you provided a short term solution that the next competitor will also provide when the time comes.
Learn the business, become a specialist in each industry.
My two cents.
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12-03-2015, 11:54 AM #69
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I mean this with utmost respect. While what you are proposing is a very romantic notion of sales it's just not practical on the scale required for the larger shops to grow and prosper. Ultimately what sets apart those who make a great living in sales and those that don't is that they monetize their time and efforts the best. Obviously this is over-simplified but the principle is one that you can see played out time and time again
Regardless of how educated you are or how much time you take with each client the opportunity for someone else to come in and offer something better will always exist. That is just the nature of a fast growing fluid industry.
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12-07-2015, 12:30 PM #70Karen37aGuest
Quote Originally Posted by Karen37a View Post
IMO, Id worry more about regulation coming down the pipeline ,(with full transparency on commissions), max commission guidelines etc; then not finding clients and funders not wanting loans .
Resonse by Andy >>>>And that's a great opinion but commissions wont matter if a deal doesn't fund.
Great. so find people who are within reasonable underwriting Guidelines and git er doneLast edited by Karen37a; 12-07-2015 at 12:33 PM.
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01-14-2016, 09:02 AM #71
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Old thread but great conversation. Does anyone believe that selling consolidation programs have a chance at being "the next big thing?" Is there even any money in that for lenders? If so, then my thoughts are that every old UCC lead from the past becomes a brand new (and fresh) lead for a consolidation pitch. I've been racking my brain for so long trying to figure out what the customer wants these days. I'm guessing the answer is a long-term, low-rate product but who knows. Just wanted to see what everyone else thinks.
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01-14-2016, 10:53 AM #72
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I know a guy that tried consolidating files! how did it workout? he disconnected his phones and last i heard hes in a halfway house.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
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01-14-2016, 11:07 AM #73
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01-14-2016, 11:08 AM #74
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Ondeck Stock
https://www.google.com/finance?q=ond...rjsN5ebebvHkHA
I think it may be a good buy! ?Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
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01-14-2016, 11:14 AM #75
wow, went below $7 share this morning?
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