[jotucker1983]

MCN,

That's a great post lol, and I would actually do the same with the MCA product in terms of explaining the long term aspects of the reload feature which doesn't have a "paying interest on top of interest" aspect to it, which can be similar to a credit line's functionality.

I would just focus on providing the full solution to the merchant in terms of quality, price and support, not just quality and support.

Quality: This is in relation to getting to the approval amounts noted and providing good options in payback cycle from 6 - 18 months. If it's an alternative loan, explain how the loan can work to build their business credit, if it's an MCA, explain the reload feature going forward which would have the product operating similar to a credit line.

Price: If it's A Paper, price it in A Paper range, which is 1.12 - 1.20 for 6 months, and 1.25 - 1.30 for 12 months.

Support: Discuss your years in business and professional competency, online statements, support team, recommendations on getting them out of the alternative products and into conventional ones, etc.

A lot of these large broker houses seem to focus on getting 10 - 15 points by pricing A Paper like C Paper, they better hope I don't run across that merchant lol.

I will provide the same (or even in some cases higher levels of) quality and support functions, but I would give the merchant "proper pricing" based on its marketplace standing.

I wouldn't price a Restaurant Merchant Account with a 100 BP mark-up, and I wouldn't price an A Paper Restaurant with C Paper pricing on the funding side, not because I'm just competing on "price", but because that's not the proper pricing for that deal based on marketplace standing.

[AndyYSCISOdept]

MCN,

That's a great post lol, and I would actually do the same with the MCA product in terms of explaining the long term aspects of the reload feature which doesn't have a "paying interest on top of interest" aspect to it, which can be similar to a credit line's functionality.

I would just focus on providing the full solution to the merchant in terms of quality, price and support, not just quality and support.

Quality: This is in relation to getting to the approval amounts noted and providing good options in payback cycle from 6 - 18 months. If it's an alternative loan, explain how the loan can work to build their business credit, if it's an MCA, explain the reload feature going forward which would have the product operating similar to a credit line.

Price: If it's A Paper, price it in A Paper range, which is 1.12 - 1.20 for 6 months, and 1.25 - 1.30 for 12 months.

Support: Discuss your years in business and professional competency, online statements, support team, recommendations on getting them out of the alternative products and into conventional ones, etc.

A lot of these large broker houses seem to focus on getting 10 - 15 points by pricing A Paper like C Paper, they better hope I don't run across that merchant lol.

I will provide the same (or even in some cases higher levels of) quality and support functions, but I would give the merchant "proper pricing" based on its marketplace standing.

I wouldn't price a Restaurant Merchant Account with a 100 BP mark-up, and I wouldn't price an A Paper Restaurant with C Paper pricing on the funding side, not because I'm just competing on "price", but because that's not the proper pricing for that deal based on marketplace standing.

These are great points, would you mind if I printed them out and gave it to a few of the newbies here?

[anonymous]

Can you give me an example buddy lol?

So the client is a restaurant, with 650 FICO, clean banks, no liens, no outstanding MCAs, no prior bankruptcies, no issues with their landlord, 3 years in business and doing $500,000 a year in sales. Prefers a quick turnaround of 6 months.

Broker A: Offers $30,000 on a 6 month payback, with a 1.35 factor as a merchant cash advance from a company that is doing the underwriting process mainly by manual review which means the process will take longer.

Broker B: Offers $30,000 on a 6 month term, with a 1.18 as an alternative business loan from a company that has majority of the underwriting process automated so that the closing process takes about a day.

Can you give me an example of what Broker A is going to say, to convince said merchant to use him over Broker B? I agree with you that it's not just about pricing, it's about the entire scope of the deal, but what could Broker A possibly say to win this deal from Broker B?

Broker A will be selling the dream, rather than the product. Happens every day. A good salesman can close an inferior deal, have seen it done many times, and have even done it myself once or twice.

[jotucker1983]

These are great points, would you mind if I printed them out and gave it to a few of the newbies here?

Sure , maybe you could just link it back to this thread or just reference me in the material?

Broker A will be selling the dream, rather than the product. Happens every day. A good salesman can close an inferior deal, have seen it done many times, and have even done it myself once or twice.

Give me an example? I've heard this before and this mantra is common place amongst Sales Managers, but in my opinion it just doesn't make any sense.

What are the value point arguments (that matter to the merchant) that you are going to say to convince them to pay $5,100 more with you than with the competing offer with Broker B?

If I were Broker A and had literally no choice in the matter, I would probe to see if there are origination fees on the table, probe to see if that's the "final offer" or a teaser rate, as well as explain the long-term planning aspects in terms of reloads as the competing offer will more than likely have them paying "interest on top of interest" during renewals. But what if the merchant doesn't want to use this for the long term? What if they are just looking at doing this for 6 months and that's it?

But thank goodness I'm not Broker A lol, the pricing for that deal in the example isn't efficient considering it's an A Paper deal. It's bad pricing and the only way that merchant is getting closed is if they don't shop, don't get another call from a competitor, and/or are already within the process with you with a "rush" to get some type of funding (thus they don't have time to restart the process with someone else).

[anonymous]

Give me an example? I've heard this before and this mantra is common place amongst Sales Managers, but in my opinion it just doesn't make any sense.

#1. 3rd or 4th position deal last month, similar offers between us and the competing lender (direct), they just beat us out by 6 points (1.34 against 1.40). Caught him on the phone while signing and gave a few horror stories about the lender he was signing with - had him sign ours instead, funded.

#2. Couple people on the board might be familiar with this one. Late AUG, manufacturing, texas. Competed with several brokers with this one. He had a questionable first and BLOC in place. First broker had a strong second offer (much better than my consolidation deal in all reality), told him another payment would kill his cash flow, made a realistic case, had him sign the consolidation. Lender pulled the deal, competing brokers exclusivity (30 day) ran out (after I thought the deal was deal on our end), lender contacted me with the offer, and I closed him on that same second within about 15min (after preaching how it would "kill cashflow, and he apparently had another consolidation offer on table at that time). Switched the pitch to annualized rate and long-term outlook. $150K, funded.

Every deal has it's own benefits (inferior or not). Find and exploit those benefits (no matter how irrelevant they may seem). Just a couple examples, have many more if you'd like.

[Zach]

Broker A will be selling the dream, rather than the product. Happens every day. A good salesman can close an inferior deal, have seen it done many times, and have even done it myself once or twice.

Anonymous, I love your signature

[John Galt]

Or at least "perceived value".

[FUNd]

Totally agree. Most deals I sell aren't even shopped. Rapport trumps price every single time.

[Zach]

Totally agree. Most deals I sell aren't even shopped. Rapport trumps price every single time.

Fund, I LOVE your new signature line!

[FUNd]

Fund, I LOVE your new signature line!

Thanks Zach, I knew you would.

[FUNd]

Quote Originally Posted by aprilb

All MCA and small business lenders we are generating over 100 warm leads per day for MCA and small business funding. These are generated from our call center and come with the recording to validate validity. I'm looking for solid buyers. We offer a guarantee on bad leads. Please email me at benosaapril17@gmail.com

Got this garbage in my inbox just now...ADMIN, want to ban this scammer for all of us??? Thanks.

[admin]

Quote Originally Posted by aprilb

All MCA and small business lenders we are generating over 100 warm leads per day for MCA and small business funding. These are generated from our call center and come with the recording to validate validity. I'm looking for solid buyers. We offer a guarantee on bad leads. Please email me at benosaapril17@gmail.com

Got this garbage in my inbox just now...ADMIN, want to ban this scammer for all of us??? Thanks.

Thanks for reporting FUNd. This user has been banned. Please note that similar rules for soliciting apply to private messages. All users should beware of uninvited solicitations through the private message system, especially ones using free email addresses.

[jotucker1983]

FUNd, I just got the same thing lol.

I get emails like this all of the time too, they are always from some Gmail address, probably because people complain a lot and they are trying to filter off those who appear "interested" before revealing who the company actually is.

Whether they know it or not, that practice violates Can-Spam.

[AndyYSCISOdept]

John, Im not super tech savvy so if you can PM me how to just tie it back to this thread Id be more than happy to...I just would really like the people I work with to gain the knowledge I am privy to on a regular basis

[anonymous]

Fairly certain you are one of the very few people on this forum who see it that way, there is no pleasing you lol. Also could have summarized the response.

[Zach]

10,000 views! That's a lot of sales advice being spread out. Please... no more bad cold calls... Hit me with some rebuttals guys!

[AndyYSCISOdept]

Congratulations on the view count. Keep it up.

[RogueLender]

Favorite Sales line "Hey, how many phone calls have you received today from people in New York that you can't understand promising you the world"??

[AndyYSCISOdept]

And how does that usually end up?

[anydealfunded]

Hahaha rogue lender...I'm sure that actually works. Sometime being from New York can have a negative connotation attached to it.

[Lender Of Gold]

Hahaha rogue lender...I'm sure that actually works. Sometime being from New York can have a negative connotation attached to it.

I would say NYC's perception is pretty polarizing. Either the merchant is even more skeptical or they like the idea of doing business w/ a hotshot city broker.

[AndyYSCISOdept]

I would say NYC's perception is pretty polarizing. Either the merchant is even more skeptical or they like the idea of doing business w/ a hotshot city broker.

Honestly, with how "Nation-wide" this business has become I don't see a "hotshot City Broker" having any kind of pull...at least Ive never had a merchant tell me that.

[Lender Of Gold]

Honestly, with how "Nation-wide" this business has become I don't see a "hotshot City Broker" having any kind of pull...at least Ive never had a merchant tell me that.

I went to high school and college in the South and DC before moving to NY a few years ago, as well as traveled to several states up and down East Coast so I carry no NY accent.

No one has said the words "hotshot city broker" to me either, but I will say the merchants are noticing this trend of the MCA guys calling from NY.

IMO it just goes both ways, some people still hold NY in high regard because it's the hub for...well, everything lol.

[AndyYSCISOdept]

I actually have some insight into this as someone who was born and raised on the west coast but moved to Manhattan in my early 20's...
I rolled into NYC and was awe struck at how fast every spoke and sometime felt like I needed subtitles to understand, that and I always felt like people from NYC were trying to pull a fast one on me.

But 8 years later, its the greatest city on earth.

[dailyPLUNDR]

Interesting scenario i ran into today, wondering how you pro's would handle it. So Mr. merchant tells me he is doing 20k/month and has credit around a 530 looking for 60k. He tells me he's looking for 13k (reasonable request) to expand his cleaning service, the rest is to pay off company vehicles and a family member. As i start to ball park the amount of money we could put together (10-15k) in reference to what he told me he was looking to accomplish with the 13k, he informed me he has an offer from Rapid for 52k, on a 12 month term at a 12% interest rate. Everything i know tells me this is not possible but as i am communicating this to the merchant he insists that he has the offer in hand. Is this just another sales rep trying to keep him from shopping with (unrealistic) projections? Is there some unique advance product offered by Rapid that can realistically make this offer? Any suggestions for handling this type of objection in the future? Thanks for any insights