[Zach]

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

It was probably a 12% holdback, and a preliminary offer (the payment is too low to be 12% holdback for 52K -- it isn't likely that it will actually fund).

[Andy]

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

In situations like those, you tell the merchant you would be more than happy to go twist your underwriters arm to make him match or beat it, however you cant do so until you get a copy of the competitor contracts. No offense to you mr merchant, but plenty of people have said some outlandish offers, UW will not even listen to me unless I can come to him with an offer in writing. But if you can send me that contract my underwriters will beat it. And if he does not have a contract, then you can explain to him how its just someone promising him the world, bait and switch, its just not realistic.

[Michael I]

Ride Extreme,

I think you make some good points, but I wanted to add to the discussion between you and John Galt.



I agree, and maybe he shouldn't fill it out. If his FICO score is 480 where is he going to get approved at anyway? If he has tax liens outstanding with no payment plan on them and they are very large tax liens, he isn't going to get approved/funded anyway. So why even have him fill the application out?



Actually it's a waste of everybody's time, your time, the merchant's time, the data entry team at your Funder's time, and the Underwriting Team at your Funder's time to go through these "procedures" with a merchant that doing pre-qualification on at the beginning will tell you he clearly doesn't qualify for anything.




Okay but that's a bait and switch. Why not just tell him that our industry approves based on 5% - 10% of your gross annual sales, so if you are doing $600,000 a year expect an approval of $30,000 - $60,000 for this product. So maybe you can get him $40,000 on an MCA and to raise the additional $160,000 maybe he also have outstanding commercial receivables? You can do some A/R factoring on the side. Then maybe he has some commercial equipment that's already paid off? Maybe you can also do a Sale-Leaseback on that equipment as well to further help raise the additional $160,000.





And this here is the problem as I outlined above. We aren't paid on application submissions. We are paid on fundings. It's a complete and utter waste of time for you to sit on the phone "convincing" guys to just "shoot you over an app" if the deal isn't pre-qualified to the point where you at least "think" you can fund it.

Unless you are getting paid on application submissions, this approach might do nothing but just clog up your Funder's pipeline with tons of apps and no approvals.

Some Funders might just cut you off altogether if it becomes a pattern.

In situations like those, you tell the merchant you would be more than happy to go twist your underwriters arm to make him match or beat it, however you cant do so until you get a copy of the competitor contracts. No offense to you mr merchant, but plenty of people have said some outlandish offers, UW will not even listen to me unless I can come to him with an offer in writing. But if you can send me that contract my underwriters will beat it. And if he does not have a contract, then you can explain to him how its just someone promising him the world, bait and switch, its just not realistic.

andy , what does a contract mean ? All the contracts in the industry are not binding to the lender as they can underwrite and decline on the one yard line . A Lot of lenders let big iso create docs by themselves and anyone can type anything in . Its a scam tactic called bait and switch . Call the bluff, it will never fund

[AndyYSCISOdept]

andy , what does a contract mean ? All the contracts in the industry are not binding to the lender as they can underwrite and decline on the one yard line . A Lot of lenders let big iso create docs by themselves and anyone can type anything in . Its a scam tactic called bait and switch . Call the bluff, it will never fund

Unfortunately you are spot on, and it has become a lot more prevalent because as any salesman knows once a merchant has gone through all the work of signing docs they are "pot committed" and are much more likely to accept a greatly reduced offer than to walk away.

[Andy]

Unfortunately you are spot on, and it has become a lot more prevalent because as any salesman knows once a merchant has gone through all the work of signing docs they are "pot committed" and are much more likely to accept a greatly reduced offer than to walk away.

In my experience it is far more likely that the merchant is lying or exaggerating the approval, then that the competitor sent them bull**** contracts. The point of asking for the contracts is to call the merchant on their bluff. Especially when they are claiming they have an approval that any sales rep in the industry recognizes as too good to be true.

And this is still the step that I would follow. Even if merchant can produce the contract, and you know that its bull****, tell them go ahead and sign it! Tell them whats going to happen, let them go through the motions, and they will come back to you and respect your wisdom and judgment and be a loyal client for years.

[KTK]

None of it makes sense. First his Fico is way off to even come close to Rapid's "preferred" or "select" pricing categories. Even tho they do come close to that rate it isn't for 12 month terms it's for 6 or 9.

Plus on the flip side, at a holdback of 12% it would take him 2 years to pay back a deal that size.

[Kevin Henry-Seacoast]

Sales Tip:
If you call someone and get their voicemail, kindly leave a message.
If you call someone with your number blocked, chances are they are not answering your call.

[Zach]

TIP #11:

Have a well-defined niche

"What do you guys do that's so different?"
"You sound like all the other cash advance brokers I've already spoken to..."
"Yeah, this is one of those daily payment things, isn't it?"

How many times a day do you get one of those comments?

Do you have a list of what makes you unique? Are you ready to spit it out at a moment's notice?

If you can't show that you are unique in some way, why would a merchant work with you, rather than the 100 brokers who have already called them? You think the tone of your voice is the main determining factor behind them choosing you?

Most successful companies dominate a specific market segment before subsequently expanding. For example, successful companies like Pearl and Yellowstone dominated the high-risk space before moving into longer terms and lower rates. By carving yourself a small, defined niche, you are paving your own path for success.

"But Zach, how does this economic armchair theory apply to my SALES CALLS?

Great question. Here's a few ideas to help you get started:


1. Target a specific industry

Learn a specific industry thoroughly. If you understand that most construction companies receive their project payments on net 30, 60, or 90, you can implement that into your pitch:

Mr. Prospect, my fund specifically focuses on the residential construction space. From our experience, many of our clients end up performing work and incurring expenses for 30, 60, or even 90 days while you wait for your receivables. Has waiting for your project draws ever impacted your cashflow?"

Many of my clients in the construction space have trouble waiting for their receivables. Is the reason you can use this infusion of cash because you are waiting for a net 60 or net 90 payment to come in?

These types of comments help differentiate you from the majority of cash advance peddlers who focus on "we'll fund you fast!!!" and "lower rates!!!"


2. Find a unique lead source

It's tough to dominate the UCC and aged lead marketing channels -- creative prospecting is key to success in a space with increased cost-per-acquisition and reduced commission averages. Here's a few creative ones we've tried:

*Go on the department of transportation website and find the recently awarded contracts. Call the companies who won those contracts to congratulate them and introduce yourself as a project financier.

*Call marketing agencies, bookkeepers, and accountants. Explain that you can help their clients who are experiencing cashflow issues and pay them a referral fee.

*Call UCC's and focus your pitch on a loan consolidation program. "It's designed to help you get out of those short-term loans and into something better. Do you think saving 30-50% of your monthly payment would help you to continue growing your business? Would you mind sending over your bank statements and application while I wait on the phone, to make sure I receive it?"


3. Create Face-to-Face Opportunities

Let's face it -- with all other variables held constant, people want to do business with people they like. What's the easiest way to get a merchant, referral partner, or other valuable relationship to trust and like you? I'll tell you one thing: it ain't done over the phone.

To be clear, I never recommend to prospect face-to-face. I simply find it too inefficient to create a large, sustainable pipeline using that archaic method. However, closing deals and setting up important relationships face-to-face is by far the easiest way to ensure success. It's hard to go ghost on someone who has visited your office multiple times.

There's no real system or complicated methodology here. Just go out for lunch or dinner and talk about business. That's it!

Sounds simple... but I bet less than half of the reps in our space do it. This is my personally favorite "niche", because frankly no one else does it.

[Zach]

TIP #11:

Have a well-defined niche

"What do you guys do that's so different?"
"You sound like all the other cash advance brokers I've already spoken to..."
"Yeah, this is one of those daily payment things, isn't it?"

How many times a day do you get one of those comments?

Do you have a list of what makes you unique? Are you ready to spit it out at a moment's notice?

If you can't show that you are unique in some way, why would a merchant work with you, rather than the 100 brokers who have already called them? You think the tone of your voice is the main determining factor behind them choosing you?

Most successful companies dominate a specific market segment before subsequently expanding. For example, successful companies like Pearl and Yellowstone dominated the high-risk space before moving into longer terms and lower rates. By carving yourself a small, defined niche, you are paving your own path for success.

"But Zach, how does this economic armchair theory apply to my SALES CALLS?

Great question. Here's a few ideas to help you get started:


1. Target a specific industry

Learn a specific industry thoroughly. If you understand that most construction companies receive their project payments on net 30, 60, or 90, you can implement that into your pitch:

Mr. Prospect, my fund specifically focuses on the residential construction space. From our experience, many of our clients end up performing work and incurring expenses for 30, 60, or even 90 days while you wait for your receivables. Has waiting for your project draws ever impacted your cashflow?"

Many of my clients in the construction space have trouble waiting for their receivables. Is the reason you can use this infusion of cash because you are waiting for a net 60 or net 90 payment to come in?

These types of comments help differentiate you from the majority of cash advance peddlers who focus on "we'll fund you fast!!!" and "lower rates!!!"


2. Find a unique lead source

It's tough to dominate the UCC and aged lead marketing channels -- creative prospecting is key to success in a space with increased cost-per-acquisition and reduced commission averages. Here's a few creative ones we've tried:

*Go on the department of transportation website and find the recently awarded contracts. Call the companies who won those contracts to congratulate them and introduce yourself as a project financier.

*Call marketing agencies, bookkeepers, and accountants. Explain that you can help their clients who are experiencing cashflow issues and pay them a referral fee.

*Call UCC's and focus your pitch on a loan consolidation program. "It's designed to help you get out of those short-term loans and into something better. Do you think saving 30-50% of your monthly payment would help you to continue growing your business? Would you mind sending over your bank statements and application while I wait on the phone, to make sure I receive it?"


3. Create Face-to-Face Opportunities

Let's face it -- with all other variables held constant, people want to do business with people they like. What's the easiest way to get a merchant, referral partner, or other valuable relationship to trust and like you? I'll tell you one thing: it ain't done over the phone.

To be clear, I never recommend to prospect face-to-face. I simply find it too inefficient to create a large, sustainable pipeline using that archaic method. However, closing deals and setting up important relationships face-to-face is by far the easiest way to ensure success. It's hard to go ghost on someone who has visited your office multiple times.

There's no real system or complicated methodology here. Just go out for lunch or dinner and talk about business. That's it!

Sounds simple... but I bet less than half of the reps in our space do it. This is my personally favorite "niche", because frankly no one else does it.

Just used a face-to-face appointment today to get a $600K submission. You guys need to start doing this!

[FUNd]

Just used a face-to-face appointment today to get a $600K submission. You guys need to start doing this!

Oh no you DI-ENT!

[MikeC524]

Great information here good job!



Mike@SamsonPartnersLLC.com
Office 347-492-1801
Cell 917-689-1502
Fax 718-304-1163

[AndyYSCISOdept]

Already posted to my Linked in

[dailyPLUNDR]

What are your suggestions for overcoming gatekeepers? I have been experimenting with cold calling "verified" leads and have been having trouble getting many decision makers on the line or calls back. Is the idea to build enough value/rapport with the gatekeeper that they pass you on? Thanks

[FUNd]

What are your suggestions for overcoming gatekeepers? I have been experimenting with cold calling "verified" leads and have been having trouble getting many decision makers on the line or calls back. Is the idea to build enough value/rapport with the gatekeeper that they pass you on? Thanks

It's probably because you are the 67th call this week from a solicitor pitching "working capital" or "business loans".

[ridextreme]

What are your suggestions for overcoming gatekeepers? I have been experimenting with cold calling "verified" leads and have been having trouble getting many decision makers on the line or calls back. Is the idea to build enough value/rapport with the gatekeeper that they pass you on? Thanks

you mean the verified leads don't even have the owner's cell phone number? I hope you didn't pay too much for these "verified" leads.

[dailyPLUNDR]

I pitch them a financial consulting service to provide transparency and guidance in securing low cost capital and positioning the business for long term growth. And no.. i did not pay much of anything.

[FUNd]

I pitch them a financial consulting service to provide transparency and guidance in securing low cost capital and positioning the business for long term growth. And no.. i did not pay much of anything.

You lost me at 'low-cost capital'.

[ridextreme]

I pitch them a financial consulting service to provide transparency and guidance in securing low cost capital and positioning the business for long term growth. And no.. i did not pay much of anything.

if I was desperate for money badly I would still say I'm not interested.

[Zach]

"Bob, please"

What is this in reference to?

"It's a business matter of a personal nature"

[FUNd]

"Bob, please"

What is this in reference to?

"It's a business matter of a personal nature"

*click*

[Zach]

*click*

No way! Try it. Works great.

It's a BUSINESS matter of a PERSONAL nature... thank you...

[FUNd]

No way! Try it. Works great.

It's a BUSINESS matter of a PERSONAL nature... thank you...

Cool, what's your interest rate?

[Zach]

Cool, what's your interest rate?

1. This is a non-amortizing loan product with a set cost built into it, which can be extremely affordable. We will compare the profit you generate against the cost of the loan and make sure it will benefit your business.. and that's what you're looking for, right? Ok, so here's what I need to get started today... (***the WBL product is usually amortizing, so only applies to brokers)

2. We have rates as low as 5.9% (assuming I am a broker with access to Fundingcircle). How's your credit?

3. Great question, let's see what you qualify for, how much do you deposit each month into the business bank account?

[bsmith]

"Bob, please"

What is this in reference to?

"It's a business matter of a personal nature"

I see what you did there

[dailyPLUNDR]

"Bob, please"

What is this in reference to?

"It's a business matter of a personal nature"

Can't tell if this is serious haha