Results 26 to 50 of 252
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10-22-2015, 08:43 PM #26
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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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You want a Rolls Royce? Why?....Because you can't have it. Classic take away.
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10-22-2015, 09:40 PM #27
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Great stuff. And all true. Why bother asking "how's your credit?" on a non-credit driven product? You'll find out later how the credit is - when you get the app in. You're supposed to be talking about what's in it for THEM to apply. Asking about their credit is more of a "What's in this for ME?" type question. Don't worry about wasting 10 minutes talking to a guy that may not be qualified.
Any conversation is good, and can be profitable. Have something to offer every client, even it its digital literature for $99.95 on the FCRA rules for cleaning up your credit. Who cares. Sell them something valuable and beneficial on every call.
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10-22-2015, 09:54 PM #28
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- Apr 2015
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We all know it is really not "a non credit driven product"... if they had credit they wouldn't be here. The effect of credit is still inherent, each template or model differs but we all take it into consideration to some extent however minor. Sorry to say but if you're selling the FCRA stuff for whatever, the Corporate credit stuff is 1-3K plus a % of loans.
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10-23-2015, 12:30 AM #29jotucker1983Guest
When you are selling our type of product, in my opinion, as a broker you are much more a "match-maker" than a sales consultant. The actually art of "selling" is a very small part of the process, compared to that of being a very efficient and resourceful "match-maker".
Let me break this down further.
With our product, you aren't paid on selling anything, you are paid when you match a merchant that needs alternative funding at particular terms and with a particular risk profile, with a lender that funds merchants within that particular risk profile and at terms the merchant is looking for. So the bulk of your time shouldn't be spent "selling" or "convincing" a merchant on anything, the bulk of your time should be firstly on constructing your Funder Network, and the second portion on screening merchants who would be a "good fit" for one or two of your Funders.
- You should research merchants who are in situations of needing alternative funding for whatever reason such as maybe a UCC, a guy adding a location, etc. Then, you would be calling on those merchants, letting them know what you can do and telling them your cost for capital breakdowns, if they are OK with your short payback cycles and high cost, it's time for pre-qualification.
- You want to do serious pre-qualification on them from asking about their credit, tax liens, bankruptcies, landlord payments, cashflow situation, time in business, the whole nine yards so you can see if you even have a Funder that can potentially approve them. If the merchant refuses to do this, they aren't serious about needing capital and are wasting your time.
- So you get the pre-qualification done and let's say you have a Funder in your Network (or outside of it) that can approve them, now you are going to spend time chasing the merchant to get all of the required items and submit to said one or two Funders.
- Let's say one Funder approves and at the terms the merchant wants, then the next portion of your time will be chasing the merchant for closing items and answers to the Lender's questions during closing. Everything gets in eventually, the Lender funds, you are paid within 24 - 72 hours.
You can be the "best salesperson" in the world, in that, you can "talk" a merchant into sending you over an application. But that means absolutely nothing if the merchant's risk profile cannot be funded by one of your Funders, OR if the merchant isn't serious enough to send you the additional items and answer additional questions from Underwriting.
In my opinion, I think Brokers should try (to the best of their ability) to submit 10 apps to a funder and get 3 - 5 funded, than to submit 30 apps and fund 1.Last edited by jotucker1983; 10-23-2015 at 12:34 AM.
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10-23-2015, 12:52 AM #30
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- Apr 2014
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comparing madoff etc is not the same as salesman on mca. madoff scammed people into believing there investments were secure etc. cash adv is giving customers money. Before we go on about sales tactics etc..the lenders are as much to blame as anybody. funding a business for a 3rd or 4th position is horrid. ALso..how many lenders give contracts premature and resind offers. The mortgage crisis involved the fed govt because of Fdic.Mca isn't backed by us govt.
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10-23-2015, 01:46 AM #31
Awesome post, John. Agree 100%.
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10-23-2015, 02:00 AM #32
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- May 2015
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- Long Island
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- 247
Official Sales Tip Of The Day Thread
..
Last edited by KTK; 10-23-2015 at 02:16 AM.
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10-23-2015, 09:03 AM #33
I never lied to him about getting 200K. If you re-read my post, if he is requesting 200K and grosses 50K, I would never say "Your never gonna get that you only qualify for about 25". I say "Ok great here's what I need and I will submit it into underwriting". I never said he will and I never said he won't get 200K.
Also, if he's in a BK or has a judgment from an advance company he won't even be submitted. Not that I haven't funded anyone while in an active BK.
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10-23-2015, 09:58 AM #34
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- Aug 2014
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This is some good stuff, guys - no doubt! Let's raise the bar a bit by bringing in elements of mass market sales and Public Relations to introduce possibilities you've probably not considered, and rhetorical devices still uninvented. Reading this short primer will do you a world of good in a variety of areas, but if you look at this stuff from a salesman's perspective, I'm sure you'll agree that the potential exists to create a totally unique way of approaching the client - a bolt from the blue that is completely unique, and utterly compelling:
http://www.dailywritingtips.com/50-types-of-propaganda/
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10-23-2015, 10:30 AM #35
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10-23-2015, 12:26 PM #36
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- Apr 2015
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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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Madoff was a fast talking salesman who cared little for his customers and was only interested in making money. Stacking has many similarities to someone with 10 credit cards. FDIC had nothing to do with the mortgage crisis, AIG did when they in effect reinsured the market with their rating when the tranches were monetized. Read "too big to fail". Any deal can fall through at the last minute. They are usually only conditional approvals.
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10-23-2015, 12:30 PM #37
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- Apr 2015
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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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I read your post, it is a lie by inference (not an insult to you). I would rather outline what the possibilities are, rather than give him false hope. I would rather tell him it is unlikely that he will qualify for that much, but we can start him with something and build from there. I let him know I'm not some guy in a boiler room blue skying him and this is the reality of this industry.
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10-23-2015, 12:38 PM #38
I understand what you are saying, that would be great if you were a banker sitting in the bank and he walked in to apply for a loan. In our industry he is getting multiple calls every day and if one guy tells him he will never qualify for the 200K and another guy says he will submit his app and come as close as possible, he's going to send it to the guy who was more open rather than straight out telling him it's never gonna happen.
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10-23-2015, 12:49 PM #39
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- Apr 2015
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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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I disagree. He will send it to the guy that he's more confident will do the job. Outlining a long term specific program. Teaching him about the conventional and alt markets. Getting him out of the alt market over the longer term. Getting him other forms of financing. There's never a "never", just not right now. Showing him what the building process is and explaining if some fast talking salesman is telling you he can get more, he's lying.
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10-23-2015, 12:51 PM #40
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- Apr 2015
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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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PS: Bankers drop in my office every day to cold call getting business.
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10-23-2015, 01:00 PM #41
What works for me is honesty, there are alot of bull****ters. Not saying every once in a while you need to bend the truth but some merchant are straight lied to. I think being on top of your deals not letting too much time pass the merchant starts to think about the interest or fees (worse lose it to another offer). Being on top of it doesnt mean being pushy/aggressive, with money either they want it or they dont. Ive seen where being proactive really works on the application for example, filling out the application while your asking the merchant questions. When your done all they have to do is sign it, this is much easier and they will ususally sign once its all filled out for them. Best Regards...
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10-23-2015, 01:02 PM #42jotucker1983Guest
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.
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10-23-2015, 01:14 PM #43
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- Oct 2015
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- CA
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- 63
Nice Post!!!!!
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10-23-2015, 01:15 PM #44
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- Jul 2014
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Official Sales Tip Of The Day Thread
Businesses change sometimes by the quarter. A guy you can't get approved today, may be eligible for 100K in 3 or 4 months. Getting his application, getting the information, following up, and building rapport puts you first in line when he IS eligible down the road.
I believe in letting anyone and everyone apply. I have had so many merchants decline themselves in our initial conversation, convinced them to take 30 seconds, do the online application, and a week later they are thanking me profusely for saving or helping their business.
Get the app boys.
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10-23-2015, 01:23 PM #45
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John I agree with you on your points about a waste of time. You would not believe (actually you probably would) the amount of straight "garbage" submissions I get that have been sent to me with all the wrong kind of expectations because the REp/Broker has promised the guy the moon in order to get the app in. Getting an app that way isn't only a waste of time, it starts to leave a bad taste in my teams mouth and my underwriters mouths and, because we are only human, we start taking everything that broker says or sends with the proverbial "grain of salt".
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10-23-2015, 01:24 PM #46
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- Apr 2015
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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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- 554
Well put.
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10-23-2015, 01:35 PM #47
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- Jul 2014
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Official Sales Tip Of The Day Thread
Don't submit the apps to your funders that aren't going to get approved. Pretty simple. Doesn't mean you shouldn't get the app in house.
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10-23-2015, 01:50 PM #48
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10-23-2015, 02:09 PM #49jotucker1983Guest
I agree with this and I do this as well, I just don't take it the additional step further by having the guy fill out an application. After the pre-qualification is done, if I can't do anything with him right now because for example, he's stacked to high hell lol, then I setup a time in let's say 60 - 90 days to touch base to see where his status is.
I would touch base in 90 days, let's say the balances are down, everything else is still efficient, then I would go into the process of having him fill out the app and provide the last 3 - 6 months of statements.
Yeah, a lot of Brokers are just in "sales mode" and the "sales mode" is all about "closing". So to them, they "close" if they convince a merchant to send an application back. The only issue with this is that you aren't paid based on sending an application back, you are paid only when you fund something, that is unless you are somehow getting paid on app submissions.
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10-23-2015, 02:12 PM #50
this x100
If a broker is asking "How's my credit" they might think in the back of their minds they need good credit. 600 to us is gold but to them is horrible credit and if they think they need good credit, they won't bother filling out an app, especially if they were asked "How's your credit?"
An app should never be shotgunned around to everyone to see who bites, especially from the smaller shops and one man operations who don't run credit or do their own duediligence first.
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