[Michael I]

Is there any a lenders that will still do this industry ?

[AndyYSCISOdept]

Yah, I just funded a few of em in the last few days....obviously Im not going out longer than 4-6 months but money is king ini the auto sales industry.
You can call me or PM if you want

[Zach]

I love auto sales! But, what I love more, is real-estate collateral. If they have it, I'll fund it.

[BB_Cooper]

Cooper will fund used car dealers-

Robert S Bloink
EVP of ISO Partnerships
Direct: 313-218-4663
Email: bb@cooperasset.com
Web: www.cooperasset.com
logo-01smaller.jpg

[Michael Jagiello BGF]

Auto sales are doable as long as the merchant has decent revenue. Shoot me an email and we'll talk.

[pmoney]

Is there any a lenders that will still do this industry ?

Auto sales are perfect as long as they own some type of real estate (residential, commercial, even raw/vacant land). Assuming they do, max advance/loan amount would be 2x-3x their average monthly deposits (past 6 months). If you'd like to discuss it further definitely get in touch.

[Joseph Esparza]

We Fund Auto & Gas Stations...Pm me. No SIC restrictions.

[Michael I]

ok let me be clearer on what a lenders me . i have 110 k at a 7 month 1.39 paying me 12 points .i have 140k at 1.73 from wbl paying me 8% ( no its not a typo ) . i need a 15-18 month deal at the 1.38 rate

[Michael I]

Auto sales are perfect as long as they own some type of real estate (residential, commercial, even raw/vacant land). Assuming they do, max advance/loan amount would be 2x-3x their average monthly deposits (past 6 months). If you'd like to discuss it further definitely get in touch.

paul have some professional courtesy to your colleague that already answered wbl .

[Jared_Weitz]

I'm sorry but anyone charging 1.73 is completely insane. That's crazy to me

[Michael I]

I'm sorry but anyone charging 1.73 is completely insane. That's crazy to me

With $240,000 house as collateral . Merchant credit is not the best score but its all student loans that affected his score

[FUNd]

I'm sorry but anyone charging 1.73 is completely insane. That's crazy to me

People must be buying it all day long if what WBL says is true. Funny story, there was a collateral based working capital lender here in Orange County called Blackstone, that charged crazy, insane rates, like 4 year deals with the borrower putting up every last piece of equipment they owned as collateral, and paying back FOUR times the funded amount over 3 or 4 years.

Only a very small percentage were desperate enough to take the offers from them. They were always very "busy" but they literally funded only 5 or 6 deals a YEAR, and had hundreds, if not thousands of applications annually.

They were also highly profitable.

[Zach]

People must be buying it all day long if what WBL says is true. Funny story, there was a collateral based working capital lender here in Orange County called Blackstone, that charged crazy, insane rates, like 4 year deals with the borrower putting up every last piece of equipment they owned as collateral, and paying back FOUR times the funded amount over 3 or 4 years.

Only a very small percentage were desperate enough to take the offers from them. They were always very "busy" but they literally funded only 5 or 6 deals a YEAR, and had hundreds, if not thousands of applications annually.

They were also highly profitable.

I understand that the factor rate is high - no doubt about it. But that factor rate is roughly the same APR as a 1.38 for 6 months.

Why is a lender who does a 6 - month 1.3 fine and dandy, but one who does a 12-month 1.6 evil and wrong? It's the same rate. We just happen to extend 12-month terms to Yellowstone/Pearl type deals. Also, our loan size is most likely 2-3X what other other lenders would offer.

Admittedly I am being perhaps a bit defensive here, but it is a very common misconception about our product line. We offer longer terms on high-risk deals than any of our competitors, with similar rates as many of them. Due to the lengthening of the term, the factor rate will definitely be higher.

Imagine if Everest, Knight, Pearl, or Yellowstone did 12-month deals. Their 1.35-1.45 factor rates over 4-6 months would equate to 1.90-2.10 over 12 (or even higher).

If you sold our deal at 6-months you are looking at a 1.38 (and probably a much larger loan size) with a weekly payment. Not too shabby for a high risk deal, right?

[John Galt]

Put in the right perspective, how much do you pay for over a 30 year mortgage? Easily 6x the actual mortgage, how about in Europe where a 50 year mortgage is common?

[FUNd]

I understand that the factor rate is high - no doubt about it. But that factor rate is roughly the same APR as a 1.38 for 6 months.

Why is a lender who does a 6 - month 1.3 fine and dandy, but one who does a 12-month 1.6 evil and wrong? It's the same rate. We just happen to extend 12-month terms to Yellowstone/Pearl type deals. Also, our loan size is most likely 2-3X what other other lenders would offer.

Admittedly I am being perhaps a bit defensive here, but it is a very common misconception about our product line. We offer longer terms on high-risk deals than any of our competitors, with similar rates as many of them. Due to the lengthening of the term, the factor rate will definitely be higher.

Imagine if Everest, Knight, Pearl, or Yellowstone did 12-month deals. Their 1.35-1.45 factor rates over 4-6 months would equate to 1.90-2.10 over 12 (or even higher).

If you sold our deal at 6-months you are looking at a 1.38 (and probably a much larger loan size) with a weekly payment. Not too shabby for a high risk deal, right?

There is no comparison. Your deal is backed by real estate, the lenders you mentioned, have virtually no recourse in case of default.

[FUNd]

Put in the right perspective, how much do you pay for over a 30 year mortgage? Easily 6x the actual mortgage, how about in Europe where a 50 year mortgage is common?

Yeah John, a 30 YEAR mortgage. How can you even compare that to this situation here?

[JoeLepkoski]

There is no comparison. Your deal is backed by real estate, the lenders you mentioned, have virtually no recourse in case of default.

Agreed, a 6 month 1.45 with Yellowstone, EBF, Knight, etc with no collateral is more enticing than a 6 month 1.38 that requires the merchants home to be put up as collateral.

[Zach]

There is no comparison. Your deal is backed by real estate, the lenders you mentioned, have virtually no recourse in case of default.

To clarify, because we have collateral, we have to offer:

1. 2-3X the size of our competitor's offer
2. Longer terms than any of our competitors
3. Lower rate

We have to beat the competition in every single category for our product to be viable? No way!

We beat our competition on loan size and term every time, and in many cases the rate as well (1.73 for 12 is much better than 1.45 for 4).

[Zach]

Agreed, a 6 month 1.45 with Yellowstone, EBF, Knight, etc with no collateral is more enticing than a 6 month 1.38 that requires the merchants home to be put up as collateral.

Keep in mind that our loan size is going to be much larger as well. $50K might be more enticing to the merchant than $15K. Plus we will probably give them the option to go out to 12-36 months.

[Michael I]

seriously wbl reps , you need to have respect for each other . after calling out paul for jumping on after zach i get two pm from different wbl reps .
I am loyal to my rep that i have been with since pretty much the beginning of wbl , just dont fund as much since they stopped using vehicles

[pmoney]

Keep in mind that our loan size is going to be much larger as well. $50K might be more enticing to the merchant than $15K. Plus we will probably give them the option to go out to 12-36 months.

Exactly. If a merchant needs $150k but a MCA will only get them $60k it then becomes a major decision that they have to make. Do they take 60% less than they need going an unsecured route, or do they pledge a property they own as collateral to get that extra $90k? Ultimately every consumer is different.

[FUNd]

To clarify, because we have collateral, we have to offer:

1. 2-3X the size of our competitor's offer
2. Longer terms than any of our competitors
3. Lower rate

We have to beat the competition in every single category for our product to be viable? No way!

We beat our competition on loan size and term every time, and in many cases the rate as well (1.73 for 12 is much better than 1.45 for 4).

Nobody is challenging the fact that you must make certain concessions - to win deals. You would be out of business in an hour if you just offered the same deals YSC or Pearl was offering, that's common sense. It's the rate that's kind of out there. I'm not saying you guys aren't all rolling in the dough and pushing $100,000 sports cars, like you say you are, not at all. I think a few people on here are surprised to see a 1.7--anything---on deals collateralized by a very strong instrument, real estate.

[MCABroker]

But with no collateral, if they default they don't lose their house or property. The justification for the short term and high rates is that it's unsecured...

[John Galt]

Honestly the point is the client pays 6x principal and no principal is repaid in the first 5- 7 years. Yet it's legal. It is not so far fetched to make a comparison to our mafia based loans (but they don't break your legs if you don't pay).