[rc23]

Hello,

This is my first post since registering with this forum but yes, I did peek for years...mostly harsh jokes from senior members.

Couple years ago I had opportunity to start and build a subsidiary MCA company under CC Processing ISO mother company, as an employee.
and I took up the project

Funded close to 40M and managed default ratio under 1.3% with minimal number of overheads (when I left the company)
It has been 4 months that I am off from the market but close investors wants to get in to this industry so I decided to give a shot again.

I am the point that I will receive small amount of fund from investors. Before I do that I just wanted to have more options to boost the starting point.

Also partnering with others and investor relations are new to me so I needed some advice.
Here are my questions, any inputs will be greatly appreciated!

- How does syndicating works in general and profit/risk sharing
- How do you raise capital after having a strong minimal default ratio portfolio? (ownership share? 11~15% APR?)
- Is there a company that provides business loan to MCA company based on their AR?
- Is there a Split Service company? (split only, no cc processing, no lock box)
- If I become an ISO, is there company that provides flat wholesale rate/bottom rate to ISO? (based on A~D)

Thanks in 'ADVANCE' and this is great forum~!!!!

RC

[HDF]

Jay Balls.jpg

[MCNetwork]

rc23, do you have an existing client base or are you starting from scratch?

[rc23]

not starting from scratch.

[FUNd]

Jay Balls.jpg

lol

[mcaguru]

Hello,

This is my first post since registering with this forum but yes, I did peek for years...mostly harsh jokes from senior members.

Couple years ago I had opportunity to start and build a subsidiary MCA company under CC Processing ISO mother company, as an employee.
and I took up the project

Funded close to 40M and managed default ratio under 1.3% with minimal number of overheads (when I left the company)
It has been 4 months that I am off from the market but close investors wants to get in to this industry so I decided to give a shot again.

I am the point that I will receive small amount of fund from investors. Before I do that I just wanted to have more options to boost the starting point.

Also partnering with others and investor relations are new to me so I needed some advice.
Here are my questions, any inputs will be greatly appreciated!

- How does syndicating works in general and profit/risk sharing
- How do you raise capital after having a strong minimal default ratio portfolio? (ownership share? 11~15% APR?)
- Is there a company that provides business loan to MCA company based on their AR?
- Is there a Split Service company? (split only, no cc processing, no lock box)
- If I become an ISO, is there company that provides flat wholesale rate/bottom rate to ISO? (based on A~D)

Thanks in 'ADVANCE' and this is great forum~!!!!

RC

Email below. I HELP EVERYONE !! about a year ago a guy drove me crazy with question and now sends 30 files a day! (Hello B.R. ) (maybe sending for double digit commissions or our speed replies or perhaps fewest stips in the industry when files are under 25K!) everyone is important!!

[rc23]

Thank you Marcus

[SCP]

Hello,

- How does syndicating works in general and profit/risk sharing
- How do you raise capital after having a strong minimal default ratio portfolio? (ownership share? 11~15% APR?)
- Is there a company that provides business loan to MCA company based on their AR?
- Is there a Split Service company? (split only, no cc processing, no lock box)
- If I become an ISO, is there company that provides flat wholesale rate/bottom rate to ISO? (based on A~D)

Thanks in 'ADVANCE' and this is great forum~!!!!

RC

1. I'll assume you understand the general scope of syndication, seeing as you've been in the industry. The important things to consider are that you'll generally pay a processing or underwriting fee (call it 3%) and that most funders will allow you to syndicate up to 50% of the total origination. If you're starting with minimal capital, start syndicating on better paper grades and to a lesser extent i.e. 5% on this deal, 10% on this deal, etc.. and work your way up as returns start pouring in.
2. Raising capital is raising capital. If you're seeking an equity backer you'll want to go the FFF method (Friends, Family, Fools) then Angel then VC but I have a feeling you're referring to debt. Raising debt capital, especially to contribute to directly funded deals, is relatively easy to accomplish in this industry. You'll hear members throw numbers all across the board, but personally I'd look for a debt financier who will be comfortable with 8-12% APR and no more.
3. Not that I'm aware of. Are you talking about another company in the MCA / AltLend space or more of a traditional financing shop?
4. Unsure, I'll let other members chime in.
5. Yes, there's a couple where that's there model. The deal will fall into a category (call it "Gold, Silver, Bronze") and be rated on their buy rates accordingly or it will be a sell rate with room to cut into your commissions if needed. And of course there's always room to negotiate to get rates lower without hitting your bottom line