Trucking/ Transporation

**mcaguru** · 03-07-2016, 11:17 AM

Can anyone speculate why I'm seeing 30 Files a day (est) in the Trucking /Transportation sector? we are making offers and love the space just wondering were the influx is coming from..did a large funder blacklist them??

**TStein** · 03-07-2016, 12:30 PM

Seasonality. Not many gatekeepers. Less likely to be eligible for a bank loan.

Personally I don't like the industry.

**FUNd** · 03-07-2016, 12:37 PM

Originally Posted by mcaguru

Can anyone speculate why I'm seeing 30 Files a day (est) in the Trucking /Transportation sector? we are making offers and love the space just wondering were the influx is coming from..did a large funder blacklist them??

It's because you guys are the best, most awesome lender in the space and ISOs can't help burying you in juicy, fundable trucking deals...

**TStein** · 03-07-2016, 12:39 PM

Originally Posted by FUNd

It's because you guys are the best, most awesome lender in the space and ISOs can't help burying you in juicy, fundable trucking deals...

I was going to send the deal to an A paper funder, but then I remembered the DOUBLE DIGIT COMMISSIONS

**dpFund** · 03-07-2016, 12:53 PM

Originally Posted by mcaguru

Can anyone speculate why I'm seeing 30 Files a day (est) in the Trucking /Transportation sector? we are making offers and love the space just wondering were the influx is coming from..did a large funder blacklist them??

I asked this forum the same question a few months ago, since we see so many trucking deals. We have funded a lot of them and have learned a lot about how to pick the good ones from the bad ones. A lot of lenders will not touch them. Just ask some guys about "trucker credit" and you will get an earful. But there are some good ones out there. You and I do not compete, since I am not a MCA lender and most of the trucker deals I have done have been consolidations (ranging from $200k to $1.2M) with cash out.

Best,

Dan Page
dan@fundingstrategypartners.com

**FUNd** · 03-07-2016, 01:06 PM

Originally Posted by dpFund

I asked this forum the same question a few months ago, since we see so many trucking deals. We have funded a lot of them and have learned a lot about how to pick the good ones from the bad ones. A lot of lenders will not touch them. Just ask some guys about "trucker credit" and you will get an earful. But there are some good ones out there. You and I do not compete, since I am not a MCA lender and most of the trucker deals I have done have been consolidations (ranging from $200k to $1.2M) with cash out.

Best,

Dan Page
dan@fundingstrategypartners.com

Not to mention they like to talk to you on speaker phone while doing 75 MPH on the highway with both windows rolled down and the CB radio turned up to max volume. I hate dealing with them.

**VFG** · 03-07-2016, 01:33 PM

The margins in the transportation industry have been reduced due to the low cost of gas. It has become much more competitive for truckers to get loads given the rate decreases. This is one of the reasons as to why the high demand of working capital on their end.

**FUNd** · 03-07-2016, 01:46 PM

Originally Posted by VFG

The margins in the transportation industry have been reduced due to the low cost of gas. It has become much more competitive for truckers to get loads given the rate decreases. This is one of the reasons as to why the high demand of working capital on their end.

When fuel costs go up, margin is reduced, now when fuel costs go down, margin is reduced. No wonder it's classified as a a high-risk SIC.

**ridextreme** · 03-07-2016, 02:14 PM

I believe a lot of the lead source companies are also targeting them. Also, there are a lot of UCC's filed from freight factoring co's.

**VFG** · 03-07-2016, 02:24 PM

Fund you got that right!!!

**VFG** · 03-07-2016, 02:29 PM

Also the smaller companies will have multiple entities setup under their wife's, cousins, kids name with their authority and MC ready for in the event they need to close out their operating business and start under a new entity

**FUNd** · 03-07-2016, 03:26 PM

Originally Posted by VFG

Also the smaller companies will have multiple entities setup under their wife's, cousins, kids name with their authority and MC ready for in the event they need to close out their operating business and start under a new entity

Scumbags.

**mcaguru** · 03-07-2016, 04:41 PM

the factoring they rely on and ucc filing theory may hold some truth..but then why the sudden influx? same with construction seems like they are 20% of our flow.

**mcaguru** · 03-07-2016, 04:42 PM

Originally Posted by TStein

I was going to send the deal to an A paper funder, but then I remembered the DOUBLE DIGIT COMMISSIONS

Before long someones going to say your on my payroll

**AndyYSCISOdept** · 03-07-2016, 04:45 PM

^Nice.^

**VFG** · 03-07-2016, 05:32 PM

I can speak for transportation as I do not factor many companies in the construction industry. Companies in the transportation industry typically move fast. They open and close with a snap of a finger and the typical owner of a trucking business is always looking to add 2-3 trucks to their fleet (hence their need for capital)

The problem is usually on the smaller guys who typically go over the regulations and get burned quickly (drive more than the required 10 hours, get coked up, crash while drunk, etc).

Last year we bought leads from a DOT source and we received anywhere between 5k to 15k leads per month of new companies who registered for their DOT and now we have more leads than we can handle (of course for factoring which typically works at a slower pace than MCA)

**VFG** · 03-07-2016, 05:33 PM

This is where the influx comes out of I believe

**FUNd** · 03-07-2016, 05:35 PM

I'm feeling a disruption in the Force at the beginning of March here, anyone else feel it?

**mcaguru** · 03-07-2016, 05:44 PM

Originally Posted by FUNd

I'm feeling a disruption in the Force at the beginning of March here, anyone else feel it?

explain?

**FUNd** · 03-07-2016, 05:57 PM

Originally Posted by mcaguru

explain?

Deal flow, submissions, much weaker YOY than March 2015. Things were flying in Jan and Feb, and the 1st week of this month, a big slowdown. Could just be the ebb and flow, or something with my marketing...

**mcaguru** · 03-07-2016, 06:05 PM

Originally Posted by FUNd

I'm feeling a disruption in the Force at the beginning of March here, anyone else feel it?

what company you at?

**FUNd** · 03-07-2016, 06:06 PM

Originally Posted by mcaguru

what company you at?

Please, no marketing calls.

**mcaguru** · 03-07-2016, 06:10 PM

that's not why i asked to0 answer your questions No things are steady.

**FUNd** · 03-07-2016, 08:21 PM

Originally Posted by mcaguru

that's not why i asked to0 answer your questions No things are steady.

Plenty of people know who I am and who I represent on this board. I keep my pedigree info off the public feed because I don't want 25 WBL emails in my inbox. They are already stalking my LinkedIn.

Thanks for answering though.

**mcaguru** · 03-08-2016, 10:15 AM

WBL are good peeps. Everyone is working hard to make a living. its me and you that are having fun doing it

Thread Tools

Display