[bigrnyc]

The merchant cash advance industry sucks . Ive been in this business for now 1 year after 20 years of sales experience and what i find is that this industry is the craziest thing I have ever seen .

Underwriters are slow and never communicate , Merchants never want the deal you have and you never have the deal they want. when you work for a firm they take all of the points on the deals and give you crumbs of the table . If you work independent the marketing behind the deals is so expensive that if you dont convert your crushed and every funder can fund everything until you send them a file.lol Only to get the same old DECLINE . I know im a picker and venting after a bad day but i dont feel like anyone is making real money like we did in the old days this is just corny.

[HDF]

Hi Big. Keeping in mind what you now know, what would you do different when entering the space? Do you have any edge over the competition that differentiates you? Newer brokers, ISOs and funders need to have something tangible that gives them some edge - any edge.

If you came from a business to consumer industry, this is a very different animal. And unless you get to know your funders and underwriters well (and personally if possible) your volume dictates your treatment. I understand your pain, and marketing is the piece that most smaller players don't have their arms around going in. Good luck.

[TheShitzuofMCA]

The merchant cash advance industry sucks . Ive been in this business for now 1 year after 20 years of sales experience and what i find is that this industry is the craziest thing I have ever seen .

Underwriters are slow and never communicate , Merchants never want the deal you have and you never have the deal they want. when you work for a firm they take all of the points on the deals and give you crumbs of the table . If you work independent the marketing behind the deals is so expensive that if you dont convert your crushed and every funder can fund everything until you send them a file.lol Only to get the same old DECLINE . I know im a picker and venting after a bad day but i dont feel like anyone is making real money like we did in the old days this is just corny.

Sounds like you came a little late into it bud, I mean whatever the situation you have where your at is. Its unfortunate some of the guys at the top of the industry suck the life force out of the new ones trying to get into it by giving them bread crumbs on the deals they close. The other case is your probably new/green and not adhering to the guidelines of each funder or creating a strong relationship with someone in that shop. I can tell you that yes alot of people make alot of money and others make enough to have a decent living like me. lol (strippers, fast cars, the coco) jk... Stick with it try to partner up with someone that isnt greedy and knows the industry. There is still alot of money to be made but you have to change your attitude a little bit too.

[Michael I]

The merchant cash advance industry sucks . Ive been in this business for now 1 year after 20 years of sales experience and what i find is that this industry is the craziest thing I have ever seen .

Underwriters are slow and never communicate , Merchants never want the deal you have and you never have the deal they want. when you work for a firm they take all of the points on the deals and give you crumbs of the table . If you work independent the marketing behind the deals is so expensive that if you dont convert your crushed and every funder can fund everything until you send them a file.lol Only to get the same old DECLINE . I know im a picker and venting after a bad day but i dont feel like anyone is making real money like we did in the old days this is just corny.

curious what you call real money ?
50k ? 100k ? 200k ? 300K ? over 500k

[Jstarr]

It Sucks ? Tell that to my wife while she is sipping her latte on our patio overlooking the ocean every morning...

it sounds like you've surrounded yourself with the wrong person - when we started out in this business we were doing deals just as you mentioned and i can tell you that the relationship is key and having a good mentor is even better , we've since moved on in another direction with real estate and started a fund , but i can tell you first hand - When i started brokering deals we closed about 98% of our approved deals. closing over 1M in MCA's monthly.. - It is a very tough and competitive industry, but if you put in the time it will payoff.

The merchant cash advance industry sucks . Ive been in this business for now 1 year after 20 years of sales experience and what i find is that this industry is the craziest thing I have ever seen .

Underwriters are slow and never communicate , Merchants never want the deal you have and you never have the deal they want. when you work for a firm they take all of the points on the deals and give you crumbs of the table . If you work independent the marketing behind the deals is so expensive that if you dont convert your crushed and every funder can fund everything until you send them a file.lol Only to get the same old DECLINE . I know im a picker and venting after a bad day but i dont feel like anyone is making real money like we did in the old days this is just corny.

[J.Celifarco]

The merchant cash advance industry sucks . Ive been in this business for now 1 year after 20 years of sales experience and what i find is that this industry is the craziest thing I have ever seen .

Underwriters are slow and never communicate , Merchants never want the deal you have and you never have the deal they want. when you work for a firm they take all of the points on the deals and give you crumbs of the table . If you work independent the marketing behind the deals is so expensive that if you dont convert your crushed and every funder can fund everything until you send them a file.lol Only to get the same old DECLINE . I know im a picker and venting after a bad day but i dont feel like anyone is making real money like we did in the old days this is just corny.

if you work for the right company absolutely.. Like any industry there are good shops and bad shops sounds like you worked for some bad shops

[FUNd]

Tell that to my wife while she is sipping her latte on our patio overlooking the ocean every morning...

Let it be known, this is my 1st nomination for DOUCHE quote of the year.

[FUNd]

The merchant cash advance industry sucks . Ive been in this business for now 1 year after 20 years of sales experience and what i find is that this industry is the craziest thing I have ever seen .

Underwriters are slow and never communicate , Merchants never want the deal you have and you never have the deal they want. when you work for a firm they take all of the points on the deals and give you crumbs of the table . If you work independent the marketing behind the deals is so expensive that if you dont convert your crushed and every funder can fund everything until you send them a file.lol Only to get the same old DECLINE . I know im a picker and venting after a bad day but i dont feel like anyone is making real money like we did in the old days this is just corny.

I agree with you in many ways. It's very hard dude. There are few industries as competitive and cut throat, and only the top 10% make money and survive, the rest wash out. It's sad but true. If you can't find your niche, a good company, or pay your bills, get OUT. Don't waste time and listen to ****ty promises from fools that will use and abuse you. It's not for everyone!

[anonymous]

Lol @ JStarr and his alleged closing rate.

[FUNd]

Lol @ JStarr and his alleged closing rate.

98% dude. He's that good.

[Jstarr]

you know I'm okay with that, I've made a FANTASTIC Living for myself and helped others do the same. YES I am an an absolute DOUCHE - but at the end of the day i keep people employed and provide returns for our investors - i would prefer Capital " DOUCHE " and i'm sorry your not happy at your current position that you feel the need to call people out like that , it was a simple reply to a comment on an industry that has made my family VERY secure.

sincerely : CAPTAIN DOUCHEBAG #GETAJOB

Let it be known, this is my 1st nomination for DOUCHE quote of the year.

[Jstarr]

i would be happy to compare books any day !!!

98% dude. He's that good.

[HDF]

Going out on a limb and guessing that will not go without a response. Douche is on fire!

[FUNd]

you know I'm okay with that, I've made a FANTASTIC Living for myself and helped others do the same. YES I am an an absolute DOUCHE - but at the end of the day i keep people employed and provide returns for our investors - i would prefer Capital " DOUCHE " and i'm sorry your not happy at your current position that you feel the need to call people out like that , it was a simple reply to a comment on an industry that has made my family VERY secure.

sincerely : CAPTAIN DOUCHEBAG #GETAJOB

Aye aye, captain.

[FUNd]

i would be happy to compare books any day !!!

We're not talking about comparing books, I never claimed to close every approval I get, you did. So, let's see it, captain.

[Fundyman]

It Sucks ? Tell that to my wife while she is sipping her latte on our patio overlooking the ocean every morning...

it sounds like you've surrounded yourself with the wrong person - when we started out in this business we were doing deals just as you mentioned and i can tell you that the relationship is key and having a good mentor is even better , we've since moved on in another direction with real estate and started a fund , but i can tell you first hand - When i started brokering deals we closed about 98% of our approved deals. closing over 1M in MCA's monthly.. - It is a very tough and competitive industry, but if you put in the time it will payoff.

J, over 1M in MCA's monthly sounds really good. Now, the magic question is "what year was that?" Here's magic question #2: How did you generate that much business? Did you purchase leads? Did you open up an ISO house? Did you cold-call like a madman? I'd personally like to know because I'm still learning & growing a lot in this industry. I would like to have an idea what works and what myths in the industry.

[FUNd]

J, over 1M in MCA's monthly sounds really good. Now, the magic question is "what year was that?" Here's magic question #2: How did you generate that much business? Did you purchase leads? Did you open up an ISO house? Did you cold-call like a madman? I'd personally like to know because I'm still learning & growing a lot in this industry. I would like to have an idea what works and what myths in the industry.

Nothing works, it's all terrible, the industry is dead. Everybody quit please. Go do something else.

[Fundyman]

F#ck comparing books. Now, you're steering away from the original post, as usual, and getting into your own personal feelings. The new broker is seeking help. If some claim they can make a bunch of money in this industry, that's encouraging news! Now, what's really helpful is the "HOW" part...

One main important thing that J mentioned was "get a mentor." I honestly believe that will perhaps make the greatest difference in a broker's life. And no, it's not for everybody in fact, but anybody can make money in this industry. Your attitude is perhaps the most important thing to change in this industry.

Also, there is such a thing as SCREENING your file prior to submitting. If you just cold-call, for example, you're gonna jump on every merchant who gives you attention and returns an app w/ docs, without realizing when you have a s#!+ file in your hands. That can be very time-consuming, discouraging, and flat out dangerous to your success. Learn how to weed out a dead file. It won't get funded anywhere, but you'll find out that the merchant themselves is calling you all day asking you if you found them some funds. Don't waste your time.

Also, you'll save a lot of time asking questions on this forum, running a potential deal scenario on here prior to submitting it to your usual lenders, and be surprised that you tough file has a home with a funder you had never heard of before. This forum is EXTREMELY powerful, especially to a new broker. I didn't find Daily Funder until the end of my 2nd year in the business. Cost me god-knows amounts of dollars & frustrations...

Many funding companies will allow you to upsell a factor rate north of 10 points, allowing you to make up to 17 points in commissions (will you ever actually see 17 pts on any particular deal?) Nah... But 12-15 pts are very realistic. Plus, if it's a crap file, don't expect to make max commissions. Rule of thumb.

Another very important factor is that if you have a very difficult deal to fund but it's not D paper, you may find the niche lender who will fund it, but their model will only allow you to make 4-6 points; sometimes even just 2-3. Ask yourself the question: What's more important for you? Earning huge points on every deal, or developing your books for long-term clientele?

But definitely change your attitude. The way you view the industry is directly proportional to the way you will perform in this industry. I hope that helps.

[KTK]

@fund. Sometimes I disagree with you but with this we stand united lol. The business shut down guys, and the Shanghai Composite closed up 50 points today, go for the 7.

[golf2014]

You have to offer something different..this isn't snap fingers make money

[FUNd]

F#ck comparing books. Now, you're steering away from the original post, as usual, and getting into your own personal feelings. The new broker is seeking help. If some claim they can make a bunch of money in this industry, that's encouraging news! Now, what's really helpful is the "HOW" part...

One main important thing that J mentioned was "get a mentor." I honestly believe that will perhaps make the greatest difference in a broker's life. And no, it's not for everybody in fact, but anybody can make money in this industry. Your attitude is perhaps the most important thing to change in this industry.

Also, there is such a thing as SCREENING your file prior to submitting. If you just cold-call, for example, you're gonna jump on every merchant who gives you attention and returns an app w/ docs, without realizing when you have a s#!+ file in your hands. That can be very time-consuming, discouraging, and flat out dangerous to your success. Learn how to weed out a dead file. It won't get funded anywhere, but you'll find out that the merchant themselves is calling you all day asking you if you found them some funds. Don't waste your time.

Also, you'll save a lot of time asking questions on this forum, running a potential deal scenario on here prior to submitting it to your usual lenders, and be surprised that you tough file has a home with a funder you had never heard of before. This forum is EXTREMELY powerful, especially to a new broker. I didn't find Daily Funder until the end of my 2nd year in the business. Cost me god-knows amounts of dollars & frustrations...

Many funding companies will allow you to upsell a factor rate north of 10 points, allowing you to make up to 17 points in commissions (will you ever actually see 17 pts on any particular deal?) Nah... But 12-15 pts are very realistic. Plus, if it's a crap file, don't expect to make max commissions.

We routinely make 20 points on certain files that are approved by one of our favorite funding sources. They have a picky appetite, but 20 points makes a small deal into a healthy commission.

[Fundyman]

We routinely make 20 points on certain files that are approved by one of our favorite funding sources. They have a picky appetite, but 20 points makes a small deal into a healthy commission.

100%!!! But I'm sure in order to make that kind of commissions on deals, you must be submitting at least $500K/mo in paper to that company! No? The most I've ever been able to make on any deal is 17 pts by myself. I have a colleague who gets to upsell 20 pts, so if I co-broker through him we can both eat at 10 pts on the deal. I figure if he has that relationship & I need something funded quickly, I just submit it through him, but I don't think he has that relationship with every lender.

Do you make 20 points with most funding companies you work with or is it just one specific lender you built business with? How does one get to that level? That's great stuff!

[Zach]

National Funding pays 20 points, as does MFS global

[Fundyman]

National Funding pays 20 points, as does MFS global

Didn't even know MFS Global was still around...... Thanks, Zach!

I always thought the 20 pts MFS paid was some hoax commissions, like 20 points on the difference between purchase price & funded amount or something ridiculous... a true 20 pts is really impressive; especially if it really happens!

[NewWay ISO]

The merchant cash advance industry sucks . Ive been in this business for now 1 year after 20 years of sales experience and what i find is that this industry is the craziest thing I have ever seen .

Underwriters are slow and never communicate , Merchants never want the deal you have and you never have the deal they want. when you work for a firm they take all of the points on the deals and give you crumbs of the table . If you work independent the marketing behind the deals is so expensive that if you dont convert your crushed and every funder can fund everything until you send them a file.lol Only to get the same old DECLINE . I know im a picker and venting after a bad day but i dont feel like anyone is making real money like we did in the old days this is just corny.

Of course it sucks. Welcome to an industry that was hot five years ago. If you put yourself on to a calling list by a mistake, (like I did with one aggregator two years ago), you get at least 50 calls a month that goes something like this: "congratulations!!!! You're business has been pre-approved for xxxx blah.. blah.." I get these calls a few times a week, for the last two years..
One might wonder, if I DO enjoy these phone calls, since I never tried to get myself off the lists.. But indeed I do enjoy them.. It's like music from the nineties..
So cold calling is dead. If I get it so frequently, so does everyone with a yellow book number..
UCC and all the other tricks are also quite dead by now. People are getting sick..
The problem is that we forget about Google. Google. Google.
I'm in this space for a long time. I never had a merchant that doesn't use Google.. I say the words 'Merchant cash advance' the guy googles it in a second. Then I have OnDeck Kabbage and some other broker pop up right in his face.. So why wouldn't he try them too? Now it's game over. They found them. They don't need us..
My point is that instead of running around trying to beat the system. Why don't you sit down with a good marketing guy, read some books yourself, and throw some serious money into google ads or facebook or whatever.. and Bingo. you have yourself a business.
This is the only thing left today.
Anyone disagree?