Results 26 to 48 of 48
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03-22-2016, 03:50 PM #26
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03-22-2016, 03:54 PM #27
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Another company that has a revenue model that doesn't make much sense is www.fundbox.com. They charge a flat fee of $50-$80 over 3 months. No interest is being charged.
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03-22-2016, 04:22 PM #28
personally I dont get
a model that is based on losing money in the present on purpose for the hope of making money in the future.. I get a new business that loses money until it starts making money, but to have a model that is based on the premise that we will lose money now and hope to make money later makes very little sense to meJohn Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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03-22-2016, 04:27 PM #29
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That model is like the one used by a little company called Amazon.com
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03-22-2016, 04:33 PM #30
yes but they wanted to make money and new the sales would catch up once they did the volume. I dont care home much volume they do at those rates they will never make money on the first loan at those rates. Amazon as sales went up in volume they had enough static costs that they knew they could be profitable on sales when they got to a certain point. Charging 6% over 6 months and 13% over 12 I dont see how they could ever be profitable on that first loan with all the different over head costs in order to fund the deals, especially when most of those costs aren't static. The more you fund the more the over head will be.
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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03-22-2016, 04:34 PM #31
Isn't this the same model that On Deck used...and has been using? How's it working out for them?
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03-22-2016, 04:36 PM #32
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Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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03-22-2016, 04:38 PM #33John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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03-22-2016, 04:49 PM #34
But how about being able to capture the client from all ends. Think about all of the leasing business that comes from the portfolio of working capital merchants. After getting them with there capital program they are charging 15-20% over 1-5 years for equipment. This program is to just assist the customers needs after purchasing equipment. I'm not saying 100% of the time that is the reason why they do it but if I had to take a logical guess it would be around 80% of the time its after they finance equipment for there merchants. Also no one should be comparing OnDeck to Direct Capital as they are not even close to the same company nor have the same business model. They are 100% direct and have a substantially low default rate, they are 80% equipment financing & leasing, and have been in business for over 17 years.
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03-22-2016, 04:52 PM #35
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03-22-2016, 04:56 PM #36
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03-22-2016, 08:31 PM #37
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- Dec 2013
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I have also had a merchant getting loans from Direct Capital-they stack their own deals and still offer these insane rates. My merchant had three payments coming out daily. I thought she was lying initially when she said she went with the same lender, but three months later she sent recent statements with two more payments added and sent me her 3rd agreement to show rate.
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03-23-2016, 10:27 AM #38
- Join Date
- Jan 2016
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- 42
The more you fund the more your direct costs will be. Overhead expenses are your fixed expenses or indirect expenses, those that can't be directly attributed to the product or service provided.
Direct Capital as an affiliate of CIT is a whole different animal. CIT acquired OneWest Bank, putting about 60% of their funding in the form of deposits. CIT is now a SIFI, systematically important financial institution. When they acquired Direct Capital, CIT basically imposed these low rates on Direct Capital because they already had regulators up their ass and they were trying to get the OneWest deal done. OneWest was the surviving entity of IndyMac, an innovator in "no-doc" mortgages and major contributor to the financial crisis.
It's possibly a play to increase customer lifetime value by these large universal banks. Will be interesting to see how it shakes out, especially with Chase getting into it with OnDeck's platform. Pretty sure you will see the same rates with Chase as Direct Capital/CIT.
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03-23-2016, 10:32 AM #39
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- Oct 2014
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Direct Capital 1.08 factor rate for 10 months??????
Direct Capital is a legitimate bank. They offer leases on a daily and now traditional loans the same way. I think they are out if New Hampshire.
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03-23-2016, 10:51 AM #40
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03-23-2016, 03:05 PM #41
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Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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03-23-2016, 03:44 PM #42
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- Sep 2015
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- Miami, FL
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- 189
Direct Capital 1.08 factor rate for 10 months??????
In my opinion I see factor rates dropping and commissions as well.
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03-23-2016, 03:55 PM #43
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- Ann Arbor, Michigan
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Direct Capital 1.08 factor rate for 10 months??????
I agree with that analysis.
The more successful players in the future will expand into other, more traditional financial products.
Bob
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03-23-2016, 03:56 PM #44
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I just lost a 100K deal to On Deck. They offered the guy a 9 month 1.16 with zero origination fees. Jeez...
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03-23-2016, 04:26 PM #45
Yup, they sell it at the buy rate....no junk fees attached.
Have to be mighty quick and pretty on point to beat those deals
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03-23-2016, 04:28 PM #46
- Join Date
- Mar 2015
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- Boynton Beach
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Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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03-26-2016, 01:37 PM #47
They must have some ancillary way of making money on these deals... Equipment leases, etc
Zachary Ramirez – CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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04-22-2016, 08:01 AM #48
- Join Date
- Jun 2014
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- 195
Can is now doing 36 month 120's
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