[bigrnyc]

I've been in this business for a year and I can say this is the hardest thing I've ever done from a business perspective . I read the post and I just get the feeling most people in this industry are spinning there wheels going nowhere .Most merchants I speak to have taken the cash advance under the pretense of a. Lie that they will get Progressively better pricing and Better terms yeah rigth you will get stacked on until you go bankrupt how is this business sustainable or scalable if your killing the life line of the business the merchant . I can go on for days obviously but I look forward to the feed back

[Collection Specialist]

The industry makes money obviously, but perhaps your issue is the leads. The "Glengarry" leads are far and few between and from your post I seems you are calling UCC leads that everyone works? Not everyone is out to hurt a merchant but you are correct that some simply don't care and put a merchant in an untenable situation.

This industry is like any other. The good and the bad exist and you can make a lot or a little. Perhaps your issues arise from your current business model or the way in which you have been scaling.

The best way I believe any successful business can be built is by looking at a successful model, and trying to emulate it as best you can.

[FUNd]

I've been in this business for a year and I can say this is the hardest thing I've ever done from a business perspective . I read the post and I just get the feeling most people in this industry are spinning there wheels going nowhere .Most merchants I speak to have taken the cash advance under the pretense of a. Lie that they will get Progressively better pricing and Better terms yeah rigth you will get stacked on until you go bankrupt how is this business sustainable or scalable if your killing the life line of the business the merchant . I can go on for days obviously but I look forward to the feed back

Fail rate is very high. Competition is crazy. If you can't spend money on marketing, including a sizable outbound sales force, you are a dead duck. A little office, a couple of VOIP phones and a cute website with a cartoon tutorial on 'Bob, the business owner who was turned down at his bank.' doesn't cut the mustard anymore. You need to do a 5-10K spend PER rep PER month and convert approvals at 40% or better to see a profit. And you better make sure those dollars are well spent and the deals put into the right funder to be competitive. A misplaced deal with an inferior offer will quickly have you listening to a dial tone when you call to pitch the merchant.

What I am saying is that this is no longer easy money. Get out if you don't have the legs to stay in, which it seems like you don't. It's only going to get harder.

[TheShitzuofMCA]

Too much competition, most merchants you will be calling on those lists have MCA experience taking one or rejecting offers. Like FUNd said the days of just setting up a phone line with leads is gone. You need to find a niche or advertise/market yourself in someway. There is still money to be made but the industry is changing constantly instead of trying what everyone else is doing why not try to find a better way to do it, I can tell you even the industry leaders are thinking whats next always in MCA. So nothing is set in stone yet.

[skideeppow]

I ve been in the business for 10 years. Much harder now. I have tried everything and mailers that had great responses 3 years ago are worthless today.
Good luck.

[jotucker1983]

I've been in this business for a year and I can say this is the hardest thing I've ever done from a business perspective . I read the post and I just get the feeling most people in this industry are spinning there wheels going nowhere .Most merchants I speak to have taken the cash advance under the pretense of a. Lie that they will get Progressively better pricing and Better terms yeah rigth you will get stacked on until you go bankrupt how is this business sustainable or scalable if your killing the life line of the business the merchant . I can go on for days obviously but I look forward to the feed back

I'm sure you were sold on the "rah rah" speech of how "everybody" is making $20,000 per month, but the reality is that the boom in this industry is over from the "newcomer" standpoint and from the standpoint of the small, low budget broker shop.

The only people that are going to make money going forward are those who have:

1.) Built-in portfolios already

2.) Built-in strategic networks already to get exclusive data or referrals

3.) Very high capital sources already to spend a significant amount in marketing

Notice I use the word "already" with all three of these, because coming in as a new comer right now is going to be very difficult to setup these networks. Hell, even a lot of the quality Data Suppliers are restricting who they even allow to purchase data from them.

The industry is pretty much turning into a monopoly. Hey, that's just my analysis and point of view.

So here's my advice to you, get the hell out of here and preserve your capital. Take the 1 year of experience you have, put it on your resume, and use it (along with your other forms of experience/education) for assistance to land you another job.

You have nothing to be ashamed of, hell I've been in this industry (merchant services/merchant financing) for nearly 10 years and I'm making plans to take up new ventures very soon myself.

[Rob Buchanan]

I ve been in the business for 10 years. Much harder now. I have tried everything and mailers that had great responses 3 years ago are worthless today.
Good luck.

Have you tried mailing to the business owner's home address? We offer this type of data.

[FUNd]

I'm sure you were sold on the "rah rah" speech of how "everybody" is making $20,000 per month, but the reality is that the boom in this industry is over from the "newcomer" standpoint and from the standpoint of the small, low budget broker shop.

The only people that are going to make money going forward are those who have:

1.) Built-in portfolios already

2.) Built-in strategic networks already to get exclusive data or referrals

3.) Very high capital sources already to spend a significant amount in marketing

Notice I use the word "already" with all three of these, because coming in as a new comer right now is going to be very difficult to setup these networks. Hell, even a lot of the quality Data Suppliers are restricting who they even allow to purchase data from them.

The industry is pretty much turning into a monopoly. Hey, that's just my analysis and point of view.

So here's my advice to you, get the hell out of here and preserve your capital. Take the 1 year of experience you have, put it on your resume, and use it (along with your other forms of experience/education) for assistance to land you another job.

You have nothing to be ashamed of, hell I've been in this industry (merchant services/merchant financing) for nearly 10 years and I'm making plans to take up new ventures very soon myself.

This is the sad, and quite sobering truth.

[WhoisKingsley]

@bigrnyc - I feel your pain.

The expectations that are given to Business Owner's is almost always false. There is limited or NO vetting/qualifying... only a rush to get documents. Funder's understand this and therefore work off of the numbers game because of these originating tactics. Everyone makes it hard for everyone else and then we release our fury on DailyFunder! haha!

Is there a light at the end of the tunnel? Yes. I think if everyone stopped following the beat of the drummer before them they can make some pretty awesome new music.

Put yourself in the shoes of the Business Owner- leads are a dime a dozen and it is all about the way you handle your customers as with any business. If I go into a Taco Bell and tell them I want a taco and they give me a hamburger- I'd be really upset. That's exactly what's happening with our Industry.

Everyone "complains" about every aspect but instead of innovating and digging deep into the "whys", we keep cloning the same MCA originating sales and operations that ARE NOT working effectively.

Let's chat more...

[FUNd]

@bigrnyc - I feel your pain.

The expectations that are given to Business Owner's is almost always false. There is limited or NO vetting/qualifying... only a rush to get documents. Funder's understand this and therefore work off of the numbers game because of these originating tactics. Everyone makes it hard for everyone else and then we release our fury on DailyFunder! haha!

Is there a light at the end of the tunnel? Yes. I think if everyone stopped following the beat of the drummer before them they can make some pretty awesome new music.

Put yourself in the shoes of the Business Owner- leads are a dime a dozen and it is all about the way you handle your customers as with any business. If I go into a Taco Bell and tell them I want a taco and they give me a hamburger- I'd be really upset. That's exactly what's happening with our Industry.

Everyone "complains" about every aspect but instead of innovating and digging deep into the "whys", we keep cloning the same MCA originating sales and operations that ARE NOT working effectively.

Let's chat more...

How creative can you get with these products? In the end, no matter how you slice it, it's a short-term, uber-high interest financial product that is niche in its ability to fit a merchants needs and be a beneficial addition to their financial situation.

I see the issue as the supply of this product is FAR outweighing the demand, and the businesses who have taken a hit off the proverbial MCA pipe, either quit or are generally unsatisfied with their experience but have to take more money to contain the damage done by the last advance. It's a tough cycle for many of these people.

Setting expectations is lipstick on a pig. In the end it's a fit or its not. There will always be a place for these advances, but it's going to be left to the guys that actually have money to loan in the end, which judging by the general outlook of my colleagues, is near.

[jotucker1983]

I have always believed that there was a "ceiling" to our side because, while us "MCA folks" get lumped into the "marketplace lending Fin-Tech disruption movement", I just do not believe we are truly a part of that movement as much as P2P lenders are.

The P2P lenders are stealing customers directly away from banks, which is true Fin-Tech disruption of the banking system, by basically offering the same type of bank product but providing a better service, faster funding, and without restricting so many businesses based on their size/industry alone.

The typical "MCA clients" are generally merchants that can't get approved from the bank right now for what they need in working capital, for a variety of reasons. And while we can approve the vast majority of these "types", there's only going to be a certain "percentage" of these people who are going to bite due to the high costs of our product, which many times does not justify the working capital need of the client, thus they walk away from the table.

[brokerCompany]

interesting. Our last 5 deals the merchant never heard of cash advances. Fine your niche! Your Local niche! Look at business trends in your area. new business are opening all the time.

[FUNd]

interesting. Our last 5 deals the merchant never heard of cash advances. Fine your niche! Your Local niche! Look at business trends in your area. new business are opening all the time.

Good for you man seriously.

1. I don't know what area of the country you're in where lucrative little businesses are popping up all over the place, but businesses are fleeing the state of CA like there's an outbreak of the plague.

2. There's 30 MCA 'shops' on my street alone.

3. Most lenders want at least 6 months in biz, so funding startups isn't really a viable lead source.

[MCNetwork]

A small ISO shop needs to add other long-term financing options to the mix to separate himself from the hordes of MCA brokers in this space. Merchants are being pounded by MCA salesmen left and right and hanging up on them in a heartbeat. You need to have a different value proposition to stand out in this crowd. Find good relationships with leasing companies, SBA providers, factoring companies, long-term/low rate lenders like Dealstruck. The commissions are lower than MCA but at least the other ISOs aren't pitching these products (yet) so you'll have a chance. Find the SIC codes that most MCA brokers aren't targeting like trucking companies, B2B, software companies, etc. Educate yourself about these different programs and turn yourself into a more sophisticated rainmaker finance pro. Separate yourself from the Jordan Belfort wannabe MCA hucksters and their plain vanilla pitches from 2009. The sales cycle will take much longer with these other programs, but once you've built a decent pipeline you'll have some steady cash flow. This business is really about cultivating relationships and selling yourself, so work on reinventing yourself to become the best finance professional you can be. Study business and sales books like your life depends on it and master the consultative sales approach. Understand the challenges that business owners in each SIC code face and tailor your presentation to solve each merchant's pain point. Learn to dollarize every sales call and master the ROI pitch. That is the path to success in this business.

The sad truth is that the small 3-4 man ISO strictly peddling MCA with a small marketing budget is going to be out of business REAL quick.

[anonymous]

ATTN: Pikers.

Instead of calling the merchant to shove a 1.40 down their throat or giving up and pitching something you will make no money on, maybe find a middle ground. learn how to underwrite! learn everything there is to know about MERCHANT CASH ADVANCE and as MCNetwrok mentioned, sales in general. There are plenty of ways to maneuver and create deals in this space, right now, today. Quit making excuses, buckle down, and don't accept failure as an option. As far as cold calling, agreed - if you sound like a salesman, no one will talk to you, especially REAL accounts. If you are just honest to people, sound educated, and lead them down the right path (as it is a brokers job to do) without promising things you cannot deliver or charging reckless fees.... You'll be just fine. Even as a 3-4 man shop with zero marketing budget and nothing but a phone book. Now let's close out this thread and go make some money today!

[FUNd]

OK, serious question here. If there are so many low-interest, long-term, monthly payment, viable options for merchants that you can sell as an ISO (and actually make enough coin to cover your op costs and taxes), where are they? I work with and have worked for some of the smartest and most inventive people in the biz, and even they have struggles.

Every day some new lender either shows up at my doorstep, calls me, or peddles on DF, and they all have the same MCA BS to offer. I admire your battle call, and your attempt to peg the rest of us as "pikers", but I guess we are aren't as inventive as you guys.

If you are making money dialing out of the yellow pages, good for you, but I know some pretty awesome salespeople, and the minute they mention the word "capital", "finance", or "loan", it's dial tone time. Is this because they don't read books, know their craft, and take a 'consultative' approach? NO, it's because merchants get 10 calls, 3 mailers, 6 faxes, 5 radio ads, 2 TV commercials, and a D2D salesguy stopping by a DAY for funding. I wouldn't listen either. Let's be real here.

[AndyYSCISOdept]

OK, serious question here. If there are so many low-interest, long-term, monthly payment, viable options for merchants that you can sell as an ISO (and actually make enough coin to cover your op costs and taxes), where are they? I work with and have worked for some of the smartest and most inventive people in the biz, and even they have struggles.

Every day some new lender either shows up at my doorstep, calls me, or peddles on DF, and they all have the same MCA BS to offer. I admire your battle call, and your attempt to peg the rest of us as "pikers", but I guess we are aren't as inventive as you guys.

If you are making money dialing out of the yellow pages, good for you, but I know some pretty awesome salespeople, and the minute they mention the word "capital", "finance", or "loan", it's dial tone time. Is this because they don't read books, know their craft, and take a 'consultative' approach? NO, it's because merchants get 10 calls, 3 mailers, 6 faxes, 5 radio ads, 2 TV commercials, and a D2D salesguy stopping by a DAY for funding. I wouldn't listen either. Let's be real here.

Anyone else hear the Mic drop!?!

[Michael I]

Anyone else hear the Mic drop!?!

yup

[stat]

OK, serious question here. If there are so many low-interest, long-term, monthly payment, viable options for merchants that you can sell as an ISO (and actually make enough coin to cover your op costs and taxes), where are they? I work with and have worked for some of the smartest and most inventive people in the biz, and even they have struggles.

Every day some new lender either shows up at my doorstep, calls me, or peddles on DF, and they all have the same MCA BS to offer. I admire your battle call, and your attempt to peg the rest of us as "pikers", but I guess we are aren't as inventive as you guys.

If you are making money dialing out of the yellow pages, good for you, but I know some pretty awesome salespeople, and the minute they mention the word "capital", "finance", or "loan", it's dial tone time. Is this because they don't read books, know their craft, and take a 'consultative' approach? NO, it's because merchants get 10 calls, 3 mailers, 6 faxes, 5 radio ads, 2 TV commercials, and a D2D salesguy stopping by a DAY for funding. I wouldn't listen either. Let's be real here.

I hear what you're saying, but at the end it all comes down to finding those merchants who are looking for our services. If i needed surgery and i had 6 surgeons calling me wanting to do business i wouldn't be mad; now its up to me to find the one i want to do business with.

[anonymous]

you guys are right, i am wrong, industry is dead, cold calling doesn't work, no one makes any money. gonna get back to spinning wheels over here, good luck out there.

[Mmarano]

I mean, I'm thinking this guy needs a Therapist and some Kleenex.

Anyone else hear the Mic drop!?!

[FUNd]

you guys are right, i am wrong, industry is dead, cold calling doesn't work, no one makes any money. gonna get back to spinning wheels over here, good luck out there.

Nobody said the industry was dead, and that there was no money to be made.

[anonymous]

I mean, I'm thinking this guy needs a Therapist and some Kleenex.

lol

[AndyYSCISOdept]

I mean, I'm thinking this guy needs a Therapist and some Kleenex.

Hey Mikey, aint nothing wrong with therapy or a grown man crying his eyes out over spilled milk

[anonymous]

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