[mcaguru]

I agree but i think someone needs to get up and sound like the best lawyer in America trying to get his innocent client off death row vs someone reading a script like we are trying to stop a regulation to decrease the amount of sugar by 5% on frosted flakes sold in the state of Illinois.

[J.Celifarco]

considering so many small businesses break even or report a loss, that would cut almost everyone off from being allowed to get a loan

that is the part of the bill that I read that is the scariest payments cant exceed 50% of net income.. That kills us all, the good guys the bad guys everyone.. That 1 line is by far the scariest thing in the entire bill. They need to understand who our client base is. Our customers are not the guys coming home at night and counting there money and living the high life. Our customers are the ones with small incomes trying to get by or trying to grow their business not the guys making a fortune with no cares in the world

[mcg168]

considering so many small businesses break even or report a loss, that would cut almost everyone off from being allowed to get a loan

Exactly! Which is why I was shocked that this wasnt brought up as the major point by each opponent. It would be incredibly easy to show examples of large businesses not showing profits, that will be disqualified to get a loan from our industry down the road. Think about the amount of examples we could use from Chicago restaurants alone.

[mcg168]

Exactly! Which is why I was shocked that this wasnt brought up as the major point by each opponent. It would be incredibly easy to show examples of large businesses not showing profits, that will be disqualified to get a loan from our industry down the road. Think about the amount of examples we could use from Chicago restaurants alone.

or better yet, use an example of a business showing $3.5 million and gross sales, but only showing 100k in positive net income. How the new bill is written, that business would only qualify for a $4,000/month payment, maxing their deal at $60k (and thats using an 18 month, 1.25 program)

[omegafund]

I agree but i think someone needs to get up and sound like the best lawyer in America trying to get his innocent client off death row vs someone reading a script like we are trying to stop a regulation to decrease the amount of sugar by 5% on frosted flakes sold in the state of Illinois.

Yes

The ondeck girl was scared, it would be interesting to see the video. This is just a bill to get the money out of private and into more government control.
They need to get some heavier hands in there unless ondeck and the larger players just have another plan??

[WhoisKingsley]

I didn't get to listen in to the entire thing!!!

What I did hear (selective hearing in certain parts) is the fact that the Bill is so extensive but the outcry focuses on the infinitesimal cases. This was called out and questioned of what and why and how this can be broken down by priority.

The points included creating fairness in competition between the providers which are the overwhelming the minority of lenders out there between the banks and the standards that banks withhold

Those who are partnered with a bank are the exception- not the rule

There needs to be clear transparency to borrowers so people are making informed decisions - obviously

and ensuring that we protect against a downward spiral of bad decision making that is allowed due to lack of information and understanding - another obvious statement


*my head hurts*

[mcaguru]

[QUOTE=WhoisKingsley;45719]I didn't get to listen in to the entire thing!!!

Why not Amanda! what else can be more important!!! HA HA I'm kidding!!

[Chambo]

the general consensus at LendIt is that this bill as presented, will get vetoed by governor, but will come back after the general election as a modified bill

In other words, wake up and smell the coffee....the lights are about to come on and the cockroaches had better scramble

[Sean Cash]

http://foxillinois.com/news/local/la...ses-04-14-2016

[mcg168]

http://foxillinois.com/news/local/la...ses-04-14-2016

"It will now head to the Senate floor for discussion, but is expected to be modified over the next several weeks."

How far they allow this bill to be modified will be so incredibly important to our industry.

[CLucas]

Well something to think about, a random call after a bad experience with Loan Builder, whom I guess is Swift Capital. Customer has a Fico, score of 780, was just looking for less than 30-k, loan builder killed the deal because he took 5 days to sign the contract. Received demanding emails sign now or never! Before everybody defends there position, think about it from the customers perspective first, this guy found them on Google, absolutely zero loan history with alternative, financing, was willing to pay a higher cost, he wasn't desperate and really just was just taking time to move forward. Why as an industry are we not allowing a customer to move forward at there pace instead of our pace? Granted if it didn't go past 30 days.

[bdshaw]

Has anyone seen a draft or markup of the bill?
Bob

[isaacdstern]

Its in the bottom of Sean's article which is the first post of this thread.

[Michael I]

Well something to think about, a random call after a bad experience with Loan Builder, whom I guess is Swift Capital. Customer has a Fico, score of 780, was just looking for less than 30-k, loan builder killed the deal because he took 5 days to sign the contract. Received demanding emails sign now or never! Before everybody defends there position, think about it from the customers perspective first, this guy found them on Google, absolutely zero loan history with alternative, financing, was willing to pay a higher cost, he wasn't desperate and really just was just taking time to move forward. Why as an industry are we not allowing a customer to move forward at there pace instead of our pace? Granted if it didn't go past 30 days.

the biggest issue i have is when it is 100% true if they don't sign now we can not get them funding . how to portray that to the client that you are serious and not just trying to close a sale . it happened to me last month ,the client didn't believe me ignored my calls and then came back with the signed docs a week later and i couldn't get him a penny

[TheShitzuofMCA]

I just came from Illinois over the weekend. The city needs all the capital it can get from what I am seeing and reading. They don't have money to pay for the services (police, fire, city pensions, etc). Not sure how hot of a market that would be.

[CLucas]

The industry as a whole needs to set a higher standard. If it takes a merchant a week to sign contracts this needs to be okay on some level. Unfortunately when we push so hard it leaves a bad taste for many and regulation is more intimate than ever. Believe it or not we can as an industry be savvy and smart and aggressive all at the same time.

[FUNd]

The industry as a whole needs to set a higher standard. If it takes a merchant a week to sign contracts this needs to be okay on some level. Unfortunately when we push so hard it leaves a bad taste for many and regulation is more intimate than ever. Believe it or not we can as an industry be savvy and smart and aggressive all at the same time.

I agree with time limits to sign contracts, in fact 5 days is generous. There is far too much money that goes into the mechanics of these deals and if someone can't decide after 5 days if a loan is going to benefit their company, they are kicking tires, plain and simple.

And, please, if I hear one more merchant or ISO puff out their chest about a 700+ FICO score I'm going to puke. My nephew is in college, has a $500 limit Capital One student credit card and has a 740 FICO.

[bdshaw]

FUNd.
You're correct and that may be where Chase is headed. Banks entering this market enter with the baggage of existing regulators. Between their cost of funds and probably tighter underwriting criteria they would earn a great yield from a bank's point of view.
Bob

[HFS]

The countdown has begun. I give it till Jan of 2017.

[CLucas]

Looking at it from the business side and not from the customers side, when regulation implodes this industry we will have nobody to blame but ourselves. The industry has an opportunity to set a higher standard and if we don't we need to look no further than our own actions, in how we treat new customers seeking financing.

[AndyYSCISOdept]

I agree with time limits to sign contracts, in fact 5 days is generous. There is far too much money that goes into the mechanics of these deals and if someone can't decide after 5 days if a loan is going to benefit their company, they are kicking tires, plain and simple.

And, please, if I hear one more merchant or ISO puff out their chest about a 700+ FICO score I'm going to puke. My nephew is in college, has a $500 limit Capital One student credit card and has a 740 FICO.

and vice versa, I have a mortgage and student debt and multiple credit cards all current with tons of room on the income to debt ratio but one charged off CC from 13 years ago has kept my score under 680....

[funding pro]

Who needs financing for small businesses when you get news like this

http://www.washingtontimes.com/news/...inois-hits-65/

Illinois in a nutshell =

giphy.gif

[CLucas]

More than likely if you agree with strict time limits for signed contracts you probably don't have a clue of who your customer is. You probably don't take the time to understand many merchants where all hats and many want a helping hand, many are rushing daily, and don't have time for some paper pusher on the other side of the transaction demanding more from them, but rather many are looking for somebody they can trust, and do business with continuously, 5 days for a customer that could be a lifetime customer is a nano-second but in order to understand that comment you would need to know who your customer is, and understand the lifetime value of the customer, some get it hear some will only mock what I say because they don't get it.

[FUNd]

More than likely if you agree with strict time limits for signed contracts you probably don't have a clue of who your customer is. You probably don't take the time to understand many merchants where all hats and many want a helping hand, many are rushing daily, and don't some paper pusher on the side of the transaction demanding more from them, but rather many are looking for somebody they can trust, and do business with continuously, 5 days for a customer that could be a lifetime customer is a bank nano-second but in order to understand that comment you would need to know who your customer us, and understand the lifetime value of the customer, some get it hear some will only mock what I say because they don't get it.

Give me a break. I know exactly who my customer is. It's the guy who called me out of breath because he needed $50,000 yesterday to make his bills. He agreed to the terms I presented and I put my team in motion to get him the contracts HE requested. Now, he wants to take my hard work and shop it all over town or kick it around with the wife for a month? I don't think so.

[CLucas]

If he is shopping you what can you do differently? It may have more to do the message you are sending.