[TStein]

http://www.wsj.com/articles/wells-fa...als-1462872608

[nrh1lp]

Their is a similar article on debanked. I am really interested to see how Wells will underwrite and structure these...

[MCAVeteran]

Is this through a strategic partnership in our space to utilize the risk scoring models like odc/chase relationship or is wells doing this stand alone? Wells already provides credit facilities for some companies in this space

[FUNd]

I'm guessing bank UW guidelines, A+ credit, TIB and cash flow. The shareholders didn't buy in to fund Billy Joe's Trucking with a 540 FICO.

[mcaguru]

I Wonder how the A paper "first position only funders" will handle 4 Millions Merchants that are not touchable any longer for funding. I believe if Wells Fargo enters the space they will acquire deals extremely fast by way of informing every business account holder (based on pre-underwriting prior to even reaching out to customer) that they are approved for 25k or 18K, etc Once merchants take on the loan it will lock-up Millions of merchants from the first position only players. Do i see it wrong ?

[FUNd]

I Wonder how the A paper "first position only funders" will handle 4 Millions Merchants that are not touchable any longer for funding ? !

Our definition of "A" paper and WFB's definition vary greatly.

[nrh1lp]

I'm guessing bank UW guidelines, A+ credit, TIB and cash flow. The shareholders didn't buy in to fund Billy Joe's Trucking with a 540 FICO.

I was talking more along the lines of will they fund 50-75% of gross volume, factor rate or apr (depending on which what is the range they approve), etc... maybe they even have reduced credit requirements if its only a 12 month term blah blah blah

Like I said, I am interested to see exactly how Wells will structure these " small business loans between $10,000-$35,000" and how similar/different it will be compared to the MCA's we all work on a daily basis

[FUNd]

I Wonder how the A paper "first position only funders" will handle 4 Millions Merchants that are not touchable any longer for funding. I believe if Wells Fargo enters the space they will acquire deals extremely fast by way of informing every business account holder (based on pre-underwriting prior to even reaching out to customer) that they are approved for 25k or 18K, etc Once merchants take on the loan it will lock-up Millions of merchants from the first position only players. Do i see it wrong ?

Yes, Chase is already using the OD platform to make offers. I still get Chase bank statements all the time. It's all the same, does every major bank have an equipment leasing division? Yes. Are there still a thousand brokers making money hand over fist? You bet.

[MCAVeteran]

Debanks article said requirements were customers of wells for one year, and, strong cash inflows. It didnt break down fico or other requirements. Also a customer of wells can mean many things as they have a broad range of services.

[FUNd]

Debanks article said requirements were customers of wells for one year, and, strong cash inflows. It didnt break down fico or other requirements. Also a customer of wells can mean many things as they have a broad range of services.

Right, and with any of their services, at least where they extend you unsecured credit, you better be gold balls. The shareholders aren't falling for the banana in the tailpipe like they did in 2008.