[Chambo]

Marcus, were you even BORN when Knuckle Busters were used in the 70's and 80's?

[mcaguru]

I believe till only a few years ago Amex was giving them to new clients. I bought a suit from an old man that took out a knuckle buster!!

[YuliyaG]

Interesting, because at the LEND-IT conference in April, they are/were saying that we have just begun to scratch the surface and they expect the overall industry, personal and business, to triple in the 3-5 years

These are the same things being said for years. No one with investors, boards, customers, and employees is ever going to get up and say "THE END IS NIGH FOLKS!" That would be stupid.

I've done the projections and have participated in presentations that tout the same fallacy; "GROWTH, GROWTH, GROWTH, AND SOME MORE GROWTH!"

The future of THIS industry lies in the data and not opinions. Here are data points to evaluate (not argue with)

1. The rate to which new businesses are starting.
2. The rate to which new businesses are failing.
3. The probability of a deep recession. (judging by last 30 years, expect the sh*t to hit fan in Oct prior to election)
4. Stagnant market penetration.
5. Oversupply of capital relative to demand. Funders are competing for less...
6. The $552 trillion derivatives bubble the media dares not mention...
7. THE PERCENTAGE OF BUSINESSES WHO EXIT AN MCA BETTER OFF THAN BEFORE AN MCA, VS. THOSE WHO DO NOT.

[YuliyaG]

I think she was just advertising her services and if that's the case she can apply for the "Geniuses World Record" on the most indirect AD ever posted.

LOL! If after reading the original thread someone approaches me to buy my "services" then they are a sad, sad individual. How many sales you think that statement will get me?

[HDF]

It really depends on who you are addressing Yuliya. If you are trying to discourage the brokers and ISO shops that you detest because they didn't make you rich, you are way off. The better actors welcome a paradigm shift - and will thrive in serving small businesses.

If your are trying to take a shot at the funding banks and fintech in general, you have better standing assuming your back-of -the-envelope data is accurate. (Which it isn't) This economy and environment has been in the ****ter for some time now and helped create the popularity and need MCA and fintech.

You wanted some, and got bounced out. Get over it.

[jotucker1983]

There's no way the industry is going away, it's going to continue to change, but it's not going away.

Right now the industry is a monopolistic competition, but it will soon turn into a form of oligarchy. Based on this, I can see a lot of small broker shops continuing to fall, a lot of new players starting up and shutting down soon afterwards, and a lot of inefficiently operated funders/lenders going down. Left will remain those firms who have the people, knowledge, systems, platforms, connections, and capital. They will continue to collaborate and integrate with the traditional debt financing players, as well as be able to afford to market in a sector where marketing costs will push out the "little man".

I would also say that the majority of businesses using an MCA or Alt. Business Loan on a 1st position, do come out better as many of them are using it for some sort of growth procedure. It's when they take out inefficiently structured 2nd positions, then take out 3rd, 4th, 5th, all the way up to a potential 11th position, that they start getting into issues because too much of their monthly gross sales are going towards paying back advances/alt. loans. But that's not the fault of the product, that's the fault of inefficiently using the product.

[fundgorilla]

Yulia is dead right here. Our industry is populated by the 'ronin of wall street', who moved from stock scams, to mortgage fraud, to junk fees. Those who disagree strenuously with this statement might fall on the wrong side of the compliance equation themselves, and I for one welcome and embrace professional standards and perhaps even regulations that will take the scoundrels out of our business too. My prediction is that once this happens the scammers will move on to crowdfunding of pre-ipo companies....that looks to me to be a goldmine of unregulated money, just what the Ronin are looking for.

[KTK]

I believe crowd funding is anything but unregulated. Unless I'm wrong, it was the jobs act that allowed this industry to gain its momentum. Now I have no idea how loose or tight those restrictions may be - but there is undoubtedly regulation

[fundgorilla]

I'm looking into it. There are many ways people could monetize traffic, and in this case, the lead itself is the key.

[biggr]

Response to Aliyah (Data Points)
--------------------------------------

Citigroup
Total Assets: $1,808,356,000,000 (more than 1.8 trillion dollars)
Total Exposure To Derivatives: $53,042,993,000,000 (more than 53 trillion dollars)
JPMorgan Chase
Total Assets: $2,417,121,000,000 (about 2.4 trillion dollars)
Total Exposure To Derivatives: $51,352,846,000,000 (more than 51 trillion dollars)
Goldman Sachs
Total Assets: $880,607,000,000 (less than a trillion dollars)
Total Exposure To Derivatives: $51,148,095,000,000 (more than 51 trillion dollars)
Bank Of America
Total Assets: $2,154,342,000,000 (a little bit more than 2.1 trillion dollars)
Total Exposure To Derivatives: $45,243,755,000,000 (more than 45 trillion dollars)
Morgan Stanley
Total Assets: $834,113,000,000 (less than a trillion dollars)
Total Exposure To Derivatives: $31,054,323,000,000 (more than 31 trillion dollars)
Wells Fargo
Total Assets: $1,751,265,000,000 (more than 1.7 trillion dollars)
Total Exposure To Derivatives: $6,074,262,000,000 (more than 6 trillion dollars)

Seems like a Big Bank and Wall Street problem -
-------------------------------------------------------------------------------------------------------
Small Business Startup activity rose in 2015, reversing a five-year
downward trend in the United States, giving rise to
hope for a revival of entrepreneurship.

From The Economist

--------------------------------------------------------------------------------------------------------
Hidden in much of the gloomy news about small business in recent years is an important positive statistic: business failure rates are in a long-term decline. The rate at which American employers go under has fallen by 30 percent since 1977.

Sure, the trend is far from perfectly linear. Business failure rates rise in recessions and decline in expansions. But the underlying trend is there. A smaller fraction of companies goes under every year now than three decades ago.

"Quoted from the Econonmist"


Here are 3 data point evaluated from Market professionals Aliyah.


Maybe you need to do a little more research before putting your personal agenda on this forum..


Would do more but you get the point...

[FUNd]

Left will remain those firms who have the people, knowledge, systems, platforms, connections, and capital.

Of course. This is the way it SHOULD work. MCA should not be another subprime mortgage clone (as it has been thus far), where everyone with a laptop can have their own "shop". There are net branches begging for participants now as we've seen here. It's the 1-4 employee, irresponsible, untrained, unhinged groups out there with little to no capital of their own that are ruining this industry. Short-sighted decisions, unethical business practices, and deployment of misinformation and lies to the prospect pool (claiming to be a 'direct lender' for example), hurt us all.

I closed my small ISO many months ago and took a management position with a well established, well capitalized, and organized company in anticipation of an industry consolidation. This is no time to open your own little 'shop', this is the time to join forces and bring talent together.

[JasonP]

I agree 100% with the "failure to grow" analysis, but I think the comments about the "average" independent MCA broker surviving based solely on lying, conning, and other unethical procedures, is a bit overboard.

In two years I think this industry will still be around but I believe it will continue to evolve in such a fashion as to where more integrations with traditional networks, systems and players take place.

Jotucker , your answers are always so balanced and civil , unlike the other folks, keep up the good work.

[J.Celifarco]

Of course. This is the way it SHOULD work. MCA should not be another subprime mortgage clone (as it has been thus far), where everyone with a laptop can have their own "shop". There are net branches begging for participants now as we've seen here. It's the 1-4 employee, irresponsible, untrained, unhinged groups out there with little to no capital of their own that are ruining this industry. Short-sighted decisions, unethical business practices, and deployment of misinformation and lies to the prospect pool (claiming to be a 'direct lender' for example), hurt us all.

I closed my small ISO many months ago and took a management position with a well established, well capitalized, and organized company in anticipation of an industry consolidation. This is no time to open your own little 'shop', this is the time to join forces and bring talent together.

100% agree I think the consolidation of the industry has already began and will be a major story line for the rest of the year. I have heard of a lot of smaller shops shutting down or being brought into the fold with larger companies. I think this will continue to happen and what you will have left are a few well run smart ISO's with the knowledge, industry experience, and the capital to make it, and the main big funders and their in house sales teams. Everyone else will go out or get wrapped into the bigger companies, well thats what I think anyway

[mcaguru]

100% agree I think the consolidation of the industry has already began and will be a major story line for the rest of the year. I have heard of a lot of smaller shops shutting down or being brought into the fold with larger companies. I think this will continue to happen and what you will have left are a few well run smart ISO's with the knowledge, industry experience, and the capital to make it, and the main big funders and their in house sales teams. Everyone else will go out or get wrapped into the bigger companies, well thats what I think anyway

More and more (small) players coming into our space on a daily or adding MCA to their financial offerings.

[J.Celifarco]

More and more (small) players coming into our space on a daily or adding MCA to their financial offerings.

well a company that adds mca as an additional product to what they do will never play a big role in the industry. The small guys that are entering everyday are leaving just as fast as they enter.. They dont have the money or know how to make it

[arezalmighty]

This thread hurts my brain

[PrinceofMCA]

This lady has Donald Trump symptom