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  1. #1
    Senior Member Reputation points: 290 1StopFunding's Avatar
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    Tale of 2 Funders

    1 file with offers from 2 of our regular B-C fairly large funders. Was fairly certain I'd get a decent factor rate with Funder A, but very certain I'd get an approval with Funder B.

    Funder A sends $40K max offer, while Funder B sends a $275K max offer. Client doesn't need nearly that much $$$, but the disparity between offers huge!

    Which brings to question, is there more subjectivity than algorithm in underwriting revenue advances?
    Cheryl Tibbs- General Manager
    Equipment LeaseCo Inc
    www.equipmentleaseco.com

  2. #2
    Senior Member Reputation points: 30475 Zach's Avatar
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    $275K could have been a prelim offer and not held up in final UW
    Zachary Ramirez – CEO
    Phone: 562-391-7099
    Email: zach@zacharyjosephramirez.com

    1661 N. Raymond Ave #265
    Anaheim CA 92801

  3. #3
    Senior Member Reputation points: 290 1StopFunding's Avatar
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    Tale of 2 Funders

    Typically with that funder Zach, the prelim offer stands unless something drastic comes out of merchant call and/or bank login.
    Cheryl Tibbs- General Manager
    Equipment LeaseCo Inc
    www.equipmentleaseco.com

  4. #4
    Senior Member Reputation points: 30475 Zach's Avatar
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    Jeez. That is a massive disparity lol
    Zachary Ramirez – CEO
    Phone: 562-391-7099
    Email: zach@zacharyjosephramirez.com

    1661 N. Raymond Ave #265
    Anaheim CA 92801

  5. #5
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    Quote Originally Posted by 1StopFunding View Post
    1 file with offers from 2 of our regular B-C fairly large funders. Was fairly certain I'd get a decent factor rate with Funder A, but very certain I'd get an approval with Funder B.

    Funder A sends $40K max offer, while Funder B sends a $275K max offer. Client doesn't need nearly that much $$$, but the disparity between offers huge!

    Which brings to question, is there more subjectivity than algorithm in underwriting revenue advances?
    There always needs to be some form of subjectivity when UW a file. As productive and efficient as algorithm UW might be, it could never replace actual human eyes looking at a file and digging into the business

  6. #6
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    Quote Originally Posted by 1StopFunding View Post
    1 file with offers from 2 of our regular B-C fairly large funders. Was fairly certain I'd get a decent factor rate with Funder A, but very certain I'd get an approval with Funder B.

    Funder A sends $40K max offer, while Funder B sends a $275K max offer. Client doesn't need nearly that much $$$, but the disparity between offers huge!

    Which brings to question, is there more subjectivity than algorithm in underwriting revenue advances?
    i have seen that when one lender feels its a restricted industry and the other one doesn't

  7. #7
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    I see all the time from ISO' asking if we can beat a 20K offer and will make an 80K offer or vise versa. This can be for to many reasons to list here.
    Marcus Clapman | Business Development | Cresthill Capital
    (High Commissions Payout Group)
    ——————————————————————————
    Tel: 917-521-6528 | Fax: 212.671.1473
    Email: bizdev@cresthillcapital.com
    http://www.cresthillcapital.com

  8. #8
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    It's almost as if different lenders have different risk appetites...how novel.
    "Nobody can make you feel inferior without your consent." -Eleanor Roosevelt

  9. #9
    Each funder has their percentage of gross sales rules which impacts offer size.

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