[HDF]

Media spending does not correlate directly to a client base demanding a product or service. Just as hiring more cold callers does not mean there are more merchants looking for capital.

Both can also at times be seen as acts of desperation to achieve a desired level of production.

[MCNetwork]

Media spending doesn't create desire for our product but it does help identify business owners who are in need of working capital. The purpose of media spending or hiring cold callers is to expand your reach into the market. The goal is to cast a wide net in order to find your type of fish. Those companies who have the largest nets will obtain the most new business. Marketing spend (when done correctly) is directly correlated to new customers.

[PRIMO CASH]

Agree with HDF. We market primarily via radio and TV (both nationally and locally). Even though our phones ring, it took a while in the beginning to find the right operational set up to turn those phone calls into actual business. I have heard of other companies marketing heavy on radio and having to stop it altogether because they could not convert the lead.

[anonymous]

(on my 45min commute from Boca to Palm Beach)

start in Miami next time and pay us a visit!

[HDF]

"Those companies who have the largest nets will obtain the most new business. Marketing spend (when done correctly) is directly correlated to new customers." MCNetwork

This is also true for sure.

[mcaguru]

Is anyone saying that suddenly the oxygen ("CAPITAL") for evrey business is evaporating ? the need is suddenly out the door??!! We have 20M business owners that a portion perhaps 1M that are steering at their financials situation and are certainly concern about cash flow.

Now there are 2 kind of MCA-Takers = the seeker and the "taker" the seeker is self explanatory the "taker is someone not necessarily looking for capital until ABC ISO GROUP cold calls and tells Mr. Roofer in Tallahassee Florida that since he does 200K a month is sales hes able to get approved for 150-200K and after getting approvals he decides that 3 billboards will get him 20-50 more jobs and takes the capital..the "taker" clients will never end as long as the funding houses are open.....

[HDF]

Is anyone saying that suddenly the oxygen ("CAPITAL") for evrey business is evaporating ? the need is suddenly out the door??!! We have 20M business owners that a portion perhaps 1M that are steering at their financials situation and are certainly concern about cash flow.

Now there are 2 kind of MCA-Takers = the seeker and the "taker" the seeker is self explanatory the "taker is someone not necessarily looking for capital until ABC ISO GROUP cold calls and tells Mr. Roofer in Tallahassee Florida that since he does 200K a month is sales hes able to get approved for 150-200K and after getting approvals he decides that 3 billboards will get him 20-50 more jobs and takes the capital..the "taker" clients will never end as long as the funding houses are open.....

Nobody is saying any of that. Rather, for you to publicly try to equate marketing activity with market demand is ludicrous. Obviously you distort things for your own benefit.

[mcaguru]

Nobody is saying any of that. Rather, for you to publicly try to equate marketing activity with market demand is ludicrous. Obviously you distort things for your own benefit.

I am saying that the top funding houses daily-submission levels are at all time HIGHS....

[HDF]

I am saying that the top funding houses daily-submission levels are at all time HIGHS....

Also not an example of an industry's health

[TheShitzuofMCA]

I heard lead origination was at an all time low. Places like the Lending Club are cutting staff.

[MCNetwork]

Now there are 2 kind of MCA-Takers = the seeker and the "taker" the seeker is self explanatory the "taker is someone not necessarily looking for capital until ABC ISO GROUP cold calls and tells Mr. Roofer in Tallahassee Florida...

In my experience, 99% of my new business are the seekers, people who actually need the funds to pay for operational expenditures. The "takers" are aspirational buyers and don't need our product. Just like the guy who would like to buy a Nordictrack so he can lose a few pounds. It falls into the "nice to have" category and doesn't compel a buyer to take immediate action. They are usually a waste of time and will drag you through the sales process only to go dark or decline your offer at the end. Let's face it, people don't pay for 30% money just because it "might" work out for them. A cash advance is a high ticket item and not a low ticket impulse purchase, like a potato peeler. As a result, customers will think long and hard about whether or not they need to do this. Focus your marketing efforts on the "seekers" and let others bang their heads trying to convince the "takers" to buy something they don't need.

[Funder Mark]

I heard lead origination was at an all time low. Places like the Lending Club are cutting staff.

Lending Club is not a good example, because of their other difficulties. Isn't OnDeck expanding their operations and personnel?

[CO1]

I Thank you for all your efforts!!

[mcaguru]

start in Miami next time and pay us a visit!

Last time i went to Miami i sat in traffic for hours. West palm beach is nice and quiet....

[Lmonus]

Banned.

Good luck with your future endeavors.

Finally. What a negative person. Lets keep closing these deals and pump the industry on a positive note!

[mcaguru]

Finally. What a negative person. Lets keep closing these deals and pump the industry on a positive note!

True...a lot of business out there! we are talking capital not lighting fixtures.

[Chambo]

Question:

If there are "so many businesses out there", why are people scrambling over the same UCC's? Why are funds out there only stacking, or funding 4th or 5th positions? If there were truly "all those businesses out there", wouldn't there be enough new, unfunded businesses to keep everyone happy and full?

[MCNetwork]

Question:

If there are "so many businesses out there", why are people scrambling over the same UCC's? Why are funds out there only stacking, or funding 4th or 5th positions? If there were truly "all those businesses out there", wouldn't there be enough new, unfunded businesses to keep everyone happy and full?

That's because UCCs are the low hanging fruit and don't require any marketing expenses. In order to tap into the unfunded market, you have to have a very large marketing budget. Believe me, they're out there. Every merchant who lands on the UCC list was an MCA virgin at one time.

[Funder Mark]

Question:

If there are "so many businesses out there", why are people scrambling over the same UCC's? Why are funds out there only stacking, or funding 4th or 5th positions? If there were truly "all those businesses out there", wouldn't there be enough new, unfunded businesses to keep everyone happy and full?

Also because you now need a way of reaching them. With a UCC you can generally get a name and number to go with the company name. If there is a brand new pizza shop for example without a UCC being filed, it would be difficult to find them as a new business.

[Chambo]

That's because UCCs are the low hanging fruit and don't require any marketing expenses. In order to tap into the unfunded market, you have to have a very large marketing budget. Believe me, they're out there. Every merchant who lands on the UCC list was an MCA virgin at one time.

It's not just the UCC's though. I would just figure if there are "so many merchants out there" for this product, that folks wouldn't have to climb over themselves to gang bang merchants with 3, 4, 5,6 + positions

[ADiamond]

That's because UCCs are the low hanging fruit and don't require any marketing expenses. In order to tap into the unfunded market, you have to have a very large marketing budget. Believe me, they're out there. Every merchant who lands on the UCC list was an MCA virgin at one time.

Wouldnt you agree that a large part of the unfunded market contains a large amount of business owners who do not view a cash advance as a viable option for debt? I would assume that most merchants that have not explored MCA haven't done so because MCA is the low hanging fruit in the credit market, and maybe their credentials qualify them for something better than a daily payment?

SO the question remains, how do you get those merchants to consider an MCA?

[anonymous]

Last time i went to Miami i sat in traffic for hours. West palm beach is nice and quiet....

Fine, I'll keep the discounted Yeezys to myself then...

[MCNetwork]

The only reason UCC merchants are being gangbanged is because every new ISO out there relies on one lead campaign: UCC lists. It's a self fulfilling prophecy.

[Funder Mark]

Wouldnt you agree that a large part of the unfunded market contains a large amount of business owners who do not view a cash advance as a viable option for debt? I would assume that most merchants that have not explored MCA haven't done so because MCA is the low hanging fruit in the credit market, and maybe their credentials qualify them for something better than a daily payment?

SO the question remains, how do you get those merchants to consider an MCA?

A MCA is a specific type of financing, useful GENERALLY for clients who are bank-worthy, but dont have the time, or those who are not bank-fundable. If the business qualifies for bank funding, and has no immediate need for money, I don't see any way to sell a cash advance product.

[MCNetwork]

Wouldnt you agree that a large part of the unfunded market contains a large amount of business owners who do not view a cash advance as a viable option for debt?

Absolutely agree. We're only concerned with finding the merchants without other funding options. There are plenty of those. The challenge is identifying them. That's where marketing dollars come in.