[WhoisKingsley]

True that. But what do you tell an "over qualified" prospect who is dealing with a bank already (and all that goes into the process) that you have on the phone and their attention is all yours? Do you say good luck - or do you pitch them? Ask questions?

(And please don't tell me that you ask them to save you number or call you after they are done with the bank) Any ideas? Who gets after these folks?

Ok- so if a rebuttal is "I am working with a bank" and it is legit your talked and got some feedback, there is nothing much left to say other than "Well, the strength of the alternative bank program I have is that it is unsecured, minimal documentation which means a faster approval and funding, and with your credit criteria Mr. Blah, there are other premium program perks." You then go into early payoffs, lower rates, longer terms etc. (this is all on the fact that you are sending to A/B paper where they belong)

If their closing is far off- for example I am reviewing a file that was accepted for an SBA- it's going to take a few weeks, a gap needs to be filled- perfect solution. Incentive would be the early payoff discount. If there is no hope in having them interested and they are still on the phone, ask for an email, Promise to SEND ONE email with a review of your program and your contact if ever they need a short term fix- you're there to answer any questions whether it's about your company or making sure they are working with the right outlet, be that available outlet.

It's really the only thing you can do. After a few months, hard mailers and maybe a follow up email- nothing salesy. Example- hey- your name came across my list, I know I told you one email, but it doesn't hurt to catch up. (google them real quick- make sure everything is all good) Glad everything seems to be working out for your business! Hope you have a great turn out on your event next week!

Giving a sh*t is grossly underrated. Acknowledge that people work hard and the respect you have for that. Even if they don't need you now or maybe ever, you made a positive impact and that energy will be returned.

[MCNetwork]

True that. But what do you tell an "over qualified" prospect who is dealing with a bank already (and all that goes into the process) that you have on the phone and their attention is all yours? Do you say good luck - or do you pitch them? Ask questions?

I do the same thing I do when I ask the pretty girl at the bar for her number and she tells me she already has a boyfriend. I move on to the next one.

[HDF]

"If their closing is far off- for example I am reviewing a file that was accepted for an SBA- it's going to take a few weeks, a gap needs to be filled- perfect solution. Incentive would be the early payoff discount." WhoIsKingsley

Bingo! A+

It can also take many months or never. Tell them that you specialize in SBA bridge funding. Simple and disarming.

[HDF]

I do the same thing I do when I ask the pretty girl at the bar for her number and she tells me she already has a boyfriend. I move on to the next one.

There is always time to ask if they are being considered for the amount they really need. You can get them the difference very quickly if need be. And since they are sure to have the paperwork you need handy, they should send it right over for a quick pre-qualification.

[MCNetwork]

I ask them how quickly they need the funds. If they say there's really no rush, I give them my contact info and move on. If they say they need the funds ASAP then that's your opening.

[HDF]

"If they tell me their credit, for example, is 550, their bank application more than likely won't get approved and I'll provide that upfront education to them." John Tucker

G'Dam right. The sweet spot for us, and you won't ask for a quarter of the paperwork the bank is asking for. Give them an example of a merchant in their industry that you've helped, and I bet they will let you send the application over more times than not.

[HDF]

I ask them how quickly they need the funds. If they say there's really no rush, I give them my contact info and move on. If they say they need the funds ASAP then that's your opening.

At the very worst great pipeline filler to re-visit since they likely are far more qualified than what's on most call lists. Just might need a bit more education on the options etc. Thanks for sharing.

[Montague]

I ask them how quickly they need the funds. If they say there's really no rush, I give them my contact info and move on. If they say they need the funds ASAP then that's your opening.

I gotta +1 to this. Also want to say, i generate my leads online so I usually start these conversations with: "Mr. Merchant if you are working with your bank and like their terms, why are you searching online for alternatives" It either smokes out the red flags, or saves my time on the phone.

[jotucker1983]

Just because they are applying at the bank doesn't mean they will be approved.

But if after you get a profile of the client, if they are "A+" or "bank worthy", then they should qualify for a P2P loan which has terms and rates very similar to that of the bank, but with a more liberal and faster underwriting cycle.

I manage my submissions based on paper grade. If they are "bank worthy" then that's A+ Paper which means they should be going to a P2P Loan with "bank like" rates and terms.

[MCNetwork]

If they are A+ paper, then you want to have an ISO relationship with Funding Circle for the longer term, low rate loans.

[jotucker1983]

If they are A+ paper, then you want to have an ISO relationship with Funding Circle for the longer term, low rate loans.

Exactly.

[WhoisKingsley]

That's when you have to be careful. You can say you offer financing that can act as a bridge until XYZ... I don't think you can say you specialize in SBA Bridge financing.

Correct me if I'm wrong or wording incorrectly, but I believe the way you characterize that is against something of something that isn't illegal but not legal but understood but not regulated (I crack myself up!)

[HDF]

That's when you have to be careful. You can say you offer financing that can act as a bridge until XYZ... I don't think you can say you specialize in SBA Bridge financing.

Correct me if I'm wrong or wording incorrectly, but I believe the way you characterize that is against something of something that isn't illegal but not legal but understood but not regulated (I crack myself up!)

Lol, thanks for the warning Amanda. I'm not to worried about a broker that claims they specialize in SBA bridge financing as long as they don't sell them on a loan product and push an mca contract on them.

In fact, Rapid Advance has been a big fan of their SBA Bridge Program for some time now: http://www.rapidadvance.com/sba-bridge-loan

And so am I.

[Sachip24]

Just out of curiosity has anyone ever had success pitching bank worthy clients on the liability aspect of it. If they take line of credit, bank loan (longer terms) etc etc how it will stay on their credit report as a liability. In case they want to do any financing for mortgage, car etc etc down the line it would be included in their debt ratios and could possibly cause denial? Where as mca do not show up on credit reports as from what i have been told. Also with bank lending at any given time throughout the line of credit banks will continually check merchants credit to make sure its still up to par. If their credit drops without notice the bank can cut off their line completely of reduce it to pennies and they would have to start making payments asap. I saw this first hand numerous times while working as Personal Banker at Chase.

[Kevin Henry-Seacoast]

Just out of curiosity has anyone ever had success pitching bank worthy clients on the liability aspect of it. If they take line of credit, bank loan (longer terms) etc etc how it will stay on their credit report as a liability. In case they want to do any financing for mortgage, car etc etc down the line it would be included in their debt ratios and could possibly cause denial? Where as mca do not show up on credit reports as from what i have been told. Also with bank lending at any given time throughout the line of credit banks will continually check merchants credit to make sure its still up to par. If their credit drops without notice the bank can cut off their line completely of reduce it to pennies and they would have to start making payments asap. I saw this first hand numerous times while working as Personal Banker at Chase.

Sachip,

The liability of a business owner taking out an MCA when they already have a line of credit or any other senior financing in place? It can definitely throw the Company in default as the assets are already pledged.

Best,

Kevin

[Franklin]

i play at an intermediate level and there's no record of this douche cashing out on a single tournament. next time you're at borgata let me know i usually play cash games but im playing the $1mm GTD summer open on july 14-16 - lmk if you're going to be there.

Off the topic, but curious if any of the intermediate poker players have lifetime winnings in the positive. I worked with the world poker tour as a sponsor so I was paid to learn how to play poker then I was paid to play poker, basically with house money; the pros I spoke to indicated that 90% of professional poker players end their careers at zero (meaning right back where they started, nothing lost but nothing gained). Wondering if the players have been profitable in the long term.

[Sachip24]

Sachip,

The liability of a business owner taking out an MCA when they already have a line of credit or any other senior financing in place? It can definitely throw the Company in default as the assets are already pledged.

Best,

Kevin

didnt mean when they have the line in place already, maybe I phrased my question incorrectly. I meant when merchant says why take out MCA when they can just go to a bank.

[Kevin Henry-Seacoast]

didnt mean when they have the line in place already, maybe I phrased my question incorrectly. I meant when merchant says why take out MCA when they can just go to a bank.

Oh-I don't think it would hurt them in the future obtaining a more traditional working capital solution. What may ding them up is several entities pulling credit on the client simultaneously while they are out seeking a working capital solution.

[MCNetwork]

Just out of curiosity has anyone ever had success pitching bank worthy clients on the liability aspect of it. If they take line of credit, bank loan (longer terms) etc etc how it will stay on their credit report as a liability. In case they want to do any financing for mortgage, car etc etc down the line it would be included in their debt ratios and could possibly cause denial? Where as mca do not show up on credit reports as from what i have been told. Also with bank lending at any given time throughout the line of credit banks will continually check merchants credit to make sure its still up to par. If their credit drops without notice the bank can cut off their line completely of reduce it to pennies and they would have to start making payments asap. I saw this first hand numerous times while working as Personal Banker at Chase.

I tell the merchant that the MCA is not a balance sheet item, therefore it won't affect his borrowing capacity if he wants to apply for a bank loan.

[Michael I]

Just out of curiosity has anyone ever had success pitching bank worthy clients on the liability aspect of it. If they take line of credit, bank loan (longer terms) etc etc how it will stay on their credit report as a liability. In case they want to do any financing for mortgage, car etc etc down the line it would be included in their debt ratios and could possibly cause denial? Where as mca do not show up on credit reports as from what i have been told. Also with bank lending at any given time throughout the line of credit banks will continually check merchants credit to make sure its still up to par. If their credit drops without notice the bank can cut off their line completely of reduce it to pennies and they would have to start making payments asap. I saw this first hand numerous times while working as Personal Banker at Chase.

i think we all try it to close a deal . but end of the day i dont think you will ever convince a merchant who is eligible for bank loans and can wait, to take our type of loans . unless they are nervous they might go out of business and does not want any sort of pg .

[Michael I]

Sachip,

The liability of a business owner taking out an MCA when they already have a line of credit or any other senior financing in place? It can definitely throw the Company in default as the assets are already pledged.

Best,

Kevin

have you ever seen that happen ?

[Kevin Henry-Seacoast]

have you ever seen that happen ?

Absolutely and seeing it more and more.

[MCNetwork]

Sachip,

The liability of a business owner taking out an MCA when they already have a line of credit or any other senior financing in place? It can definitely throw the Company in default as the assets are already pledged.

Best,

Kevin

I don't see this happening because the UCC of the MCA company is subordinated to the bank's UCC. The banks retain first position in case of default.

[CHAMP3]

I am going to agree with Marcus Clapman on this one. The marketplace for business lending as saturated as it may seem, is not even close to reaching the potential of business owners that need help. The reality is there is over 525,000 new business created each year in the US. Over half will fail over the first 18 months. That leaves a tremendous opportunity for our industry products to mature and evolve. Traditional banks approval ratio on business loans is so minimal, where else are business owners going to go? The cream always rises to the top.

[Kevin Henry-Seacoast]

I don't see this happening because the UCC of the MCA company is subordinated to the bank's UCC. The banks retain first position in case of default.

MCN-That is if the senior lender knows about the MCA and there is a subordination agreement in place. I have seen dozens of case where the senior lender did not know their client took out the MCA and their was no subordination agreement in place.