[jotucker1983]

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?

I believe it's because we are dealing with a reality that our "prime customer" is still the unsophisticated merchant who "just so happens" (randomly) to have a need for working capital at this very moment. Yes, there's about 20 million small businesses in the country that generically qualify for our product, but that doesn't mean we have 20 million potential customers, so the vast majority of the "mass marketing" being spent is just wasted dollars.

Again, the average credit score (considered "fair") in the country is 690, 720 is considered "good credit", less than 670 is considered "poor credit", and under 580 being "piss poor" credit. Of the merchants I get:

- 15% of them fall under 500
- 50% of them are between 520 - 575
- 30% of them are between 600 - 680
- 5% of them are over 690

This means 95% of the merchants who entertain our product have either poor or piss poor credit. On top of this, they usually have a hard time finding all of their bank statements, tax return pages, etc. They are unsophisticated with poor or piss poor credit and it "just so happens" (randomly) that they were in need of working capital when I called them.

A lot of people still call on UCCs because they do not have the resources to find our industry's "customer" in other ways. But the UCC is worn out and tired, you might as well go work at Taco Bell through the drive-thru than to rely on UCCs, you more than likely will make more money.

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?

Of course, it doesn't matter that there are 20 million small businesses in the country who generically qualify with more than likely over 90% of which are MCA virgins, doesn't mean anything. If their credit isn't poor or piss poor, they usually can get financing from the traditional system. All of the talk of "speed" is one thing, but most small business owners are sophisticated enough to foresee needing capital well ahead of time and can go through the longer process in the traditional system.

SO the question remains, how do you get those merchants to consider an MCA? So the question remains, how do we market to bank-worthy clients?

You market "bank-like" products to bank-worthy prospects (like P2P loans or SBA loans), and you market the MCA along with other alternative products to "non-bank worthy" clients. You don't have just one product, you have several that you could place with a client depending upon their current risk profile.