[J.Celifarco]

To Everyone Just as a suggestion
please stop using letter grades to describe what you do. Yes in a lot of way it gives people an idea of what type of deals you want, but at the same time it confuses people just as much. Everyone uses letters but nobody says what makes something that letter. What one bank considers an A another bank says B and a third say C. Please just say what your guidelines are because the Letter mean nothing. If you want people to submit and fund more deals with you they need to know what exactly your criteria is, if not people will just submit file after file and nothing will fund

[ridextreme]

I agree with you. 99% of the "direct lenders" who come on here saying they can do C and D paper have no ides what C and D paper actually means. They assume it's the same for everyone, but it's not. They just like to sound like they know what the **** they're talking about.

A while back when I was a credit analyst we had our own in-house criteria for A, B, C and D approvals which were all based on proprietary factors (number of open trades, credit score, LTV, number of late payments, etc).

[mcaguru]

Ill be clear... Cresthill Capital focuses on the merchants "Daily Balances" if we feel the merchant can handle a payment leaving the account than an offer is made based on what underwriter feels merchant can handle.

we will over look and FUND the following:

Poor Credit
low # of deposits
NSF's (case by case up to 9)
tax issues
only 12 weeks in business
home based
risky industries
inconstant revenues
past legal issues (case by case)

[dpFund]

John, I agree with your assessment. We fund deals that others would consider (C or D paper) but it is a perfect fit for us. At the same time, there are deals we cannot touch that others love. Much more effective to simply discuss criteria.

[Lendini]

The notion of equating an alphabetic structure to set of distinctive merchant criteria is somewhat subjective. Underwriting in this industry is derived from a non-linear and definitely not universally accepted approach. The fact of the matter is two underwriters can be presented the same set of variables from a single merchant and both can arrive at two opposed verdicts. Experience, industry knowledge and general intuition can make any funder score a file differently among an alphabet based scoring chart. So in the hopes of delivering clarity and precise structure for what Lendini offers, we are no longer going to designate our paper under the archaic alphabetized structure. Below is general outline of what we offer through both of our portfolios, Lendini & QuickFix Capital:

Positions: 1st to 2nd with Lendini 2.0 | 3rd to 6th Position with QuickFix Capital
Factor Rate Range: 1.25 to 1.45 for Lendini 2.0 | 1.40 to 1.48 for QuickFix Capital
Term Range: 66 to 143 Days for Lendini 2.0 | 44 to 110 Days for QuickFix Capital
Dollar Amount Range: $5,000 to Max of $150,000

Nick Yiambilis, Lendini 2.0
Director of ISO Relations & Business Development
Email: nick.yiambilis@lendini.com
Office Line: 267-569-3699
Cellphone: 267-751-5925

[J.Celifarco]

The notion of equating an alphabetic structure to set of distinctive merchant criteria is somewhat subjective. Underwriting in this industry is derived from a non-linear and definitely not universally accepted approach. The fact of the matter is two underwriters can be presented the same set of variables from a single merchant and both can arrive at two opposed verdicts. Experience, industry knowledge and general intuition can make any funder score a file differently among an alphabet based scoring chart. So in the hopes of delivering clarity and precise structure for what Lendini offers, we are no longer going to designate our paper under the archaic alphabetized structure. Below is general outline of what we offer through both of our portfolios, Lendini & QuickFix Capital:

Positions: 1st to 2nd with Lendini 2.0 | 3rd to 6th Position with QuickFix Capital
Factor Rate Range: 1.25 to 1.45 for Lendini 2.0 | 1.40 to 1.48 for QuickFix Capital
Term Range: 66 to 143 Days for Lendini 2.0 | 44 to 110 Days for QuickFix Capital
Dollar Amount Range: $5,000 to Max of $150,000

Nick Yiambilis, Lendini 2.0
Director of ISO Relations & Business Development
Email: nick.yiambilis@lendini.com
Office Line: 267-569-3699
Cellphone: 267-751-5925

see how simple that is now add some underwriting criteria as to what makes a deal fall into those 2 buckets and ISO's will know if a deal is a good fit for you.. Wish all the banks can do this

[MCNetwork]

The notion of equating an alphabetic structure to set of distinctive merchant criteria is somewhat subjective. Underwriting in this industry is derived from a non-linear and definitely not universally accepted approach. The fact of the matter is two underwriters can be presented the same set of variables from a single merchant and both can arrive at two opposed verdicts. Experience, industry knowledge and general intuition can make any funder score a file differently among an alphabet based scoring chart. So in the hopes of delivering clarity and precise structure for what Lendini offers, we are no longer going to designate our paper under the archaic alphabetized structure. Below is general outline of what we offer through both of our portfolios, Lendini & QuickFix Capital:

Positions: 1st to 2nd with Lendini 2.0 | 3rd to 6th Position with QuickFix Capital
Factor Rate Range: 1.25 to 1.45 for Lendini 2.0 | 1.40 to 1.48 for QuickFix Capital
Term Range: 66 to 143 Days for Lendini 2.0 | 44 to 110 Days for QuickFix Capital
Dollar Amount Range: $5,000 to Max of $150,000

Nick Yiambilis, Lendini 2.0
Director of ISO Relations & Business Development
Email: nick.yiambilis@lendini.com
Office Line: 267-569-3699
Cellphone: 267-751-5925

It's nice to see this kind of transparency. I wish all the funders on this forum could present something like this. It would also be good to have a general idea of what the factors and terms are for different grades of paper. Of course, being that the letter grades are very subjective maybe we could collectively come up with our own guidelines in a table. For example, we could say that:

A paper means 650+ FICO, 2+ years in business, no liens or judgements, no NSFs, standard MCA-friendly SIC codes, at least $250K annual revenue. 1st position loan/advance

B paper means 600-650 FICO, 1+ year in business, liens or judgements with payment plans, 1-2 NSFs per month, $120k+ annual revenue, MCA-friendly and some not so friendly SIC codes. 1st position loan/advance

C paper means 550-600 FICO, 6 months+ in business, liens or judgements with payment plan, up to 5 NSFs per month, $120+ annual revenue, MCA-friendly and not so friendly SIC codes. 1st to 3rd position loan/advance

D paper means 450-600 FICO, 3 months+ in business, judgements and liens with no payment plan, up to 9 NSFs per month, $80k+ annual revenue, all SIC codes. 1st, 2nd, 3rd to 10th or more position loan/advance

Then once we agree on these categories, we can create a grid that shows what each funder can offer for these grades including factor rates and term lengths. This will help keep all funders organized according to customer grades. With all of the new C and D paper funders that keep popping up, it would be nice to know who everybody is. It also gets complicated because some C/D guys don't stack on certain competitors, but that's another topic.

[Karen37a]

They are also going off of the "ability to repay" as a percentage of their gross, to the avg daily balance...compared to industry, margins.

I have annoyed some underwriters with the ability to repay , when it came down or could come down if the loan was taken in and extended.

so in the end the ficos and months in business should not matter( only for the term of the loan) more than the average daily balances..consistent for the industry and the margin.

This is where i can say....scoring algorithmmmmmmmm

[Lendini]

Our underwriting edifice is truly based on a complement of various data points. We use a proprietary modeling score that takes over 40+ unique variables, sourced from credit reports, merchant information i.e. time in business, industry, and revenue etc. We tie in all customary inputs and blend it with numerous levels of esoteric data, to truly set a picture of what a merchant can afford and payback, along with hitting various other automated data sources for fraud detection. In the hopes of moving away from an alphabetically structured advertising model, I won't use that arrangement to lay out our deal requirements, but have attached our one-page guidelines for Lendini were you can define what our box truly is and how to, in turn, categorize that into an alphabetical arrangement, i.e. A paper, B paper and so forth.

Lendini-One-Page-Pamphlet.jpg

If you have any questions reach out to our ISO relations Director at any time!

Nick Yiambilis, Lendini 2.0
Director of ISO Relations & Business Development
Email: nick.yiambilis@lendini.com
Office Line: 267-569-3699
Cellphone: 267-751-5925

[Karen37a]

Algorithms or scoring matrix, esoteric data and ability to repay = C

**** and I am kidding ****


I take the term of the loan/length back as well...because certain loans have to be able to qualify for a certain length or they cant make the daily scoring model for the ability to repay based on the dollar amount wanted or the existing loan.

( and I agree with all this, even though I want my loans funded, some just dont/wont make the ability to repay so i wait or trash it)

And as stated in the beginning of this post..every lender is different

[MCNetwork]

Our underwriting edifice is truly based on a complement of various data points. We use a proprietary modeling score that takes over 40+ unique variables, sourced from credit reports, merchant information i.e. time in business, industry, and revenue etc. We tie in all customary inputs and blend it with numerous levels of esoteric data, to truly set a picture of what a merchant can afford and payback, along with hitting various other automated data sources for fraud detection.

For a second I thought I was reading the On Deck prospectus

Thanks for the chart Nick! It's very insightful!

[Karen37a]

LoL...just say a/b /c ...im tired and punch drunk from the phone calls

Nice to see their min avg daily balance and the lowest credit scores though.

the 750 is lower than I have seen before, now I have to call Lendini