[JayBallentine]

Instant underwriting and funds disbursements has already been perfected by Kabbage. There are several reasons why their model works. Merchants can link their various bank, paypal, ebay accounts to Kabbage's portal and they run their algorithms to determine eligibility. More importantly, there is only one lender involved so the underwriting is centralized and the technology is seamless. If you want to try this process with a bunch of different lenders, each with his own type of underwriting criteria and various levels of efficiencies (and inefficiencies), then you'll be banging your head in frustration. Remember, some lenders can take up to 72 hours to review a submission! And once the contracts are signed, some lenders come back with ridiculous amounts of stips which have to be chased in, verified, and then the contract terms are revised, etcetera, blah blah blah!!! It ain't gonna work! But only brokers who have actually worked in the trenches really understand this...

You are right MCN. Not gonna work under the way you described. That's why we have innovated around that. You have no idea what goes on in the background. How we approached and solved that problem. PREEMPTIVELY.

Here's the thing. Everyone has an opinion. I just closed a seed round. Our investors are awesome, talented people. Our mentors are world class.

Their opinions matter to me the most because they are all millionaires. Generally speaking they don't bet the horse - they bet the jockey.

Additionally.

YOU: Direct mail doesn't work.
US: Direct mail is awesome.

It works if you know how to work it. We know how to work it.

[MCNetwork]

I hope you prove me wrong Jay! Good luck!

[funding pro]

merit?????

Yeah, Merit, was owned by Leaf...

Don't tell me you forgot about them already. I believe their model was that if they continued to fund more deals, their bad debt couldn't possibly exceed a certain threshold so all they had to do was keep funding. They had no underwriters, just a scoring model and 2 admins that would do a "funding call"

[isaacdstern]

I remember Merit...best commissions and spiffs ever...12 points on the payback and a 5 point bonus...17 points in total on a 1.39...ya that did not last long......

[AndyYSCISOdept]

Joseph-well said sir...i agree with a lot of what you wrote ...especially the points you made about speed and automating underwriting...its beyond obvious to me anyways that you simply cant eliminate the human touch...imagine a computer trying to verify that a merchant is current with a landlord...lol

Isaac, I agree 100% while there are a lot of things that can be done to help technology streamline our processes, there will NEVER EVER be a day where you can completely get rid of the human element in scrutinizing a file for funding. Just not gonna happen.

[Chambo]

"Why are merchants being subject to multiple credit checks in order to evaluate funding options at multiple funders?"

Because each funder submitted to wants to run their own credit. Then you have some ISO's running credit themselves "to decide where to send"

Funders will not trust the sales reps on the credit content of a report. How many reps deliberately or inadvertently send in a submission with fraudulent statements?