[Cfairbank]

https://www.nerdwallet.com/blog/smal...nding-brokers/

And this is why these high risk companies can't be the "face" of the industry. Thankfully, this author is smart enough not to paint the whole industry with the same brush -- but not everyone understands the space well enough to understand how different an OnDeck is from a Yellowstone -- And that IS the battle I am fighting. And for those that questioned my view that those Yellowstone videos do nothing but make them and the rest of the space look bad, read the article. All they are doing is adding extra fuel to the fire.

[kpeng]

https://www.nerdwallet.com/blog/smal...nding-brokers/

And this is why these high risk companies can't be the "face" of the industry. Thankfully, this author is smart enough not to paint the whole industry with the same brush -- but not everyone understands the space well enough to understand how different an OnDeck is from a Yellowstone -- And that IS the battle I am fighting. And for those that questioned my view that those Yellowstone videos do nothing but make them and the rest of the space look bad, read the article. All they are doing is adding extra fuel to the fire.

Right there with you Carl. It's hard to differentiate the good from the bad in this industry. I saw some of the ads referenced in the article and said to myself, "wow...who approved this!?"

The only way to combat this is to just do business the right way.

[MCABroker]

Why are you constantly trying to vilify the game? We all don't come from privileged backgrounds like you and some started from nothing to build empires that employs hundreds of hardworking go getters. A few bad apples don't represent the whole industry, you wish you could fund a half billion in a year! Stop the hate and go close some deals!

[kpeng]

Why are you constantly trying to vilify the game? We all don't come from privileged backgrounds like you and some started from nothing to build empires that employs hundreds of hardworking go getters. A few bad apples don't represent the whole industry, you wish you could fund a half billion in a year! Stop the hate and go close some deals!

No one is vilifying anything. Being "privileged" doesn't have anything to do with doing ethical business and having merchants' best interests in mind.

[Cfairbank]

MCA Broker -- who are the "few bad apples"? This wasnt a knock on brokers, this is a point to validate what I am saying about the many of the "high risk companies" (though there are several that are doing business the right way). We as an industry do need to come together, but more and more people are seeing the YSC videos and getting a better understanding their product. And you are right, the "bad apples" are a sliver of the market (YSC's 200MM funded last year is a fraction of the total market).

You can knock on me all you want. But I did build my company from scratch and we are doing quite a bit of business, and doing it all the "right way".

[Michael I]

No one is vilifying anything. Being "privileged" doesn't have anything to do with doing ethical business and having merchants' best interests in mind.

and how is that defined ? i am not taking sides here but just curious as a high risk lender that you are what is the definition of taking care of a merchant . if someone comes to you do you make sure he can not find a better approval with carl for example .

[Cfairbank]

Again, to be clear, I'm not saying high rate=bad, nothing of the sort. I'm saying more companies need to look at the merchants and see if what they are offering is a suitable product -- if it's solely about "getting paid back" on a short term deal, that's a problem. Several of the "high risk" companies, such as Elevate from what I know about their company through Heather, are looking at it the right way, and addressing an under served portion of the market without stacking merchants (into oblivion) -- and they are trying to structure their product from a "suitability" standpoint, not just a "can i get paid back regardless of what happens to the business" standpoint. That's a big, and extremely important, difference. Everyone, my company included, needs to stay focused on product and cost suitability.

[Michael I]

carl i have an issue with all lenders that take direct applications . they do not know the market and will sell the merchant that it is the best option for them . That is where a honest broker is way more ethical then any lender can ever be .
i have moved a merchant with 500 credit off a 6 month term to a 18 month term at a cheaper factor to a lender that put more weight on the time in business . same with moving a guy to a lender that didnt hold his industry against him . not every lender is for every file.
now we can take it further , i have had an argument with bob shaw in the past as he believed taking any merchant to cash advance (even a lenders ) with out first trying the different type of financing is unethical .
100 people on this site will have 100 different guidelines on what is the right way to do business .

[Cfairbank]

Folks on this forum can go after me all they want, I know many don't agree with my views (for better or worse, they will likely become a reality given inability to self-regulate as an entire industry) -- but if I reach even a few people that understand the need to coalesce (in a positive way) as an industry, that to me is a success. Like a previous poster said (when taking a shot at me admittedly), a few bad apples can spoil the bunch. But folks that aren't those "bad apples" can push the industry forward, and I believe so much about moving forward in a positive way (and not being threatened by ill-informed, fully encompassing regulation -- meaning let's assume the "online finance" industry is YSC and regulate based on that) is about (a) product suitability; and (b) education -- not just for borrowers, but for everyone -- employees, brokers, MCA companies, lenders, the media, and potential regulators. And if you look at our website, we have an in-house marketing team that focuses quite a bit of their efforts on education.

[CreditGuy]

Why are you constantly trying to vilify the game?

Therein lies the problem. This "game" does need someone else to vilify it. The "game" seems to be doing just great vilifying itself. Every mortgage washout and securities trader that got their license yanked is in the "game". Given the low barriers to entry and lack of regulation, there are more bad apples than good in the "game" right now trying to take profits in any way they can and get out quick.

[Cfairbank]

carl i have an issue with all lenders that take direct applications . they do not know the market and will sell the merchant that it is the best option for them . That is where a honest broker is way more ethical then any lender can ever be .
i have moved a merchant with 500 credit off a 6 month term to a 18 month term at a cheaper factor to a lender that put more weight on the time in business . same with moving a guy to a lender that didnt hold his industry against him . not every lender is for every file.
now we can take it further , i have had an argument with bob shaw in the past as he believed taking any merchant to cash advance (even a lenders ) with out first trying the different type of financing is unethical .
100 people on this site will have 100 different guidelines on what is the right way to do business .

You are right -- I wish more lenders would do a "suitability test" before placing a deal on their product -- you are exactly right, that is what the "good actors" on the broker side do and there are many many great brokers. If you know our company well, any online or strategic partnership applications we receive (non-ISO), we conduct that suitability test before we even offer our product -- and many of them are better suited elsewhere (e.g. SBA, factoring, etc.), and we'll place them there even though it hurts our bottom line.

This is why I focus so much on suitability. Even ISOs that work with us know that we reject applications if we don't view our product as "suitable" for the business -- we don't send ISO files anywhere else, but won't place people on our capital if it doesn't make sense.[/U]

[HDF]

There has never been a more exciting time nor a bigger chance to prepare to thrive in this space than right now. If we can just get ahead of the pivot, the business will follow. Unfortunately it will be a flushing out and many will lose their jobs as they sit today. That part will not be good.

BTW: And I am very happy to verify that Breakout is a funder that does not shoehorn businesses into their products.

[bizloanbroker]

geeeeze...do any of you work or do you just post all day on the daily funder??? Things must be slow for you guys. why don't you guys go sell or fund a deal

[HeatherF]

carl i have an issue with all lenders that take direct applications . they do not know the market and will sell the merchant that it is the best option for them . That is where a honest broker is way more ethical then any lender can ever be .
i have moved a merchant with 500 credit off a 6 month term to a 18 month term at a cheaper factor to a lender that put more weight on the time in business . same with moving a guy to a lender that didnt hold his industry against him . not every lender is for every file.
now we can take it further , i have had an argument with bob shaw in the past as he believed taking any merchant to cash advance (even a lenders ) with out first trying the different type of financing is unethical .
100 people on this site will have 100 different guidelines on what is the right way to do business .

I can say that not all funders do this... below is in example to a direct application with Elevate and after a phone call determining his needs we decided that a merchant cash advance was not the best option ... the email I sent him this morning is below.

Daniel,

It was a pleasure speaking with you today. Based on our conversation I have provided some links to some options for you that are not daily or weekly type payments. Most of them do have online application process but you can always call in and complete the application as well. I wish you guys all the best and if in the future you should need anything,even if it is just a referral, don’t hesitate to reach out.

www.dealstruck.com
www.kabbage.com
www.breakoutfinance.com ( just introduced a once a month payment program)

Regards

I am not sure it is about being ethical but being honest with yourself and knowing where you fall. I believe the term is used on here quite often " Putting lipstick on a pig" . Elevate is heavily backed by our ISO's and that is the majority of our applications come from... as we know what niche we operate in... so we do not push our own origination but we do have a small budget for SEO and we have partnered with many top tier funders to assist with those clients that fall outside of our parameters.

Now that I have shown a "funder" can be as ethical as a honest broker... Can I get my halo and wings now

[Karen37a]

I agree with the video thing, and only a few people said something. And its down.

And for the idiot in the article that says only 1 Broker is going to make it because of a crisis of conscience

THOSE ARE THE NUMBERS IN ALL SALES PROFESSIONS

Read wayyy back a year ago when I posted on this board the numbers from all sales professions and my PERSONAL experience as a stockbroker.mortgage broker and insurance

It said something like this....

I asked a LONG time ago, a multi million dollar producer " how do I turn my office into a business instead of a Self employed nutbag place where people touch down for 90 days, then run into the night afraid to pick up the phone? I want to be a business not self employed because if I don't go to work ,I don't get paid"

He said," If I told you , you would quit"...i said nahh I am from Ny, im tough , just tell me

Then He said "10 will come into your business 4 will quit (or go into the "witness protection program" as I call it) on day one, if they even make it back from lunch. The 6 that are left only 3 will take the Financial Exam..."fear of failure" envelopes them and they can't take the test, mortage, insurance , series 7 etc."

Only one passes ( and the 7 is hard) Now when you get 10 people PASSING the test , only one will actually pick up the phone again fear of failure. When you get 100 of those you get a producer, fear of success sets in...get another 100 of those ...top dog in the office.

I asked So how many people have to come thru here ..he said "10,000" I yelled 10,000 !!! impossible

The numbers are the numbers are the numbers are the numbers ...most are going out in a body bag Because they cant sell their way out of a paper bag.

Fear of Failure then a Fear of Success

The book smart ones can't sell and espouse their opinions on quantitative analysis and qualitative analysis, all day in articles ( not you Carl lol)

The street smart ones cant pass the test. Good thing we do not have exams in the cash advance industry.

In fact...regulate , make everyone pass a test as Hard as the Series 7 ( harder than the bar), Ill pass get a 91, like i did on the 7...less competition then the only ones left( who pass ) will not be able to pick up the phone because they have no sales skills or charisma. So ill be alone with a choice few.

What a crazy comment ...does he really believe that most people leave the MCA space because of a moral crisis. I hope he is on here reading this. How the hell did he build a business. Shaking head.

If people understood the product and the default ratios they could send A paper to A and D to D, and have no problem justifying it...the problem is no one cares.

Its not ok to just skim the A paper of A paper, and its not ok to take A paper and give them D pricing...that's my opinion and I am sticking to it.

( when I am lending my own money, ill only want A paper lol)


thinking out loud...why am I not extremely rich. Going to put my head down and make it there

[Karen37a]

One more thing. Its great that some A paper lenders have great factor rates BUT the day this business gets regulated, is the day that the Lenders profits are going to keep my commission HIGH.

So for those people who think regulation is a good thing. No one in their right mind would go thru the drama to find merchants who want money unless we are being paid for it.

I will never ever ever ever take a big cut . Some lenders think they can cut renewals , never going to sustain it...new applications WILL dry up, renewals will drop ( in the future)

You will break the isos..like the saudis breaking the small frackers in the usa by undercutting the price of oil.

We have a cost of doing business too and I am not here to make anyone rich but me ( and my team, because they make me money). That's why I am self employed, and thats why they are.

Doing all this is not worth it unless their is a big payday. So again. If it happened the top brokers are going to want their % and it will come from your profit or applications would dry up.

This it not a business that isnt salesperson driven, no radio ads, tv ads, email campaigns are going to drive that future traffic to you.

Salespeople are King..Real salespeople.

[MCABroker]

Preach Karen!

[Karen37a]

Now we have the pope, the godfather and the preacher...can I get an Amen


*** just kidding dont post Amen on here ** lol