[dpFund]

It should only take up to 15-20 minutes to prequalify a deal. Some funders can do it in 5 minutes (run credit, plug revenue numbers in a calculator, spit out pre-approvals). Funders know that only 10-20% of their approvals will fund so they deploy most of their underwriting resources AFTER the signed contracts are in-house. If you're spending hours on a prequal then you're doing it wrong.

Ha! Yep, I bet that is how Dealstruck, Can Capital did their underwriting. And we can see how it worked out for them, can't we? I'll bet they (and you) never looked at a P&L or Balance Sheet.

We look first at the P&L to determine true net income. Then we look at what the monthly payment would be for their desired level of funding. If they cannot afford the payment, it is a decline. That part takes ten minutes. If the client meets that threshold, it is all the work behind that which takes the time. Funders who do not do their homework go out of business.

[MCNetwork]

We look first at the P&L to determine true net income. Then we look at what the monthly payment would be for their desired level of funding. If they cannot afford the payment, it is a decline.

So P&L's are required for the initial submission? You're probably the only MCA funder that asks for that upfront. And instead of declining a merchant if they don't qualify for the desired amount, why don't you approve them for a lower amount instead? It's the broker's job to manage the merchant's expectations and sell the lower approval amount.

[dpFund]

So P&L's are required for the initial submission? You're probably the only MCA funder that asks for that upfront. And instead of declining a merchant if they don't qualify for the desired amount, why don't you approve them for a lower amount instead? It's the broker's job to manage the merchant's expectations and sell the lower approval amount.

That's just it. I am not a MCA funder. :-)

And yes, if a client does not qualify for the requested amount, we absolutely recommend the lower amount they will qualify for.

The challenge is, most of the files I get have existing cash advances and I do not stack. I need to pay off all the cash advances or none of them. So if a client will not qualify for the total amount of cash advance balances, we let the broker know what the balances need to be at in order to prequalify for funding.

Hope this helps.

[MCNetwork]

That's just it. I am not a MCA funder. :-)

That explains it! I was comparing apples to oranges. My bad...

[dpFund]

That explains it! I was comparing apples to oranges. My bad...

No problem, we are good.

Perhaps we should talk about how to best work together.

Feel free to reach out!

Best,

Dan Page

[RichardGerard]

That's just it. I am not a MCA funder. :-)

And yes, if a client does not qualify for the requested amount, we absolutely recommend the lower amount they will qualify for.

The challenge is, most of the files I get have existing cash advances and I do not stack. I need to pay off all the cash advances or none of them. So if a client will not qualify for the total amount of cash advance balances, we let the broker know what the balances need to be at in order to prequalify for funding.


Hope this helps.

Dan; if your product isn't a loan, and it's purchasing future receivables, with a recovery amount- why aren't you an MCA Funder?

[Michael I]

Ha! Yep, I bet that is how Dealstruck, Can Capital did their underwriting. And we can see how it worked out for them, can't we? I'll bet they (and you) never looked at a P&L or Balance Sheet.

We look first at the P&L to determine true net income. Then we look at what the monthly payment would be for their desired level of funding. If they cannot afford the payment, it is a decline. That part takes ten minutes. If the client meets that threshold, it is all the work behind that which takes the time. Funders who do not do their homework go out of business.

Not at all, they did zero underwriting after and that is why it worked out that way .

look at sfs, bfs, swift ,rapid advance they all get back with a prequel quick and then you go to hell and back with stips after you get signed docs.