[Davidein68]

Which funders do you consider smart money? Which dumb money?

[MCNetwork]

The smart money funders are the ones that are very selective and have low approval rates. They know exactly what fits in their wheelhouse and are willing to say no to everything else. The dumb money funders are the ones that try to fund almost everything and like to stack high risk merchants to the hilt.

[WestCoastFunding]

Smart money funders are profitable. Dumb money lenders aren't.

[aredmond]

Which funders do you consider smart money? Which dumb money?

I am sorry but is this actually a serious question? Common sense would dictate that answer.

What WestCoast said..........

[J.Celifarco]

I think consistency is the judge of this. If a company has a set of underwriting guidelines that they feel is profitable and sticks to them and they make money then they are smart. if a funder is trying to reinvent the wheel every month with new programs and different programs then even if they fund more deals chances are they will lose more money then they make

[Kevin Henry-Seacoast]

Which funders do you consider smart money? Which dumb money?

What I think you are looking for are actual names of lenders/funders that take a deep dive into a company before issuing a proposal vs. those that will fund on little to no information-correct?

[RickyR3712]

smart money is wbl,they make over a 100% apr and have no risk due to collateral.Dumb money is the funding circles that can not make any money with rates to low and terms high.

[Karen37a]

Now I know why. Light bulb moment.

[Davidein68]

What I think you are looking for are actual names of lenders/funders that take a deep dive into a company before issuing a proposal vs. those that will fund on little to no information-correct?

Thought it would be useful to know when looking at bank statements... When I see certain funders in the deal, I know credit is good etc... Certain funders I realize do almost zero UWing (e.g Knight, capacity)

[J.Celifarco]

my favorite are the funders who underwrite based solely on who gave the first position. Look ondeck funded them must be a good deal lets give them a second position. These are the guys who get my nomination for the dumb award

[ridextreme]

its called piggy backing

[J.Celifarco]

its called piggy backing

AKA REALLY STUPID

basing your business model on someone else hoping they know what they are doing is just about the dumbest thing I can think of

[MCNetwork]

It's called social proof. Many second rate funders are sheeple and blindly follow the big dogs. Saves money on underwriting expenses. Hey if it's good enough for them it's gotta be good enough for us! Percentage of gross revenue? WTF is that?

[MCABroker]

Lol ask can and ondeck about that...