[funding221]

Seeking FUNDERS with "BOTH FEET IN"
Normally I am a "Scroller" not a "Poster" on DF but I feel like someone needs to post their funding experience over the last 3 weeks...surely this can be helpful to some out there that operate a salesoffice or have a team. Our office is in downtown Manhattan and our team has been working remotely since March 16. Here is what we have experienced over the last 30 days. Our largest relationships halted lending all around the same week where we have(or had) sizable renewable book -> Term Loans and LOCs - Bluevine,Kabbage , On 1st Pos side Principis, Rapid, SNAP, National, CAN and on the 2nd/3rd Pos side EBF, Lendini, YSC, Quicksilver, Pearl, etc. We were never a SERIAL stacker type of ISO shop so while we received hundreds of calls from pop up and overnight funders or Funders that MAY BE GREAT FUNDERS just never got the exposure , we have always simply just put those to the side. What can I say, we were busy and we have always preferred working with companies that have multiple levels within the organization which seemed to increase accountability and limited foul play. Our team has funded 48 Units in February (average deal size 50k), 27 in March (ALL NEW DEALS) and only 12 units in April so far. At the moment a large part of our business comes from existing book and we are still marketing for new business - had over 50 submissions this month so far (when we say submissions keep in mind we generate our own deals...we do not swipe, nor pose as direct funders (we do however service some deals directly for our inside reps).

I am proud that our core team is hustling and STILL FUNDING DEALS.....which is why we are seeking to build new/ additional relationships with lenders that DO NOT HAVE ONE FOOT IN and ONE FOOT OUT while accepting subs. I have more respect for those funders that have made decision to halt funding during this time than the many out there who are toying with their decision making.

Examples of One Foot in I have seen this past week.

"We're paying on renewals but only Fraction on net"
My response: And you want me to motivate our reps to make $500 on a $40k renewal at 1.42, how are you taking a haircut?

"We're paying on commssions but need to see how they perform"
My response: Yeah, thats the last deal you will get.

"They are not essential "
My response: So the fact that they have a spike in April, essential according to their local government and verifiable AR means nothing?

BOTTOM LINE - we are seeing deals THAT NORMALLY lenders would/should kill for but offering them chicken scratch will not HELP us OR YOU (the FUNDERS). PLUS many small ISOs like myself who have been in the game or made $$$ would rather fund short term and small numbers directly (Shhhh, don't tell my wife). If you are a FUNDER actively funding new deals and read this in its entirety than you should understand what were looking for, give me a call or shoot me an email.

Vadim
Tip Top Capital
212-252-2217
vadim@tiptopcap.com