What’s On The Industry’s Desk?
November 3, 2023
“Just personalize your desk for others to recognize your space,” said Maria Pappas, Chief of Sales at Landfall Media Group.
On a typical day, individuals spend eight hours at their desk, another eight attending to tasks after leaving it, and the remaining eight hours asleep. Now this breakdown may vary from person-to-person, but it generally holds true. The office really is like a second home.
For Maryam Raya, an ISO Representative at JRG Funding, she’s currently awaiting the arrival of a piano fixture that she plans to place on her desk. As a professionally trained concert pianist, it will hold special value for her. But she’s got another classical way of jazzing up her workspace as well.
“I also absolutely love flowers and have brought bouquets on occasion to the office,” said Raya. “That’s definitely a personal touch.”
Meanwhile, Sharon Guiliano, COO at Triton Recovery LLC, believes it’s crucial for her to inspire and motivate a positive vision of success to foster a culture of positivity within her company. This is the reason she keeps her workspace with numerous motivational items. Among those is a succulent marble vase representing devotion, growth, loyalty, focus and prosperity. In one corner of her office, she even has a Birds of Paradise plant as a representation of maintaining a positive perspective on life.
“I have motivational items in my workspace that say, ‘Stay Positive, Work Hard, Make it Happen’ and ‘Live in the moment,’” said Guiliano.
For Pappas at Landfall Media Group, she keeps a fidget spinner nearby to divert her from distractions that ironically has turned into a distraction itself. And along with a photo of her kids, she has a lucky duck figurine gifted to her from her daughter displayed in front of her monitor.
“I also have my Nespresso machine for midafternoon to pick me up,” said Pappas. “Most importantly, pictures of my kids for motivation.”
Pappas’ male colleagues struggle to grasp the concept of having mascara readily available but Pappas takes it further by keeping various items within reach at the office, such as a toothbrush, floss, lipstick, and hair ties. Raya of JRG Funding, meanwhile, also always keeps her two essential items within sight. “I always carry lip gloss and a hairbrush,” said Raya. As for Guiliano, in addition to hand lotion and sanitizer, she also has promotional swag on her desk from events she’s attended.
“I do like to keep marketing items I’ve collected through the years from attending the AltFinanceDaily events,” said Guiliano.
Originations Increased, Losses Decreased for Shopify Capital
November 2, 2023
Shopify Capital is still experiencing an increase in business loan and merchant cash advance originations, according to the company’s latest Q3 earnings report. The company recently stopped disclosing precisely how much it is they are originating, however. It used to give precise numbers but starting this year Shopify now only cites its loans and merchant cash advance receivables balance.
“Transaction and loan losses decreased for the three months ended September 30, 2023 compared to the same period in 2022, primarily due to a decrease in losses related to Shopify Capital.”
So funding is up, losses are down, which is precisely the opposite situation that is going on at rival PayPal.
Shopify somewhat skimmed over its Shopify Capital business in its Q3 earnings announcements and on its official call except to state that it’s a strong segment that is growing.
Amazon’s Business Loan Program Relatively Flat, And The Company is Now Possibly the Largest MCA Broker?
October 29, 2023
Amazon’s seller lending program, in which the company extends working capital loans to Amazon sellers to buy inventory, has been somewhat flat this year. Its seller lending receivables in Q3 were unchanged from Q1, coming in at $1.2B. It had briefly gone up in Q2 to $1.3B.
Amazon rarely mentions its seller lending business which is but a blip compared to the $143B in net sales the company recorded in just the third quarter. Despite all this cash, Amazon relies on a $1.5B secured revolving credit facility with a lender in the same way many small business lenders do to facilitate this amount of loan volume.
AltFinanceDaily has been tracking the company’s seller lending receivables balance since 2016.
Amazon’s separate merchant cash advance program is not counted as part of their selling lending program. Amazon partnered up with Parafin in November 2022 to offer MCAs to their clients. One consequence of that is that Amazon sellers talk publicly in the company’s Seller Central forums and this has been no exception. There, most mentions of Parafin have so far been less than flattering.
Much of the confusion reported by sellers is centered around the percentage collected from each sale. Unlike most MCA funding companies, which either withhold a percentage of card sales or debit a fixed daily amount that can later be trued-up upon request, Amazon was previously collecting its percentage “based on whether a seller had received any disbursements, automatic or manual, in the prior week.” However, that changed this past August, according to Amazon who published the following note in their forum:
Payment is deducted from your bank account based on your current Amazon disbursement schedule. If you receive disbursements weekly, payments for your cash advance will be deducted weekly. If you receive disbursements bi-weekly, payments for your cash advance will be deducted bi-weekly. In instances where Amazon sales data is delayed in reaching Parafin, Parafin combines the payment amount with the subsequent payment to avoid debits happening on unexpected days of the week. Sellers whose payments are impacted by these instances receive emails from Parafin detailing the expected payment dates and adjusted amounts.
…
“Your merchant cash advance will be paid off automatically over time as you make successive sales-based payments. Because your offer is determined in part by your past business performance, our estimate is that you’ll pay your merchant cash advance within the estimated timeframe stated when you accepted it. If your sales ramp up or slow down, your payment amounts (and therefore the estimated payment period) may ramp up or slow down with them. The payment rate itself will not change and is a fixed percentage of monthly sales.”
Although there is some irony to Amazon playing the role of MCA broker and MCA customer service, Amazon also refers its loan-interested sellers to Lendistry and Marcus by Goldman Sachs. All of this activity started late last year just as Amazon was on pace to max out its own credit facility with its own lending program. Since then, the company’s flat business loan receivable balance might suggest that Amazon’s seller financing business is actually growing, just not on its own balance sheet since its brokering the deals out.
So who’s the biggest MCA broker in the US? Amazon generated $514B in net sales in 2022. $1B in MCA deals wouldn’t be so hard for a company already doing about a billion a year in loans. It would be quite ironic to discover that the biggest MCA broker in 2023 was Jeff Bezos, but it’s a real possibility.
Lending Industry Expert Joe Valeo Appointed President of SmallBusinessLoans.com
October 20, 2023NEW YORK SmallBusinessLoans.com (SBL) is pleased to announce the appointment of Joe Valeo as its new President. With over 35 years of experience in finance and sales, Valeo brings a breadth of knowledge to his executive leadership role at SBL, where he is committed to making the “right fit” lending solutions more accessible to small business owners.
In his previous positions, Valeo gained strategic development and consumer/business lending experience, serving financial services organizations such as LendingPoint, where he held the position of EVP/GM for POS merchant lending and direct-to-consumer loans. Before that, at Capital Access Network, he led sales strategy and management. His extensive background in payment services to merchants at First Data Corporation and Citicorp, managing e-commerce, ISOs, and franchises, as well as his experience managing acquirer and issuer relationships with key financial institutions at VISA, uniquely positions him to lead SBL to new heights.
Valeo’s vision for SmallBusinessLoans.com is straightforward and ambitious. His growth strategies include connecting with his deep finance industry network and implementing financial and business solutions to meet SMBs’ needs.
With his leadership, SmallBusinessLoans.com is positioned to:
- Be the preeminent destination for small businesses seeking financing and related business services digitally. The SBL platform cuts out time-consuming research and matches small businesses with trusted lenders who offer a variety of financing to suit every business need.
- Provide a simple, efficient application journey to help small businesses qualify for the right product and solution, ensuring easy access to financing and business services.
- Assist business owners in meeting immediate financing needs, helping them thrive in the long run. SBL serves various industries, including agriculture, commercial trucking, construction, landscaping, medical practices, and more.
Known for his problem-solving skills and quick thinking, Valeo is excited about leading a team of dedicated bridge-builders who will connect businesses and consumers to the funding they need to build their businesses and improve their lives. His commitment to customer-centric solutions makes him an ideal fit for SBL.
Valeo expressed his enthusiasm for his new role, “I strongly believe we’re doing something special, different, and market leading. Our mission is to provide a simple and easy way for businesses to access financing and business solutions.”
As passionate advocates for small businesses, Valeo and the SBL team are eager to converse with potential partners and business owners seeking small business financing and operations solutions.
For more information and to connect with us, please visit us at: www.SmallBusinessLoans.com.
About SmallBusinessLoans.com (SBL)
SmallBusinessLoans.com (SBL) helps small business owners connect with their best financing solution. With a commitment to simplifying the lending process and making it easy for business owners to find trusted, reliable lenders, the SBL platform matches business owners with lenders who offer fast funding, flexible terms, personalized options, and more to help small businesses thrive. SBL aims to become the go-to digital destination for small businesses seeking financing and business services. For more information, go to www.SmallBusinessLoans.com
Contact:
Susan Almon-Pesch
sue@speschialpr.com
858-205-0516
Sales Slump? There’s Ways to Overcome It
October 9, 2023
From beginning as an entry level rep seven years ago to his current role as the Director of Sales and Operations at Tip Top Capital, Sergio Zamudio has gained a deep appreciation for the importance of maintaining motivation, especially during slower weeks. A slump can get even a good salesperson down so he encourages a shift in perspective. Instead of focusing on the number of contacts made in a day, one should evaluate how many of those contacts can become qualified prospects.
“It’s kind of like the marble theory,” Zamudio said, “if I throw a certain amount of marbles in a jar, how often do I come across a blue marble? Well, as long as I keep digging, and I keep looking, I’m going to get something.”
To inspire the team, Tip Top offers various incentives. The top producers in the office are recognized with a monthly trophy. And weekly rewards are given out, which can range from tickets to a Giants game or seats at a Broadway show. The underlying idea is to encourage the team to focus on what they can control, such as striving for another sale, rather than dwelling on tough days beyond their control.
“What we do to try to get people motivated and going is that we like to do bonus incentives,” said Zamudio, “We do this thing called a monthly trophy. Everybody’s very goal oriented and tries to beat one another to try to win the trophy, which goes to the top producers in the office.”
For Gerald Watson, CEO of the Watson Group, 25 years of experience has taught him a few things. When a week is slow, sales reps should “look at their existing book of business, whether it’s people they’ve done fundings for or even prospects,” he said. His advice is that reps should engage them in discussions about other financing products they might require. “Same customer, new products, that’s a real fundamental business strategy,” Watson said.
If all else fails, get accustomed to asking for referrals. Ending an interaction with something as simple as, “’Oh by the way, do you know anyone that…’” can go a long way,” Watson explained. “If there’s no opportunities with existing clients, you always want to get into the habit of asking for referrals.”
Will Murphy, COO at Everlasting Capital, is no stranger to a slump. The company started with one back in 2012 when his partner was making 400 calls a day for three months with no success. Finally, after all that, a deal got funded and it encouraged them to keep at it. While maintaining determination is certainly woven in to the fabric of their sales culture, Murphy also cited the importance of checking in on clients constantly. “We have a lot of trade secrets that we’ve learned over the years that we’ve implemented into play to (1) stay in front of the client, (2) stay in front of renewals, and (3) provide the best customer service that we possibly can because you got to stay relevant in this industry, or you’ll pretty much be forgotten,” said Murphy.
From A to D: How LCF is Aiming High
October 9, 2023
Robert Kleiber was a banker. He started his career at Citi in 2000 and rose up the ranks to become Head of Small Business Banking for North America by 2014. By then times were changing and disruptive fintech technology was becoming the talk of the town. Kleiber saw it firsthand and wanted in. So, he made the daring move to leave Citi in 2016 to go make his mark in the rapidly evolving world of small business finance.
He first served as the CFO of an NYC-based fintech company until another unique opportunity presented itself. It was at a growing company on Long Island that he hadn’t really known that much about previously. The way Kleiber tells it to AltFinanceDaily, the company had a way of communicating the scale of its aspirations that got him really excited. He went for it. The company was called The LCF Group, a revenue-based financing provider that was headquartered in New Hyde Park. Today, Kleiber is the CFO & COO of the LCF Group. Founded in 2011, the company has solidified itself as a stalwart in what folks often call the “C & D paper” space.
“The goal,” Kleiber reveals, “is to be largest subprime funder by the end of next year.”
That’s a lofty ambition. In an industry oft-filled with big talk and rosy projections, LCF’s trajectory actually appears to support this possible outcome. Between in-office and remote, the company already has approximately 200 employees and it’s been on a hot streak of recruiting talent. Most compelling of all, however, is that LCF recently acquired select strategic assets and licensing rights to a well-regarded name in the industry, Reliant Funding. At the time of the announcement, the company said that “This strategic move not only enhances LCF’s portfolio but also empowers us to offer merchant funding through both ISO partners and directly under the LCF and Reliant brands.”
“On the direct side, our plan is to build up Reliant on originations […] and get them back to where they were before,” Kleiber says.
In that regard, LCF fully intends to leverage the Reliant name back into a powerhouse funding arm in the prime paper arena, first by going direct to merchant and then by taking on ISO/referral business for it. Between its two brands then, the company is on its way to covering the gamut from A – D. Unsurprisingly, all of this activity requires strong technology to make everything work. Kleiber says that they have 20-25 developers constantly building out their systems, which they rely on to not only increase the speed in which they can approve deals but also to achieve maximum compliance.
“We take compliance super serious,” Kleiber says. “Our differentiator is transparency, operating above board.”
LCF’s new Director of Sales, Jason Redding, who previously spent ten years at OnDeck, echoes same. “Even though it’s C & D paper, we’re doing this the correct way,” Redding says. Redding, who experienced the incredible ride at his former employer from startup to IPO and beyond, explains that LCF is giving him a similar feeling of what that journey was like. “Being part of something like that again is something I’m looking forward to,” he says.
And yet when it comes down to product, the company is perfectly content for the time being to focus on what they’re good at, which is revenue-based financing through and through. They’ve determined it’s better to lean in and try to be the best at something rather than try to offer too many different things.
At the LCF office in New Hyde Park, one can find various departments working to carry out the company’s mission. Among the introductions and small talk made during a walkthrough, one line uttered by a veteran member of their team stands out. “In this industry you don’t have to be earth shatteringly different, just operate with honesty, integrity, and transparency, and success will follow.”
Fundfi Secures New Credit Facility
October 2, 2023
Fundfi Merchant Funding LLC, a leading provider of Merchant Cash Advances (MCA), is proud to announce securing their newest credit facility to continue growing its funding portfolio.
The new line of credit, secured through a strategic partnership with Crown Partners LP, exemplifies Fundfi Merchant Funding’s unwavering commitment to supporting small and medium-sized businesses by providing them with accessible and flexible funding solutions.
This substantial financial injection arrives at an opportune moment for Fundfi Merchant Funding as it seeks to capitalize on a growing demand for alternative financing options among businesses facing challenges in securing traditional bank loans.
Efraim Kandinov, Co-Founder and CEO of Fundfi Merchant Funding LLC stated, “This line of credit not only bolsters our financial capabilities but also underscores our unwavering commitment to supporting businesses on their journey to success.
We understand the unique challenges entrepreneurs face, and this new funding empowers us to make a more profound impact in helping them thrive and achieve their dreams.”
Natasha Dillon, Co-Founder and CFO of Fundfi Merchant Funding LLC, commented, “This infusion represents a tremendous vote of confidence in our company and its mission. We are excited to leverage these funds to continue supporting businesses when they need it most and to innovate our offerings to better serve our clients.”
About Fundfi
Fundfi Merchant Funding LLC, headquartered in New York, is a leading provider of Merchant Cash Advances (MCA), offering tailored financing solutions to businesses across various industries selected.
TikTok for Lead Generation? It’s Different
September 28, 2023
Today, TikTok is no longer just a platform for dance challenges, but a marketing tool rivaling social media giants like LinkedIn, Instagram, and Facebook. But does it hold the same weight for this industry looking to attract clients?
“You have to have fun with it and tell [your target customer] the truth about how we work and what we can do for them, no exceptions, and they will understand and trust you,” said Sonia Alvelo, CEO at Latin Financial. “Get creative and have fun with it at the same time. This is a different beast.”
Alvelo signed her company up on TikTok this past year and said, “It’s attracting good business.” Managing the account herself, their content is educational while also highlighting the environment and work ethic of the company. Their TikToks feature playful moments like office lunch breaks turned into music videos, fun clips showcasing employee food preferences, and footage from panels Alvelo has participated in. And she makes sure to have some content available in both English and her native Spanish.
“It is more educational content, that way it will attract new clients and give us the advantage of teaching them about the industry,” said Alvelo. “We also highlight our work ethic, how we treat our employees and the environment in which we work at Latin Financial.”
Initially skeptical, Alvelo learned that many small businesses on TikTok are seeking funding but hesitate to approach traditional banks. She’s studied where those businesses are online and the potential opportunity to connect with them where they are, including LinkedIn, which she actually found less conducive to this type of dealmaking despite its business atmosphere. She gives a thumbs-up to Facebook, explaining that its personalized environment allows those potential customers to really see you and feel like they know you.
“…You can make a lot of money advertising your company and what you do,” she said of Facebook.
“Instagram is good but it’s a networking platform and if you invest the right way you get a lot of leads and turn that into funded deals,” said Alvelo. “TikTok is the new approach to get all the new businesses less than two years old. And why not? Maybe to others it’s not the way to go, but for me and Latin Financial we are here to educate and for businesses to have all the knowledge to continue to be in business for a long time.”
Meanwhile, Alex Cespedes, Business Development Specialist at Financial Lynx, mentioned that their active engagement on TikTok only started in March despite being on the app for a year. They showcase a range of content, from funding successes, to visiting offices, to their sponsorships of different events. Still trying to figure out how to maximize the effectiveness of it all, Cespedes stated that LinkedIn and Instagram have been their bread and butter so far. The content they create on Instagram later gets reposted on TikTok and he’s found that it’s been hit-or-miss.
“…TikTok has been a little lesson but I think it’s because no one’s kind of figured it out yet,” said Cespedes. “Even on Instagram I see other brokers and other financing companies that do well and their stuff gets views and you see engagement on their posts, but then even when you go over to their TikTok, if they have one at all, it’s much less.”
The reigning demographic for users on TikTok is ages 18-24, whereas their business owner clientele is predominantly in their 40s-50s. Cespedes explained that Instagram resonates more with their target demographic for now.
“…I think that’s what it is now, it’s just a little bit of a lack of alignment, the TikTok age range is still a little too young for our industry, at least not right in the center of it.”
