Is Jamie Dimon in Favor of Stacking?March 2, 2016 | By: Sean Murray
In a featured interview with Bloomberg Markets, JPMorgan Chase CEO Jamie Dimon made a curious argument about small business lending. Speaking about tech-based lenders, Dimon paints the following picture:
For example, they might lend to one of our customers who’s got a $200,000 JPMorgan Chase loan, and this person wants to get another $20,000 for a new truck or a piece of equipment. And what does he do? He goes with them, because he gets it in 15 minutes. If he goes back to the bank, he may have to go through this whole big long process for that $20,000.
Can we do something like that? Of course we can. I’ve asked our people, “Why don’t we just put a revolver on top of our basic loan?” Make it easier for the client.
Whether intentional or not, Dimon’s example is the classic argument made in favor of stacking in the merchant cash advance industry and it’s entirely about doing right by the client. He also said there is nothing mystical about tech-based lenders. “They’re very good at reducing the pain points,” he said. “They can underwrite it quicker using—I’m just going to call it big data, for lack of a better term: ‘Why does it take two weeks? Why can’t you do it in 15 minutes?”’
Last modified: March 2, 2016
Sean Murray is the founder of deBanked, a 10-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper investor, the co-founder of Daily Funder, an alternative lending speaker, consultant, writer, and enthusiast. Connect with me on LinkedIn or follow me on twitter.