Dear MCA and Business Loan Brokers, It’s TimeOctober 5, 2017 | By: Sean Murray
It’s been two years since the Year of the Broker was published. And it’s been many more than that since the last time I brokered a deal myself. Though I’ve only been writing about merchant cash advances (MCAs) and non-bank business loans for seven years here, my involvement in that industry started more than a decade ago. In all that time I’ve gone to countless trade shows, conferences, networking events, meetups and discussion sessions. To their credit, many of those provided excellent value across the spectrum of finance or payments, but none ever quite fully gripped an industry that is now pumping out approximately $15 billion to small businesses each year.
MCAs and online business loans are still overwhelmingly facilitated by salespeople, whether they’re employed by direct capital providers or independent sales organizations and brokers. Notably, a recent survey of industry CEOs suggested that in the last two years, the industry has come to rely even more on brokers for originations despite the belief that their reliance on them would decrease. An average of 64% of originations are currently coming from external sources/ISOs, the survey revealed.
Even salespeople at direct capital providers can find themselves playing the role of adviser or middleman when the solutions they offer in-house are not the right fit for a prospect. Small businesses need someone to help them navigate the massive universe of options and have that person be able to explain those options correctly. It only makes sense then that there would be an annual gathering of brokers, lenders, and MCA funders where all of those salespeople and their colleagues come together. Much to my disappointment (and I’m not alone in that) I’ve never found such an event.
I expect that will change in 2018. I truly believe dear friends that it’s time…
Update: Meet Broker Fair 2018Last modified: October 5, 2017
Sean Murray is the founder of deBanked, an 11-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper note 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.