1 00:00:00.505 --> 00:00:01.045 Hey everyone. 2 00:00:01.045 --> 00:00:02.125 Alison Berger here. 3 00:00:02.225 --> 00:00:05.445 I'm at the B2B Finance Expo in Las Vegas now joined 4 00:00:05.445 --> 00:00:08.085 with Jay Victor of Velocity Capital. 5 00:00:08.455 --> 00:00:09.485 How's it going? Good. 6 00:00:09.715 --> 00:00:12.565 Awesome. Good. I'm excited you're here. 7 00:00:12.795 --> 00:00:14.085 Tell me, what have you seen has 8 00:00:14.085 --> 00:00:15.285 changed since we've spoke in May? 9 00:00:15.745 --> 00:00:17.565 Uh, a lot. The industry's moving in, 10 00:00:17.625 --> 00:00:18.805 uh, interesting shift. 11 00:00:19.005 --> 00:00:22.725 A lot of regulation, a lot of, uh, disclosures, um, 12 00:00:23.235 --> 00:00:26.285 more transparency and, uh, we're excited for that. 13 00:00:26.945 --> 00:00:29.005 I'm excited for that. What are you seeing the rest 14 00:00:29.005 --> 00:00:30.725 of the year doing and how do you see it going? 15 00:00:31.385 --> 00:00:33.925 Uh, you know, stuff that we're focusing on a lot is 16 00:00:34.605 --> 00:00:35.685 communication with the merchant. 17 00:00:36.265 --> 00:00:38.445 Uh, trying to give them as much information 18 00:00:38.445 --> 00:00:41.925 as they possibly can, such as, you know, understanding 19 00:00:41.925 --> 00:00:43.485 that debt consolidation is out there, 20 00:00:43.505 --> 00:00:45.165 and understanding that they will call 21 00:00:45.165 --> 00:00:46.325 you, not, they might call you. 22 00:00:46.345 --> 00:00:47.885 Giving them that information upfront, 23 00:00:48.025 --> 00:00:51.845 giving them blogs every week, understanding what, uh, 24 00:00:52.445 --> 00:00:54.045 pitfalls are out in the industry that, 25 00:00:54.105 --> 00:00:55.285 uh, can hurt their business. 26 00:00:55.745 --> 00:00:58.845 Um, and I think the more information they have, the more 27 00:00:59.365 --> 00:01:00.765 educated they can be, uh, 28 00:01:00.765 --> 00:01:02.765 and the better they can assume. Business 29 00:01:03.195 --> 00:01:04.885 Without a doubt, education is 30 00:01:04.885 --> 00:01:06.285 so important in every industry. 31 00:01:06.285 --> 00:01:08.245 It's all about learning more things. Absolutely. 32 00:01:08.705 --> 00:01:10.645 So what are you learning these days? Huh? 33 00:01:10.865 --> 00:01:13.885 I'm learning that, uh, there are a lot of people out there 34 00:01:13.885 --> 00:01:17.365 that are understanding now that regulation is not 35 00:01:17.885 --> 00:01:19.445 a negative, but more of a positive. 36 00:01:19.465 --> 00:01:20.765 And we're pro-regulation 37 00:01:21.185 --> 00:01:23.365 and we're moving towards as much as we can. 38 00:01:23.705 --> 00:01:26.565 We want to inform our, our customers and our merchants 39 00:01:26.565 --> 00:01:29.325 and our brokers of what is truly out there 40 00:01:29.325 --> 00:01:30.445 and what can hurt them 41 00:01:30.445 --> 00:01:33.365 and their business, recurring business, uh, retention 42 00:01:33.885 --> 00:01:36.005 referral and continuous referrals from merchants. 43 00:01:36.005 --> 00:01:38.045 So it's, it's a constant loop, 44 00:01:38.045 --> 00:01:40.205 and if it's done correctly, we believe 45 00:01:40.205 --> 00:01:42.205 that it can be extremely profitable. 46 00:01:42.495 --> 00:01:44.525 Let's talk about your merchants. Who's coming to you? 47 00:01:45.665 --> 00:01:47.525 So, it's interesting. So we've noticed recently 48 00:01:48.065 --> 00:01:51.325 on our data side that there's a lot of, uh, pattern trends. 49 00:01:51.705 --> 00:01:55.405 You'll see, for example, security firms in January, right? 50 00:01:55.555 --> 00:01:56.605 Just a quick example. 51 00:01:56.865 --> 00:02:00.365 And the reason for that is they're doing these security jobs 52 00:02:00.465 --> 00:02:02.725 in December for, let's just say, Christmas, 53 00:02:02.785 --> 00:02:04.165 new Year's Hanukkah. 54 00:02:04.585 --> 00:02:07.725 And they don't have enough capital to cover their payrolls 55 00:02:07.865 --> 00:02:10.405 and their infrastructure for them to be able 56 00:02:10.525 --> 00:02:11.845 to facilitate the jobs in January. 57 00:02:12.145 --> 00:02:16.085 So they have, for example, 30, 60, 91 20 terms, uh, 58 00:02:16.085 --> 00:02:17.085 with their customers. 59 00:02:17.385 --> 00:02:20.245 And by doing that, it puts a cash restraint on the business. 60 00:02:20.665 --> 00:02:22.725 So they're applying for financing in January 61 00:02:23.075 --> 00:02:24.965 because of that December, uh, 62 00:02:24.965 --> 00:02:26.605 you know, consolidation of jobs. 63 00:02:27.185 --> 00:02:30.685 So we're, we're actually identifying where these actual 64 00:02:31.305 --> 00:02:33.765 trends are and how they're manifesting. 65 00:02:33.785 --> 00:02:36.965 And, you know, dentists after Christmas and doctor's offices 66 00:02:37.095 --> 00:02:38.885 after New Year's and so on and so forth. 67 00:02:39.225 --> 00:02:41.525 And we're utilizing those trends to understand the default 68 00:02:41.545 --> 00:02:43.765 to submission ratio so that we can utilize 69 00:02:43.765 --> 00:02:45.205 that data for performance. 70 00:02:45.345 --> 00:02:47.005 So it's new for them businesses 71 00:02:47.005 --> 00:02:48.565 to be planning so far in advance. 72 00:02:49.445 --> 00:02:53.165 Absolutely. It's giving us six months ahead of time for us 73 00:02:53.165 --> 00:02:55.925 to prepare for understanding, okay guys, let's ramp up, 74 00:02:55.925 --> 00:02:57.085 because security's coming up. 75 00:02:57.225 --> 00:03:00.070 So it gives us the ability to promote that to our brokers 76 00:03:00.070 --> 00:03:02.445 and to our sales reps to understand, you know, 77 00:03:02.445 --> 00:03:04.205 we wanna see security in January 78 00:03:05.065 --> 00:03:07.045 and we want to see doctors in, 79 00:03:07.425 --> 00:03:09.285 you know, let's just say March. 80 00:03:09.665 --> 00:03:11.845 And we can actually preemptively market that. 81 00:03:12.045 --> 00:03:13.365 'cause we know it's coming based on 82 00:03:13.365 --> 00:03:14.605 market trend from previous years. 83 00:03:14.905 --> 00:03:16.645 And I assume that's so much more beneficial 84 00:03:16.665 --> 00:03:18.045 to know so far in advance. 85 00:03:18.515 --> 00:03:20.205 It's, it's more than beneficial actually. 86 00:03:20.205 --> 00:03:21.565 We can understand the data trend 87 00:03:21.585 --> 00:03:23.245 of the defaults understanding 88 00:03:23.245 --> 00:03:24.325 that they're applying in January, 89 00:03:24.545 --> 00:03:28.205 but they're defaulting in, in, in, uh, in July. 90 00:03:28.545 --> 00:03:30.285 So we're not gonna go over a seven month 91 00:03:30.285 --> 00:03:31.445 term or an eight month term. 92 00:03:31.445 --> 00:03:33.685 Right. So it gives us the ability to look at the data 93 00:03:33.705 --> 00:03:37.285 and understand it based on annual trend and underwrite 94 00:03:37.285 --> 00:03:38.605 and per, you know, price, 95 00:03:38.625 --> 00:03:40.405 the actual deal based on previous performance. 96 00:03:41.035 --> 00:03:43.565 Very interesting. I like this trend. Thank you. 97 00:03:43.935 --> 00:03:45.605 Thank You. So what are you looking forward 98 00:03:45.605 --> 00:03:47.045 to most this week at the expo? 99 00:03:47.785 --> 00:03:50.245 Um, meeting new people. Making new friends, you know, 100 00:03:50.245 --> 00:03:52.525 meeting new lenders, meeting new funders. 101 00:03:52.905 --> 00:03:55.645 Um, you know, we're very big into relationship building. 102 00:03:55.905 --> 00:03:58.725 We believe that a lender on our side is not a, 103 00:03:58.725 --> 00:03:59.925 it's not a competition. 104 00:03:59.955 --> 00:04:01.525 There's plenty of business to go around. 105 00:04:01.905 --> 00:04:04.925 We want to build a, a network of people who work together, 106 00:04:05.235 --> 00:04:06.965 such as if I see you in a default 107 00:04:06.965 --> 00:04:08.565 or you see me in a default, we can work 108 00:04:08.565 --> 00:04:09.965 with each other and not against each other. 109 00:04:10.545 --> 00:04:12.845 Um, and that's something that I focus on when I'm here 110 00:04:12.925 --> 00:04:15.045 and I let the team deal with the brokers and all, 111 00:04:15.045 --> 00:04:17.165 but I like to make personal relationships with the lenders. 112 00:04:17.355 --> 00:04:18.765 Well, thank you for spending some time 113 00:04:18.765 --> 00:04:20.845 to make a personal relationship with me. Of course. 114 00:04:20.945 --> 00:04:22.925 It was a pleasure. And there's still more 115 00:04:22.925 --> 00:04:24.765 to come from the B2B finance expo.