1 00:00:05.070 --> 00:00:08.250 Sean Murray: Today I am with Chad Otar, the founder and CEO 2 00:00:08.250 --> 00:00:11.760 of Lending Valley. Lending Valley is based in New York and 3 00:00:11.760 --> 00:00:16.170 Chad is also a member of the Forbes Finance Council. Chad, 4 00:00:16.290 --> 00:00:18.600 thanks for being here and can you tell me what is Lending 5 00:00:18.600 --> 00:00:19.350 Valley do? 6 00:00:19.870 --> 00:00:23.410 Chad Otar: Thank you for having me all the way out from Turkey, 7 00:00:23.410 --> 00:00:27.310 actually, we'll get to that point in a bit. Lending Valley 8 00:00:27.310 --> 00:00:31.210 is your prime, you know, merchant cash advance provider 9 00:00:31.210 --> 00:00:37.240 for B+ to B-. We've been doing merchant cash advances for about 10 00:00:37.270 --> 00:00:40.120 a year and a half. But I've been in the industry personally since 11 00:00:40.150 --> 00:00:44.680 2007. So I've gathered all the information that I've learned 12 00:00:44.680 --> 00:00:48.190 over the years, and was able to bring everything I learned from 13 00:00:48.250 --> 00:00:52.330 underwriting to sales to back-end, and be able to help 14 00:00:52.330 --> 00:00:55.660 out the community and to understand what it is that we're 15 00:00:55.660 --> 00:00:59.170 trying to accomplish at Lending Valley. And when Lending Valley 16 00:00:59.170 --> 00:01:01.930 was formed, it was formed on a couple of different principles, 17 00:01:02.380 --> 00:01:07.150 honesty, integrity, and most of all, know no sales floor. So 18 00:01:07.150 --> 00:01:10.510 what that means is, whenever a deal gets sent, you have nothing 19 00:01:10.510 --> 00:01:14.230 to worry about backdooring, because it's a zero policy, I 20 00:01:14.230 --> 00:01:18.760 vet everybody that hire, my team has a very tight knit team where 21 00:01:18.760 --> 00:01:21.100 we're able to work and correspond with each other at 22 00:01:21.130 --> 00:01:24.760 any given time. And it helps us to keep communication open, 23 00:01:25.330 --> 00:01:28.540 which was very important during times, which we'll get into 24 00:01:28.540 --> 00:01:33.400 shortly, and helps us be able to grow the company. And that's 25 00:01:33.400 --> 00:01:38.860 what made us stay afloat, be able to fund during a pandemic 26 00:01:38.890 --> 00:01:41.530 and be able to keep everyone organized at the same time. 27 00:01:42.640 --> 00:01:45.100 Sean Murray: So I gotta go back to something you said in the 28 00:01:45.100 --> 00:01:47.740 very beginning. I want to make sure I heard it, right, because 29 00:01:47.740 --> 00:01:49.750 a lot of people are working remote right now. But did you 30 00:01:49.750 --> 00:01:52.570 say that you were in Turkey? Is that right? 31 00:01:52.840 --> 00:01:57.040 Chad Otar: Yes, I actually did. That is an interesting case, we 32 00:01:57.040 --> 00:02:01.450 came out here on March 3, for actually a week, for a wedding, 33 00:02:01.540 --> 00:02:06.040 my cousin was getting married to his high school sweetheart. And 34 00:02:06.070 --> 00:02:10.060 we actually got stuck since the whole entire pandemic started. 35 00:02:10.180 --> 00:02:15.490 So we've been, like I said, From March 3, and today is what, July 36 00:02:15.490 --> 00:02:18.610 24th and I'm still out here, and I'm still waiting to get back 37 00:02:18.610 --> 00:02:22.720 home. But Lending Valley's still been operational, and I've been 38 00:02:22.720 --> 00:02:26.860 working remotely and actually Lending Valley doesn't even have 39 00:02:26.860 --> 00:02:30.400 an office anymore, as well. All of our guys are working 40 00:02:30.400 --> 00:02:36.040 remotely. So it helps in a way to keeping the team even 41 00:02:36.040 --> 00:02:39.190 stronger. But communication, even though I'm seven hours 42 00:02:39.190 --> 00:02:42.430 ahead, I know exactly what's going on and at any given time. 43 00:02:42.610 --> 00:02:45.460 I'm always ahead of the curve, when she can't keep up on a 44 00:02:45.460 --> 00:02:48.520 file, since I'm seven hours ahead, I step in, and underwrite 45 00:02:48.520 --> 00:02:52.840 if I have to. So she verifies it, or I verify underwriting we 46 00:02:52.840 --> 00:02:55.750 go back and forth. So it helps us all together. 47 00:02:56.500 --> 00:02:58.570 Sean Murray: So the takeaway I'm getting right now is that you're 48 00:02:58.570 --> 00:03:01.810 still open and operational. So how has Lending Valley weathered 49 00:03:01.810 --> 00:03:04.210 the last few months? How have you survived? 50 00:03:04.870 --> 00:03:08.980 Chad Otar: Well, the best example is that I got into the 51 00:03:08.980 --> 00:03:11.860 time when the industry was having another curveball time 52 00:03:12.130 --> 00:03:16.870 back in 2008. I believe that was years that everything was going 53 00:03:16.870 --> 00:03:19.420 down again, everyone's like what's gonna happen to merchant 54 00:03:19.420 --> 00:03:23.230 cash? I had weathered that storm. And that's when a lot of 55 00:03:23.230 --> 00:03:25.450 people didn't even know about merchant cash. And so they did 56 00:03:25.450 --> 00:03:28.330 what they didn't. But with all the information and background 57 00:03:28.330 --> 00:03:32.350 that I have, I was able to apply it to the knowledge of current 58 00:03:32.350 --> 00:03:36.910 today and be able to assess it, helping our book, stay strong. 59 00:03:37.270 --> 00:03:41.740 What that means is we're able to take all the experience from all 60 00:03:41.740 --> 00:03:44.950 the years that I have, and from the experience that we have from 61 00:03:44.980 --> 00:03:48.520 our underwriters, and we were able to take off only two weeks, 62 00:03:49.330 --> 00:03:52.780 it was something uncertain. So it felt the same, but it didn't 63 00:03:52.780 --> 00:03:56.140 feel the same at the same time. So we were able to take all the 64 00:03:56.140 --> 00:03:59.950 knowledge assess what we've been seeing, what other funding 65 00:03:59.950 --> 00:04:02.680 companies were doing, and be able to come up with our own 66 00:04:02.680 --> 00:04:04.060 type of suite, as I call it. 67 00:04:04.710 --> 00:04:07.320 Sean Murray: I think you mentioned in your opening 68 00:04:07.320 --> 00:04:10.410 segment that you were direct only, and that was an important 69 00:04:10.410 --> 00:04:15.900 part of what your company how your company operates. What 70 00:04:15.960 --> 00:04:18.720 brokers and ISOs in your partners, what have they been 71 00:04:18.720 --> 00:04:21.060 telling you about the last few months? And what are they 72 00:04:21.060 --> 00:04:21.840 telling you now? 73 00:04:23.040 --> 00:04:25.440 Chad Otar: We're always gonna have ISOs complain. And it's 74 00:04:25.440 --> 00:04:28.140 always about the same exact thing. That about the amount of 75 00:04:28.140 --> 00:04:32.250 paperwork. I probably, I'm a company that doesn't even ask 76 00:04:32.250 --> 00:04:38.280 for financials for up to $150,000. And when I ask for an 77 00:04:38.280 --> 00:04:41.280 additional three more months of bank statements, it's like 78 00:04:41.340 --> 00:04:44.220 pulling teeth, we were doing this before, I know you've you 79 00:04:44.220 --> 00:04:47.520 know, submitted paperwork, you have it, just do your job a 80 00:04:47.520 --> 00:04:50.760 little more, but get what we need at the end of the day. If 81 00:04:50.790 --> 00:04:55.620 you give us what we want and we fund it, you're happy, I'm 82 00:04:55.620 --> 00:05:00.240 happy, we're all happy. And we only took like I said two weeks 83 00:05:00.240 --> 00:05:03.810 off to being able to assess the situation at hand, in order to 84 00:05:03.810 --> 00:05:09.240 make better decisions for ISOs. [---] And on top of that, not to 85 00:05:09.240 --> 00:05:13.110 cut their commissions, we're still paying 10, we still have 86 00:05:13.110 --> 00:05:17.130 our lifetime bonus of five boroughs. And this is never 87 00:05:17.130 --> 00:05:21.750 going anywhere. Any deal you ever found in five boroughs, as 88 00:05:21.750 --> 00:05:24.930 we all know, New York, Brooklyn, Staten Island, Queens, The 89 00:05:24.930 --> 00:05:28.500 Bronx, you're always gonna get up no questions at one point 90 00:05:28.500 --> 00:05:32.850 bonus on these. So what more can I do for you guys? And on top of 91 00:05:32.850 --> 00:05:35.640 that, we're giving you guys incentives to work with us more. 92 00:05:36.180 --> 00:05:39.360 This month, you were able to make up to close to 17 points. 93 00:05:39.480 --> 00:05:45.720 And I did pay somebody out on a deal 17 points on $13,000 deal 94 00:05:45.720 --> 00:05:48.990 because it was New York. Plus they had other bonuses. Why not? 95 00:05:49.050 --> 00:05:52.620 You show me you work, I'm going to work with you too. It's a two 96 00:05:52.620 --> 00:05:53.460 way relationship. 97 00:05:54.170 --> 00:05:57.020 Sean Murray: Right? Yeah, I mean, it actually sounds like 98 00:05:57.020 --> 00:06:00.350 there's quite a bit of normalcy, which, you know, I would 99 00:06:00.530 --> 00:06:03.740 interpret as a good thing, if it's back to, to the, to the 100 00:06:03.740 --> 00:06:08.360 same old conversations that one would probably be having, before 101 00:06:08.390 --> 00:06:13.310 the whole pandemic began. So you mentioned earlier that you're 102 00:06:13.340 --> 00:06:16.880 working remotely or your team is working remotely, is there a 103 00:06:16.880 --> 00:06:22.010 time that you might return? Or do you envision a, a long term 104 00:06:22.010 --> 00:06:25.160 plan of continuing to work remotely? How is Lending Valley 105 00:06:25.160 --> 00:06:26.270 gonna, gonna do that? 106 00:06:26.840 --> 00:06:29.480 Chad Otar: With the new world that we're now heading into, we 107 00:06:29.480 --> 00:06:33.110 don't really need to be centralized anymore. Because at 108 00:06:33.110 --> 00:06:36.080 the end of the day, everything that we need to do, and 109 00:06:36.080 --> 00:06:38.180 especially with the learning curve that I had for the past 110 00:06:38.180 --> 00:06:44.270 five months, being in Turkey, I where I'm 15 miles 1,500, or 111 00:06:44.270 --> 00:06:48.710 whatever how many miles away I am, we're able to do business, 112 00:06:48.800 --> 00:06:52.940 as usual. Now we have, you know, technologies that are helping us 113 00:06:52.940 --> 00:06:55.670 out to being able to get in touch with each other right 114 00:06:55.670 --> 00:06:59.390 away, you know, Skype was there, now we have Zoom. And on top of 115 00:06:59.390 --> 00:07:02.150 that, we could download it on our phone, and they can call me 116 00:07:02.150 --> 00:07:05.450 through WhatsApp. So I'm right there before it wouldn't have 117 00:07:05.450 --> 00:07:10.700 been possible. But communication now, and with the new product 118 00:07:10.700 --> 00:07:13.160 that we're actually going to come out with being able to help 119 00:07:13.160 --> 00:07:17.060 our ISOs keep track, where it's going to incorporate a lot of 120 00:07:17.060 --> 00:07:20.840 new technologies that are coming, it's going to help 121 00:07:21.290 --> 00:07:26.690 everyone understand where the deal is at any given time. So I 122 00:07:26.690 --> 00:07:30.830 think being remote is the new wave. And especially with 123 00:07:30.830 --> 00:07:34.310 merchant cash advances, we, you know, we don't do site 124 00:07:34.310 --> 00:07:39.620 inspections, we never asked for them anyway. So we don't ask for 125 00:07:39.710 --> 00:07:45.650 anything. So I could do anywhere I want. Give me the basics. If I 126 00:07:45.650 --> 00:07:50.030 go on, we'll get it done. It's very simple. So I'll stay home. 127 00:07:50.750 --> 00:07:52.070 Now, I like working in my boxers. 128 00:07:52.850 --> 00:07:56.210 Sean Murray: Yeah, well, I mean, and you're doing it all the way 129 00:07:56.210 --> 00:08:00.710 from Turkey too that's, that's pretty funny. I've heard, I've 130 00:08:00.710 --> 00:08:04.970 heard a lot of people talk about when things are going to return 131 00:08:04.970 --> 00:08:10.550 to normal, or get you know, or kind of go back on an up, an 132 00:08:10.580 --> 00:08:13.400 upward trajectory. And I've heard anywhere from a few months 133 00:08:13.400 --> 00:08:17.960 to like two years, what a lot of that has depended on where a 134 00:08:17.960 --> 00:08:21.590 company was financially at that point in time. Right. So I think 135 00:08:21.590 --> 00:08:26.420 their outlook kind of, it kind of jives with their current 136 00:08:26.720 --> 00:08:29.600 financial situation. Now, obviously, Lending Valley, as 137 00:08:29.600 --> 00:08:33.380 you mentioned, is up and running, still funding. So my 138 00:08:33.380 --> 00:08:36.800 question would be what, what's your outlook for the rest of the 139 00:08:36.800 --> 00:08:42.020 year? Or even down the road? Are you seeing a return to normalcy 140 00:08:42.020 --> 00:08:44.360 that in the short term or long term or what's, your What's your 141 00:08:44.360 --> 00:08:44.690 feeling? 142 00:08:47.150 --> 00:08:50.090 Chad Otar: I personally think normalcy will take a little 143 00:08:50.090 --> 00:08:55.190 longer. I don't really like to talk about politics, but I 144 00:08:55.190 --> 00:08:58.880 personally think that elections are going to play some major 145 00:08:58.880 --> 00:09:03.830 factors into how long it'll take. The reason why I say that 146 00:09:03.830 --> 00:09:09.590 is because, you know, as we live through it, we, all this past 147 00:09:09.620 --> 00:09:12.230 couple of months, we've seen a lot of different directions, a 148 00:09:12.230 --> 00:09:15.860 lot of information being thrown from everywhere. So everyone is 149 00:09:15.860 --> 00:09:19.880 still a little dazed and confused. They don't know what 150 00:09:19.880 --> 00:09:23.330 happened. You know, I mean, they couldn't gauge it. So I think 151 00:09:23.330 --> 00:09:26.630 personally, it's going to take some time for it to come back. 152 00:09:26.930 --> 00:09:31.100 But the people like I said, that experience that have deeper 153 00:09:31.100 --> 00:09:35.060 pockets will still be around, but the people that were just 154 00:09:35.060 --> 00:09:38.930 aimlessly approving everyone you know, giving you guys the 155 00:09:39.050 --> 00:09:43.520 shorter, the short terms are not gonna last and especially now 156 00:09:44.060 --> 00:09:47.390 that we need to start disclosing APRs I think it's gonna be a 157 00:09:47.390 --> 00:09:51.410 little more tougher for a lot of people need to start adjusting 158 00:09:51.770 --> 00:09:55.220 their contracts, their behaviors, and it's going to 159 00:09:55.250 --> 00:10:01.670 become more of a product that as more [---] to being able to 160 00:10:01.760 --> 00:10:06.230 people to understand what it is that we're here to do. And 161 00:10:06.260 --> 00:10:10.970 others tried, they forgot the real reason why a merchant cash 162 00:10:10.970 --> 00:10:15.020 advance existed at the end of it. So I personally think it'll 163 00:10:15.020 --> 00:10:19.010 take some time adjustment, and there'll be a falling out, but 164 00:10:19.250 --> 00:10:23.960 for the better because we need it at the end of the day, 165 00:10:23.990 --> 00:10:26.720 because there are funders out there that are trying to make a 166 00:10:26.720 --> 00:10:30.350 difference. And there's funders out there to just there for a 167 00:10:30.350 --> 00:10:31.070 good quick flip. 168 00:10:32.060 --> 00:10:36.020 Sean Murray: Right, I kind of agree with you. So what about 169 00:10:36.020 --> 00:10:39.500 Chad Otar the man. When is Chad Otar the man returning to 170 00:10:39.500 --> 00:10:41.960 America and getting American normalcy? 171 00:10:43.820 --> 00:10:46.940 Chad Otar: Ah, honestly, I got used to this life, I love it 172 00:10:46.940 --> 00:10:52.250 here. You know, there's one thing I love, you have a better 173 00:10:52.250 --> 00:10:55.700 quality of life. But fortunately, as I say, all the 174 00:10:55.700 --> 00:10:59.510 things need to come to an end. And I do need to go back 175 00:10:59.960 --> 00:11:03.740 originally, to where I came from where I was born. So I'll be 176 00:11:03.740 --> 00:11:07.820 back in the States on August 13. The man, the myth, the legend 177 00:11:07.910 --> 00:11:12.080 needs to come back and show and do what he needs to do and make 178 00:11:12.080 --> 00:11:15.410 the most of it. And since we're rolling out new technology, I 179 00:11:15.410 --> 00:11:19.340 gotta stay on top of that, too. And I'm very excited. And we are 180 00:11:19.340 --> 00:11:22.850 going to share that with a couple of different people 181 00:11:22.850 --> 00:11:25.700 before we actually release it to the public to get their opinion. 182 00:11:26.360 --> 00:11:30.590 Because this is going to be I personally say revolutionary for 183 00:11:30.590 --> 00:11:31.640 the MCA industry. 184 00:11:32.330 --> 00:11:35.420 Sean Murray: Totally agree. Well, Chad Otar, the man, the 185 00:11:35.420 --> 00:11:39.860 myth, the legend, CEO of Lending Valley. Thanks for being here. 186 00:11:39.860 --> 00:11:42.350 Really appreciate your time today and enjoy your stay in 187 00:11:42.350 --> 00:11:42.770 Turkey.