1 00:00:00.480 --> 00:00:03.000 Sean Murray: Yeah, so this one kind of slipped under the radar 2 00:00:03.000 --> 00:00:05.280 with the mainstream media. I learned about it over the 3 00:00:05.280 --> 00:00:09.600 weekend, Facebook made a formal announcement. Last week, I think 4 00:00:09.600 --> 00:00:13.470 on Friday, it was Sheryl Sandberg, the COO, she announced 5 00:00:13.470 --> 00:00:16.050 that they were gonna be helping small businesses get money, 6 00:00:16.140 --> 00:00:19.410 particularly the underserved ones. Yeah. And that they're 7 00:00:19.410 --> 00:00:22.860 gonna do that in two ways. One was through a small business 8 00:00:22.860 --> 00:00:27.060 loan Resource Center, which is essentially just a portal where 9 00:00:27.060 --> 00:00:31.320 you can find different information or you can you can 10 00:00:32.190 --> 00:00:34.800 go on other marketplaces that aren't Facebook, they can just 11 00:00:34.800 --> 00:00:36.960 kind of guide you to the right place. And you're like, okay, 12 00:00:36.960 --> 00:00:39.090 that's not a big deal. Yeah. But then there is a big deal, 13 00:00:39.090 --> 00:00:41.790 because they're like, also, we're doing invoice factoring. 14 00:00:42.060 --> 00:00:44.040 So Facebook announced that they're going to be doing 15 00:00:44.070 --> 00:00:47.400 invoice factoring, effective October 1. 16 00:00:47.820 --> 00:00:50.700 Johny Fernandez: But to jump to kind of piggyback off of that, 17 00:00:52.050 --> 00:00:55.260 in order to be eligible, they have a long, well, not a long 18 00:00:55.260 --> 00:00:59.280 list, but they have a list of their criterias that will make 19 00:00:59.280 --> 00:01:03.930 you eligible for this service. So I'm gonna list some of it 20 00:01:03.930 --> 00:01:07.080 off. So you obviously have to be an eligible American business 21 00:01:07.080 --> 00:01:11.880 owner. And specifically, you have to be either a minority a 22 00:01:11.880 --> 00:01:17.250 female part of the LGBTQ community or certified disabled 23 00:01:17.400 --> 00:01:19.560 Sean Murray: Yeah. And like a military veteran. 24 00:01:19.560 --> 00:01:20.520 Johny Fernandez: And a veteran. Yes. 25 00:01:20.850 --> 00:01:23.460 So in order to qualify to use any of these services, you have 26 00:01:23.460 --> 00:01:24.840 to fall into that umbrella. 27 00:01:24.870 --> 00:01:27.690 Sean Murray: Yeah. Yeah. So that was the caveat. And that's 28 00:01:27.690 --> 00:01:31.650 listed in the story. They know that it's for the underserved, 29 00:01:31.650 --> 00:01:34.830 so they went with a lot of groups that tend to be 30 00:01:35.130 --> 00:01:38.070 considered underprivileged, right, or underserved. And so 31 00:01:38.070 --> 00:01:41.880 that that's, that's what their mission is. However, they feel 32 00:01:41.880 --> 00:01:44.430 that this market is massive that they're going to be able to do. 33 00:01:44.460 --> 00:01:45.480 Johny Fernandez: About 100 million. 34 00:01:45.480 --> 00:01:47.580 Sean Murray: 100 million dollars worth of these of these 35 00:01:47.580 --> 00:01:50.940 invoices. On an ongoing basis. That's what Sheryl Sandberg 36 00:01:50.940 --> 00:01:53.970 said, an official announcement on Facebook's website, I can put 37 00:01:53.970 --> 00:01:56.130 a link to it online afterwards. I don't think I linked to it in 38 00:01:56.130 --> 00:01:58.770 the story. But these are words from Sheryl Sandberg's post on 39 00:01:58.770 --> 00:02:03.570 the Facebook website. And it's kind of big news, because the 40 00:02:03.570 --> 00:02:08.310 invoice size, the minimum invoice size is $1,000. A lot of 41 00:02:08.310 --> 00:02:10.830 times the invoice factoring, the invoices are much larger, they 42 00:02:10.830 --> 00:02:13.920 gotta be like, you know, 50,000 or 10,000. You don't you don't 43 00:02:13.920 --> 00:02:16.770 typically factor invoices that are smaller than 1000 bucks. But 44 00:02:17.010 --> 00:02:19.140 that's part of what Facebook is trying to do. By helping the 45 00:02:19.140 --> 00:02:22.080 underserved, is, is to really try to help the real mom and pop 46 00:02:22.080 --> 00:02:27.570 size businesses. However, the only other caveat there is that 47 00:02:28.050 --> 00:02:33.450 the customer has to be an investment grade company. 48 00:02:33.480 --> 00:02:37.320 Correct. So you gotta be selling to like Microsoft or something, 49 00:02:37.320 --> 00:02:39.510 you know, some some big corporation that's considered an 50 00:02:39.510 --> 00:02:42.390 investment grade. So if you're, if your customer is, you know, a 51 00:02:42.390 --> 00:02:45.600 mom another mom and pop shop down the street, you gave them 52 00:02:45.630 --> 00:02:47.850 $1,000 invoice with six day terms, and you're like, hey, 53 00:02:47.850 --> 00:02:49.770 Facebook, can you fund me up front now? They're gonna they're 54 00:02:49.770 --> 00:02:50.460 gonna say no. 55 00:02:50.460 --> 00:02:52.200 Johny Fernandez: Yeah cause that's it has to be a 56 00:02:52.200 --> 00:02:57.600 corporation or government entity with investment, grade rating. 57 00:02:57.660 --> 00:02:59.340 Sean Murray: Investment grade rating. Yeah. So that, you know, 58 00:02:59.340 --> 00:03:01.770 that will disqualify a lot of the people who get excited about 59 00:03:01.770 --> 00:03:04.890 it. However, you know, like I said before, they're 60 00:03:04.890 --> 00:03:07.710 anticipating doing $100 million of these things on a on a 61 00:03:07.710 --> 00:03:10.470 rolling or ongoing basis. So clearly, there's going to be a 62 00:03:10.470 --> 00:03:12.870 market. Yeah. And I think what it's gonna what's going to 63 00:03:12.870 --> 00:03:15.150 happen ultimately, is that this is probably going to going to be 64 00:03:15.150 --> 00:03:18.420 a stepping stone. I doubt Facebook is gonna stop here and 65 00:03:18.420 --> 00:03:20.640 be like, oh, this is what we did, end of story. 66 00:03:20.640 --> 00:03:22.170 Johny Fernandez: Yeah, no, it's definitely definitely gonna 67 00:03:22.170 --> 00:03:26.520 start in looking at different markets looking at different 68 00:03:26.520 --> 00:03:29.130 things that they can do to kind of piggyback off of this is this 69 00:03:29.130 --> 00:03:32.850 is definitely, you know, the first their first step to 70 00:03:32.850 --> 00:03:36.660 something besides what we know as Facebook as just a place to 71 00:03:36.660 --> 00:03:37.500 meet your friends. 72 00:03:37.650 --> 00:03:39.870 Sean Murray: Just yeah just a place to meet your friends. 73 00:03:39.900 --> 00:03:41.010 Exactly, you know. 74 00:03:41.160 --> 00:03:42.660 Johny Fernandez: But it's changed. And it's interesting 75 00:03:42.660 --> 00:03:43.650 what it's turning into. 76 00:03:43.860 --> 00:03:45.810 Sean Murray: Yeah, you know I wouldn't be surprised if 77 00:03:45.810 --> 00:03:49.830 Facebook gets into traditional working capital funding. So 78 00:03:49.830 --> 00:03:52.680 Invoice Factoring is a nice, easy way to get into it. Because 79 00:03:53.190 --> 00:03:55.350 there's not a whole lot of risk when you're dealing with 80 00:03:55.650 --> 00:03:59.160 investment grade corporations. Who are the ones that that owe 81 00:03:59.160 --> 00:04:01.470 you money. That's really where the risk is, right? Yeah. If 82 00:04:01.470 --> 00:04:04.200 they buy an invoice off of you and the receivables are from an 83 00:04:04.200 --> 00:04:07.260 investment grade corporation, or from a government entity, 84 00:04:07.290 --> 00:04:09.690 there's a very high chance maybe even 100% chance that they're 85 00:04:09.690 --> 00:04:12.090 gonna get paid. So Facebook really isn't taking a risk. 86 00:04:12.120 --> 00:04:15.060 Johny Fernandez: Yeah, you can't go to like Joe's pizza shop. 87 00:04:15.060 --> 00:04:17.430 Sean Murray: Yeah. And be like, hey, you know, I need to collect 88 00:04:17.430 --> 00:04:19.800 on my invoice. Yeah. Facebook doesn't have time for that. But 89 00:04:20.460 --> 00:04:23.820 we will see I have a feeling that we will see more small 90 00:04:23.820 --> 00:04:26.880 business funding options through Facebook, in the near future, 91 00:04:26.880 --> 00:04:29.310 this is probably going to be a stepping stone to whatever their 92 00:04:29.580 --> 00:04:35.070 their grand plans are. So I thought that Facebook coming up 93 00:04:35.070 --> 00:04:39.570 as a small business funder out of nowhere, it's, kind of big. 94 00:04:39.600 --> 00:04:41.520 Johny Fernandez: Yeah, it's a game changer. It's, it's, it's 95 00:04:41.520 --> 00:04:46.410 gonna be real interesting to see what other platforms of that 96 00:04:46.410 --> 00:04:50.220 caliber will kind of start following and to see how it's 97 00:04:50.220 --> 00:04:53.040 gonna change the space entirely. 98 00:04:53.360 --> 00:04:55.400 Sean Murray: Yeah, well, one one thing I will add to the whole 99 00:04:55.400 --> 00:04:59.630 thing is that Facebook regulates Small Business Finance ads, you 100 00:04:59.630 --> 00:05:02.630 can't say whatever you want. In an ad on Facebook, if you're 101 00:05:02.630 --> 00:05:05.270 offering some type of small business funding, now here comes 102 00:05:05.270 --> 00:05:08.270 Facebook all of a sudden, offering small business funding, 103 00:05:08.420 --> 00:05:11.540 I wonder if they're going to do anything to kind of push their 104 00:05:11.690 --> 00:05:14.390 competition off of the platform. That's something that people 105 00:05:14.390 --> 00:05:17.390 should keep an eye on. If you use Facebook to advertise your 106 00:05:17.390 --> 00:05:20.060 small business funding services, you should probably be very 107 00:05:20.060 --> 00:05:23.030 afraid that Facebook now offers that service, even if it's just 108 00:05:23.030 --> 00:05:26.300 factoring. Because they may eventually if they decide to 109 00:05:26.840 --> 00:05:30.260 push you off the service and only advertise their own. And I 110 00:05:30.260 --> 00:05:33.230 think that could be that could be trouble, because everyone's 111 00:05:33.230 --> 00:05:35.660 on Facebook in some form, or fashion, especially business 112 00:05:35.660 --> 00:05:38.330 owners, a lot business owners their Facebook page is their 113 00:05:38.330 --> 00:05:41.690 website. Yeah. So if you keep that in mind, this is basically 114 00:05:41.690 --> 00:05:45.140 like their their own website is offering them funding now. 115 00:05:45.170 --> 00:05:48.380 Johny Fernandez: Yeah. And it's, and it's interesting, cause 116 00:05:48.800 --> 00:05:52.850 other platforms, other websites are owned by Facebook. So at the 117 00:05:52.850 --> 00:05:55.730 end of the day, you if someone doesn't have Facebook, but they 118 00:05:55.730 --> 00:05:58.490 have something like Instagram, it's owned by Facebook. 119 00:05:58.520 --> 00:05:59.450 Sean Murray: Yeah, that's a good point. 120 00:05:59.480 --> 00:06:01.550 Johny Fernandez: So it's interesting that you know, and I 121 00:06:01.550 --> 00:06:04.160 don't know the entire list of what they owned, but the 122 00:06:04.160 --> 00:06:06.500 government just don't own one website. 123 00:06:06.500 --> 00:06:07.970 Sean Murray: Yeah, that's that's a good point. Right here. We are 124 00:06:07.970 --> 00:06:09.680 talking about Facebook, and you're like, Facebook's for old 125 00:06:09.680 --> 00:06:12.320 people I'm totally up on Instagram. That's Facebook, too. 126 00:06:12.500 --> 00:06:13.460 Like you just said. 127 00:06:13.510 --> 00:06:15.220 Johny Fernandez: Wait am I old if I have a Facebook. 128 00:06:15.910 --> 00:06:17.860 Sean Murray: Hey, I have Facebook. So if you're old 129 00:06:17.860 --> 00:06:20.290 enough, then I'm old, I think everyone is essentially on 130 00:06:20.290 --> 00:06:23.140 Facebook, it's about what they use it for. Some people only use 131 00:06:23.140 --> 00:06:25.750 it for family and the people only use it for school. So. 132 00:06:25.750 --> 00:06:29.800 Johny Fernandez: So are we old? 133 00:06:30.400 --> 00:06:31.510 Sean Murray: We will 134 00:06:31.570 --> 00:06:32.800 Johny Fernandez: I got called old the other day. 135 00:06:33.040 --> 00:06:35.590 Sean Murray: You know, based on some conversations we had this 136 00:06:35.590 --> 00:06:37.930 morning, I would probably put you in the old. And we'll get 137 00:06:37.960 --> 00:06:40.660 we'll get to that by the way. I think Johny is old abd we're 138 00:06:40.660 --> 00:06:42.280 gonna to find out soon enough why that is. 139 00:06:42.370 --> 00:06:44.860 Johny Fernandez: Let's jump to the next topic cause I. I want 140 00:06:44.860 --> 00:06:47.590 to continue that conversation. So the next topic is broker 141 00:06:47.590 --> 00:06:50.890 saying yes to commissions in crypto. That's something we had 142 00:06:50.890 --> 00:06:53.290 talked about earlier in the year. And now we know that 143 00:06:53.290 --> 00:06:57.250 Velocity Capital Group began offering commissions in crypto, 144 00:06:57.370 --> 00:07:05.200 the CEO, CEO said that seven of their ISOs have agreed to take 145 00:07:05.260 --> 00:07:09.130 and that's what they want. And the response has been good. 146 00:07:09.220 --> 00:07:11.920 Yeah. You know, the response has been, you know, something that 147 00:07:11.920 --> 00:07:14.560 these guys want to do, because it's really interesting, instead 148 00:07:14.560 --> 00:07:18.760 of waiting a week, two weeks, a month to get paid. Some of the 149 00:07:18.760 --> 00:07:21.400 guys are getting paid in five minutes. It's instant. 150 00:07:22.170 --> 00:07:24.720 Sean Murray: Yeah, that's the amazing part about it. So we did 151 00:07:24.720 --> 00:07:27.690 put out a story for Velocity Capital Group, about a month 152 00:07:27.690 --> 00:07:31.110 ago, they told us that they were gonna start offering commissions 153 00:07:31.110 --> 00:07:34.860 in crypto. You know, as a writer, you wonder if it's kind 154 00:07:34.860 --> 00:07:37.650 of a PR stunt, that they're, you know, that they're kind of using 155 00:07:37.650 --> 00:07:39.660 you to tell a story, but no one's actually going to do it. 156 00:07:39.660 --> 00:07:42.300 Right. But nonetheless, I'm like, I was captivated by the 157 00:07:42.300 --> 00:07:45.210 idea. Yeah. They definitely had the technology to pull it off 158 00:07:45.210 --> 00:07:47.190 they're very passionate about it and they believed it. And so it 159 00:07:47.190 --> 00:07:50.520 became it became a story. Yeah. It was a very popular one. But 160 00:07:50.640 --> 00:07:52.980 you know, there was no way that we couldn't follow up to find 161 00:07:52.980 --> 00:07:53.130 out. 162 00:07:53.250 --> 00:07:54.660 Johny Fernandez: Find out if people actually were actually 163 00:07:54.660 --> 00:07:57.480 doing it. Right. And they do and they are, they do want to do it. 164 00:07:57.810 --> 00:08:01.230 I think it was interesting that the CEO had mentioned that, you 165 00:08:01.230 --> 00:08:04.200 know, a lot of people are opting for that option, because they 166 00:08:04.200 --> 00:08:06.600 don't want to wait to get paid, they want to be paid now. I 167 00:08:06.600 --> 00:08:09.150 think we can all relate that everyone wants to get paid 168 00:08:09.390 --> 00:08:12.600 instantaneously. Instant gratification, like you do a 169 00:08:12.600 --> 00:08:15.090 deal. And you're like in less than five minutes you get paid. 170 00:08:15.120 --> 00:08:18.060 Yeah. Which is great. And then what you do with that money, or 171 00:08:18.090 --> 00:08:20.520 you know, with the currencies, it's totally up to you. 172 00:08:20.520 --> 00:08:24.260 Sean Murray: Yeah. And it's not like paying in Bitcoin or 173 00:08:24.260 --> 00:08:26.660 Ethereum. This isn't about this isn't about speculating on 174 00:08:26.660 --> 00:08:30.140 crypto. It's all about, like you said, it's just about the speed. 175 00:08:30.170 --> 00:08:33.140 Yeah. So they'll pay the commission in with a stable 176 00:08:33.140 --> 00:08:37.940 coin. So if you're owed $5,000, in American money, you're also 177 00:08:37.940 --> 00:08:40.850 going to get $5,000 in crypto, and it's not going to evolve, 178 00:08:40.880 --> 00:08:43.610 you know, the value isn't gonna change up and down. By the time 179 00:08:43.610 --> 00:08:45.800 you get it. Before you could sell it all. So they'll give you 180 00:08:45.800 --> 00:08:49.520 a stable coin. I did see one broker online talk about how 181 00:08:49.520 --> 00:08:52.520 awesome it was. So this is this is legit. This you can just 182 00:08:52.520 --> 00:08:54.950 like, you know what a funder told us and we didn't we didn't 183 00:08:54.950 --> 00:08:57.950 see the other side of the story. I did see a broker who said it 184 00:08:57.950 --> 00:09:00.860 was real, they got funded under five minutes from the time that 185 00:09:00.890 --> 00:09:04.790 the deal itself got funded. And yes, like you said, seven ISOs 186 00:09:04.790 --> 00:09:07.400 have already have already done it. This is in the span of a 187 00:09:07.400 --> 00:09:12.410 month, right? Yeah. And this is the CEO of the company, Jay, he 188 00:09:12.410 --> 00:09:14.240 told me that you know, it's a bit of a learning curve for some 189 00:09:14.240 --> 00:09:16.760 people and some people, they like the idea they're 190 00:09:16.760 --> 00:09:19.340 entertaining it but you know, they kind of got to figure out 191 00:09:19.340 --> 00:09:22.280 the nuts and bolts of even how to get paid that way. Right. 192 00:09:22.280 --> 00:09:24.020 Johny Fernandez: But once you figure it out, you're good. 193 00:09:24.050 --> 00:09:25.490 Sean Murray: Yeah, once you figure it out, you're good. 194 00:09:26.270 --> 00:09:30.710 There are services like Coinbase that make it very easy if you 195 00:09:30.710 --> 00:09:35.120 don't know how to manage you know, a crypto wallet. So I 196 00:09:35.120 --> 00:09:37.580 think that will be a popular choice for some people to 197 00:09:37.580 --> 00:09:40.940 receive payment in. There's not really a way if anyone out there 198 00:09:40.940 --> 00:09:43.460 is like, oh, I want to get paid commissions because you know, 199 00:09:43.460 --> 00:09:46.190 the IRS is never going to know, I don't think it's that's what 200 00:09:46.190 --> 00:09:48.980 it's for. Yeah. And I think if you're if you're into the crypto 201 00:09:48.980 --> 00:09:51.320 scene, I think the IRS is going to find out you know what you 202 00:09:51.320 --> 00:09:55.100 have anyway. Yeah. I think the idea is that they still expect 203 00:09:55.100 --> 00:09:58.700 you to report what you got to to the IRS this isn't this isn't 204 00:09:58.700 --> 00:10:02.810 like an underground shady. Yeah. Commission payment system. This 205 00:10:02.810 --> 00:10:04.640 is just about how fast you get your commission. 206 00:10:04.640 --> 00:10:06.590 Johny Fernandez: Yeah, but and what are the three things that 207 00:10:06.590 --> 00:10:10.850 are promised in money? Death, taxes and I don't know. 208 00:10:10.880 --> 00:10:11.720 Sean Murray: More debt. 209 00:10:11.750 --> 00:10:12.320 Johny Fernandez: More taxes. 210 00:10:12.720 --> 00:10:14.400 Sean Murray: More taxes buy more taxes. 211 00:10:15.180 --> 00:10:15.900 Johny Fernandez: Especially if you're.