1 00:00:07.700 --> 00:00:10.800 Thank you so much for being here today. Go ahead 2 00:00:10.800 --> 00:00:13.200 and introduce yourself and who you're with the company that 3 00:00:13.200 --> 00:00:16.200 you're with of course. So I'm alistically yummy director of 4 00:00:16.200 --> 00:00:19.500 iso relations at jrg funding. All right. So how 5 00:00:19.500 --> 00:00:22.500 long have you been working in the small business industry Ms. Small 6 00:00:22.500 --> 00:00:26.300 business industry actually closer to three years. I've been 7 00:00:26.300 --> 00:00:29.100 in the little MTA space so far you've been 8 00:00:29.100 --> 00:00:32.400 on the Thunder side for this whole time, correct? Yes, 9 00:00:32.400 --> 00:00:35.300 that's correct. And so what can you expect regarding the 10 00:00:35.300 --> 00:00:38.200 interactions that you know, you have had with 11 00:00:38.200 --> 00:00:41.300 Brokers and what has that experience been like 12 00:00:41.300 --> 00:00:44.600 when you first got into the industry versus the reality of the 13 00:00:44.600 --> 00:00:47.300 day today, I would say from the beginning until now. 14 00:00:51.100 --> 00:00:54.200 Things are always changing and you never really know everything in this industry, 15 00:00:54.200 --> 00:00:57.400 but I've definitely learned a lot up until now and 16 00:00:57.400 --> 00:00:58.500 a lot of growth. 17 00:00:59.300 --> 00:01:03.100 So obviously it's super competitive because Brokers have 18 00:01:02.100 --> 00:01:05.500 a lot of options especially nowadays. So 19 00:01:05.500 --> 00:01:08.300 in your experience how and why is 20 00:01:08.300 --> 00:01:11.500 it important for Brokers to number one have a relationship 21 00:01:11.500 --> 00:01:13.600 with funders? 22 00:01:14.500 --> 00:01:17.400 It's really important because the stronger relationship 23 00:01:17.400 --> 00:01:20.200 is between a broker and a funder the more 24 00:01:20.200 --> 00:01:24.300 your business is going to grow. I mean a lot of Brokers may think submitting to 25 00:01:24.300 --> 00:01:27.400 you know, 15 different lenders in every deal will benefit 26 00:01:27.400 --> 00:01:30.900 them. But in the long run, it's really important to keep a 27 00:01:30.900 --> 00:01:33.900 lot of your business in one or two books. It's 28 00:01:33.900 --> 00:01:36.200 a mutual trust thing like me 29 00:01:36.200 --> 00:01:36.600 personally. 30 00:01:37.700 --> 00:01:40.200 A lot of Brokers that I work with if I 31 00:01:40.200 --> 00:01:43.300 work with them a long time, we build a strong book with them and I trust them, you know, 32 00:01:43.300 --> 00:01:47.600 you get benefits like bonuses higher commissions more 33 00:01:46.600 --> 00:01:49.500 flexibility on deals because that 34 00:01:49.500 --> 00:01:50.200 trust is there. 35 00:01:51.100 --> 00:01:54.400 So this is probably the most important question 36 00:01:54.400 --> 00:01:57.600 in this entire interview. What are the do's and 37 00:01:57.600 --> 00:02:00.700 the don'ts for Brokers big Do's are 38 00:02:00.700 --> 00:02:04.300 follow your funder's guidelines. It's really 39 00:02:04.300 --> 00:02:07.300 hard when you know, we say we 40 00:02:07.300 --> 00:02:10.900 don't fund this industry that industry or past 41 00:02:10.900 --> 00:02:13.300 defaults or certain restricted State and 42 00:02:13.300 --> 00:02:16.400 then all the submissions were getting or outside of that scope, 43 00:02:16.400 --> 00:02:19.100 you know can clog up under writing and it's just, you know 44 00:02:19.100 --> 00:02:22.700 mutually a waste of time because if a 45 00:02:22.700 --> 00:02:25.200 broker is not following a funder's guidelines and they keep sending things 46 00:02:25.200 --> 00:02:25.900 outside of it. 47 00:02:26.500 --> 00:02:29.400 No one's gonna win in the end. Another do is to 48 00:02:29.400 --> 00:02:32.800 be honest be transparent. You know, 49 00:02:32.800 --> 00:02:35.300 it might be fun for a broker to think that double 50 00:02:35.300 --> 00:02:38.500 funding a deal with two different lenders. Yeah, I 51 00:02:38.500 --> 00:02:41.800 went to commissions but the lender 52 00:02:41.800 --> 00:02:44.700 will find out 99% of the time and then there 53 00:02:44.700 --> 00:02:47.100 goes that relationship. Let me stop you. Let 54 00:02:47.100 --> 00:02:50.100 me ask you about that because we've heard a lot about that double funding and 55 00:02:50.100 --> 00:02:54.400 double dipping. Let's dive in a little bit more sure. So when we 56 00:02:54.400 --> 00:02:58.000 are underwriting a deal we underrate it and we 57 00:02:57.600 --> 00:03:00.700 approve advanced. 58 00:03:01.900 --> 00:03:04.300 To ensure that the merchants going to be able to afford the 59 00:03:04.300 --> 00:03:04.500 payment. 60 00:03:05.300 --> 00:03:08.500 So let's say we bring them right up to there's a 61 00:03:08.500 --> 00:03:12.600 percent. Withhold that we that we come to that's a 62 00:03:11.600 --> 00:03:14.300 calculation of the percent of 63 00:03:14.300 --> 00:03:17.400 their monthly Revenue that's going towards MCA payments. So 64 00:03:17.400 --> 00:03:19.000 let's say we bring them right up to that point. 65 00:03:20.100 --> 00:03:20.600 threshold 66 00:03:21.400 --> 00:03:22.900 and then another funder does the same thing. 67 00:03:24.300 --> 00:03:28.000 That's double and they're not going to be able to afford it. So things can 68 00:03:27.100 --> 00:03:30.300 happen like the merchant can default and 69 00:03:30.300 --> 00:03:33.400 the advance because they don't really know in the beginning what they're going into that. 70 00:03:33.400 --> 00:03:36.400 They can't afford it commission can get clawed 71 00:03:36.400 --> 00:03:39.600 back. So the broker can lose on both ends and it's 72 00:03:39.600 --> 00:03:42.200 really just burning the merchant which we never want to do. We 73 00:03:42.200 --> 00:03:45.700 want to go into renewals. We want to keep funding a merchant. But if 74 00:03:45.700 --> 00:03:48.500 they're stacking or double funding it gets 75 00:03:48.500 --> 00:03:51.300 really hard on them. It's it's too much and so go ahead 76 00:03:51.300 --> 00:03:54.600 and continue your list the do's and don'ts okay another 77 00:03:56.300 --> 00:04:00.000 Don't is I would say just lying to 78 00:03:59.500 --> 00:04:02.600 a lender about Merchant's history 79 00:04:02.600 --> 00:04:05.300 or you know, 80 00:04:05.300 --> 00:04:08.100 being pre-qualified and correctly because again, we're 81 00:04:08.100 --> 00:04:09.200 going to catch it in the end. 82 00:04:11.100 --> 00:04:14.200 So overselling a merchant or promising them something 83 00:04:14.200 --> 00:04:17.500 that they're really not going to get. Yeah. And then for the dues you 84 00:04:17.500 --> 00:04:20.200 have any more any more input regarding like this is what 85 00:04:20.200 --> 00:04:24.600 you should be doing when you're working with a funder. Yes communication definitely 86 00:04:23.600 --> 00:04:26.400 letting us 87 00:04:26.400 --> 00:04:29.800 know where Merchants at. Are they 88 00:04:29.800 --> 00:04:32.400 ready to take this deal. Are they going to sign the 89 00:04:32.400 --> 00:04:36.400 contracts? Are we on the same page? So 90 00:04:35.400 --> 00:04:37.900 definitely clear communication. 91 00:04:39.900 --> 00:04:42.600 Back and forth would be a big do for a broker. 92 00:04:42.600 --> 00:04:45.500 Let me ask you this because sometimes over communicating people 93 00:04:45.500 --> 00:04:48.300 feel like it's a little bit of a hassle like it's like I feel 94 00:04:48.300 --> 00:04:51.200 weird over communicating but right kind of talk about the importance of 95 00:04:51.200 --> 00:04:54.400 over communicating especially when you were working on a big deal. Sure. 96 00:04:54.400 --> 00:04:57.100 So let's say, you know, we're really working hard to finish up a big 97 00:04:57.100 --> 00:05:00.500 deal. We're doing final enduring we're doing a background check 98 00:05:00.500 --> 00:05:03.500 or doing a credit check, you know, that's all time intensive and 99 00:05:03.500 --> 00:05:06.500 you know, we don't want to miss anything. So you 100 00:05:06.500 --> 00:05:09.100 don't want to rush your lender you don't want to you know pound the phones 101 00:05:09.100 --> 00:05:13.100 and say exist you'll funded right now, let's get it done. But I 102 00:05:12.100 --> 00:05:15.600 also don't want you to disappear. So I would say over communicating 103 00:05:15.600 --> 00:05:18.200 is better than under but just understand that 104 00:05:18.200 --> 00:05:21.300 it does take some time and when people disappear, what does 105 00:05:21.300 --> 00:05:23.700 that mean? What is that? What is that show to a funder? 106 00:05:24.300 --> 00:05:28.100 Do you want the deal or not? That's what 107 00:05:27.100 --> 00:05:30.600 that shows so let's talk about I 108 00:05:30.600 --> 00:05:33.500 mean you've worked with a lot of Brokers. What is the biggest 109 00:05:33.500 --> 00:05:36.300 commission that you've seen paid out to a broker? 110 00:05:36.300 --> 00:05:40.100 And how did that broker get here? Okay. So the 111 00:05:39.100 --> 00:05:42.200 biggest commission that we have paid out to a broker is 112 00:05:42.200 --> 00:05:45.500 16 points and they got there by 113 00:05:45.500 --> 00:05:48.600 having a lasting relationship with jrg. So on our 114 00:05:48.600 --> 00:05:51.600 commission grid you'll see Max commission is 14% 115 00:05:51.600 --> 00:05:54.400 But if we trust you if 116 00:05:54.400 --> 00:05:57.200 we are consistently funding together and you know, 117 00:05:57.200 --> 00:06:00.400 we are taking care of us then of course, we'll take care of you back 118 00:06:00.400 --> 00:06:04.200 and it was on a 200,000 119 00:06:03.200 --> 00:06:06.700 deal. It was 16 points 120 00:06:06.700 --> 00:06:09.700 and the broker got paid out 32,000 same 121 00:06:09.700 --> 00:06:10.000 day. 122 00:06:10.800 --> 00:06:13.300 Yeah, that's great. And so for 123 00:06:13.300 --> 00:06:16.200 people that are just starting out and they want to get to that level and they want 124 00:06:16.200 --> 00:06:19.100 everyone's ambitious. What would advice would you give 125 00:06:19.100 --> 00:06:19.200 them? 126 00:06:20.200 --> 00:06:23.300 Advice I would give is be patient be honest 127 00:06:23.300 --> 00:06:26.700 and think long-term rather than just making an 128 00:06:26.700 --> 00:06:29.200 extra few dollars in your pocket today. Why is it important to 129 00:06:29.200 --> 00:06:33.700 think long-term? It's important to think long term because one you 130 00:06:33.700 --> 00:06:36.100 want to keep a good relationship with your lender. You don't 131 00:06:36.100 --> 00:06:40.300 want to lender to Blacklist you or not want to work with you anymore and 132 00:06:39.300 --> 00:06:42.300 two a big thing in cash advance are 133 00:06:42.300 --> 00:06:45.400 renewals. So let's say right off the bat. We fund a 134 00:06:45.400 --> 00:06:48.600 merchant 100,000 and the broker says sign today, 135 00:06:48.600 --> 00:06:52.100 but in two weeks, I'll get you 500,000 18 month 136 00:06:51.100 --> 00:06:54.400 term and promptly promising the 137 00:06:54.400 --> 00:06:57.800 merchant the world that they're really not going to get and that makes the 138 00:06:57.800 --> 00:07:00.700 merchant not want to renew that position or keep 139 00:07:00.700 --> 00:07:03.300 going forward because they've kind of been blindsided by their 140 00:07:03.300 --> 00:07:06.300 broker just to get that one deal done that day and again not 141 00:07:06.300 --> 00:07:07.000 thinking ahead. 142 00:07:08.100 --> 00:07:11.600 So for someone in your position, I mean, this is something that you can 143 00:07:11.600 --> 00:07:15.000 do remote like your job specifically so working 144 00:07:14.300 --> 00:07:16.600 with Brokers do you need? 145 00:07:17.600 --> 00:07:20.700 To be remote. Can you be remote or is it better to be in the office interacting 146 00:07:20.700 --> 00:07:23.200 with Brokers? What's kind of the stance on that right now? 147 00:07:23.200 --> 00:07:26.900 I think it can definitely be a remote position. But 148 00:07:26.900 --> 00:07:28.000 me personally there's nothing 149 00:07:28.100 --> 00:07:32.100 Like going into the office and just having the energy around you place to 150 00:07:31.100 --> 00:07:34.000 Zone in and focus, you know, 151 00:07:34.400 --> 00:07:37.600 nothing like a good City View. I personally think 152 00:07:37.600 --> 00:07:40.200 it's better to be in the office and and just kind 153 00:07:40.200 --> 00:07:43.400 of Zone in there and you've also we've talked to 154 00:07:43.400 --> 00:07:46.700 you at the bank events before and you've 155 00:07:46.700 --> 00:07:49.500 been really candid about, you know, your answers and the 156 00:07:49.500 --> 00:07:52.400 industry which is why we brought you here today. Um, 157 00:07:52.400 --> 00:07:56.000 but let's talk a little bit about, you know, meeting clients in 158 00:07:55.200 --> 00:07:58.200 person at these type of events, you know, 159 00:07:58.200 --> 00:08:01.100 potential clients versus a phone call 160 00:08:01.100 --> 00:08:04.600 versus people, you know, you know trying to reach out TV email 161 00:08:04.600 --> 00:08:09.300 how important is it to build that relationship versus 162 00:08:07.300 --> 00:08:11.400 dming emailing 163 00:08:10.400 --> 00:08:14.200 calling, you know, and having 164 00:08:14.200 --> 00:08:17.300 an in-person experience at like a debate. It's extremely 165 00:08:17.300 --> 00:08:18.800 important. I mean these events have 166 00:08:19.800 --> 00:08:22.300 Jrg's Partnerships grow even further 167 00:08:22.300 --> 00:08:25.100 than we thought they were would you can relate it to 168 00:08:25.100 --> 00:08:28.300 you know, people say with a job interview like you're just a piece of paper until 169 00:08:28.300 --> 00:08:31.500 you meet the person. So once you really get to put a 170 00:08:31.500 --> 00:08:34.500 face to the name that you've just been emailing or calling quick 171 00:08:34.500 --> 00:08:38.200 and getting like a human interaction. It's 172 00:08:37.200 --> 00:08:40.300 just it's so important to get to 173 00:08:40.300 --> 00:08:43.200 know the person and then that also builds that second level 174 00:08:43.200 --> 00:08:47.000 of trust that's really important mutually between Brokers 175 00:08:46.100 --> 00:08:50.100 and lenders and have you seen any changes 176 00:08:49.100 --> 00:08:52.200 in or any shifts in 177 00:08:52.200 --> 00:08:55.400 the competitive industry that we're in now because of like things 178 00:08:55.400 --> 00:08:56.800 like interest rates and so forth. 179 00:08:57.600 --> 00:09:00.400 Yeah, definitely. I mean you you see more and more 180 00:09:00.400 --> 00:09:03.800 named popping up more broker shops more lenders. So as this industry gets 181 00:09:03.800 --> 00:09:06.200 more and more saturated. Of course, there's tons of 182 00:09:06.200 --> 00:09:09.500 more competition who's paying, you 183 00:09:09.500 --> 00:09:12.200 know, I Max up sell at one point was way less than 184 00:09:12.200 --> 00:09:12.900 14 185 00:09:13.900 --> 00:09:16.200 15 points, you know, it was 10 12 was awesome. 186 00:09:16.200 --> 00:09:19.800 And now people are stretching up to 17 18 points. 187 00:09:19.800 --> 00:09:22.400 I mean, it's like where do we stop but it 188 00:09:22.400 --> 00:09:25.500 keeps it keeps getting more and more competitive. What would be your predictions 189 00:09:25.500 --> 00:09:28.200 in regards to how funders work 190 00:09:28.200 --> 00:09:30.600 in the next couple of months the next couple of years. 191 00:09:32.200 --> 00:09:35.300 For funders. I do think that in 192 00:09:35.300 --> 00:09:35.500 the end. 193 00:09:37.200 --> 00:09:40.600 It corrects itself. There will be a lot of new ones and who might 194 00:09:40.600 --> 00:09:43.500 fail or who might figure it out. But I do think the 195 00:09:43.500 --> 00:09:47.100 strong funders will continue to get bigger. But again, 196 00:09:46.100 --> 00:09:50.300 there might be some new players in town. So this business 197 00:09:49.300 --> 00:09:52.600 is just continually growing 198 00:09:52.600 --> 00:09:54.800 and I don't see it, you know stopping anytime soon. 199 00:09:55.700 --> 00:09:58.600 So In a Different Light, would you 200 00:09:58.600 --> 00:10:01.300 be an underwriter or a broker and why 201 00:10:03.200 --> 00:10:05.600 Curator or a broker? That's interesting. 202 00:10:06.200 --> 00:10:09.600 I think I would be an underwriter. 203 00:10:09.600 --> 00:10:12.300 Why because I just like to be on on the 204 00:10:12.300 --> 00:10:15.600 lender side of things to have control over the deals me personally, 205 00:10:15.600 --> 00:10:18.200 I would rather be on that lender end, but I 206 00:10:18.200 --> 00:10:23.000 know for a Brokers it's like a crazy fast-paced exciting, 207 00:10:22.500 --> 00:10:25.900 you know Limitless amount of money, but just 208 00:10:25.900 --> 00:10:29.100 me personally as lender. I have to say underwriter so 209 00:10:30.100 --> 00:10:34.400 There's a lot of new younger people coming into this industry. They've 210 00:10:33.400 --> 00:10:36.300 been doing it for a year and they're struggling 211 00:10:36.300 --> 00:10:39.800 with that deal and they're trying to get funded all these different scenarios 212 00:10:39.800 --> 00:10:42.300 pop up. What advice would you give to 213 00:10:42.300 --> 00:10:45.100 those young guys that have been doing this less than two years three years 214 00:10:45.100 --> 00:10:48.500 and they're looking at these big guys are getting funded and you know 215 00:10:48.500 --> 00:10:51.300 where they want to get into the funding side what advice you have to those new dogs 216 00:10:51.300 --> 00:10:54.100 advice I would give is don't Focus. 217 00:10:55.800 --> 00:10:58.300 Like on one deal for like an entire day. Just 218 00:10:58.300 --> 00:11:01.600 keep moving forward. There's always going to be more. There's plenty to 219 00:11:01.600 --> 00:11:05.100 go around and for a 220 00:11:04.100 --> 00:11:08.000 young broker for someone new in the industry. It is 221 00:11:07.100 --> 00:11:10.300 important to just continually and slowly build 222 00:11:10.300 --> 00:11:13.500 a relationship and keep your book, you know 223 00:11:13.500 --> 00:11:16.300 in one or two places sending your paper all over 224 00:11:16.300 --> 00:11:20.100 the world can you know can be damaging? So just 225 00:11:19.100 --> 00:11:22.600 kind of hone in and trust that 226 00:11:22.600 --> 00:11:25.200 it'll it'll grow Alyssa. Thank you so much for joining 227 00:11:25.200 --> 00:11:28.500 us. I appreciate the information you brought to the table, and I'm excited 228 00:11:28.500 --> 00:11:31.300 to get this information out to Brokers because I know a lot 229 00:11:31.300 --> 00:11:34.500 of them will find this definitely informative and also 230 00:11:34.500 --> 00:11:37.900 something that they can take and use to grow their business. I'm 231 00:11:37.900 --> 00:11:40.100 happy to be here Johnny and thank you so much for having me. It's always 232 00:11:40.100 --> 00:11:40.300 a pleasure.