00:13.000 --> 00:18.870 Kristof Anderson-Tsang: Hi Everybody! I'm Kristof, Head of Business Loans for LoanMe. And with us, we got Jason 00:18.870 --> 00:25.500 Chalarca one of our Account Managers. And we also Jack Malone, another one of our Account Managers. So today, 00:25.500 --> 00:31.140 we wanted to have a session with you guys talking about keeping it real. And really open it up. So if there are 00:31.140 --> 00:36.630 any questions you guys have, for us here among me the tough questions, the hard questions, we're happy to 00:36.630 --> 00:45.060 answer it for you. There is a link on the bottom that Gigi helped me out. You said there's a don't do the 00:45.060 --> 00:45.630 chat. 00:47.070 --> 00:51.930 Moderator: Correct, it says, Q&A, so you can click on the Q&A and ask your question in there. 00:52.200 --> 00:58.140 Speakers: Okay, so click on the Q&A, type any questions you guys have for us. In the meantime, we'll get 00:58.140 --> 01:03.420 started just with a quick high level overview of LoanMe, kind of what we offer. And then we also have 01:03.420 --> 01:08.700 some questions here that these guys hear all the time from their partners. And we can dive into some of 01:08.700 --> 01:15.870 those, if we don't get questions from the audience. So LoanMe, we are a term loan lender, so we don't offer 01:15.870 --> 01:23.940 MCA products, we only offer true term loans, monthly payments, 10 year terms, and our product range, the 01:23.940 --> 01:30.030 loan amounts go from 3,500 - 250,000. Let these guys kind of piggyback off that. 01:32.460 --> 01:39.900 Jack Malone: Okay, starting with the prime business loan, which is our top tier product, this is we don't 01:39.900 --> 01:48.540 find theseto be our bread and butter. But these ranges, as you can see from 75K, all the way up to 250K. And 01:48.540 --> 01:57.450 these are for the get the A paper. And they were slightly stricter on the requirements here for this 01:57.450 --> 02:04.470 category of loans, you mentioned us have a stronger credit profile. So we're looking for the FICO of at 02:04.470 --> 02:11.250 least 700. And into the homeowner and their corresponding equity in the home with the amount of 02:11.280 --> 02:16.110 multiple sub 200K and a 200K of equity in their home. 02:17.920 --> 02:22.210 Kristof Anderson-Tsang: Jack is just going over our kind of our fine business loan products, which is our 02:22.210 --> 02:28.900 main product. So we for LoanMe what we offer, we can work with any for profit business, ok. Minimum time 02:28.900 --> 02:36.640 businesses, just 90 days, business bank account, obviously, a 25% minimum ownership requirement for the 02:36.640 --> 02:44.320 person applying for the loan. And so it's a very broad kind of open box, monthly payment term loan, obviously, 02:44.320 --> 02:50.800 with a longer term that gives these business owners much lower more affordable minimum monthly payments. 02:51.040 --> 02:56.830 And especially during a time like this, I think that really kind of helps them out. Where they don't have 02:56.860 --> 03:02.980 you know, daily payments, things coming out, you know, and some monthly payment term loan, it's a great 03:02.980 --> 03:08.860 option, you know, during these uncertain times. But, um, let's get into some questions, guys. Okay, so some 03:08.860 --> 03:14.440 questions that you guys, you know, get some tough questions that you get from your brokers all the time, 03:14.500 --> 03:20.290 how does LoanMe different from MCA? You know, why as a broker? Why would I bring my borrower to your company 03:20.350 --> 03:22.900 vs. MCA? So, Jason, when she has that? 03:22.960 --> 03:30.070 Jason Chalarca: Yeah, great question. I think we we get that question a lot. You know, I think the main thing 03:30.070 --> 03:38.290 would be just monthly payments, the flexibility that we offer to clients, you know, compared to what an MCA or 03:38.590 --> 03:43.840 really any other lender can offer, just the monthly payments, you know, it's going to keep more capital in 03:43.840 --> 03:51.100 their pocket, instead of the client having to worry about those dailies and weeklies having to, you know, 03:51.100 --> 03:57.250 just automatically coming out. With us they only have to worry about a minimum monthly payment. So I think 03:57.250 --> 04:06.670 that's the main thing. And then, you know, in most cases, not all, it is also a rate issue, you know, so, 04:06.970 --> 04:11.560 you know, although our rates and we'll get into that a little bit further on, because that also comes up a 04:11.560 --> 04:19.090 lot. But although our rates may seem a little bit more higher, when you really break it down, compare apples 04:19.090 --> 04:21.730 to apples, we're gonna save you a lot. 04:22.170 --> 04:28.830 Kristof Anderson-Tsang: So, yeah, an earlier session today. You know, they're talking about how business 04:28.830 --> 04:34.080 owners are wanting shorter term loans right now, especially given the uncertainty of the economic 04:34.080 --> 04:41.160 environment. And, you know, I would agree with that, to a certain extent in the in the sense that, you know, I 04:41.160 --> 04:46.950 think they would also want them to remove flexibility. So, by us having a 10 year term loan product that gives 04:46.950 --> 04:51.900 the business owners that much lower more affordable minimum monthly payments, and if they only intend on 04:51.900 --> 04:58.620 keeping the loan for, say, two or three months, you know, they can pay us off early interest stops accruing 04:58.620 --> 05:05.160 because this is a true term loan product. And so that, you know, really kind of helps them, instead of, you 05:05.160 --> 05:11.940 know, only being offered these daily and weekly payments, you know, they have the option with LoanMe to 05:11.940 --> 05:21.090 be able to, you know, get a monthly payment. And yeah, really control the total cost of capital. Right, based 05:21.090 --> 05:27.480 on early pan behavior, I say, I think that's kind of the main point of our product, is it gives the control 05:27.480 --> 05:33.510 back to that business owner, to be able to, you know, do what's best for them. And every, every business 05:33.510 --> 05:38.940 owners, we know, their situations are different, their products are different, what they sell, you know, the 05:38.940 --> 05:44.550 way that they earn the revenue, you know, how frequently they get paid as well. I think that, that 05:44.550 --> 05:54.630 really just changes per business. And so, you know, this product really helps them kind of, you know, not 05:54.630 --> 06:05.340 feel the squeeze, if you will have any daily payments. Yeah. Okay, so another thing that we get asked all the 06:05.340 --> 06:13.980 time is, in terms of, you know, hey, we heard you guys can do consolidations, ensuring consolidation. So Jack, 06:13.980 --> 06:16.410 what you sell, tell everybody kind of how that works with us? 06:16.410 --> 06:22.750 Jack Malone: Yes, we do. We do offer true consolidations. And they're particularly valuable, 06:22.750 --> 06:30.610 because we only look at the last 90 days. So that means a lot of these merchants, you know, come to us and 06:30.610 --> 06:36.460 they're stacked up, and we have several loans that we're looking at. And a lot of these are often taken 06:36.460 --> 06:43.090 out beyond the 90 days, 100 days even. And what the important thing for us is, you know, we got to factor 06:43.090 --> 06:49.840 them into our underwriting calculation here, because they're taken out today. So just means that we can 06:49.840 --> 06:55.750 consolidate all the loans, that they've got all these days, all the weeklies into one monthly payment, and 06:55.870 --> 07:01.600 generally save them a lot of money, get this drawing on the cash flow with one monthly payment. 07:01.990 --> 07:06.250 Kristof Anderson-Tsang: Absolutely. And I think I think the main point there is that, you know, a true 07:06.250 --> 07:12.460 consolidation in the sense where we don't require them to net anything, okay, they can, if they qualify for 07:12.460 --> 07:19.990 $100,000 loan with LoanMe, you know, we can pay off up to 100,000, and turn them daily weekly payments into a 07:19.990 --> 07:28.750 monthly payment. So I think that's another big thing. But kind of sidestep to that, too. You know, one of the 07:28.750 --> 07:33.850 things that a lot of our brokers really enjoyed really like is the fact that we're able to offer business 07:33.850 --> 07:41.710 owners a lot larger loan size compared to the offers that they get in the traditional, you know, MCA market. 07:42.190 --> 07:48.520 And, you know, they're always baffled, because, you know, for example, we funded one last week, we funded a 07:48.520 --> 07:55.360 guy $100,000. And their average monthly deposits was only 20,000. And so what's the question that we always 07:55.360 --> 07:57.970 get from from our brokers for some like that? 07:57.970 --> 08:04.000 Jack Malone: How do we get 100K when there is only 20,000? How do you do that? 08:04.000 --> 08:06.000 Kristof Anderson-Tsang: Right? So how are we able to that? 08:06.900 --> 08:13.028 Jason Chalarca: Well, we focus on the average daily balance, so we only go back 90 days. And now our main, 08:13.028 --> 08:19.782 our biggest thing is, we look to see them last 90 days, how much money are you keeping in the account on a day 08:19.844 --> 08:26.291 by day basis, so we really don't care as to how much money you know, monthly, you're bringing in. I mean, 08:26.353 --> 08:32.923 our minimum monthly is they need to average 30 - 3500 done the last three months. So I mean, that just goes 08:32.985 --> 08:39.801 back to you know, why LoanMe that just shows one of the one of the differences as to how we look at files here, 08:39.862 --> 08:46.433 how we are going to underwrite that file and really determine, you know, that loan size. on our end, again, 08:46.494 --> 08:52.451 going back to that point, you know, someone with a $20,000, monthly inflow, you know, they'll get 08:52.512 --> 08:58.960 qualified for 70K, 100K, because on our end, again, we're only focusing on that average daily balance. So 08:59.021 --> 09:05.653 as long as you know, their average daily balance within the last 90 days, is steady. And it shows on our end 09:05.714 --> 09:11.610 that, you know, they can make that minimum monthly payment with us, then they're golden with us. 09:12.230 --> 09:16.160 Kristof Anderson-Tsang: Yeah, and one thing I would say one thing, I'm bad at that, Jason is that it's not that 09:16.160 --> 09:22.070 we don't care guys about their money, obviously, you know, a business needs to have money coming in in order 09:22.070 --> 09:28.040 to be able to afford to make the payments right in nonpregnant situation that kind of gets them in 09:28.040 --> 09:34.220 trouble. But I think the focus and the point of what we're trying to say is that, you know, we focus more on 09:34.220 --> 09:41.450 the average and daily balances to determine if they can afford our monthly payment. And because the monthly 09:41.450 --> 09:47.960 payment is stretched out amortized over 10 years, our average term is nine years across our entire portfolio. 09:48.140 --> 09:53.030 So we're not one of these lenders that says, Oh, we offer terms up to 10 years and everybody gets, you 09:53.030 --> 10:02.090 know, 18-24 months. In fact, most businesses get a 10 year term with the LoanMe product and so You know, by 10:02.090 --> 10:08.480 focusing on the average ending daily balance that tells us, you know, they can afford a monthly payment. And 10:08.480 --> 10:14.330 that's what dictates the loan amount, that's how kind of the calculation, it's looked at, in a very different 10:14.330 --> 10:21.170 light, right, you take a merchant doing $10,000 a month in revenue, and most merchant cash advance companies 10:21.170 --> 10:27.830 are going to give that business owner a maximum of 8 to $10,000 advance, right? With loan before we can 10:27.830 --> 10:36.770 actually fund that guy. And we do quite often 50, 60, 70, $80,000 you know, if they can afford that minimum 10:36.770 --> 10:43.250 monthly payments, okay. And so, you know, that's, that's one of the good things, but the things that that 10:43.250 --> 10:49.250 I think are different from what a lot of brokers are used to in our industry. And that's where some of the 10:49.250 --> 10:55.190 misconceptions come about with LoanMe. Oh, you know, LoanMe is just, you know, very expensive, okay, so 10:55.190 --> 11:00.140 let's get into that, right, we're talking about real talk, okay, our loan sizes, we're talking about range 11:00.140 --> 11:06.170 from 3,500 to 250,000. But our interest rates, okay, and we do charge, you know, interest rates, this is not 11:06.170 --> 11:14.660 an advanced, it's not a fact rate, but our interest rates range from 14.9% to 159%. And so a lot of people 11:14.660 --> 11:20.060 say, you know, do you have to tell the borrower about the interest rate, you know, that turns them off, and, 11:20.480 --> 11:26.480 you know, so on and so forth. And what I would say to them is, look, we're in the business to be transparent, 11:26.510 --> 11:32.510 and to get a business owner to understand that it's not cheap money. And if we're being honest, right, as an 11:32.510 --> 11:39.350 industry, this is called alternative lending for a reason. And that reason is that these people are, you 11:39.350 --> 11:45.770 know, for the most part, either unbankable or they want to get these funds put in their bank account, 11:46.370 --> 11:52.190 immediately, right, as an immediate need, man with that there comes a cost, right? And that's just the truth of 11:52.190 --> 11:57.080 the matter. So, you know, to answer ISOs questions, when they say, you know, do you have to go over the 11:57.080 --> 12:02.180 interest rate, you know, with the borrower with the business owner? The answer, quite frankly, is yes. 12:02.180 --> 12:08.540 Because that's transparent. And that's what you know, businesses deserve. But I think more importantly, it's 12:08.540 --> 12:13.790 not necessarily about the rate, but it's about the total cost of capital. And it's about how a business 12:13.790 --> 12:23.630 owner uses these funds responsibly in order to make our loan work for them. Right. And so, you know, that's 12:23.630 --> 12:30.170 what we focus on, right? Our agents focus on educating these business owners on early repayments, okay, the 12:30.170 --> 12:36.350 only borrower loan for 10 days, you're paying 10 days worth of interest, right? You know, and so there is 12:36.350 --> 12:43.580 definitely a benefit to repaying our loan early. There isn't a fixed cost associated, like, you know, merchant 12:43.580 --> 12:48.380 cash advance simply has a fixed cost, because that fact rate is sort of, you know, baked in there, the 12:48.380 --> 12:54.050 repayment amount. with LoanMeI, it's kind of the opposite, interest accrues. And so if you borrowed for 12:54.050 --> 12:59.030 10 days, you pay 10 days worth of interest, you borrow for two months, you pay two months worth of interest, 12:59.180 --> 13:06.830 or we're going to give you an extraordinary long term, so that you have the ability, you know, to have that 13:06.830 --> 13:12.740 cash flow working for you, and your payments, not going to your first payment not going to be due the very next 13:12.740 --> 13:19.640 day. And so, you know, there's obviously good and bad with, you know, a lot of products. And I think what 13:19.640 --> 13:26.000 we're trying to say is, this product is a very complementary product in the space, right? It's great 13:26.000 --> 13:33.740 for an ISO, you know, to offer a multitude of different things, right, offer lines of credit products offer, 13:33.950 --> 13:41.300 MCA products offer SBAs, but also offer, you know, a product like ours, which is a longer term, term loan 13:41.300 --> 13:45.980 product, and, you know, we take care of a lot of a lot of the stuff for them, you know, when you have a 13:45.980 --> 13:53.240 business owner looking for more funds than they, you know, more money than they bring in each month, you 13:53.240 --> 13:58.220 know, the first place a lot of our ISOs look is LoanMe, right, for that for that exact reason. 13:58.510 --> 14:02.050 Jason Chalarca: And I would say just to piggyback off of that, I mean, if, especially if they have an exit 14:02.050 --> 14:09.520 strategy, if these clients, you know, they need the money today, construction company, they need supplies, 14:09.550 --> 14:13.930 they need to finish up the job and they know, X amount of months, right, they're going to be able to pay us 14:13.930 --> 14:19.600 off sooner than later. I mean, it's a it's ideal for them. They know that they'll be paying us off again a 14:19.600 --> 14:24.700 lot sooner than that 10 years or a few years, and they're going to save tons of money on interest. So 14:24.700 --> 14:33.550 that interest rate that you all see online or you hear from us or you see it on a on a promissory note. It can 14:33.550 --> 14:39.250 be scary. But if they have an exit strategy, and they know they're going to pay us off, right, so a lot 14:39.250 --> 14:41.350 sooner than later. It's perfect. 14:41.570 --> 14:47.540 Jack Malone: We're often used as a bridge. Well, they'd like some for that longer term like the SBA loan, right 14:47.570 --> 14:51.920 or something more traditional people, you know, local merchants. 14:52.140 --> 14:55.590 Kristof Anderson-Tsang: Yeah, and that's that's a great thing. You know, great takeaway for the audience, I 14:55.590 --> 15:01.980 think is to understand that the LoanMe product is not a product for business owner should take and keep for 10 15:01.980 --> 15:08.760 years, it's a product where somebody should use it as a bridge loan as emergency funds or something where they 15:08.760 --> 15:14.910 can take the money turn a profit and pay us off as soon as possible. We work often with you know, not just 15:14.910 --> 15:20.310 merchant cash advance brokers, but we also work with equipment leasing brokers, you know, where they need to 15:20.310 --> 15:26.280 complete their equipment leasing transaction, that business owner cannot have, you know, other 10 to 15% 15:26.310 --> 15:31.440 down payment to, to finish something, you know, complete that equipment leasing transaction, they come 15:31.440 --> 15:37.230 to us get funded, oftentimes the same day, because we can fund it as soon as two hours, they take those 15:37.230 --> 15:42.960 funds, and they complete their transaction and getting the business on understand, hey, pay LoanMe off first. 15:43.320 --> 15:49.800 Right? And so this is a great product to really kind of help people do that. So we, uh, you know, I want to 15:49.800 --> 15:55.410 open it up, I know, we've we've kind of said a lot about kind of what we do and what our product is, and 15:55.770 --> 16:02.580 kind of the way that the industry in our brokers should kind of look at our product and how to use it. We've 16:02.580 --> 16:09.720 got about nine minutes left. And what I want to do is kind of open up to any questions that you know, you 16:09.720 --> 16:16.470 guys. You know, want us to answer from you guys directly. And I think Gigi is going to see if there's 16:16.470 --> 16:19.650 any of those questions and kind of read those questions to us. 16:20.710 --> 16:27.040 Moderator: So if anybody wants, we do have about 15 minutes left for this panel. So you can just send in 16:27.040 --> 16:31.330 your Q&A, right now, and I'm happy to read him. 16:38.290 --> 16:42.640 Speakers: All right, GiGi, as people are typing those out, we're gonna we're gonna kind of read some more 16:42.640 --> 16:51.580 questions that we get from our ISOs. Okay. And, you know, feel free to kind of, you know, give us some of 16:51.580 --> 16:57.370 the live questions, you know, that will kind of fill it in with some of this content here. So one of the ones 16:57.370 --> 17:04.420 that, you know, we've gotten from a lot of our brokers, especially during times like this is, you know, what 17:04.420 --> 17:10.510 have you guys done in terms of, you know, offering loan modification, production payment plans for existing 17:10.510 --> 17:18.130 clients, that have been hurt by the covid environment? And, you know, if we're being honest, right, and this 17:18.130 --> 17:25.300 is kind of what this panel is about right now is just being honest and open and transparent. It has affected, 17:25.330 --> 17:31.600 you know, a lot of businesses, the United States, obviously, and that's no secret. But I think how you 17:31.600 --> 17:37.390 treat your customers and how you treat your employees during a time like this really speaks volumes as to the 17:37.390 --> 17:44.200 type of company that you are, the kind of focus that you have, and more importantly, are you going to be 17:44.200 --> 17:49.720 around? And are you going to be there, you know, for the long term? And so, you know, the answer to that, 17:49.720 --> 17:56.140 for us as a company is yes, we've, you know, had a furlough a couple people, not many, but we haven't laid 17:56.140 --> 18:03.700 anybody off during that time. And so, you know, we're slowly starting to bring back, you know, those that are 18:03.700 --> 18:10.360 on furlough. In terms of customers, what we have done for them is if they've called in and said, Hey, you 18:10.360 --> 18:16.420 know, money able to make some payments, you know, initially when this whole thing started, middle of 18:16.540 --> 18:23.680 March, was it right? We paused our funding March 16, we resumed it again, May 6. Okay, so we are lending right 18:23.680 --> 18:32.680 now. During that time, when we paused it, you know, people would call in, hey, I can't make a payment, we 18:32.680 --> 18:37.630 understand their situation, we asked them, if they could make any payments, you know, even a small portion 18:37.630 --> 18:43.420 of that payment during that time. And we would collect that, and then we let them know is we're going to bring 18:43.420 --> 18:49.570 their account current, you know, with that small payment, whatever it was at the time, and we actually 18:49.570 --> 18:56.800 made their next two payments for them. So as a company, you know, the executive team, myself included, you 18:56.800 --> 19:04.120 know, what we did personally was, we took a reduction in pay. And so we use, you know, some of that those 19:04.120 --> 19:11.140 funds that we saved there to pay monthly payments for customers and bring them current, we didn't roll it 19:11.140 --> 19:18.070 into the back end of that loan, what we did was we actually made those payments for them. And so, you 19:18.070 --> 19:25.120 know, some of the reactions our customer service team got from the customers, just that sigh of relief. In an 19:25.120 --> 19:29.830 uncertain time, like this, I think really made went went a long way. And so, you know, wanted to kind of 19:29.830 --> 19:35.890 share that you guys, you know, let you guys and everybody says we're all together, but at the end of 19:35.890 --> 19:41.080 the day, you know, when it comes down to brass tacks and comes back down to, you know, are these merchants 19:41.080 --> 19:47.680 making their payments, and that does affect the livelihoods of, you know, the people that we employ, we 19:47.680 --> 19:55.030 employ about 250 people here at LoanMe. So, you know, we're not some small 500 company. Most of you guys, you 19:55.030 --> 20:02.260 know, have seen us on bank statements, you know, out there in the marketplace. So You know, we're here to 20:02.260 --> 20:07.270 stay. And we're here to just do the right things by customers. And so a lot of the misconceptions that I 20:07.270 --> 20:12.520 see about LoanMe, that I Hear about LoanMe is oh, you know, lonely, that's the really expensive monthly 20:12.520 --> 20:19.480 payment term loan company and their loan sharks, and they, you know, and the reality is, you know, it's 20:19.480 --> 20:25.150 quite the opposite. I think, you know, we have to price in certain things, you know, just like anybody does 20:25.150 --> 20:30.880 with their business model. But at the end of the day, it's really about doing what's right for, you know, the 20:30.880 --> 20:37.240 community, our brokers, our customers, the business owners, you know, and that's what's important. 20:39.270 --> 20:44.940 Moderator: Great. Um, so we do have a question that came in, and it is, what is the minimum credit score 20:44.940 --> 20:46.290 that you can lend to? 20:47.860 --> 20:54.640 Speakers: So the minimum credit score, we actually don't have one, right? Okay. In the past, it was at 20:54.640 --> 21:05.470 500, minimum 500. What I would say, though, is any business owner, with a FICO score under 600, I will 21:05.470 --> 21:11.110 tell you that we'll take a look at it, we'll run credit, right, we'll take a look at the business. But 21:11.110 --> 21:18.010 that only makes up about 5% of our portfolio. Okay. So while we don't have a hard guideline on minimum FICO, 21:19.090 --> 21:28.360 we do have, you know, numbers to show that 600 plus really gets, you know, a better look than those under 21:28.390 --> 21:28.990 600. 21:31.870 --> 21:37.270 [cross-talk] 21:48.730 --> 21:54.340 Kristof Anderson-Tsang: And again, you know, kind of sidestep from that, too, is that we only look at 25% 21:54.700 --> 21:59.740 ownership. So let's say you have four business owners that own a business, we can take an application, each 21:59.740 --> 22:04.930 person, each person can fall into one of our set tiers and buckets, which correlate with a set interest rate 22:04.930 --> 22:10.840 set loan term, and set products. We obviously can't fund all four owners for the same business, but we can 22:10.840 --> 22:17.620 find the best one, right, the person who's got the highest credit score, so a lot of our current ISOs. And 22:17.620 --> 22:23.200 brokers understand this. They you know, make sure they're sending over, you know, the best credit worthy 22:23.380 --> 22:24.100 individual. 22:27.820 --> 22:28.540 Jason Chalarca: Great question. 22:30.490 --> 22:37.210 Kristof Anderson-Tsang: Yeah. All right. What else we got here? What are some other questions you guys get 22:37.210 --> 22:39.040 that you will probably want to address? 22:40.590 --> 22:45.840 Jack Malone: And say the most important one to brokers perspective and to get us would be about the 22:45.840 --> 22:46.320 commission. 22:46.510 --> 22:53.050 Kristof Anderson-Tsang: Commissions. All right. Let's start with commissions. Okay, so as a term loan five 22:53.050 --> 22:59.650 lender, what we offer is we offer five points on the net funding. Okay. So for example, let's say it's 22:59.650 --> 23:05.050 $100,000 loan that business owners have 10% of origination, aka for use round numbers. So the net 23:05.050 --> 23:12.940 funding for the business owner is 90,000. Right? In that example, five points on 90,000. Right, that's 4500 23:12.940 --> 23:18.610 for a commision, we ISOs all the time saying, Oh, you only pay five points, you know, I get 10 points here 23:18.610 --> 23:27.550 from, you know, XYZ funder. I get, you know, 15 points here. And what we'd say to that is, yeah, but you're 23:27.550 --> 23:35.140 going to get a smaller loan, right? So take, for example, business are doing $20,000 in revenue, right, 23:35.200 --> 23:43.270 that MCA company, that other funder lender might be giving you 10 or 15 points on 20,000, right? Whereas 23:43.270 --> 23:50.020 we're giving you five on, you know, this example we're using on 90, okay, so you can do the math there. And 23:50.020 --> 23:56.140 you can see that the commissions is larger, it actually might be double the commission. So I would urge our 23:56.140 --> 24:02.710 ISOs and those listening as brokers, you know, viewing this to understand that it's not always about the 24:02.710 --> 24:10.420 points, it's not always about, you know, I could make 10 or 15 points, it's about what is being done for the 24:10.420 --> 24:16.780 customer first, and then you figure out your commission. Right. And you'll find with us that 24:17.350 --> 24:22.660 oftentimes, that means long does give you a larger commission than that 10 to 15 point funder. 24:23.500 --> 24:24.010 Jack Malone: Absolutely. 24:28.660 --> 24:29.740 Kristof Anderson-Tsang: How we doing on time GiGi. 24:31.570 --> 24:33.490 Moderator: We have six minutes left. 24:33.700 --> 24:37.570 Kristof Anderson-Tsang: Okay. Any other questions from the audience? 24:39.460 --> 24:43.270 Moderator: I don't see any in the queue at the moment, but we still have an audience. 24:43.440 --> 24:49.290 Speakers: Okay, great. We We definitely got some here that have come in, you know, throughout the day and 24:49.290 --> 24:52.980 things like that. So let's pick another one. That sounds good. 24:54.070 --> 25:05.350 Jason Chalarca: Let's see. Other lenders let me pitch loan myself. Why can I not with you guys? So we get 25:05.350 --> 25:10.510 that a lot. Me and Jack, we hear that a lot. Yeah, from partners. 25:15.070 --> 25:15.340 Speakers: [cross-talk] 25:16.300 --> 25:19.720 Moderator: I'm sorry to interrupt, Kristof, we actually just got a few questions coming in. 25:20.380 --> 25:22.210 Speakers: All right, let's, let's go to your questions. 25:22.330 --> 25:26.860 Moderator: Okay. So we'll start by are you adding any additional states soon? 25:27.380 --> 25:32.420 Kristof Anderson-Tsang: Good question. So we do get that question a lot as well. Right. So we currently 25:32.420 --> 25:40.070 today lend in 30. States, okay. 30 out of the 50 states. And what I would say with that is, we are 25:40.070 --> 25:47.690 always looking to add additional states, but as a lender and a loan product, we have to be aware of those 25:47.690 --> 25:57.950 lending laws user recaps in certain states. And so it's not really a choice, I would say, for us to say, Okay, 25:57.950 --> 26:04.610 I want to lend in Texas or New York, as we all know, New York has an interest rate cap rate a lot of the for 26:04.610 --> 26:11.930 as interest rate cap, Texas as interest rate cap. And so, you know, the answer is it's really going to be up 26:11.930 --> 26:19.250 to those states and those lending laws, you know, as those things change over time, we're closely 26:19.250 --> 26:28.430 monitoring. Okay, I will tell you that we are looking at entering in another an additional state, I'll save 26:28.430 --> 26:35.510 that for when we actually get there, because so we're gonna be in 31, here shortly. But other than that, 26:35.810 --> 26:41.300 that's the reason behind the limited amount of states. Okay. And that's probably Yeah, one of the biggest 26:41.300 --> 26:46.070 gripes our ISOs have is, you know, I got a perfect file, but it's in a state that you don't lend it. 26:46.460 --> 26:52.460 Right. And then, you know, there's nothing we can do at that point. You know, want to make sure we're following 26:52.460 --> 26:56.450 all the rules and laws and guidelines and those those states. So. 26:58.760 --> 27:04.520 Moderator: Great. Next question is, so how does the monthly product work? And then right, after that, we 27:04.520 --> 27:05.090 have one more. 27:05.480 --> 27:10.580 Kristof Anderson-Tsang: Okay. How does the monthly product work? Is there was there a follow up portion to 27:10.580 --> 27:18.290 that question? In what sense? So, monthly product works in a way that business owners make a monthly payment? 27:18.650 --> 27:22.910 Moderator: So, yes, so do the owners besides the 25% have to sign the application? 27:24.000 --> 27:31.590 Speakers: No, they do not. Okay, so the owner that is applying for the loan, okay, does sign a personal 27:31.590 --> 27:39.630 guarantee? And so they're responsible, you know, you know, personally, for the repayment alone, these loans 27:39.630 --> 27:46.950 that we offer are also unsecured. Okay, so these are unsecured term loans. There's, you know, no UCC is 27:46.950 --> 27:53.010 going to be filed or regular working capital product. We do file a blanket UCC on our prime business on 27:53.010 --> 28:00.720 products. But that's because those interest rates range from 14.9% to 24.9%, those are our lowest interest rate 28:00.720 --> 28:06.420 products. And so you know, we have to have some security there for that type of product, but on 28:06.420 --> 28:08.940 everything else, there is no security. 28:10.310 --> 28:17.540 Moderator: Great, um, and another is confirming that it is a hard credit pull on the front side. 28:20.120 --> 28:29.060 Kristof Anderson-Tsang: That was before. Okay, and so we don't we no longer do a hard credit pull, right on 28:29.060 --> 28:34.130 the front end. We actually just I was actually talking to you today about this right. Before we get started. 28:34.310 --> 28:40.400 We just kind of launched a new CRM system, right? So everything Salesforce base, it's really going to help 28:41.180 --> 28:48.290 you know our brokers kind of get connected with their systems. So our old system, yes, did a hard credit pull 28:48.350 --> 28:57.440 upfront. Our new system will allow for a soft credit poll. And then prior to being submitted to underwriting 28:57.500 --> 29:03.050 right for underwriter take a look at that. That's when we will do a hard credit pull. So it might almost be 29:03.200 --> 29:10.340 Bang, bang, or it does seem like it's a hard credit pull and only are critical. But the reality is we do a 29:10.340 --> 29:14.960 soft credit pull. Now if the borrower wants to move forward at that point and submit the documents for 29:14.960 --> 29:17.870 underwriting to take a look at. We will then do a hard pull. 29:19.080 --> 29:25.080 Moderator: Great, and another question came in. So sorry, they came late. But what documents do you need? 29:25.110 --> 29:30.210 I'm assuming you only do you do only term loans and not MCA? 29:30.780 --> 29:36.720 Kristof Anderson-Tsang: That's correct. At this time, we are only doing term loans. Okay, so no MCA products. 29:37.020 --> 29:44.220 And so in terms of documentation, what we're looking for is 90 days transaction history. And we'll do that 29:44.250 --> 29:50.130 you know, via decision logic pull. If decision logic is not compatible with the Bank of business owners using, 29:50.790 --> 29:54.900 then we will look at, you know 90 days worth of bank statements and transaction history so the most 29:54.900 --> 30:07.350 immediate 90 days prior driver's license And yeah, voided check, we're not going to need it's not a hard 30:07.350 --> 30:12.780 requirement, you know, if it comes through with decision logic, but in some cases, we'll need a voided 30:12.780 --> 30:20.100 check. So it's really just, you know, valid ID and 90 days bank statements for us to kind of take a look at 30:20.370 --> 30:29.250 average daily balance. Great questions, guys. Okay, I know we're running out of time here. Want to be 30:29.250 --> 30:36.150 respectful of time, I know Rapid going to be next. And so what I want to do is invite you guys to take a look 30:36.150 --> 30:41.790 at our website, contact us if you have any questions about our products. You know, these guys are great. And 30:41.790 --> 30:47.250 we also we have four other account managers. You know, he's couldn't fit everybody in here for social 30:47.250 --> 30:52.680 distancing reasons. But yeah, I just wanted to, you know, let you guys take a look at our website, 30:52.890 --> 30:59.400 loanmebusiness.com. It's our new website. These are old logos. So you guys might see some new logos. Don't be 30:59.400 --> 31:05.760 scared away. We're kind of transition to you know, new CRM system, new logos, refresh, take a look, 31:05.760 --> 31:12.780 everything's going to be blue. So Loanmebusiness.com. And then if you need to reach out to these guys the 31:12.780 --> 31:21.060 phone number, I think it's, it's incorrect on the virtual deBanked, I'm sorry, the virtual Broker Fair 31:21.060 --> 31:34.830 site right now. So just want to clarify that the number is 949-535-7798. Okay, so 949-535-7798. Okay. Thank you 31:34.830 --> 31:42.990 guys. And very, very good show. Guys. I want to thank the whole deBanked team, Sean, Gigi, Janene, all you 31:42.990 --> 31:49.500 guys. It's been fantastic, given the circumstances, you know, kudos to you guys. It's been a wonderful day. 31:50.220 --> 31:53.670 Moderator: Thank you so much, and we really appreciate having LoanMe as always. 31:54.630 --> 31:57.270 Speakers: You guys. Take care