1 00:00:00.000 --> 00:00:03.120 Today on deBanked news, new financial regulations are 2 00:00:03.120 --> 00:00:06.660 coming to California, we gabbed with the cabs and we talked one 3 00:00:06.660 --> 00:00:11.040 on one with us business funding CEO Peter Ribeiro. First, let's 4 00:00:11.040 --> 00:00:13.020 go over to Johny Fernandez. 5 00:00:13.530 --> 00:00:16.200 Hey Sean, so today I'm going to do something that millions of 6 00:00:16.200 --> 00:00:19.620 New Yorkers usually do, but probably have not thought about 7 00:00:19.620 --> 00:00:23.700 since the pandemic started, ride a New York taxi cab, but before 8 00:00:23.700 --> 00:00:26.310 I get in, you, of course have to mask up. 9 00:00:39.450 --> 00:00:42.510 If you want to drive a taxicab, here in New York City, you have 10 00:00:42.510 --> 00:00:45.750 to obtain an official medallion which can be quite expensive. 11 00:00:45.900 --> 00:00:48.420 And we know that many drivers turned to special forms of 12 00:00:48.420 --> 00:00:51.630 financing to obtain that medallion. So we spoke with 13 00:00:51.630 --> 00:00:54.510 different drivers here in New York City to see if it's even 14 00:00:54.510 --> 00:00:55.230 worth it now, 15 00:00:55.510 --> 00:00:59.050 Before it was good, we could make $100 - $150 a day. Now. 16 00:00:59.050 --> 00:01:04.000 It's very hard to survive, we work very hard to make 60, 70 or 17 00:01:04.000 --> 00:01:07.990 $80 a day, but what can I do? I have to make a living. We have 18 00:01:07.990 --> 00:01:12.370 no other choice. Open the restaurants as it used to be, 19 00:01:12.430 --> 00:01:14.770 open the party halls, we can make a living. 20 00:01:20.830 --> 00:01:24.430 So I just finished my ride from Brooklyn into Manhattan and it's 21 00:01:24.430 --> 00:01:27.760 felt quite normal. But on the other hand, one rider like me is 22 00:01:27.760 --> 00:01:30.580 not going to change the reality that these drivers are facing. 23 00:01:30.610 --> 00:01:34.180 So they're hoping for a major change during this time. I'm 24 00:01:34.180 --> 00:01:37.000 Johnny Fernandez with deBanked news. Sean, back over to you. 25 00:01:37.900 --> 00:01:40.870 Thanks, Johnny. Wow, it's really enlightening to hear how 26 00:01:40.870 --> 00:01:43.240 everything is truly interconnected in New York, you 27 00:01:43.240 --> 00:01:45.790 have the restaurants who are looking to open back up to full 28 00:01:45.790 --> 00:01:49.480 capacity, but you also have the taxis who take people to the 29 00:01:49.480 --> 00:01:52.480 restaurants who are hoping that the restaurants open back up as 30 00:01:52.480 --> 00:01:55.840 well. So very insightful information. Now moving on to 31 00:01:55.840 --> 00:01:57.880 California, we have the Department of Business 32 00:01:57.880 --> 00:02:00.520 Oversight, which is now going to become known as the Department 33 00:02:00.520 --> 00:02:04.120 of Financial Protection and innovation. The rebrand is part 34 00:02:04.120 --> 00:02:07.180 of a recently passed bill that's going to expand the regulator's 35 00:02:07.180 --> 00:02:10.150 oversight. For example, it may have been possible to skirt 36 00:02:10.150 --> 00:02:12.640 certain lender licensing requirements in the state if you 37 00:02:12.640 --> 00:02:15.370 weren't a lender. But under this new regulatory framework, 38 00:02:15.520 --> 00:02:18.130 FinTech firms and merchant cash advance providers are expected 39 00:02:18.130 --> 00:02:21.520 to be subject to the new rules regardless, but don't take my 40 00:02:21.520 --> 00:02:24.400 word for it. Your best bet is to contact an attorney who is very 41 00:02:24.400 --> 00:02:27.130 knowledgeable about California state law to find out how this 42 00:02:27.130 --> 00:02:31.240 law will apply to you. Our guest today is Peter Ribeiro, CEO of 43 00:02:31.240 --> 00:02:34.990 US Business Funding. Despite the challenges of 2020 Ribeiro and 44 00:02:34.990 --> 00:02:37.450 his company have experienced a lot of success. 45 00:02:37.510 --> 00:02:40.870 The great thing about a downturn is that you see a lot of holes 46 00:02:40.870 --> 00:02:43.930 in your company. You see, I look for opportunity during a 47 00:02:43.930 --> 00:02:48.790 downturn. So I would say that we're a stronger company and 48 00:02:48.790 --> 00:02:51.790 more well positioned today than we were prior to COVID. 49 00:02:51.850 --> 00:02:53.980 Obviously numbers are down because their real book of 50 00:02:53.980 --> 00:02:56.800 business there's a lot of defaults. A lot of the clients 51 00:02:56.830 --> 00:02:59.500 are these banks. A lot of our lenders offered restructuring of 52 00:02:59.500 --> 00:03:04.780 loans. So, if renewals which in the working cap side of our 53 00:03:04.780 --> 00:03:10.000 business is 35 to 40% of your business and you lose 70% of it, 54 00:03:10.120 --> 00:03:12.970 the numbers are going to be down. So our numbers are way 55 00:03:12.970 --> 00:03:17.500 down on the working cap side, but they're up about 280% on the 56 00:03:17.500 --> 00:03:20.860 equipment side, so we've shifted a good portion of the business 57 00:03:20.890 --> 00:03:23.950 on to the equipment space, which is still very lucrative and it 58 00:03:23.950 --> 00:03:28.450 was what we've really done since 2008. 2008 to 2012 we did 59 00:03:28.450 --> 00:03:32.290 equipment, then the working cap came in and we were 90% working 60 00:03:32.290 --> 00:03:36.100 cap and 10% equipment. Last month, we're almost 50-50 so 61 00:03:36.100 --> 00:03:38.950 it's been a big shift over into the equipment space for us. I 62 00:03:38.950 --> 00:03:44.500 think that if all you offer is a job where there's opportunity in 63 00:03:44.500 --> 00:03:47.440 sales, you have good months and bad months, you have good runs 64 00:03:47.440 --> 00:03:50.590 and bad runs just like baseball players just like basketball 65 00:03:50.590 --> 00:03:53.770 players with their hitting of their shooting percentages. So 66 00:03:53.980 --> 00:04:00.160 if all you offer is money, if that money disappears, there's 67 00:04:00.160 --> 00:04:03.730 nothing left. If you offer a great environment and the money 68 00:04:03.730 --> 00:04:07.360 goes away and they're still having fun, that might sugarcoat 69 00:04:07.360 --> 00:04:10.390 it and cover it where the the reps actually stay. So sales 70 00:04:10.390 --> 00:04:12.760 guys are very emotional, they're I don't know, to me they're like 71 00:04:12.760 --> 00:04:15.130 wide receivers in the NFL they always want their leads, they 72 00:04:15.130 --> 00:04:18.700 always want the ball, right. And so if all you offer is money 73 00:04:18.910 --> 00:04:21.850 that will go away in some type of downturn like we have now and 74 00:04:21.850 --> 00:04:24.670 everyone leaves. If you have a good culture and a good family 75 00:04:24.670 --> 00:04:28.300 environment, people will stay and so I think that it's fun to 76 00:04:28.300 --> 00:04:31.480 make money. But I always tell everyone, it's more important to 77 00:04:31.480 --> 00:04:33.790 have fun, then the money will come. If you put the money 78 00:04:33.790 --> 00:04:36.880 before everything else and the money doesn't come, you're gone. 79 00:04:37.030 --> 00:04:40.300 Thanks, Peter. And thank you for watching deBanked News. I'm Sean 80 00:04:40.300 --> 00:04:40.630 Murray.