1 00:00:00.000 --> 00:00:01.950 Johny Fernandez: Hey, what's going on everyone? I'm Johny 2 00:00:01.950 --> 00:00:02.730 Fernandez. 3 00:00:03.080 --> 00:00:05.120 Sean Murray: I'm Sean Murray. And today we're gonna talk about 4 00:00:05.360 --> 00:00:08.780 how you can save money by learning from Johny Fernandez on 5 00:00:08.780 --> 00:00:10.970 how to make chocolate chip cookies. 6 00:00:11.930 --> 00:00:14.990 Johny Fernandez: We'll get into that after our segment, cause 7 00:00:14.990 --> 00:00:19.100 there's ways to save money when it comes to chocolate chip 8 00:00:19.100 --> 00:00:23.270 cookies, but first, we're gonna dive into a topic that I think 9 00:00:23.270 --> 00:00:26.960 it's definitely informative and it's educational, especially for 10 00:00:26.960 --> 00:00:30.020 the newcomers in the industry. Let's talk about split funding. 11 00:00:30.020 --> 00:00:32.130 Sean Murray: Sure, yeah. So this is a little bit different from. 12 00:00:32.880 --> 00:00:36.300 Yeah, this is not a not a cooking show. But so what is 13 00:00:36.300 --> 00:00:40.560 split funding. So split funding is a methodology that a business 14 00:00:40.560 --> 00:00:46.680 can use to pay an advance that it has taken typically, in 15 00:00:46.680 --> 00:00:50.610 today's online lending world, a business, a borrower is going to 16 00:00:50.610 --> 00:00:55.170 pay back via a direct ACH debit, the lender is gonna make a debit 17 00:00:55.170 --> 00:00:58.080 to the bank account, every month, could be a bank too 18 00:00:58.110 --> 00:01:00.750 doesn't have to be an online lender. And if it's a merchant 19 00:01:00.750 --> 00:01:03.570 cash advance, then they're going to take a debit, typically daily 20 00:01:03.660 --> 00:01:07.500 or weekly, it could be fixed, it could be variable. But then 21 00:01:07.500 --> 00:01:09.510 there's another way of doing it and the other way of doing it is 22 00:01:09.510 --> 00:01:12.270 actually the old fashioned way. And that's by taking a 23 00:01:12.270 --> 00:01:15.540 percentage of the credit or debit card sale, that a business 24 00:01:15.540 --> 00:01:19.200 transacts every day. So if someone is gonna go into, let's 25 00:01:19.200 --> 00:01:22.950 say, a small business, like a store, and make a purchase using 26 00:01:22.950 --> 00:01:27.120 a credit card, typically, the proceeds from that transaction 27 00:01:27.390 --> 00:01:31.020 will be deposited in the business's account, minus the 28 00:01:31.020 --> 00:01:34.560 fees, right. But in a split funding transaction, a portion 29 00:01:34.560 --> 00:01:38.040 of that sale, some predetermined percentage, will then be taken 30 00:01:38.040 --> 00:01:41.700 and applied to the outstanding balance of the advance. And so 31 00:01:41.700 --> 00:01:43.230 that's what split funding is. 32 00:01:43.590 --> 00:01:46.380 Johny Fernandez: So, Sean, quick question, how did this all come 33 00:01:46.380 --> 00:01:50.280 about into our world? Because obviously, this came in, you 34 00:01:50.280 --> 00:01:54.720 know, right, kind of the start of when everything started to 35 00:01:54.720 --> 00:01:59.400 change. So how did it come into, you know, practice? You know, 36 00:01:59.400 --> 00:02:01.740 how did this all come about? Split funding? 37 00:02:01.740 --> 00:02:03.787 Sean Murray: Sure. So it's actually the genesis of what I 38 00:02:03.843 --> 00:02:07.278 believe to be all of alternative lending, all have alternative 39 00:02:07.334 --> 00:02:10.658 finance. And that's because we're talking like 20 plus years 40 00:02:10.713 --> 00:02:14.204 ago, in the late 1990s, you had credit card processors who were 41 00:02:14.260 --> 00:02:17.639 out there, and they had lots of small business customers, and 42 00:02:17.695 --> 00:02:20.909 the small business customers would say, you know, is there 43 00:02:20.964 --> 00:02:24.122 any way you can like, lend us money? We went to our local 44 00:02:24.178 --> 00:02:27.613 bank, they said, no, we have a relationship with you. Is there 45 00:02:27.668 --> 00:02:30.937 anything we can do? And I think the answer is typically no, 46 00:02:30.993 --> 00:02:34.206 that's not what we do. We don't provide financing, we just 47 00:02:34.262 --> 00:02:37.531 enable you to accept payments. That's all that we do. And I 48 00:02:37.586 --> 00:02:41.077 think that they looked at it as sort of like a lost opportunity 49 00:02:41.132 --> 00:02:44.623 that perhaps they could provide some type of financing, and use 50 00:02:44.679 --> 00:02:48.169 the framework, and the structure and the relationship that they 51 00:02:48.225 --> 00:02:51.715 already have to their advantage. So they weren't just gonna all 52 00:02:51.771 --> 00:02:55.372 of a sudden get into the lending business and start making loans, 53 00:02:55.428 --> 00:02:58.641 they would look at it as how about this, we'll give you an 54 00:02:58.697 --> 00:03:01.689 advance on what you would typically make in a month on 55 00:03:01.744 --> 00:03:05.180 your credit cards and debit card sales. And then you'll pay it 56 00:03:05.235 --> 00:03:08.559 back by us taking a percentage of your credit and debit card 57 00:03:08.615 --> 00:03:12.161 sales going forward, until we've recovered the amount that we've 58 00:03:12.216 --> 00:03:15.430 given you plus like a fee on top. And this started, like I 59 00:03:15.485 --> 00:03:18.976 said, 20, 20 plus years ago, the company that was really famous 60 00:03:19.032 --> 00:03:22.356 for it was called Advance Me which today is CAN Capital. And 61 00:03:22.411 --> 00:03:25.570 if I'm not mistaken, they started doing it as far back as 62 00:03:25.625 --> 00:03:29.171 1998. Meanwhile, the concept of splitting the payments apart and 63 00:03:29.227 --> 00:03:32.329 directing it to two different places, or three different 64 00:03:32.385 --> 00:03:35.709 places that actually started in the 1980s. So like a quite a 65 00:03:35.765 --> 00:03:39.089 long time ago, but it really didn't become mainstream in any 66 00:03:39.145 --> 00:03:42.414 form or fashion until the late 90s. And it really took off, 67 00:03:42.469 --> 00:03:45.461 because this was a way of providing capital to a small 68 00:03:45.517 --> 00:03:48.841 business, where the risk was removed, of the business's cash 69 00:03:48.896 --> 00:03:52.332 flow and credit history. Because if you're a bank, the risk to 70 00:03:52.387 --> 00:03:55.767 you is that you're gonna go in to try to debit the account at 71 00:03:55.822 --> 00:03:59.036 the end of the month, and the payments gonna bounce. Or it 72 00:03:59.091 --> 00:04:02.582 could be the other way around, you're gonna say mail me a check 73 00:04:02.638 --> 00:04:06.017 every month towards your loan, and if they don't mail you the 74 00:04:06.073 --> 00:04:09.508 check. What are you gonna do, then you all of a sudden, you're 75 00:04:09.564 --> 00:04:13.110 a creditor like everybody else, right? And you're just a lender, 76 00:04:13.165 --> 00:04:16.600 like everyone else. And that's not that's not what they that's 77 00:04:16.656 --> 00:04:19.869 not what they wanted to be doing. So they removed the risk 78 00:04:19.925 --> 00:04:23.028 of both of those things by simply taking a percentage of 79 00:04:23.083 --> 00:04:26.574 the card transaction, which they knew were gonna happen because 80 00:04:26.629 --> 00:04:29.510 they had, they could see the history of the business 81 00:04:29.566 --> 00:04:32.502 transacting they take a percentage from the beginning 82 00:04:32.558 --> 00:04:35.993 before it's ever deposited in the business's bank account. And 83 00:04:36.049 --> 00:04:39.318 that allows them to get paid while removing the risk that a 84 00:04:39.373 --> 00:04:42.698 debit is gonna bounce, or that the business is gonna fail to 85 00:04:42.753 --> 00:04:43.640 send in a check. 86 00:04:43.740 --> 00:04:46.140 Johny Fernandez: Yeah, so let's talk about nowadays. I mean, you 87 00:04:46.140 --> 00:04:48.570 know, new business owners, business owners that are 88 00:04:48.570 --> 00:04:51.630 recovering, how is this something that can benefit them? 89 00:04:53.100 --> 00:04:55.680 Sean Murray: So that's a good question. So we've had this 90 00:04:55.680 --> 00:05:01.260 whole like we've had several iterations since that time. The 91 00:05:01.260 --> 00:05:04.890 whole process of taking a percentage, at least 10, 15, 20 92 00:05:04.920 --> 00:05:09.510 years ago was kind of labor intensive, very manual, you had 93 00:05:09.510 --> 00:05:12.570 to work with a credit card processor that was compatible 94 00:05:12.570 --> 00:05:14.640 with doing it all, you couldn't just say, hey, send me a 95 00:05:14.640 --> 00:05:17.100 percentage, they're gonna be like, who are you, you know, 96 00:05:17.130 --> 00:05:20.580 right, or the credit card processor, might be aware of it, 97 00:05:20.580 --> 00:05:22.140 but they're like, it's not really something we want to 98 00:05:22.140 --> 00:05:25.050 participate in. Because there's a lot of credit card processors 99 00:05:25.650 --> 00:05:29.310 out there. And so it kind of stole, you know, the stole the 100 00:05:29.310 --> 00:05:33.810 show and kind of won the day, so to speak, was people returned 101 00:05:33.840 --> 00:05:37.740 back to the old fashioned style, just debiting bank accounts and 102 00:05:37.740 --> 00:05:42.090 willing and then being willing to take the risk on those 103 00:05:42.270 --> 00:05:46.260 transactions being rejected, right on having an NSF there 104 00:05:46.260 --> 00:05:49.200 being overdrafts and so forth, or the customer not making a 105 00:05:49.200 --> 00:05:53.160 payment. And so all that risk kind of just returned, and 106 00:05:53.160 --> 00:05:59.700 everyone's for the most part doing ACH, again. But new tech 107 00:05:59.700 --> 00:06:02.310 companies saw the old model and they're like, wow, that was 108 00:06:02.310 --> 00:06:09.390 really smart. Yeah. Why did that go away? And Square, PayPal. So 109 00:06:09.390 --> 00:06:12.240 like, let's just do that. Yeah. Let's just take a percentage of 110 00:06:12.240 --> 00:06:14.970 our customers sales, and we don't have to worry about credit 111 00:06:14.970 --> 00:06:17.520 risk and how much money is in the bank account. Because we're 112 00:06:17.520 --> 00:06:20.490 gonna get paid no matter what, right? Now, some of these 113 00:06:20.490 --> 00:06:23.370 transactions are structured as loans. But we're just talking 114 00:06:23.370 --> 00:06:26.190 about split funding. And that's the taking the percentage aspect 115 00:06:26.190 --> 00:06:29.910 of it. And so these companies, these tech companies, they take 116 00:06:29.910 --> 00:06:33.180 a percentage, it works for both it works for both parties. And I 117 00:06:33.180 --> 00:06:35.250 think you were asking like, you know, why is this still 118 00:06:35.280 --> 00:06:39.840 beneficial today, right? Well, I think it's very beneficial 119 00:06:39.840 --> 00:06:45.330 today, the whole idea of having a fixed daily debit, whether 120 00:06:45.330 --> 00:06:48.660 it's structured as an advance or a loan, kind of assumes that 121 00:06:48.660 --> 00:06:53.160 your cash flow is always going to be more or less the same. And 122 00:06:53.190 --> 00:06:55.650 in practice, it doesn't always work out that way. Obviously, 123 00:06:55.650 --> 00:06:58.500 things like a pandemic could happen, right, which totally 124 00:06:58.500 --> 00:07:01.620 changes your cash flow day to day versus historical, you could 125 00:07:01.620 --> 00:07:04.110 be a store and you can have construction happening outside, 126 00:07:04.650 --> 00:07:07.980 you could have a bunch of people call out sick, and you're just 127 00:07:07.980 --> 00:07:10.230 not able to handle the sales, you know, the people coming into 128 00:07:10.230 --> 00:07:13.110 the store that day, and you have people anything happen. Yeah. 129 00:07:13.560 --> 00:07:16.590 And so the whole idea is that no matter what happens, you're just 130 00:07:16.590 --> 00:07:20.910 gonna remit a percentage of whatever you draw, without 131 00:07:20.910 --> 00:07:25.020 having to worry about it is kind of a relief for people. And in 132 00:07:25.020 --> 00:07:27.840 my experience. Now, this is a very long time ago. But when I 133 00:07:27.840 --> 00:07:30.330 was an underwriter a very long time ago, I used to underwrite 134 00:07:30.330 --> 00:07:33.360 split funding transactions. And I would hear from business 135 00:07:33.360 --> 00:07:36.600 owners who would tell us that it really didn't felt it didn't 136 00:07:36.630 --> 00:07:38.910 really, it didn't feel like they were paying anything at all. 137 00:07:39.180 --> 00:07:42.240 They were getting a lump sum of cash. And then they were just 138 00:07:42.360 --> 00:07:45.060 getting their deposits every day from their credit card 139 00:07:45.060 --> 00:07:48.630 processor, like normal, less a certain percentage. Yeah. But 140 00:07:48.630 --> 00:07:51.990 it's almost like they didn't really feel the impact, because 141 00:07:51.990 --> 00:07:54.150 they didn't have to do any work. You know, it was it kind of 142 00:07:54.150 --> 00:07:57.240 saved them all the all the bookkeeping aspect of it. And 143 00:07:57.750 --> 00:08:02.130 they liked it. And, you know, we just we put out a story, just 144 00:08:02.130 --> 00:08:04.770 recently that said, that business owners still continue 145 00:08:04.770 --> 00:08:06.690 to appreciate this methodology. 146 00:08:06.720 --> 00:08:09.000 Johny Fernandez: Yeah. And it's something kind of like you said, 147 00:08:09.000 --> 00:08:12.990 the big picture is, you know, you, it's like, you have to put 148 00:08:12.990 --> 00:08:17.760 into it, but you're not going to really feel the work in the 149 00:08:17.760 --> 00:08:20.880 sense where, you know, you don't have to really do much, it's 150 00:08:20.970 --> 00:08:23.100 automatically just coming to you. 151 00:08:23.100 --> 00:08:24.570 Sean Murray: You're not writing a check at the end of the month, 152 00:08:24.570 --> 00:08:26.550 like, oh, I gotta make another payment, right? 153 00:08:26.550 --> 00:08:28.020 Johny Fernandez: Everything's just coming back to you. 154 00:08:28.020 --> 00:08:28.080 Sean Murray: Yeah. 155 00:08:28.140 --> 00:08:32.010 Johny Fernandez: Would you say, the approach and just working 156 00:08:32.010 --> 00:08:34.890 like that? Is that something you'd recommend for you know, 157 00:08:34.890 --> 00:08:38.220 people like, business businesses? 158 00:08:38.810 --> 00:08:41.930 Sean Murray: Yeah. And so you would say the short answer is 159 00:08:41.930 --> 00:08:47.330 yes. And I would appear to be a very biased person to say that, 160 00:08:47.330 --> 00:08:50.090 because while we write about it all the time. Yeah. And a lot of 161 00:08:50.090 --> 00:08:53.120 our customers do that. So you're like, well, of course, Sean is 162 00:08:53.120 --> 00:08:58.280 gonna say that, but believe it or not, I have actually taken a 163 00:08:58.280 --> 00:09:01.640 loan, or maybe it was an advance I don't even remember. But I got 164 00:09:01.640 --> 00:09:06.530 it from Square. This had to be about probably about five years 165 00:09:06.530 --> 00:09:10.430 ago at this point. And I can't remember the exact reason why I 166 00:09:10.430 --> 00:09:13.730 needed capital, but I didn't need that much. It was kind of 167 00:09:13.730 --> 00:09:16.220 too small for the bank. And the bank was going to take too long. 168 00:09:16.220 --> 00:09:19.760 And I'm like, hey, why don't I try one of these? You know, 169 00:09:19.760 --> 00:09:24.320 like. Yeah. Online loans, or MCAs myself, I write about them 170 00:09:24.320 --> 00:09:26.060 all the time. I used to underwrite them, I used to sell 171 00:09:26.060 --> 00:09:29.810 them, right? Surely, if they really work, they will work for 172 00:09:29.810 --> 00:09:32.510 me. Or maybe they won't, and I will have been proven wrong. All 173 00:09:32.510 --> 00:09:34.100 this time. I thought it was actually a really good 174 00:09:34.100 --> 00:09:36.380 experiment. But at the same time, I actually kind of needed 175 00:09:36.380 --> 00:09:40.640 it. Right. And so I took one and it was very easy. It was and I'm 176 00:09:40.640 --> 00:09:43.100 not even promoting Square per se, but it. 177 00:09:43.130 --> 00:09:44.480 Johny Fernandez: This was an example that you went through. 178 00:09:44.510 --> 00:09:46.610 Sean Murray: Yeah, this is real life scenario. This was Square. 179 00:09:46.610 --> 00:09:48.650 I opened up my Square app because we accepted Square 180 00:09:48.650 --> 00:09:51.380 credit cards. And it said, I was like, there was like a button 181 00:09:51.380 --> 00:09:53.570 that said I was pre approved. I can't remember the amount I want 182 00:09:53.570 --> 00:09:57.620 to say was like 20 or $30,000. And it was like, tap, tap. Like 183 00:09:57.650 --> 00:10:01.910 you want the money. Yes, tap here, to like, deposit it. And 184 00:10:01.940 --> 00:10:04.280 that was it. There wasn't anything else to it. Yeah. And 185 00:10:04.280 --> 00:10:06.650 then from that point on, they would took a percentage of my 186 00:10:06.650 --> 00:10:09.830 credit card sales up until I paid that amount back plus a fee 187 00:10:09.830 --> 00:10:12.200 on top. And so it worked great. 188 00:10:12.200 --> 00:10:16.260 Johny Fernandez: It worked, yeah. So you didn't, it wasn't a 189 00:10:16.260 --> 00:10:16.890 hassle. 190 00:10:17.130 --> 00:10:19.050 Sean Murray: No, no, no, yeah it was the opposite. I actually 191 00:10:19.050 --> 00:10:20.640 thought it was too easy. That was my. 192 00:10:20.760 --> 00:10:21.480 Johny Fernandez: It was too good to be true. 193 00:10:21.480 --> 00:10:23.760 Sean Murray: Yeah, it was it was. Yeah, I thought it was too 194 00:10:23.760 --> 00:10:28.170 good to be true. And I almost thought it was too easy. As in I 195 00:10:28.170 --> 00:10:31.740 was surprised that nobody called me Yeah. Nobody checked to see 196 00:10:31.740 --> 00:10:34.140 if I was still going to be in business. I mean, in the fine 197 00:10:34.140 --> 00:10:37.500 print, I'm sure I signed, you know, saying that everything was 198 00:10:37.500 --> 00:10:40.170 gonna be the same. Yeah. I don't even remember. Maybe that's part 199 00:10:40.170 --> 00:10:42.120 of why I thought it was too easy. It was literally just 200 00:10:42.120 --> 00:10:44.700 like, tap tap done. I documented it. You know, there's, there's a 201 00:10:44.700 --> 00:10:47.550 story on our website. I wrote about it at the time has to be 202 00:10:47.550 --> 00:10:49.950 like five years ago, but look up. I think the name of the 203 00:10:49.950 --> 00:10:53.580 story is I Got Funded. Yeah, look, look it up. I got I got 204 00:10:53.580 --> 00:10:57.960 funded. Yeah. And I talk about how it was, it was so easy. It 205 00:10:57.960 --> 00:10:59.880 was almost too easy. But you know what, I ended up doing it a 206 00:10:59.880 --> 00:11:01.320 second time. Okay. Yeah. 207 00:11:01.320 --> 00:11:03.930 Johny Fernandez: So you paid everything off based off of the 208 00:11:03.930 --> 00:11:05.490 transactions that you did? 209 00:11:05.510 --> 00:11:08.300 Sean Murray: Yeah. So it wasn't like I, it wasn't like I took 210 00:11:08.300 --> 00:11:11.780 more before I paid off the first one. I paid off the first one. 211 00:11:11.780 --> 00:11:13.880 And then for whatever reason, I don't I don't remember what, 212 00:11:13.910 --> 00:11:17.780 what what situation arose. I thought to myself, I'd like to 213 00:11:17.780 --> 00:11:22.070 do another. And I totally got it from the standpoint of a small 214 00:11:22.070 --> 00:11:25.400 business owner, why you would do this. Yeah. Because it worked 215 00:11:25.400 --> 00:11:27.950 for me. And it's obviously not gonna work for any for 216 00:11:27.950 --> 00:11:32.780 everybody. And one thing I will say in that is that the cost of 217 00:11:32.780 --> 00:11:36.620 the funds was higher than one would get from a bank, although 218 00:11:36.620 --> 00:11:39.800 the terms I was offered were not terrible and terrible is always 219 00:11:39.800 --> 00:11:42.650 gonna be subjected. Yeah. It depends on what your situation 220 00:11:42.650 --> 00:11:46.640 was. And the amount that I paid, I felt was reasonable for what I 221 00:11:46.640 --> 00:11:49.010 was trying to accomplish. And that's how I look at it at the 222 00:11:49.010 --> 00:11:52.010 end of the day, if I can accomplish what I want to or 223 00:11:52.010 --> 00:11:58.070 make money off of off of it, then the cost. Isn't that huge 224 00:11:58.070 --> 00:12:02.570 of a factor if I'm net beneficiary of the deal? And, 225 00:12:03.260 --> 00:12:06.170 you know, I appreciated the payback methodology it took it 226 00:12:06.170 --> 00:12:09.470 took, it was a huge relief, not having to worry about at like, 227 00:12:09.500 --> 00:12:12.410 oh, my goodness, I have to send in the payment. But of course, 228 00:12:12.410 --> 00:12:14.540 most people do auto debit now. And I didn't have to worry about 229 00:12:14.540 --> 00:12:16.220 auto debit, either. I didn't have to worry about is there 230 00:12:16.220 --> 00:12:18.440 enough money on this day when they make my debit? Yeah. They 231 00:12:18.440 --> 00:12:19.880 just took a percentage automatically. 232 00:12:20.300 --> 00:12:22.970 Johny Fernandez: That's awesome. And I'm curious to know, do you 233 00:12:22.970 --> 00:12:24.110 know the interest rate? 234 00:12:25.130 --> 00:12:30.140 Sean Murray: So that's a great, that's a great question. I did 235 00:12:30.140 --> 00:12:35.270 not. And people would say, Sean, how could you not have known the 236 00:12:35.300 --> 00:12:37.850 interest rate? How could you not? I think the real question 237 00:12:37.850 --> 00:12:41.840 is Sean, did you know the APR. Correct. And the thing is, I 238 00:12:41.840 --> 00:12:46.040 didn't know the APR APR, I knew the factor rate. So on one of 239 00:12:46.040 --> 00:12:50.570 them, I paid a 109 factor, which is really good. That's nine, 9%. 240 00:12:51.200 --> 00:12:56.090 That's not the APR. But I had to pay a 9% on top of what I got, 241 00:12:56.330 --> 00:12:59.630 right? A lot of people will consider that very good. Some 242 00:12:59.630 --> 00:13:01.880 people would consider that terrible if you try to boil it 243 00:13:01.880 --> 00:13:04.670 down to an APR it's gonna end up being more than 10% talking 244 00:13:04.670 --> 00:13:07.490 about double digit APR, probably. But I don't even 245 00:13:07.490 --> 00:13:10.670 actually know. Yeah. And in today's world, we're led to 246 00:13:10.670 --> 00:13:14.180 believe that if we don't know the APR, then we're stupid. And 247 00:13:14.180 --> 00:13:16.880 we did something that we don't understand. And we got taken 248 00:13:16.880 --> 00:13:19.700 advantage of. Yeah. I didn't know what the APR is. And my 249 00:13:19.700 --> 00:13:23.780 literal name on Twitter is finance guy 74. I wasn't just. 250 00:13:23.780 --> 00:13:24.200 Johny Fernandez: Follow him. 251 00:13:24.200 --> 00:13:27.870 Sean Murray: Yeah, I have all the best financial advice. I 252 00:13:27.870 --> 00:13:31.140 don't know what I pay. I don't know what my APR is. But follow 253 00:13:31.140 --> 00:13:34.140 me for all your financial financial advice. And I went to 254 00:13:34.140 --> 00:13:36.360 school for accounting, finance, these are things I could have 255 00:13:36.360 --> 00:13:38.730 easily calculated, you know what, I didn't care, it didn't 256 00:13:38.730 --> 00:13:41.880 matter. It's an arbitrary number that has no bearing on on what I 257 00:13:41.880 --> 00:13:45.540 was going to do. Literally nothing literally means nothing. 258 00:13:46.140 --> 00:13:48.720 It could mean something to other people. I don't want to diminish 259 00:13:48.720 --> 00:13:52.230 it entirely. But in my circumstances, that number 260 00:13:52.320 --> 00:13:53.730 literally meant nothing. 261 00:13:54.030 --> 00:13:56.220 Johny Fernandez: And you paid everything off. You didn't have 262 00:13:56.220 --> 00:13:57.870 to, you weren't stressed about it, because you took a 263 00:13:57.870 --> 00:14:00.690 percentage from your sales. You were okay with that, you did it 264 00:14:00.690 --> 00:14:01.170 again. 265 00:14:02.550 --> 00:14:04.770 Sean Murray: And here and here I am. Yeah. 266 00:14:04.800 --> 00:14:06.570 Johny Fernandez: Will you do it again, if you needed to? 267 00:14:08.190 --> 00:14:14.310 Sean Murray: So, if a situation arose. Yeah. sure. I would. It 268 00:14:14.310 --> 00:14:17.640 wasn't like I have decided since that, oh, no, you know, I 269 00:14:17.640 --> 00:14:20.190 wouldn't do any more of those, I would if the situation arose. 270 00:14:20.430 --> 00:14:24.300 But I think what happened next, when the next time there was 271 00:14:24.300 --> 00:14:27.540 such a financial need, the amount of capital I was seeking, 272 00:14:27.750 --> 00:14:31.740 just exceeded what an online lender like Square was able to 273 00:14:31.740 --> 00:14:35.100 offer. And so I ended up having to go to a bank, unfortunately. 274 00:14:35.730 --> 00:14:38.580 And I learned that everything they say about banks is true. It 275 00:14:38.580 --> 00:14:42.840 literally took me three months, literally, and visits to the 276 00:14:42.840 --> 00:14:47.400 bank branch and all paper documents to get this what I 277 00:14:47.400 --> 00:14:52.830 would thinks an easy transaction done. It was a real pain and I 278 00:14:52.830 --> 00:14:55.770 had to think about it all the time and do all these phone 279 00:14:55.770 --> 00:14:59.670 calls, talk to underwriters and sales people and dig up all 280 00:14:59.670 --> 00:15:02.970 these tax returns, you know I had all that stuff. But I know 281 00:15:02.970 --> 00:15:05.610 three months is a long time, all this work was a long time. 282 00:15:05.760 --> 00:15:06.780 Johny Fernandez: Versus a click. 283 00:15:06.780 --> 00:15:09.630 Sean Murray: Versus click, click right. And so the difference was 284 00:15:09.690 --> 00:15:13.500 the bank, the bank financing was cheaper. And I got a lot more. 285 00:15:13.710 --> 00:15:18.060 And then the other side was I got less and it cost more. 286 00:15:18.930 --> 00:15:22.380 There's a value to this, cause I can just get it instantly. Yep. 287 00:15:22.440 --> 00:15:25.800 And if it makes sense, honestly, I would. I'll do it again. Yeah. 288 00:15:27.840 --> 00:15:30.780 And I think that other business owners, you know, should 289 00:15:30.780 --> 00:15:33.510 probably consider it too. If it's one of the options on the 290 00:15:33.510 --> 00:15:37.350 table, as long as the financing makes sense. But split split 291 00:15:37.350 --> 00:15:42.090 funding, I think it should continue to stay part of the 292 00:15:42.090 --> 00:15:44.910 ecosystem. I think that it will, I think that the reason that it 293 00:15:44.910 --> 00:15:47.220 existed from the beginning, or you know it was born into 294 00:15:47.220 --> 00:15:50.970 existence, made total sense. Square didn't know anything 295 00:15:50.970 --> 00:15:53.850 about lending. They didn't know anything about they didn't even 296 00:15:53.850 --> 00:15:58.140 call me, I assume they did something, right. But they 297 00:15:58.140 --> 00:16:00.120 didn't have to worry about whether or not I had money in my 298 00:16:00.120 --> 00:16:02.850 account, because they they saw I had it like a year or two, 299 00:16:02.850 --> 00:16:05.520 whatever, however many years it was of credit card sales, and 300 00:16:05.520 --> 00:16:08.040 then they knew that my transaction volume was somewhat 301 00:16:08.040 --> 00:16:11.040 predictable, you know, they knew what my business was. And 302 00:16:11.040 --> 00:16:13.800 they're just taking a percentage automatically when I processed 303 00:16:14.280 --> 00:16:19.380 those cards, that was the most important thing for them. Right. 304 00:16:19.710 --> 00:16:24.060 And so that's a very, very, very powerful mechanism. And I 305 00:16:24.060 --> 00:16:27.300 believe that it's going to be around I would think, forever. 306 00:16:27.300 --> 00:16:29.910 Johny Fernandez: Yeah. Yeah, that's awesome. And if you want 307 00:16:29.910 --> 00:16:32.910 to check out Sean's story about him getting funding, you can go 308 00:16:32.910 --> 00:16:37.140 to debanked.com. And also, you can use and check out other 309 00:16:37.680 --> 00:16:40.710 website information, you know, company information, also 310 00:16:40.710 --> 00:16:44.520 stories, videos and other series that we've done. So it's 311 00:16:44.760 --> 00:16:48.240 definitely one of the best sites out there besides google.com. 312 00:16:48.300 --> 00:16:50.190 Sean Murray: And if you want to know where to get the cheapest 313 00:16:50.190 --> 00:16:53.550 chocolate chip cookies, he's the guy to talk to you can follow 314 00:16:53.550 --> 00:16:56.460 him on social media as well. You know, all your all your 315 00:16:56.460 --> 00:16:59.190 supermarket tips. He's full of them. He was telling me all 316 00:16:59.190 --> 00:17:01.110 about it right before we went on the air. 317 00:17:02.110 --> 00:17:05.740 Johny Fernandez: Awesome. Look us up on social media platforms. 318 00:17:05.950 --> 00:17:11.080 We have an Instagram, a Twitter, Facebook and LinkedIn. So follow 319 00:17:11.080 --> 00:17:15.070 us on those platforms. So that's all we got for today. 320 00:17:15.490 --> 00:17:17.320 Sean Murray: Hope you enjoyed hearing all about split funding. 321 00:17:17.380 --> 00:17:18.190 I'm Sean Murray. 322 00:17:18.250 --> 00:17:19.660 Johny Fernandez: And I'm Johny Fernandez, and we'll see you 323 00:17:19.660 --> 00:17:20.260 next time.