00:00.330 --> 00:04.020
Sean Murray: Datamerch.com is a
database of essentially the

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deals that have gone bad. These
are small business finance

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deals, could be an MCA, could be
a business loan, one or the

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other and what people do is
that, if you're a member, you

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can submit deals that defaulted.
Typically, if they breached the

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contract or committed fraud, I
don't think it's for deals that

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just naturally, you know, like,
didn't perform. But if there was

00:23.400 --> 00:25.980
some type of, you know, breach
of the agreement, or some type

00:25.980 --> 00:29.520
of fraud or something like that,
you can actually submit that

00:29.550 --> 00:33.270
that data to Datamerch.com if
you're a member of it, and the

00:33.270 --> 00:36.240
benefit of that, is that other
members are doing the same

00:36.240 --> 00:40.230
thing. Yeah. And that, before
you fund any deal, you can type

00:40.230 --> 00:43.980
in some information, and it will
tell you if anything bad

00:43.980 --> 00:47.700
happened with another member.
Yeah. And DataMerch has now

00:47.700 --> 00:52.410
amassed 50,000 records in their
in their database. Yeah.

00:52.410 --> 00:55.540
Johny Fernandez: That's a lot.
It's cool. And it's also good to

00:55.540 --> 00:59.260
know, because if, you know, just
generally doing business, with

00:59.260 --> 01:02.770
people in the industry, people
in business, etc, you sometimes

01:02.770 --> 01:05.110
you don't know, you know, you
have to do your due diligence to

01:05.140 --> 01:08.080
really know who you're really
doing business with. So

01:08.080 --> 01:11.680
sometimes Google doesn't give
you the exact, you know,

01:11.740 --> 01:15.310
information that you need the
google.com. And, you know, I

01:15.310 --> 01:17.260
think a website like this is
definitely something useful,

01:17.260 --> 01:20.560
cause it's definitely, you know,
it'll give you insight that

01:20.560 --> 01:24.100
maybe not everyone else has, and
things that you can't always

01:24.100 --> 01:25.030
find online.

01:25.030 --> 01:27.472
Sean Murray: Yeah, yeah, I think
there are pros and cons to

01:27.525 --> 01:30.883
certain products. And one of the
cons, technically, for funders

01:30.936 --> 01:33.975
in the small business finance
industry is that deals that

01:34.028 --> 01:37.066
don't perform or defaulted, go
bad, or breach or fraud or

01:37.120 --> 01:40.585
whatever, they don't necessarily
get reported to a credit bureau.

01:40.638 --> 01:43.889
So if you're checking someone's
credit, you're like, oh, they

01:43.943 --> 01:46.928
have good credit. But you might
not have known that they

01:46.981 --> 01:50.019
defrauded a competitor, like
there's nowhere to there was

01:50.073 --> 01:53.164
nowhere to search for that
prior. So you're kind of acting

01:53.218 --> 01:56.256
on some kind of leap of faith,
by double checking all the

01:56.309 --> 01:59.295
information that you have,
without being able to without

01:59.348 --> 02:02.386
being able to know how they
performed with somebody else.

02:02.440 --> 02:05.638
When you're dealing with like
consumer credit, you can check

02:05.691 --> 02:08.623
the credit report and say, you
know, they're six months

02:08.676 --> 02:11.821
delinquent on their Bank of
America credit card, right. And

02:11.874 --> 02:15.126
not only is it reflected in the
score, but you could actually

02:15.179 --> 02:18.644
see the credit line and see that
they're a certain amount of time

02:18.698 --> 02:21.843
behind on payments. But you
can't do that in small business

02:21.896 --> 02:24.668
finance, for the most part,
loans can be reported to

02:24.721 --> 02:27.919
business credit bureau, not
everyone is really checking the,

02:27.973 --> 02:30.904
you know, business credit
reports. And so DataMerch has

02:30.958 --> 02:34.263
really provided a very valuable
service. They're not the first

02:34.316 --> 02:37.567
people or the first company to
come up with that type of that

02:37.621 --> 02:40.393
type of idea. Prior to data,
DataMerch, there was an

02:40.446 --> 02:43.591
organization called the Small
Business Finance Association,

02:43.644 --> 02:47.109
it's still around, actually. And
they had their own database. And

02:47.162 --> 02:50.627
if you were a member of that the
trade association, if you were a

02:50.680 --> 02:53.879
member of the trade association,
or if you are a member of a

02:53.932 --> 02:56.597
trade association, you get
access to a database of

02:56.651 --> 02:59.796
defaulted deals, and it works
the same way, members of that

02:59.849 --> 03:02.834
association could submit deals
that defaulted. And other

03:02.887 --> 03:06.299
members can check it, you know,
before they fund the business to

03:06.352 --> 03:09.764
find out if this is somebody who
has defaulted on somebody else,

03:09.817 --> 03:13.175
but it's limited to people who
are members of that trade group.

03:13.228 --> 03:16.587
And so if you're not a member of
the trade group, you know, you

03:16.640 --> 03:19.892
miss out and so DataMerch, even
though it costs money to be a

03:19.945 --> 03:23.143
member, it is it is open to a
wider audience. You don't have

03:23.196 --> 03:26.661
to be a member of a trade group.
But yeah, it's it's it's amazing

03:26.715 --> 03:29.860
to see how much they've grown.
They started like, five, six

03:29.913 --> 03:33.324
years ago. And to think that, to
think that they now have 50,000

03:33.378 --> 03:36.150
bad deals on file. Yeah. That's
a pretty big number.

03:36.180 --> 03:38.700
Johny Fernandez: That is a big
number. And I think, you know,

03:38.700 --> 03:41.640
we've talked about before,
especially for people that are

03:41.640 --> 03:44.280
new to the industry and you
know, are trying to figure out

03:44.280 --> 03:47.730
how to do deals and make sure
they do deals correctly and do

03:47.730 --> 03:50.910
their due diligence. This is
definitely a smart investment. I

03:50.910 --> 03:54.150
would think, you know, when
you're trying to find just who

03:54.150 --> 03:55.920
you're working with, so