Johny Fernandez: The Small Business Finance of the 2020 Inc
5000 list came out and.
Sean Murray: 2021.
Johny Fernandez: 2021 I'm sorry, 2021.
Sean Murray: I know it's still 2020 for a lot of us.
Johny Fernandez: Yeah. So it's 2021 and we are actually
familiar with some of the guys on that list.
Sean Murray: We are, yeah. So I have it right here in front of
me as well. So we just put out a story, or I guess really a list
yesterday, the Inc 5000. For those of you who are not aware,
they compile a list every single year of the fastest growing
companies in America, the top 5000. The top 5000. Yeah, top
5000. And so what I like to do is every year is go in and pick
out the ones that are relevant to the audience that we write
for. Last year, we made it like really broad we focused on
fintech. I think I think the trouble with that is that we got
everyone emailing us mad that they weren't included. And these
were companies I never heard of. And they're like, we're fintech.
And I'm like, are they right? Because they were like they were
financial and technology. Yeah. But the problem with that was
then you got like, literally like 1000 of the 5000 contacting
you saying that they're technically fintech, and they
want to know why they're not on the list that deBanked compiled
of the list that the Inc 5000 made. It's like, it almost
became too much, right? Yeah. So this year, I just narrowed it
down and said, Let's just focus focus on the smaller segment, I
compiled a list of the small business finance companies, not
not merely companies that are within the ecosystem of Small
Business Finance, but are really the funders in the small
business finance industry. So I compiled a list of those that
appear on the Inc 5000 to kind of see where everyone falls. And
growth is a measure of, of revenue. It's not the most
profitable companies in the country, it's not the biggest
companies in the country, it's supposed to be growth, right?
And these companies have to submit themselves. So if you're
looking at the list, and you're like, wait a minute, this
company that I know, or my company is not on here, and I
grew more than them. That's because you didn't submit
yourself. And if you don't do that, then you can't be on it.
Right. So you have you have to actually do something to end up
on the list. Yeah. But all the same. For those who submitted
themselves, it doesn't mean that they'll end up on it. They might
not be large enough. They might be too old it's supposed to be
for newer companies. Yeah. You're not supposed to see a
company that's been on here for like, 100 years. Yeah. Yeah,
you're not supposed to see really old companies it's
supposed to be for, you know, newer, you know, kind of like
startups. But that, you know, you wouldn't expect to see like
a company that's been around since like, 1900, as like the
fastest growing in America.
Johny Fernandez: Yeah. Okay, that makes sense. And I know,
like, sort of we were talking about is like, once you sign up
for this process, and see if you're eligible, technically, to
be on the list, you're gonna have to also include things like
your taxes and things like the last three years for them to
actually measure, you know, if you qualify to be on the list.
Sean Murray: Yeah, that's exactly right. So my
understanding of it is that you have to submit your last three
years financials in order for them to verify your growth. So
it's not just a fill in the box, and hey, we grew 1,000,000%.
Yeah. Type of deal. There is a level a level of verification,
although they'd I don't know how deep they go into checking all
of it. I'm, you know, maybe there's ways to kind of budget
if you really wanted to. Yeah. I'm not sure. But we did. We did
compile a list and the top one on our list right now. It's
actually a company I've never I've never heard of, until
today, a company called Crestmont Capital came in at
number 44. Reporting 7,404% growth, I looked them up. They
appear to be honestly like a broker shop in California, small
business finance brokerage shop in California, apparently
number, the number of 44th fastest growing company in
America. So kind of hard to believe, you know, that there's
someone I've never heard of, but that's why the list is kind of
valuable. Get you get to find out what everyone's doing out
there. Yeah. Right. And then next below them was a company
called Capital Dude, at 1044. And they grew by 463%. So for
those who are not familiar with Capital Dude, they are they are
related to a company called Central Diligence Group. There's
a connection between the two. There's like common ownership.
Okay. So I like the name though. Yeah. Dude, Capital Dude. Yeah.
I actually, I emailed them yesterday. And I said, Hey, I
saw you guys are two of your companies were ranked pretty
high on the list. Right? Which is kind of unusual to have two.
Yeah. And so I did ask him a few questions about it there's a
story up on our site went up late last night around midnight,
asking the dude, how they do it, and. How they dude it. How they
dude it. Almost almost there. Yeah. You know, so here's what
they told me. They told me that basically it's good sound
underwriting the partners have a lot of experience. Most of them
have been in the industry for more than 10 years, small
business finance, NCAA, whatever it is, you know, in their
background. And these are these are these are guys who were
underwriting deals back in the 08, 09 recession. Okay. So
they're used, they were used to sudden downturns. Yeah. And they
did tell me that this year, the pandemic wasn't really like,
there was the great recession. Yeah. But there were things that
they learned from the last recession about how to act. Like
when everything just blowing up, you know, the literally the sky
is falling. If you've never gotten to a sky is falling
scenario, in any shape, or form. It's you. I don't think I've
been. Just panic you, you've been through one?
Johny Fernandez: Yeah when the skies falling. Heck, yeah. I've
been through it twice in my life.
Sean Murray: All right, more, more on that. And more on that.
And more on that.
Johny Fernandez: But you know, but I think I think to get back
to you're point to what you were saying, you know, these guys
have experience, you know, they have, at the end of the day
experience is key, I think in any scenario possible. So the
fact that these guys went through that experience back in
2008, 2009. And now, you know, when we go through something
very similar. They know what to do. Exactly, yeah. They've
pretty much, you know, got they've gone through it already.
And they're prepared. And, you know, that's why they're
growing.
Sean Murray: Yeah. And they told me that they didn't even stop
funding. They continued straight through. I mean, I guess that's
how you grow. Yeah. You can't end up on the list if you don't
grow. Yeah. So this is 2021. So you know, I guess that would
include 2020, as well. Here they are here they are growing. Yeah.
And one side effect of the pandemic is that certain
companies that we're on here last year, they're not on the
list this year. Either they didn't grow, or they didn't
submit themselves to be on the list. I don't know. I don't know
which it is. Yeah, but there's a lot of companies that I expected
to see on here, because they've been on there in previous years.
They weren't on here and 2021. But all a sudden, the dude,
yeah, the dude comes in at like number two on our list, right?
Johny Fernandez: You watch New Girl?
Sean Murray: I don't.
Johny Fernandez: Okay. There's there's a character there that
he has an inside joke. But when he says a certain word, like,
dude he'll he'll see it very like. Winston, Winston Bishop.
That's his name.
Sean Murray: If for all yeah, for all of you who are of
whatever show he's talking. Yeah. Sorry. That's how next
time I call them that's how I'm gonna pronounce it, is this
Capital Dude?
Johny Fernandez: But no, I think this list is definitely
valuable. At the end of the day, if you guys have not checked it
out, definitely go check it out and see the list. It's on our
website. debanked.com. And these are guys that you know, some of
them we are familiar with. And yeah, some of them we've never
heard of. But yeah, it's definitely worth a shot. And
there's towards the bottom. You know, if you don't see your
name, and you know you think we forgot you, let us know, you can
email us at info@debanked.com. You know, and we definitely want
to hear from you guys out there.
Sean Murray: Yeah, and for exactly. And, you know, we're
not perfect. So it's 5000 companies is a lot to scan
through. So if we missed one, you know, please forgive us and
let us know we'll add you if you're a small business finance
company. Last year, we did a fintech. But, you know, yeah you
just mentioned there was a few on here that we know like Pierce
Capital, somebody that we're familiar with, Channel Partners
Capital, ApplePie Capital, NAB, Forward Financing. So there are
some stalwarts of the industry that are still on the list. And
then there's some that are not on here for some reason, maybe
because they didn't grow we don't know. But yeah, if you're
not on here, and you shouldn't you felt like you should have
been. Yeah, shoot us an email like Johny said,