1 00:00:00.100 --> 00:00:04.200 This is one thing that I used to compare pre-covid during pre-covid 2 00:00:03.200 --> 00:00:06.700 verse post covid is that what 3 00:00:06.700 --> 00:00:09.300 were the numbers before covid the origination numbers 4 00:00:09.300 --> 00:00:12.900 before covid? What were the originated origination numbers after covid? 5 00:00:12.900 --> 00:00:15.600 You will see that for square and Shopify. The 6 00:00:15.600 --> 00:00:18.900 origination numbers are higher post covid than 7 00:00:18.900 --> 00:00:21.600 they were pre-covid, which is amazing. Yeah 8 00:00:21.600 --> 00:00:25.100 for Shopify in particular their origination 9 00:00:24.100 --> 00:00:27.900 numbers increased during covid and 10 00:00:27.900 --> 00:00:31.700 that's because they're an e-commerce platform squares did 11 00:00:31.700 --> 00:00:34.100 go down during covid and that's 12 00:00:34.100 --> 00:00:37.500 because a lot of their customers are in person 13 00:00:37.500 --> 00:00:40.400 retailers that have the square POS. Those are 14 00:00:40.400 --> 00:00:43.400 the ones that were closed. So they were doing as much lending 15 00:00:43.400 --> 00:00:46.400 Shopify was entirely eCommerce. They were a major 16 00:00:46.400 --> 00:00:49.200 beneficiary of covid lockdown. So everyone was 17 00:00:49.200 --> 00:00:52.500 ordering everything online and so their loan and MCA 18 00:00:52.500 --> 00:00:55.200 origination volume shot up. Both of them 19 00:00:55.200 --> 00:00:58.800 are now doing more volume in mca's and 20 00:00:58.800 --> 00:00:59.300 loans. 21 00:00:59.900 --> 00:01:02.300 Then they were before covid even 22 00:01:02.300 --> 00:01:02.400 happened. 23 00:01:03.400 --> 00:01:06.600 So here we went through the worst thing that could ever be imagined in 24 00:01:06.600 --> 00:01:09.800 the small business finance ecosystem where the businesses 25 00:01:09.800 --> 00:01:12.500 themselves are shuttered and what has happened. 26 00:01:12.500 --> 00:01:15.400 Both companies are now doing more volume. I although 27 00:01:15.400 --> 00:01:18.600 I will acknowledge that Shopify stock 28 00:01:18.600 --> 00:01:21.400 has plummeted just in the last few days 29 00:01:21.400 --> 00:01:24.000 or so. If you take a look online, you're going to 30 00:01:24.300 --> 00:01:27.600 see a lot of the you know, they're gonna see a lot of red ink on the 31 00:01:27.600 --> 00:01:30.400 stock chart, but in terms of the loan origination volume, 32 00:01:30.400 --> 00:01:33.200 which is what I really like to look at. Yeah Shopify the big 33 00:01:33.200 --> 00:01:36.400 eCommerce platform, so I'm not gonna analyze them with an e-commerce platform 34 00:01:36.400 --> 00:01:39.600 because I'm not a stock analyst. I'm not an e-commerce analyst but 35 00:01:39.600 --> 00:01:42.600 the loan origination volume NCAA origination volume for 36 00:01:42.600 --> 00:01:45.300 Shopify. Particularly Shopify Capital. That's 37 00:01:45.300 --> 00:01:48.600 where the division is called. Those numbers have increased. Yeah, 38 00:01:48.600 --> 00:01:52.100 so, you know specifically speaking about mca's 39 00:01:51.100 --> 00:01:54.000 when we see 40 00:01:54.300 --> 00:01:57.600 numbers like this. What does it mean for our like the MCA space? 41 00:01:57.600 --> 00:02:00.100 I mean it clearly I mean they're using this 42 00:02:00.100 --> 00:02:03.200 in the MC space also. So what is what is 43 00:02:03.200 --> 00:02:03.300 something? 44 00:02:03.300 --> 00:02:07.100 Like obviously something good. But I guess would 45 00:02:06.100 --> 00:02:09.300 you be able to help us understand a little bit more of 46 00:02:09.300 --> 00:02:12.200 what that means? Yeah. Okay. So, you know 47 00:02:12.200 --> 00:02:15.400 this kind of question. I feel like I came up on on daily funder 48 00:02:15.400 --> 00:02:18.900 recently because when you hear about these large 49 00:02:18.900 --> 00:02:21.700 origination volumes from these huge tech 50 00:02:21.700 --> 00:02:22.000 companies, 51 00:02:23.100 --> 00:02:26.300 I think some people get afraid that they're cannibalizing the 52 00:02:26.300 --> 00:02:28.900 rest of the market and if you're a small player. 53 00:02:29.700 --> 00:02:32.400 Well, you're obviously you're eventually going to get 54 00:02:32.400 --> 00:02:35.500 run out of the business buy one of these companies. Yeah, 55 00:02:35.500 --> 00:02:38.500 you're a customer potential customer is going to go to you know 56 00:02:38.500 --> 00:02:41.800 a square this Shopify capital or a PayPal. 57 00:02:41.800 --> 00:02:44.100 This is obviously a lot of others. Yeah out there, 58 00:02:44.100 --> 00:02:47.200 but I think the flip side of 59 00:02:47.200 --> 00:02:47.500 that is 60 00:02:48.500 --> 00:02:51.500 And this was said in the daily funder Threat by I 61 00:02:51.500 --> 00:02:54.800 can't remember who posted it. But I think they're kind of right is 62 00:02:54.800 --> 00:02:58.000 that it's actually normalizing to 63 00:02:57.300 --> 00:03:01.400 some extent. Yeah, the mechanism for 64 00:03:00.400 --> 00:03:03.300 how these products work because 65 00:03:05.200 --> 00:03:09.000 Shopify is taking a percentage of future sales right square 66 00:03:08.300 --> 00:03:11.700 is taking a percentage of future sales. And 67 00:03:11.700 --> 00:03:14.300 so if you've used those products and then you work 68 00:03:14.300 --> 00:03:17.400 with ABC code based in Brooklyn that has five guys 69 00:03:17.400 --> 00:03:20.100 and and like well, how did this work? They say hey, 70 00:03:20.100 --> 00:03:23.300 we take a percentage of future sales. So like oh I get 71 00:03:23.300 --> 00:03:26.300 that. Yeah, I use that at one of the large companies. And so I think 72 00:03:26.300 --> 00:03:31.000 what's happening is I think it's it's normalizing. It's 73 00:03:29.600 --> 00:03:32.500 normalizing the mechanism and 74 00:03:32.500 --> 00:03:35.200 the methodology of financing that's available.