This is one thing that I used to compare pre-covid during pre-covid
verse post covid is that what
were the numbers before covid the origination numbers
before covid? What were the originated origination numbers after covid?
You will see that for square and Shopify. The
origination numbers are higher post covid than
they were pre-covid, which is amazing. Yeah
for Shopify in particular their origination
numbers increased during covid and
that's because they're an e-commerce platform squares did
go down during covid and that's
because a lot of their customers are in person
retailers that have the square POS. Those are
the ones that were closed. So they were doing as much lending
Shopify was entirely eCommerce. They were a major
beneficiary of covid lockdown. So everyone was
ordering everything online and so their loan and MCA
origination volume shot up. Both of them
are now doing more volume in mca's and
loans.
Then they were before covid even
happened.
So here we went through the worst thing that could ever be imagined in
the small business finance ecosystem where the businesses
themselves are shuttered and what has happened.
Both companies are now doing more volume. I although
I will acknowledge that Shopify stock
has plummeted just in the last few days
or so. If you take a look online, you're going to
see a lot of the you know, they're gonna see a lot of red ink on the
stock chart, but in terms of the loan origination volume,
which is what I really like to look at. Yeah Shopify the big
eCommerce platform, so I'm not gonna analyze them with an e-commerce platform
because I'm not a stock analyst. I'm not an e-commerce analyst but
the loan origination volume NCAA origination volume for
Shopify. Particularly Shopify Capital. That's
where the division is called. Those numbers have increased. Yeah,
so, you know specifically speaking about mca's
when we see
numbers like this. What does it mean for our like the MCA space?
I mean it clearly I mean they're using this
in the MC space also. So what is what is
something?
Like obviously something good. But I guess would
you be able to help us understand a little bit more of
what that means? Yeah. Okay. So, you know
this kind of question. I feel like I came up on on daily funder
recently because when you hear about these large
origination volumes from these huge tech
companies,
I think some people get afraid that they're cannibalizing the
rest of the market and if you're a small player.
Well, you're obviously you're eventually going to get
run out of the business buy one of these companies. Yeah,
you're a customer potential customer is going to go to you know
a square this Shopify capital or a PayPal.
This is obviously a lot of others. Yeah out there,
but I think the flip side of
that is
And this was said in the daily funder Threat by I
can't remember who posted it. But I think they're kind of right is
that it's actually normalizing to
some extent. Yeah, the mechanism for
how these products work because
Shopify is taking a percentage of future sales right square
is taking a percentage of future sales. And
so if you've used those products and then you work
with ABC code based in Brooklyn that has five guys
and and like well, how did this work? They say hey,
we take a percentage of future sales. So like oh I get
that. Yeah, I use that at one of the large companies. And so I think
what's happening is I think it's it's normalizing. It's
normalizing the mechanism and
the methodology of financing that's available.