1 00:00:00.465 --> 00:00:01.005 Hey everyone. 2 00:00:01.005 --> 00:00:03.525 Alison Berger here at Broker Fair, 2024. 3 00:00:03.805 --> 00:00:06.445 I am now joined with Rocco Otti from Meridian 4 00:00:06.515 --> 00:00:08.005 Bank. How are you doing? Doing 5 00:00:08.005 --> 00:00:09.085 Well, thank you very much. 6 00:00:09.425 --> 00:00:10.845 As a banker, w how, 7 00:00:10.985 --> 00:00:12.805 how do you feel about being here today? Uh, 8 00:00:12.805 --> 00:00:13.805 It's a fun group. Um, 9 00:00:13.805 --> 00:00:16.965 we're, uh, as a bank, we own an MCA 10 00:00:17.225 --> 00:00:19.525 or a revenue finance business by the name of, uh, 11 00:00:19.775 --> 00:00:20.885 merit Business Funding. 12 00:00:21.415 --> 00:00:22.805 We've been around about a year. 13 00:00:22.985 --> 00:00:24.765 We have a lot of veterans working for us. 14 00:00:25.185 --> 00:00:27.565 Uh, and it's been a real education for me. 15 00:00:27.795 --> 00:00:30.165 I've been mostly an SBA lender most of my career, 16 00:00:30.585 --> 00:00:32.925 so we've been able to blend the two, uh, 17 00:00:33.205 --> 00:00:34.605 businesses really well, and we're enjoying 18 00:00:34.605 --> 00:00:35.845 it, and it's a fun group. 19 00:00:36.725 --> 00:00:39.465 How important has it been for that blend to happen? 20 00:00:40.445 --> 00:00:41.585 For what part of that, again? 21 00:00:42.325 --> 00:00:44.225 How important and beneficial has it been 22 00:00:44.245 --> 00:00:45.665 to blend the business together with 23 00:00:45.665 --> 00:00:46.665 You? It's really been important 24 00:00:46.665 --> 00:00:47.025 for us. 25 00:00:47.125 --> 00:00:49.185 We see it as a continuum of what we do. 26 00:00:49.685 --> 00:00:51.545 So we have a full service bank, 27 00:00:51.885 --> 00:00:53.345 but, uh, we don't really get a chance 28 00:00:53.345 --> 00:00:54.985 to do the smaller customers, 29 00:00:55.405 --> 00:00:57.305 and we're able to trade business back 30 00:00:57.305 --> 00:01:00.705 and forth between the SBA and the, uh, MCA business. 31 00:01:00.725 --> 00:01:02.145 So it's really been great for us. 32 00:01:02.525 --> 00:01:03.945 Is this something that makes you 33 00:01:03.945 --> 00:01:05.065 stand out amongst the rest? 34 00:01:05.405 --> 00:01:07.945 We think so. And our also, we have a cheaper form 35 00:01:07.945 --> 00:01:10.105 of capital coming right from a bank where we don't have 36 00:01:10.105 --> 00:01:11.185 to borrow it from somebody else. 37 00:01:11.965 --> 00:01:14.105 So what type of client should be coming to you? 38 00:01:14.805 --> 00:01:18.105 Uh, our, our average is probably about $65,000. 39 00:01:18.205 --> 00:01:19.625 We go up to 250. 40 00:01:20.115 --> 00:01:22.705 We're typical, you know, eight, eight months, eight 41 00:01:22.705 --> 00:01:23.985 and a half months, something like that. 42 00:01:24.245 --> 00:01:27.385 So we're pretty natural in the, in the middle of the space. 43 00:01:27.965 --> 00:01:29.945 Uh, however, you know, again, cheaper cost 44 00:01:29.945 --> 00:01:32.145 of capital means cheaper money put out on the street, 45 00:01:32.765 --> 00:01:34.905 And we're now in the middle of the year almost. 46 00:01:35.325 --> 00:01:36.625 So how has it been for you 47 00:01:36.685 --> 00:01:37.905 and where do you see things going? 48 00:01:38.685 --> 00:01:40.745 Uh, because we're a somewhat of a startup, 49 00:01:40.845 --> 00:01:42.105 we went around about a year. 50 00:01:42.395 --> 00:01:44.345 We're still getting our sea legs a little bit. 51 00:01:44.685 --> 00:01:47.665 Uh, I'm moving our office from Pennsylvania to, uh, 52 00:01:47.735 --> 00:01:50.745 Fort Lauderdale area, uh, where we're beefing up our market, 53 00:01:50.745 --> 00:01:52.025 which you can imagine is, uh, 54 00:01:52.025 --> 00:01:53.265 where a lot of people are going. 55 00:01:53.685 --> 00:01:54.905 I'm happy to go back and forth 56 00:01:54.965 --> 00:01:56.665 to Fort Lauderdale as much as I can, 57 00:01:57.005 --> 00:01:58.265 I'm sure, especially during the winter. 58 00:01:58.375 --> 00:02:01.465 Yeah, for sure. Uh, so I'm excited about that move 59 00:02:01.465 --> 00:02:03.585 and we're just, uh, actually rehiring 60 00:02:03.605 --> 00:02:06.025 and building up that team, so it's, yeah, it's 61 00:02:06.025 --> 00:02:07.025 Been great. How do you think moving to 62 00:02:07.025 --> 00:02:08.545 Florida will affect the business? 63 00:02:09.025 --> 00:02:11.545 I think we're gonna be able to attract more talent down 64 00:02:11.545 --> 00:02:13.425 there than we were able to in Pennsylvania. 65 00:02:14.005 --> 00:02:15.105 Um, uh, for sure. 66 00:02:15.605 --> 00:02:17.585 Uh, and that's, I think that's really gonna help 67 00:02:17.645 --> 00:02:20.505 and we think we're gonna double our business next year. 68 00:02:21.005 --> 00:02:23.185 Um, and we've already doubled it from last year. 69 00:02:23.415 --> 00:02:24.905 Fantastic. That's all you want. 70 00:02:25.105 --> 00:02:26.505 I can't ask for more than that, for sure. 71 00:02:26.775 --> 00:02:28.545 What type of trends have you been seeing 72 00:02:28.685 --> 00:02:29.985 so far this year in the industry? 73 00:02:30.505 --> 00:02:33.425 I think what worries everybody is transportation, right? 74 00:02:33.605 --> 00:02:35.985 So that's been the trend that we've been worried about. 75 00:02:36.565 --> 00:02:38.225 Uh, we see a lot of, um, 76 00:02:39.025 --> 00:02:41.745 interesting characters in the business, which as a banker, 77 00:02:42.245 --> 00:02:44.065 uh, and not being exposed to this before. 78 00:02:44.265 --> 00:02:45.545 I used to be in the factoring business, 79 00:02:45.545 --> 00:02:48.745 so I at least understood, uh, so I'm learning the, you know, 80 00:02:48.745 --> 00:02:50.505 the interesting characters in the business, 81 00:02:50.505 --> 00:02:51.705 right? There's lots of them. 82 00:02:51.975 --> 00:02:53.505 There's characters in every industry 83 00:02:53.945 --> 00:02:54.945 Business, yeah, for sure. Yeah, for 84 00:02:54.945 --> 00:02:56.745 sure. Really is. Well, 85 00:02:56.745 --> 00:02:57.745 That's fantastic. 86 00:02:57.765 --> 00:03:00.845 So I'm getting a 32nd broker bite from everyone. 87 00:03:00.905 --> 00:03:02.725 So what are you looking forward to most today? 88 00:03:03.335 --> 00:03:05.685 Today, actually, I was really interested in listening 89 00:03:05.685 --> 00:03:07.405 to the legal stuff this morning 90 00:03:07.405 --> 00:03:09.045 because I'm, again, I'm new to it 91 00:03:09.045 --> 00:03:10.805 and I'm trying to learn, so that was probably 92 00:03:10.805 --> 00:03:12.885 where I was mostly interested. Yeah. 93 00:03:13.105 --> 00:03:15.605 And what did you learn? I learned that, uh, we have 94 00:03:15.605 --> 00:03:19.685 to probably, uh, work closely with our ISOs, make sure that, 95 00:03:19.685 --> 00:03:21.005 that we're all on the same page, 96 00:03:21.005 --> 00:03:23.005 because ultimately it's the funder 97 00:03:23.225 --> 00:03:25.285 who gets in trouble if, uh, something happens. 98 00:03:25.505 --> 00:03:26.805 So I'm okay with that. 99 00:03:27.675 --> 00:03:29.805 Well, thank you for spending some time with me today, 100 00:03:30.145 --> 00:03:31.045 and we'll be right back.