Phil Grossfield's Blog

Tell Me About It, Stud

I was absolutely and categorically infatuated with Sandy, or should I say the recently departed Olivia Newton-John after a 30-year battle with breast cancer.  What can I say…she had me at “Tell me about it, Stud“.  I was 12 when I saw Grease for the first time and it wasn’t long before I had a poster of her on my teenage wall. To be fair, I also had a poster of Bo Derek and Farrah Fawcett, but it was Sandy I was hopelessly devoted to. She was gorgeous, sweet, and, well, ELECTRIFYING!

Real Estate Is The Key

How hard is it to simply ask every Merchant if they have real estate? For the love of all things holy in this land, ask them! Every time!  If your merchant has real estate, then you instantaneously have an opportunity for a large commission. Why? Because we set the loan amount based on the equity in real estate, not based on the Merchant’s revenues. Our average loan amount is $500,000 and our average commission payout is 4-5 points. Make it part of your routine to always ask the merchant if they have real estate and while you’re at it, find out what they think it’s worth and what they owe on it. Then email me or text/call met at (212) 271-8267 direct. You can still get them an MCA loan and simultaneously apply for a loan with us…read about that here. And I don’t care if they were turned down for an MCA loan…they can still qualify with us.  Let’s go! 

Previously:  I Miss Coaching Baseball – Earn Double Commissions  |  No Payment & Subsidized Payment Business Loans

The Market…My Take

The bond market is what I typically watch because it has a direct correlation to the real estate market. Although all markets including the stock market impact lenders, nothing impacts the market more than bonds.  And since bonds hate inflation and directly affect interest rates, it’s particularly interesting to see what’s happening in todays environment.  As of late, interest rates, inflation, and consumer demand all declined…that’s a good thing. So, it appears the Fed’s strategy of raising rates is actually starting to work…soon stores should be putting things on sale. Will the raise rates again this month?  Maybe not in light of recent reports…we’ll have to wait and see…
Previously:  Will The Fed Hike Rates Again? Maybe…probably  |  How Does Raising Fed Interest Rates Battle Inflation?  | Good Time To Hire Salespersons

Resource Links, Process & Loan Intake Instructions

Appointment Link – Get On Phil’s Calendar.

White Label Marketing Flyers Using Your Logo & Contact Information.

Flyer For Independent Sales Organization – ISO — Phil Grossfield

Email the Loan Opportunity To Me.  Send me (1) an Application with all the Merchant/Borrower’s information including their mobile number and email address, (2) a full description of the real estate (download this Excel REO Schedule), and (3) a minimum 3-months business bank statements (6 months is better if you have it).

To Qualify For A Business Loan.  (1) Equity in Real Estate – we’ll utilize virtually any type and combination of real estate in any condition, and (2) Revenues – sufficient to support/afford the loan payments.  If we have these two, we can overcome just about any hurdle…

Process.  After I send the loan opportunity to our Intake Department, they’ll send me feedback on the real estate collateral, affordability, and any other considerations. On the same day or next, I’ll present potential loan structures to our Market Clearance team for guidance. Then you and I will discuss and decide what to Offer your Merchant Borrower. If accepted, then we’ll send the an authorization form and formally submit the loan.

Always Ask Merchant/Borrower If They Have Real Estate – What Real Estate Will Be Acceptable As Collateral?

MY PREVIOUS POSTS

I Miss Coaching Baseball – Earn Double Commissions  |  Share My Car?  Consolidate Stacked MCAs/   |  No Payment & Subsidized Payment Business Loans – July 28, 2022  |  Why Marry Me In The First Place? July 25, 2022  |   

I Miss Coaching Baseball.  Prior to Covid I coached 7 years in Little League for my son.  My father-in-law (shown with me and my son to the right) was my assistant coach. We taught and motivated the kids to play at a high level, but more importantly to have fun doing it.  Sounds easy enough but there were a lot of Dad’s who were coaching for themselves rather than for the kids…too much yelling and seriousness reminiscent of Coach Turner in The Bad News Bears.  Our philosophy was to ensure the kids had a good time so they wanted to keep playing baseball rather than sit in front of a computer. When Covid hit they shut the league down and my son lost interest. And just like that my career as a coach was over. I miss the fields. 

Double Commissions

First, we are not an MCA lender…we’re a commercial business lender securing loans with real estate which means our loans don’t count in the stack of MCA loans. But ISOs send us a lot of business…here’s just one of many reasons why.  Let’s assume your Merchant needs a large loan fast.  

With an MCA loan, you get the money fast but you’re limited in loan size based on revenues. But WBL loans are based on the equity in real estate so our loan amounts average $500,000 and go up to $2m. The rub is that our loans take longer to close because we have to get a title and valuation report on the real estate.  

SO THIS IS WHAT YOU DO…get the Merchant an MCA loan now for whatever loan amount you can get approved, AND SIMULTANEOUSLY, submit to WBL for a much larger loan amount. Your Merchant will be happy because they’ll get some funds quickly and in just a few weeks they’ll get a whole lot more…WIN-WIN!  In the meantime, you’ll earn a commission on the MCA loan quickly and another commission from WBL when our loan closes.  HERE’S WHAT I NEED YOU TO DO: 

(1)  Look through your recently funded MCAs to see if your Merchants have real estate because if they do, there’s another potential commission just waiting for you!  (2)  Look for MCAs you lost because the loan was not enough for the Merchant…if they have real estate there’s a potential commission just waiting for you!  (3)  Look for MCA loans you lost because the Merchant was already stacked…if they have real estate there’s a potential commission just waiting for you!  (4)  Look for MCA loans you lost for some other reason…if they have real estate we can overcome almost any challenge, and guess what…yep, there’s a potential commission just waiting for you!  One last thing…WHEN SPEAKING TO A MERCHANT FOR THE FIRST TIME, ALWAYS ASK IF THEY HAVE REAL ESTATE…ALWAYS!  If they do, I’m your first call…

Previously:  NO PAYMENT & SUBSIDIZED PAYMENT BUSINESS LOANS

The Market…My Take

Will The Fed Hike Rates Again?  Maybe…probably.  The Fed raised their Fed Funds Rate several times in 2022 to battle inflation (to learn more about that, read this).  But whether the recent rate hikes are working to lower the prices of consumer goods is yet to be seen.  In virtually every category prices have gone up and I don’t know about you, but I haven’t seen any relief.  Until stores start lowering prices, you can count on the Fed to continue to raise the Fed Funds rate.  My friends in the residential mortgage business have gotten excited to see mortgage rates stabilize and even reduce a little in the last couple of weeks. But I think this is simply a reaction to some of the big players lowering their rates to buy the market and the smaller guys lowering their rates to try and compete. So from my perspective I don’t think that’s any indication of the current war on inflation.  How does this affect the business loan market?  Just like everyone else. You can expect business loan rate to follow suit and increase.  Let me know your thoughts on this subject…I love hearing your opinions on the markets… 

Previously:  How Does Raising Fed Interest Rates Battle Inflation?  | Good Time To Hire Salespersons

Resource Links, Process & Loan Intake Instructions

Appointment Link – Get On Phil’s Calendar.

White Label Marketing Flyers Using Your Logo & Contact Information.

Flyer For Independent Sales Organization – ISO — Phil Grossfield

Email the Loan Opportunity To Me.  Send me (1) an Application with all the Merchant/Borrower’s information including their mobile number and email address, (2) a full description of the real estate (download this Excel REO Schedule), and (3) a minimum 3-months business bank statements (6 months is better if you have it).

To Qualify For A Business Loan.  (1) Equity in Real Estate – we’ll utilize virtually any type and combination of real estate in any condition, and (2) Revenues – sufficient to support/afford the loan payments.  If we have these two, we can overcome just about any hurdle…

Process.  After I send the loan opportunity to our Intake Department, they’ll send me feedback on the real estate collateral, affordability, and any other considerations. On the same day or next, I’ll present potential loan structures to our Market Clearance team for guidance. Then you and I will discuss and decide what to Offer your Merchant Borrower. If accepted, then we’ll send the an authorization form and formally submit the loan.

Always Ask Merchant/Borrower If They Have Real Estate – What Real Estate Will Be Acceptable As Collateral?

Sharing My Car With A Teenager – I Don’t Recommend It.  My daughter just learned to drive and now I’m effectively sharing my car with her.  My wife won’t let her drive her car, and yes, my wife is in charge.  And I’m not buying my daughter a car because if I did, then I would have no leverage to get her to do what I want. Therefore, she will use MY car IF I give her permission.  Truth be told, I don’t want to share a car with her, but this is a terrible time to buy myself a new car since inventories are way down and prices are way up. So, I guess I’m stuck sharing for now, and I have to say…I don’t like it, not one bit. 

WBL Products…My Highlights & Guidance

• CONSOLIDATE STACKED MCAs.  First, a merchant with lots of open MCAs is still qualified for a loan as long as they can illustrate (1) there is equity in real estate they can pledge as collateral, and (2) they can afford the payments. Consolidating a merchant’s MCA debt is a great plan because our payments are usually lower, payments can be monthly with an interest only loan, and it opens the door for future cash advances.  Remember, we base our loan amounts on the available equity in property, not on revenues alone.  This usually results in higher loan amounts with higher commissions. 
   
• NO PAYMENT & SUBSIDIZED PAYMENT BUSINESS LOANS  |  Always Ask Merchant/Borrower If They Have Real Estate – What Real Estate Will Be Acceptable As Collateral?  |  

The Market…My Take

• How Does Raising Fed Interest Rates Battle Inflation?  Simply put, the Fed raises rates to slow consumer spending so prices will fall…let me explain. The Fed controls the Fed Funds Rate which they have been raising in the hopes of indirectly changing consumers’ spending behavior…your spending behavior. By increasing the Fed Funds rate, they directly impact banks by making it more expensive for them to borrower money…yes, banks borrow money from each other all the time (but that’s another topic). If it costs more for a bank to borrow, guess who they pass that added expense to? Yep, it’s you! That makes it more expensive for us regular hard-working folks to borrow money. If it’s more expensive for us to borrow money, then we’ll borrow less, and when we borrow less, we spend less. That makes sense, right? So when we spend less as a community, then demand will fall. When demand falls, prices will fall to encourage more spending. Stores will start putting goods on sale, and so on. Simple. 
  
• How Does Raising Fed Interest Rates Battle Inflation?  | Good Time To Hire Salespersons

Resource Links, Process & Loan Intake Instructions

• Appointment Link – Get On Phil’s Calendar.
• White Label Marketing Flyers Using Your Logo & Contact Information.
• Flyer For Independent Sales Organization – ISO — Phil Grossfield
• Email the Loan Opportunity To Me.  Send (1) an Application with all the Merchant/Borrower’s information including their mobile number and email address, (2) a full description of the real estate or download this Excel REO Schedule , and (3) a minimum 3-months business bank statements (6 months is better if you have it).
• To Qualify For A Business Loan.  (1) Equity in Real Estate – we’ll utilize virtually any type and combination of real estate in any condition, and (2) Revenues – sufficient to support/afford the loan payments – we’ll need 3-6 months of business bank statements to see what revenues are deposited.  If we have these two, we can overcome just about any hurdle…
• Process.  After I send the loan opportunity to our Intake Department (see above), I’ll receive preliminary feedback on the real estate collateral, affordability, and any other considerations. On the same day or next, I’ll present to our Market Clearance team for loan structure guidance. Then you and I will discuss and decide what to Offer the Merchant Borrower. If accepted, then we’ll send the Borrower Merchant an authorization form and formally submit the loan.

MY PREVIOUS POSTS.  

• No Payment & Subsidized Payment Business Loans – July 28, 2022  |  Why Marry Me In The First Place? July 25, 2022  |