Phil Grossfield's Blog

Volcanos.  Have you ever seen one up close?  A few years ago I took my family on a helicopter tour to see Pu’u ‘O’o in Kilauea’s eastern rift zone and it was one of the most thrilling things I’ve ever done. It was smoldering and you could peer down deep into the cone, but the lava wasn’t spewing like the recent volcano in Mauna Loa. To see a live cam of the active Mauna Loa eruption in Hawaii, click here or click the picture to the right… 

Clarification – Fed Rate Will Likely Rise Again In December.  In last week’s post I reported that the Fed said inflation is still too high and a 50-basis point rate hike is in the cards for December. I received some questions about that so here is some clarification…  If you were unaware, Fed Chair Jerome Powell, shown to the right, was nominated by Trump in 2017 and again by Biden in 2022.  Basically he said last week that another rate hike was coming, but that it would be reduced from 75 points (like recent hikes) to just 50 points. So, although that tells me the Fed still thinks inflation is too high, it also implies things are getting better, wouldn’t you agree?

Fed Chair Jerome Powell

Gaslighting The Kids. 

The Elf on the Shelf started as a fun way to gaslight our children into believing in Santa.  In case you’re unaware, gaslighting is making someone feel crazy for believing what they do…my wife accuses me of doing it to her all the time.  Any way, now that my kids are 17 and 14, the Shelf-Elf is more about coming up with funny imaginative displays.  I wish I had come up with the one on the right…it’s time to get our creativity geared up! 

Fed Rate Will Likely Rise Again In December.  

The Fed said inflation is still too high and that means it is very likely a 50-basis point rate hike is in the cards for December’s Fed meeting. This Friday the Jobs Report will be released and it always impacts the Fed’s decisions.

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 for consumer products will fall. When demand falls, prices will fall to encourage more spending. Stores will start putting goods on sale, and so on. Simple., got it?

SAY THIS:

Dear Merchant, would you ALSO care to apply for a working capital loan using your real estate as collateral?

Great job!  You got a Merchant approved for an MCA loan!  But did you ask them if they have real estate?  Did you ask them if they would be interested in another loan…in addition to the MCA loan you just got them approved for?  If they say yes, which they will 9 out of 10 times, then you have another opportunity for a commission…just send me their contact information and I’ll take it from there. You don’t have to do anything else…I’ll do all the work and when I close the loan, I’ll pay you full commission for the referral.

No Revenues?  No Problem! 

Let’s say your business owner needs a loan but her revenues are non-existent, or really low, or declining for that matter.  With no revenues there’s no opportunity for a working capital loan, or is there? 

Assuming there is enough equity in one or all of their properties, we can include an interest reserve or subsidy fund to help them with their payments.  Simply, we use money from the cash out of the loan and hold it back in an account to either (1) cover the entire loan payment for the entire term (or for a period of months) to give the Merchant time to get their revenues higher, and/or to (2) supplement and lower the payments for a period of months or for the entire loan term to make the payment more affordable!  Put another way, we structure a loan the Merchant can qualify for and that makes sense for their current and future economics.  The moral of the story is, always ask your Merchant/Borrower if they have real estate.  If yes, then I’m your first call as a potential business lender.  WBL will accept virtually ANY real estate type in ANY condition, and, we can use multiple properties together to max the lendable equity.  They can use the loan for any business purpose. 

Acceptable Properties As Collateral

Go ahead, fund the MCA loan now, but don’t forget to ask the Merchant if they have real estate because if they do another larger commission is close by.  Apply for a loan with WBL at the same time as the MCA loan. Simply ask the Merchant if they would also like to use their real estate to apply for more working capital.  9 out of 10 times they’ll say yes:

DEAR MERCHANT, WOULD YOU ALSO LIKE TO APPLY FOR AN ADDITIONAL WORKING CAPITAL LOAN USING YOUR REAL ESTATE AS COLLATERAL?

Remember, a Merchant can use any combination of properties to qualify.  We’ll accept virtually any type of property in any condition, and, we’ll lend in junior lien position.  The property can be owned by anyone as long as the owner also signs the loan documents, i.e., family, friend, business partner, etc.

Happy Halloween From Woody and Jessie!

Same Work More Commission

Great job…you got a Merchant approved for an MCA loan!   Did you ask them if they have real estate?  Did you ask them if they would be interested in another loan…in addition to the MCA loan you just got them approved for?  If they say yes, which they will 9 out of 10 times, then you have another opportunity for a commission…just send me their contact information and I’ll take it from there. You don’t have to do anything else…I’ll do all the work and when I close the loan, I’ll pay you full commission for the referral. 

No Revenues?  No Problem!+

Let’s say your business owner needs a loan but her revenues are non-existent, or really low, or declining for that matter.  With no revenues there’s no opportunity for a working capital loan, or is there? 

Assuming there is enough equity in one or all of their properties, we can include an interest reserve or subsidy fund to help them with their payments.  Simply, we use money from the cash out of the loan and hold it back in an account to either (1) cover the entire loan payment for the entire term (or for a period of months) to give the Merchant time to get their revenues higher, and/or to (2) supplement and lower the payments for a period of months or for the entire loan term to make the payment more affordable!  Put another way, we structure a loan the Merchant can qualify for and that makes sense for their current and future economics.  The moral of the story is, always ask your Merchant/Borrower if they have real estate.  If yes, then I’m your first call as a potential business lender.  WBL will accept virtually ANY real estate type in ANY condition, and, we can use multiple properties together to max the lendable equity.  They can use the loan for any business purpose. 

Acceptable Properties As Collateral

Go ahead, fund the MCA loan now, but don’t forget to ask the Merchant if they have real estate because if they do another larger commission is close by.  Apply for a loan with WBL at the same time as the MCA loan. Simply ask the Merchant if they would also like to use their real estate to apply for more working capital.  9 out of 10 times they’ll say yes:

DEAR MERCHANT, WOULD YOU ALSO LIKE TO APPLY FOR AN ADDITIONAL WORKING CAPITAL LOAN USING YOUR REAL ESTATE AS COLLATERAL?

Remember, a Merchant can use any combination of properties to qualify.  We’ll accept virtually any type of property in any condition, and, we’ll lend in junior lien position.  The property can be owned by anyone as long as the owner also signs the loan documents, i.e., family, friend, business partner, etc.

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

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 they have these two, we can overcome just about any hurdle…

What Real Estate Will Be Acceptable As Collateral?

Process To Get Started.  Email the loan opportunity to me and I will provide guidance…see below. At the same time, I will send it to our Intake Department to get their feedback on the real estate collateral, affordability, and any other considerations. On the same day or next, you and I will discuss and decide what to Offer your Merchant Borrower. If accepted, then we’ll send them an authorization form and formally submit the loan.

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 (use this Excel if necessary REO Schedule), and (3) a minimum 3-months business bank statements (6 months is better if you have it).

The Handmaid’s Tale.

My wife and I discovered a new show called The Handmaid’s Tale and we’re absolutely hooked. In fact, we made a promise to each other that neither of us will watch it without the other, and that’s a big deal!  The premise is that a radical group takes over the U.S. government and rolls back time on protected rights, i.e., gender equality.  We just finished the first season and it’s completely freaking us out I think because it feels like it’s totally plausible for something like this to happen, or at least the way they tell the story it seems plausible.  How am I supposed to concentrate on making business loans when all I can think about is this show?!  Don’t worry, I’ve been distracted before and I always figure out a way to focus!  Send in the loan!!! 👍😎

No Revenues?  No Problem!

Let’s say your business owner needs a loan but her revenues are non-existent, or really low, or declining for that matter.  With no revenues there’s no opportunity for a working capital loan, or is there? 

Assuming there is enough equity in one or all of their properties, we can include an interest reserve or subsidy fund to help them with their payments.  Simply, we use money from the cash out of the loan and hold it back in an account to either (1) cover the entire loan payment for the entire term (or for a period of months) to give the Merchant time to get their revenues higher, and/or to (2) supplement and lower the payments for a period of months or for the entire loan term to make the payment more affordable!  Put another way, we structure a loan the Merchant can qualify for and that makes sense for their current and future economics.  The moral of the story is, always ask your Merchant/Borrower if they have real estate.  If yes, then I’m your first call as a potential business lender.  WBL will accept virtually ANY real estate type in ANY condition, and, we can use multiple properties together to max the lendable equity.  They can use the loan for any business purpose. 

After You Fund MCA Loan, Submit to WBL — Acceptable Properties As Collateral

Go ahead, fund the MCA loan now but don’t forget to ask the Merchant if they have real estate to pledge.  If they do, then apply to WBL for another much larger loan. If there’s equity in the properties then there’s an excellent opportunity for them to qualify for a larger loan and you’ll earn another commission.

Remember, a Merchant can use any combination of properties to qualify.  We’ll accept virtually any type of property in any condition, and, we’ll lend in junior lien position.  The property can be owned by anyone as long as the owner also signs the loan documents, i.e., family, friend, business partner, etc.

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

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 they have these two, we can overcome just about any hurdle…

What Real Estate Will Be Acceptable As Collateral?

Process To Get Started.  Email the loan opportunity to me and I will provide guidance…see below. At the same time, I will send it to our Intake Department to get their feedback on the real estate collateral, affordability, and any other considerations. On the same day or next, you and I will discuss and decide what to Offer your Merchant Borrower. If accepted, then we’ll send them an authorization form and formally submit the loan.

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 (use this Excel if necessary REO Schedule), and (3) a minimum 3-months business bank statements (6 months is better if you have it).

Revenues Low or Declining?  Your Merchant Needs A No Payment or Subsidized Payment Business Loan

Let’s say your business owner needs a loan but her revenues are low and/or declining.  Even if you’re able to find the Merchant a working capital loan, which will be difficult, it’s going to be a very small loan amount.  But low and declining revenues will not prevent WBL from making a loan and for a much larger loan amount…all we need is real estate from the Merchant.  Assuming there is enough equity in one or all of their properties, we can include an interest reserve or subsidy fund to help them with their payments.

Simply, we use money from the cash out of the loan and hold it back in an account to either (1) cover the entire loan payment for a period of months to give the Merchant time to get their revenues higher, and/or (2) we use the held back funds to supplement and lower the payments for a period of months or for the entire loan term!  Put another way, we structure a loan the Merchant can qualify for and that makes sense for their current and future economics.  The moral of the story is, always ask your Merchant/Borrower if they have real estate.  If yes, then I’m your first call as a potential business lender.  WBL will accept virtually ANY real estate type in ANY condition, and, we can use multiple properties together to max the lendable equity.  They can use the loan for any business purpose. 

After You Fund MCA Loan, Submit to WBL — Acceptable Properties As Collateral

Go ahead, fund the MCA loan now but don’t forget to ask the Merchant if they have real estate to pledge.  If they do, then apply to WBL for another much larger loan. If there’s equity in the properties then there’s an excellent opportunity for them to qualify for a larger loan and you’ll earn another commission.

Remember, a Merchant can use any combination of properties to qualify.  We’ll accept virtually any type of property in any condition, and, we’ll lend in junior lien position.  The property can be owned by anyone as long as the owner also signs the loan documents, i.e., family, friend, business partner, etc.

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

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 they have these two, we can overcome just about any hurdle…

What Real Estate Will Be Acceptable As Collateral?

Process To Get Started.  Email the loan opportunity to me and I will provide guidance…see below. At the same time, I will send it to our Intake Department to get their feedback on the real estate collateral, affordability, and any other considerations. On the same day or next, you and I will discuss and decide what to Offer your Merchant Borrower. If accepted, then we’ll send them an authorization form and formally submit the loan.

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 (use this Excel if necessary REO Schedule), and (3) a minimum 3-months business bank statements (6 months is better if you have it).

Roger Waters. 

I went to see Roger Waters in concert.  In college I considered Pink Floyd more of a religion than a band so you can imagine how excited I was.  I saw Pink Floyd in Milwaukee in 1987 but Roger Waters wasn’t touring with the band so this is my first time seeing him perform.  He did not disappoint.  Here’s the song line-up:

Make Merchants Happy. 

Go ahead, fund the MCA loan now AND apply to WBL for another much larger loan. For a WBL loan, the Merchant needs real estate… virtually any property will do as long as there’s equity in it. If there is, you’ll earn another commission when we close. Your Merchant will be very happy because you’ll get them money fast with the MCA loan and then 3 weeks later you’ll get them an even bigger loan with WBL.

Monthly Interest Only Loans.  

Merchants HATE weekly and daily payments. WBL makes interest only monthly payment loans.  I advise you contact your past clients and ask them if they need more capital, and while you’re at it, be sure to find out if they have real estate to pledge as collateral.  If they do, we can consolidate their MCA loans and get them out of daily or weekly payments.

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

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 they have these two, we can overcome just about any hurdle…

What Real Estate Will Be Acceptable As Collateral?

Process To Get Started.  Email the loan opportunity to me and I will provide guidance…see below. At the same time, I will send it to our Intake Department to get their feedback on the real estate collateral, affordability, and any other considerations. On the same day or next, you and I will discuss and decide what to Offer your Merchant Borrower. If accepted, then we’ll send them an authorization form and formally submit the loan.

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 (use this Excel if necessary REO Schedule), and (3) a minimum 3-months business bank statements (6 months is better if you have it).

WINNER!  

I used to be in several fantasy football leagues but over the last few years I opted out…it was just taking too much time and I hated the scoring systems. Now I play a couple of simple betting leagues with a bunch of friends instead.

1. The first league I simply choose the winning teams each week. If I choose more winners than anyone else, I win the pot and if there’s a tie, the one who chooses the closest final score on Monday Night Football wins.  Last week I was the winner thank you very much.
2. The other league is called 33 and it’s pure luck. I play with all my Minneapolis buddies I grew up with.  Everyone gets a team randomly assigned for the year.  If my team on any given week scores exactly 33 points, I win the pot.  If no team scores exactly 33 points, then the pot gets added to the following week, and since 33 is rarely scored number, that pot builds up fast. So far this year, no team has scored exactly 33 points.  I have two teams…the 49ers and the Raiders.

Always Ask Merchant’s If They Have Real Estate

• Make larger commissions with larger loan amounts – our average loan amount is $500,000.
• Monetize MCA declines – with real estate we are very creative to make loans. 
• Pay off existing stack of MCAs to lower Merchant’s payments and make more room for future financing.
• Make 2 loans with 2 commissions – get your Merchant an MCA loan and at the same time apply for a larger loan with WBL.

My Schedule…and A Little Extra…

The Vikings’ Curse

I can’t help it.  I grew up in St. Louis Park, Minnesota and spent the first 30 years of my life in the Twin Cities…and that makes me a Vikings’ fan.  And yes, it’s been a painful and difficult thing to endure for 55 years.  I remember watching Fran Tarkenton, Chuck Foreman, Sammy White, Carl Eller and Ahmad Rashad in the bitter-ass cold of Met Stadium.  Four Super Bowl appearances and zero Super Bowl titles to show for it. I lived in Wisconsin for four years…hated the Packers before I moved there and hate them more after. I lived in San Diego for fifteen years…I tried being a Chargers fan but when the Vikings came to town I spit on my Ladinian Tomlinson jersey.  Now I live in Scottsdale…been here for eight years. I try to be a Cardinals fan, but I just can’t.  I’ll always be a VIkings’ fan, through bad and bad…it’s a curse I’ll never shake…

My Schedule:  Generally available.  If you need me urgently, text me at (212) 271-8267.  And if you want to ensure we have a block of time together, schedule a meeting on my calendar using this appointment link. 

Monthly Interest Only Loans

I know your Merchants HATE weekly and daily payments. And while WBL makes loans using a money factor with a regular amortizing weekly payment, we also make loans using an interest rate with an interest only monthly payment.  Your Merchants will be very happy to get away from the daily and weekly withdrawals from their business bank accounts!  And interest only payments are much less than amortizing payments because, well, they’re only paying the interest and not principal each month. I advise you contact your past clients and ask them if they need more capital, and while you’re at it, be sure to find out if the y have real estate to pledge as collateral.  If they do, we can consolidate their MCA loans and get them out of daily or weekly payments.

Last Week:  Junior Lien Positions on Real Estate Collateral.

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

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 they have these two, we can overcome just about any hurdle…

Process To Get Started.  Email the loan opportunity to me and I will provide guidance…see below. At the same time, I will send the loan opportunity to our Intake Department to get their feedback on the real estate collateral, affordability, and any other considerations. On the same day or next, you and I will discuss and decide what to Offer your Merchant Borrower. If accepted, then we’ll send them an authorization form and formally submit the loan.

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).

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

Remembering 911

My Schedule…and A Little Extra:  I was the first one to the office which was typical. I turned on my computer and realized instantly that something was wrong. I turned on the TV and literally thought to myself, “is it April Fool’s Day? No. Oh my G-d!” I ran to the conference room where we had a much bigger TV and flipped the switch…slowly I backed away and instinctively found a seat…eyes and mouth wide open…  The next office dweller dashed in and said, “did you hear…”. “Yes,” I interrupted, “I have it on the TV.”  He sat down in slow motion, and we watched in silence. One by one the employees of our small business walked in and slowly sat down…as the first one to see what was happening that morning I filled them in, blow by blow.  I’ll never forget the collective gasp when the first tower went down.

My best friend was on his cell phone the whole time trying to reach his brother who was in Manhattan…of course the cell lines were busy. When it was “done,” our CEO announced the work day was cancelled. He told us to go home, try to explain what happened to our kids and ourselves, and heal.  As I explain to my children, yes, there are really bad people out there and it’s impossible to even try and understand what goes through their heads. But there are more good people in the world…and we must challenge heartless, baseless hatred by being brave, thoughtful, and kind…listen to your gut and act from your heart. It was a confusing time…one of anger, sadness, and strong patriotism. Do you remember Whitney Houston’s performance of the Star Spangled Banner at Super Bowl XXV?  It makes me tear up every time I watch it.

My Schedule:  With the exception of Initial Review and Investment Committee meetings, and management meetings throughout the week, I’m generally available.  Just like you, I’m a busy guy thank goodness, and although I do my best to pick up the phone as much as possible and return emails quickly, sometimes it’s not advisable nor possible.  If you need me urgently, text me at (212) 271-8267.  And if you want to ensure we have a block of time together, schedule a meeting on my calendar using this appointment link. 

Junior Lien Positions on Real Estate Collateral

WBL makes loans to businesses and we use real estate as collateral for all of our loans. I’m often asked if we will take junior lien positions on the properties and the answer is YES. Although every lender wants to be in senior lien position, including WBL, we will take a junior lien position under most circumstances.  Here are some general guidelines to know regarding junior lien positions keeping in mind that every loan has it’s own nuances so we might expand or restrict the same.

• With sufficient equity in a property, we will lend in junior lien position. In fact, we’ve been known to take a 3rd or 4th lien position!
• We will go in junior lien position on residential properties, commercial properties, industrial properties, and even on specialty properties, but not on land.
• If the senior lienholder is a private institution, as opposed to an institutional lender such as a bank, then going in a junior lien position can be problematic because private lenders add in all kinds of penalties and fees that eat up the equity in the property. In some cases, we will take out the senior lienholder by paying them off which is a good option because it allows us to lend to your Merchant Borrower, puts WBL in senior lien position, and increases the loan amount which increases your commission. 
• If our loan amount is very small (skinny) compared to the senior lien, then we may require that the senior lien be paid down to bring it more proportional. For example, if the senior lien is $1m and our loan is just $100,000, then the lien ratio is 10 to 1.  In this example the economics don’t make sense for us should the Borrower default.  However, if we pay down the senior lien, say by $200,000, then the remaining senior lien goes down to $800,000 (from $1m) which means our loan goes up to $300,000 (from $100k).  Now our lien ratio is about 2½ to 1 ($800k/$300k) and now we’re in business!  We can look at these on a case-by-case basis.
  

That’s why it’s so important you ask every merchant whether they have real estate. ALWAYS ASK EVERY MERCHANT WHETHER THEY HAVE REAL ESTATE!  In fact, you should investigate whether merchants whom you’ve turned down or need more money have real estate.

Last Week:  Lower/No Payment Loans – Subsidies and Interest Reserves.

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

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…

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).

Process To Get Started.  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?