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?
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First, this might be a spoiler so if you haven’t watched it yet on HBO I encourage you to do so, but don’t read any further here. In my opinion, Game of Thrones may be the best series ever, maybe with the exception of Breaking Bad. I just finished watching the entire GOT series for the second time in anticipation of the new series entitled House Of The Dragon which just started. That said, MANY people were upset with GOT’s ending after 8 seasons, including me. The main consensus was that the writers rushed the last season and failed to properly develop Daenerys Targaryen’s character before she went completely dark and torched King’s Landing. 
HOWEVER, after watching the series again, I now feel better about it having realized they did provide several hints to her destructive nature leading into the final season. Just before she goes bonkers her first dragon was murdered and she lost half her army fighting the Night King. Then, shortly thereafter her second dragon was murdered and her best friend was beheaded right in front of her by Cersei Lannister. At this point she understandably lost her blank. So, although I wish they had revealed her monstrous character more profoundly and earlier, you can rest easy knowing I’ve forgiven the writers. Now, on to House Of The Dragon!.
My Dad was a couple weeks shy of 80 years before he passed last week. He battled Alzheimer’s for the better of 20 years…the last 5 years were extremely challenging. His unyielding positive attitude was Dad’s best characteristic and he never lost it despite the efforts of the viscous disease. He was (and remains) my moral compass and set an example of the highest work ethic which is what made him the #1 salesperson for 40 years with Champion Products sportswear. With his guidance I became a record-setting salesperson myself and came to appreciate the dedication required to achieve that level of success.
Popular Vote versus Electoral Vote – Explained. The popular vote is simply the number of Americans voting for a particular candidate. But the electoral vote is much more complicated. It’s actually the House members of each state that cast the actual votes based on how the citizens of that state vote. Each state has 2 U.S. Senators and a number of House of Representatives based on the state’s population. For example, California has 2 Senators and 53 House members for a total of 55 votes because its population is huge compared to Arizona who has 2 senators and 7 House members for a total of 9. The idea was to balance the voting power to the smaller states.California has about 40 million people and Arizona has about 7 million. Each member of the House represents about 725,000 people in California (40m/55) whereas each member of the House in Arizona represents about 775,000 (7m/9). Many think this it’s unfair that the candidate that won the popular vote should get trumped by the winner of the electoral vote (pun intended).
Many argue that a much higher percentage of people in the country would vote if we moved away from the electoral process.
The point is, if we used the popular vote, the overall strategies of the campaigns, where they visited, the speeches, the advertisements, everything would be different. Clinton may have lost by 20 million or won by 50 million…there’s no way to know. So when anyone makes an argument that Trump would have lost or Clinton should have won, it’s nonsense. Unless we actually change the system, we’ll never know the true impact to the election results.
WHY DID BONDS FALL? THE ASSUMPTIONS & UNCERTAINTY OF TRUMPENOMICS. Let me see if I can give you some talking points with your clients on why bonds fell so dramatically since the election results were announced. The main concern is rising inflation. Bonds hate inflation so when it’s on the rise traders will sell-off bonds. The truth is, nobody really knows what Trump will do except Trump himself, and I don’t think he really has a definitive plan at this point. I believe he approaches these sorts of issues with the mentality that whatever it is he’ll make sure it’s fixed…that he’ll figure it out…just like he figures out how to fix issues within his businesses. There is no room in his mind for failure…he’ll just get it done. But based on his comments made during the campaign, we expect him to (1) repeal free trade agreements with other countries and (2) lower taxes while simultaneously increasing government spending for infrastructure, i.e., airports. This would undoubtedly influence an accelerated change in the Fed’s monetary policy.
The Fed Will Accelerate The Reduction Of Buying Bonds. The Fed had been buying bonds for the last several years in order to keep interest rates low. It’s what is often referred to as “the artificial market.” Ideally, the Fed should not be involved in buying bonds…the free markets should dictate when bonds are bought and sold. But the Fed employed monetary policy of buying droves of bonds to help out our flailing economy during the recent depression. For this reason our rates/pricing have been artificially low for almost the entirety of the Obama administration. The problem is that this is not sustainable. At some point, and many argue we’re way overdue (including me), the Fed needs to back off and let the free market operate. That’s why you’re hearing all this news about the Fed raising interest rates. Traders know that eventually rates will increase and the Fed will reduce its involvement to buy bonds. But that timeline was expected to go on for years and therefore simply raising interest rates is in itself not enough to influence traders to sell off bonds. But now that Trump is going to be President, and we expect him to raise our debt-to-GDP (DTI – see #2 above), the Fed will likely accelerate the reduction of buying bonds. Some argue the Fed might have to stop altogether after the 2017 year! That fear is what caused traders to sell off bonds. When traders sell off bonds, our rates/pricing worsen.
Phil Grossfield's Blog 