Start A Merchant Cash Advance Brokerage With $5,000 Or Less
Skip funders — get money.
One Sentence Overview: Merchants AGREE to pay you so funders do not have to… Skip funders… Get money.
We get DIFFICULT TO PLACE (but fundable) merchants to agree to being charged X% on the day — and only on the day that they receive their advance / loan. As soon as they agree to this, we release their file for sale to our network. We never contact them except to offer additional positions.
Our network then hustles to get the deal done and whoever gets it done keeps whatever commissions the funder has agreed to pay them. We just wait until the merchant gets wired before we collect our fee. We do not:
- We do not conduct follow up calls for additional documentation.
- We do not write follow up e-mails requesting further documentation.
- We do not push papers back and forth with merchants.
- We do not negotiate rates.
- We do not push for signatures.
- We do not beg “for the rest of our commissions.”
How much money do you think we are saving by all the things we DO NOT do in this situation? How much MORE money do you think we are making?
If you’re able to do these things you will find yourself making a lot of relatively stress free money as you’ll be focusing executing on only one part of the process while getting paid decently for it. This is not our business model, however, it’s something we do to minimize waste when the opportunity arises.
1. Once “difficult” to place deal comes in, we sell it exclusive for $100 a pop to brokers we like. We provide bank pull, signed application, copy of drivers’ license, a copy of their voided check, and OUR signed fee agreement. We use it on “difficult” merchants and difficult to place merchants but you can use it on any merchant.
2. We let the merchant know that they will be contacted and will have offers coming in from that broker.
3. We monitor banking to see when a funding even occurs — we bill accordingly.
As you know, the ACH processors have been pulling back from allowing brokers to collect professional services fees via ACH. So, we collect our money through what is called a “card not present” transaction with our credit card processor. The merchant signs in writing that they agree to be billed for X% based on the dollar amount they receive on their funding date. We monitor for funding, and bill accordingly. We have a solid paper trail and we are careful to record all calls where the terms are clearly spelled out and agreed to verbally before they sign our agreement.
Here’s how you can get started using this strategy literally — right now. We rely on technology — the ability to detect funding events to be precise in charging fees. However, you don’t have to. Before we get started let’s visit our basic workflow for hard to place deals.
1. Get an agreement that allows you to bill a customer AFTER AND ONLY AFTER the customer has been successfully funded via your network.
2. Sign up with a merchant processing company to bill your customers. Be very clear about who you are and what it is you do. You operate a small business funding matching and referral service for less than bankable business owners and charge your clients a fee when they get funded. Have a website, and all the bells and whistles that go along with running a business. NO GMAIL ADDRESSES.
3. Find a co-broker to work with. Or a few. You’re basically going to be selling an exclusive completed application to them and them only for $100-$200. It will include everything needed to get offers. Their job is do basically do all the work, they collect the funding commission, you just wait until they say the deal is funded.
4. Get yourself some UCC’s. You can buy them for around $.50 each from market “leaders” but we may be releasing a low cost monthly UCC scubscription service (with e-mails) soon, so stay tuned.
5. Hit the phones. Generate leads.
6. Collect these things for YOUR PROTECTION first, and to help your partner get offers second; signed application, drivers license, voided check, your signed agreement, record the call where they agree to your fee.
7. Make sure your broker / partner has agreed to alert you as soon as a business owner is funded. Log in to your virtual terminal and process his credit or debit card. Wash, rinse, repeat.
How Much Can You Make?
- You sell your partner two qualified leads per day (40 per month).
- 10 close.
- Average funded amount is $20k
- Your average fee charged to the business owner is 3.5%
- Sale of Leads: 40 x $100 = $4,000
- Gross Funded: 10 x $20,000 = $200,000
- Gross Fee Income: $200,000 x 3.5% = $7,000
Grand Total Earned: $11,000
Total Invested: A lot less than $5k
This strategy is about freedom. This strategy is about ownership. Your customers are yours. Your deals with your customers are your own business. You do not need to work with any funder and can thrive in this business on your own terms. As you know the standard broker does 80% of the work but when the deal funds with certain funders, and many funders have installed provisions in their agreements that basically say; “we fund, we own, mess with us and get sued.”
When you succeed at getting started in the business, or if you think now is the time to transition, roll those profits into the Buynance Split Strike Strategy and maintain total freedom while growing rich in the process.
We’ll be starting a UCC subscription service that will enable members to get FRESH UCC’s for one low monthly fee soon for all interested. Just e-mail email@example.com. If you need me, you can book a call with me; http://clarity.fm/jayballentine