From Immigrant Roots to Business Loan Empire: Oz Konar’s Journey in Alternative Lending.

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Hello, welcome everybody to
another episode of Arthur's

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Round Table.
Thanks for being with us today.

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And also big shout out to the
family office insights community

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and people who have subscribed
to the Arthur's Round Table

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podcast.
Super grateful where you're

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sharing and participating and
really, really appreciate it.

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So thank you for that.
We have a guest, Oz today and

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we're super anxious to hear
about what his business is all

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about.
And and Oz, if you could start

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with the beginning of your
journey, that would be awesome.

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Sure, Arthur, first of all,
thanks for having me.

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So I am, I come from an
immigrant family.

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So I came to the United States
when I was 17 years old.

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My father had been here prior to
us.

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So we will, we were expecting
like a nice, you know, financial

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cushion, come here, go to
school.

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But it, it couldn't have been
different.

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So when we arrived here with my
sister and my mom, I didn't

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speak a word of English.
My English is still not amazing.

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But back then it was not
existent.

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So we find out that my father's
small business was like a

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failing business.
And it was kind of dabbling to

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try to figure out.
And six months into our arrival,

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he had to file for bankruptcy,
right?

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And then as you can imagine,
caused a lot of havoc and chaos

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and also trauma for someone
who's like 1718 years old and my

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younger sister was like 14.
We were just trying to get jobs

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and work and pay off debt and,
and taxes and all of that.

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So that took us about 6 years to
kind of break even because

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between trying to figure out,
well, how the US system works

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now to get a job and at the same
time go to school and things

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like that.
But through that time, one thing

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that stay with me that that
bugging question is why did this

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happen, right?
So which led me to get into the

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financial services industry.
I'll tell a little bit about my

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back story if you don't mind.
I was trying to understand what

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country.
By the way.

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I'm originally from Turkey,
yeah.

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Took a share of data, yeah, so.
What's that?

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I was trying to speak Turkish to
you.

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Oh, yeah, Yeah, I heard that.
You're welcome.

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I think it's just a thank you.
Yeah.

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Yeah.
So that question kept bugging

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me, like, why did this happen?
Why did this happen?

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I just didn't know.
Then I noticed that.

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Well, I, I will not find out
about like why he, although he,

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he was great at his skill set,
his trade, he didn't understand

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the finances, money and the
whole thing could have been

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avoided if he had access to
maybe a business line of credit

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or like a mentor and stuff like
that.

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So that put me through my
college years.

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Oddly enough, I did a double
major in biology and chemistry

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had nothing to do with finances.
And I graduated with a degree

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and I had the option to go to
medical school.

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I was a pre Med, but I found out
that medical school cost a lot

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of money, which I didn't have at
the time.

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So I got a sales job like most
people do, selling door to door

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and various things from like POS
systems, the credit card

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processing.
So I was kind of tiptoeing into

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the finances and how money
works, which gave me a lot of

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exposure to get to know like
wealthy people, people who own

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businesses.
They're doing really, really

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well.
And you and I were chatting

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about our background in New
York, right?

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So get it, going into New York,
you can see people who are

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homeless.
You can also see billionaires

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who are making so much.
There's no, there's no, there's.

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No, on the same sidewalk.
Right on.

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The same sidewalk taking
sometimes the same subway,

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right?
And then that was like a big eye

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opener for me to understand.
But I still didn't really

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understand how finances or
financial literacy works until I

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was networking with a sales guy
who was in the loan business

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selling loans to small
businesses.

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And then he told me how the
whole thing works.

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And to be a quite honest, I just
went over my head.

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I didn't understand what I was
talking about.

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I said, all right, I what, what
does that mean to for me?

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And he said, well, as you have
contacts with within the

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restaurant industry, that's what
my niche was.

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I was helping them get set up
with those, you know,

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touchscreen POS systems.
When you go to a bar, they take

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your card.
Nice business, yeah.

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Yeah, I was, Yeah, I used to
work for NCR, one of the biggest

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providers, like they're one of
the biggest builders of the ATM

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systems as well.
So nice corporate job.

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And I, I started to make some
money being in the New York

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office.
Nice fancy office and things

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like that.
And he said that they are the

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ones who need the most amount of
capital.

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I didn't what I didn't know back
then was the restaurants are in

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really thin margins for the most
part.

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So they operate sometimes off of
debt.

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And it it made sense because I
was trying to get 2530 K out of

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them for these systems that when
you're setting up five six of

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these at a bar, they show them
cost 3 to $5000 back then,

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right?
So probably right now there are

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other options.
So it made sense.

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So we built like a affiliate
relationship.

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I used to give him like referral
leads from restaurant owners who

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need capital in return.
Once they have the money, the

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plan was for them to give it to
me so I can offer my services.

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Yeah, great partnership.
But on my 4th referral to him, I

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found out that he actually
funded the customer.

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And then he gave me a call to to
meet up again and he handed me

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an envelope with a check with my
name on it.

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It was $4000.
So that was the biggest amount

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of Commission I made until that
point from just one transaction

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that I wasn't even involved in
because my sales process usually

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would take 2-3 calls, take the
units, carry them, they're all

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like each £10 the restaurant to
showcase the demo and all of

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that, right.
And this guy gives me a check

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for like 4000.
I'm like, what could have

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possibly happened in that
meeting of yours that you got

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them the money and it my cut is
4000.

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Like they just the math just was
not mathing.

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And obviously like any person
with average intelligence would

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do, I dug into it.
I'm like, what is going on?

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I'm closest to money now.
And they opened up so much, so

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many doors and I switched
careers to become a business

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loan broker.
And when I did this, there were

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not a whole lot of funding
options for them, right?

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We only had like term loans and
merchant cash advance and things

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like that.
But then I, as being a curious

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person, I was very tired of
finding customers through

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telemarketing and cold calling.
Like I was calling 600 people a

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day out of the office basically
3 days of the week.

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The other two days it would be
just pulling on doors or

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attending my appointments.
You know, New York and summers

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are hot, winters are cold.
So it's not the best thing you

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can do for your body and for
your mind.

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I was getting pretty burnt out
and I wanted to learn how to do

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it through marketing, which I
knew nothing about.

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So I invested in a bunch of
courses and mentors and things

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like that.
And I figured there's like a big

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gap in the alternative lending
in this sheet.

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All of these big guys in the
lending space were had this,

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they had this like boiler room,
Wolf of Wall Street vibe, like

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a, you know, office full of
dudes dialing and smiling and

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dialing type of thing, right.
And I, I became the marketing

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guy.
I told them you don't need all

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these people.
We can actually send an e-mail

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to your list so we can do paid
advertising and get you in front

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of like, you know, higher
quality leads.

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That started the agency part of
the brokerage, Like I was

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becoming a marketing agency
specifically for anyone doing

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loans, right, which took off.
We were doing fine.

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A main problem was the problem
that I didn't anticipate the

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business owners not wanting to
do marketing.

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They wanted their guys and girls
to keep dialing, right.

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So they were kind of using old
school systems.

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And then I kept talking about, I
started shooting YouTube videos

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at this point talk about how
like this my process is more

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efficient, but even sending a
million called emails is better

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than having, you know, 50 guys
call in the office.

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Why do you think us?
Why do you think they wanted to

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do it old school?
I don't think they understood

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how it worked because it
required a different funnel,

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right?
So their existing funnel was

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like, I go to Arthur.
Arthur is the data guy.

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I can buy a million records from
him for like $0.50 each.

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Give it to my guys, they have a
script and they smile and dial

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and the transaction happens.
My process is required for them

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to update their website, have a
an opt in funnel, paid

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advertising or organic or lead
generation and someone would

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need to open those leads meaning
call and qualify, hand it off.

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So required a big change in
their mind which would have been

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much much cheaper.
But it was like this ridiculous

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resistance back and forth when
we were having discussions like

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they were.
I remember one of my best

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customers who stayed with us for
like 2 years and they were

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paying like us a hefty amount of
money.

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And then I used to go to their
offices in Wall Street area

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every three months to check in.
And you know, I logged into

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their sales force.
I'm seeing these hundreds of

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leads who we, we drove from paid
advertising.

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No one even called them.
I was like, Jeff, what's going

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on here?
Like these lids leads are

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sitting here and you guys didn't
even call.

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Then I found out the sales
manager was afraid to call them

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because he thought he would lose
his job because he's used to

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calling.
So I identified that gap.

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Then he got pissed that the
sales manager, I found myself in

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the middle of like a corporate
drama basically, right?

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It was resistance to the change.
But as I became more vocal about

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it, I started attracting people
who wanted to get into the

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industry, not the people who
were already in the industry.

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Again, which happened
coincidentally.

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I was just voicing my concern.
I remember, I think this goes

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back like 2018, one video that
I'm quite aggravated on

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comparing the models, like how
this model, you can still keep

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it, but without doing online
marketing, you're going to

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suffer.
The cost for a lead will go up.

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You're going to need to hire
employees that you pay a base of

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50K in New York City standards
and the comp plan.

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And then all of a sudden it
started attracting people who

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were like, you know what, I'm in
sales, I'm selling, selling

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solar, I'm selling mortgages.
This will be a good fit for me

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like alternative lending.
And then they started asking for

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training.
Now I've done both marketing

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sales and the loan brokerage.
We started like a training

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organization and then it started
to grow.

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So Fast forward to say that
became our current company

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business standing Blueprint and
we have 7000 business loan

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brokers.
Most of them didn't come from

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the industry, from different
professions basically.

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So we trained them, we set them
up with our existing lender

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network and now we have access
to over a dozen different

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products from SB as to equipment
financing to working capital,

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the business lines of credits,
commercial real estate and

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things like that.
So it became a company that

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takes ordinary but ambitious
individuals, turn them into

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business loan brokers, basically
they're selling money, right?

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In my opinion, the sexiest
product to sell.

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And then we provide the lender
back end with our technology

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platform.
So they know how to place it or

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to place it and how to get paid
through that.

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So it's kind of my origin story,
if you call it like how we ended

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up here today.
And today we still on board a

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lot of new brokers, ambitious
people, they see us on our ads

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and social media presence.
So that's that's what we've been

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doing in a nutshell.
Yeah, super helpful.

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Appreciate that is at one time
and if you don't mind sharing if

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it's still the case, there's
lots of money around for people

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that want to lend it under the
right terms is the and there was

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at one time often a gap between
the people that had the money

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00:10:42,400 --> 00:10:47,120
and the loan origination.
And that gap is being was often

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00:10:47,120 --> 00:10:50,480
filled by people that just set
up businesses like yours to do

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00:10:50,480 --> 00:10:57,280
the origination, not not just
have the access to the conduit

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00:10:57,280 --> 00:11:00,480
to the money, but the people who
had the money didn't want to go

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00:11:00,480 --> 00:11:03,080
find the people to lend it to.
Is that still the case?

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00:11:03,400 --> 00:11:06,960
100% you nailed it.
So as you probably know, money

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00:11:06,960 --> 00:11:09,360
is never the problem.
These lenders have more money

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00:11:09,360 --> 00:11:11,640
than they know what to do it.
They want to monetize it, they

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00:11:11,640 --> 00:11:15,240
want to deploy it, right?
But the problem is they don't

236
00:11:15,240 --> 00:11:18,200
want to have a lot of
salespeople selling and they

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00:11:18,200 --> 00:11:20,560
certainly don't want to become a
training company, right?

238
00:11:20,560 --> 00:11:22,760
So they're not set up that way.
They just have money.

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00:11:22,760 --> 00:11:24,440
They want good files to come to
them.

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00:11:24,840 --> 00:11:27,640
That's the gap that we're
closing you early and identify

241
00:11:27,640 --> 00:11:29,840
that, right?
So these lenders, because they

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00:11:29,840 --> 00:11:32,680
always bug me, I'm like, you
know, you take a huge lender,

243
00:11:32,680 --> 00:11:34,840
right?
I'm like, why would they want to

244
00:11:34,840 --> 00:11:37,560
have our students?
They can just go ahead and do

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00:11:37,560 --> 00:11:41,120
marketing and, you know, do
training platforms, but they're

246
00:11:41,120 --> 00:11:43,360
not designed to do that.
They don't want to do that,

247
00:11:43,360 --> 00:11:45,080
right?
So they rather have someone else

248
00:11:45,080 --> 00:11:47,160
handle that issue.
So they deal with the

249
00:11:47,160 --> 00:11:50,160
underwriting and someone sending
the leads and they qualify and

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00:11:50,160 --> 00:11:53,280
fund the leads.
That's exactly what the issue

251
00:11:53,280 --> 00:11:55,200
has been in the industry.
It's just there aren't enough

252
00:11:55,200 --> 00:11:57,640
lenders and enough money.
They just want to find the right

253
00:11:57,640 --> 00:12:00,040
businesses and they don't want
to set up a marketing, sales and

254
00:12:00,040 --> 00:12:04,800
training company.
Is, is it, I'm not, I'm not

255
00:12:04,800 --> 00:12:07,680
asking you to reveal any secret
sauce or anything, but there's,

256
00:12:08,280 --> 00:12:15,280
if you had, you know, 1000 good
leads, do you end up with 100

257
00:12:15,720 --> 00:12:18,080
fundable loans?
You know, how's that?

258
00:12:18,080 --> 00:12:21,720
What are the numbers look like?
Because people with the money,

259
00:12:21,880 --> 00:12:24,560
they also want good loans.
They don't want to just deploy.

260
00:12:25,120 --> 00:12:26,520
They want to get paid back,
right?

261
00:12:27,400 --> 00:12:29,360
Absolutely, yeah.
If you understand their funding

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00:12:29,360 --> 00:12:32,200
box, like what, what, what the
kind of deals they fund, the

263
00:12:32,200 --> 00:12:35,640
approval rates are super high,
like can be 85 to 90%.

264
00:12:35,640 --> 00:12:38,760
A lot of times when you take a
bucket of like 1000 leads,

265
00:12:39,080 --> 00:12:42,760
that's the quality issue, right?
For example, we have a funding

266
00:12:42,960 --> 00:12:47,160
offer that's 0% financings, like
a credit card stacking for

267
00:12:47,160 --> 00:12:49,680
startups, no revenue companies,
right?

268
00:12:49,960 --> 00:12:53,320
But they're practically the most
important requirement is the

269
00:12:53,320 --> 00:12:57,120
applicant needs to be, it needs
to have a 600 credit score and

270
00:12:57,120 --> 00:12:59,920
above and they need to have the
credit depth, not just the

271
00:12:59,920 --> 00:13:03,080
score, right?
And then you know when you don't

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00:13:03,080 --> 00:13:06,200
know that and you're sending
startup funding leads, startup

273
00:13:06,200 --> 00:13:08,400
funding lead.
And most of them are like 580

274
00:13:08,400 --> 00:13:11,320
credit, 5 for the credit or they
don't have anything on their

275
00:13:11,320 --> 00:13:14,160
credit report that ends up
creating that problem while we

276
00:13:14,160 --> 00:13:16,080
have so many leads, but none of
them is funding.

277
00:13:16,400 --> 00:13:19,480
But that that's where it becomes
a training issue right from the

278
00:13:19,480 --> 00:13:21,080
broker.
And so before you submit the

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00:13:21,080 --> 00:13:24,200
file, how do you know that it is
a fundable deal?

280
00:13:24,240 --> 00:13:27,800
That's the important part.
And how we solve this problem is

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00:13:27,800 --> 00:13:31,480
we recently launched AI
generated pre underwriting

282
00:13:31,480 --> 00:13:33,480
system.
So before we even match it with

283
00:13:33,480 --> 00:13:36,160
the lender, we ask some
questions to the broker or they

284
00:13:36,160 --> 00:13:39,760
can upload documents in our
system and AI analyzes it and

285
00:13:39,760 --> 00:13:43,120
says based on the file that
you're sending, either A, maybe

286
00:13:43,120 --> 00:13:46,120
it's not fundable or B, you have
4 different options.

287
00:13:46,120 --> 00:13:48,760
So you can go back to your
customer Arthur and says,

288
00:13:48,760 --> 00:13:50,920
Arthur, what do you do?
You need the money like

289
00:13:50,920 --> 00:13:54,640
yesterday or this is for like an
expansion project or you have

290
00:13:54,640 --> 00:13:56,600
the money, but you want to have
a business line of credit for

291
00:13:56,600 --> 00:13:58,920
like bad days or something like
that, right?

292
00:13:58,920 --> 00:14:01,800
Or is it more like a long term,
you want to, you want the

293
00:14:01,800 --> 00:14:06,400
cheapest money, maybe through an
SBA and you have time or you had

294
00:14:06,480 --> 00:14:09,240
you're willing to provide a
documentation like tax returns

295
00:14:09,240 --> 00:14:12,800
and things like that, right?
So it leverages brokers time to

296
00:14:13,040 --> 00:14:16,320
work on the better leads and
return the lenders are happy

297
00:14:16,320 --> 00:14:18,600
because we're pretty vetting
them basically.

298
00:14:18,800 --> 00:14:21,880
And then you know, if you're a
brand new broker and trying to

299
00:14:21,880 --> 00:14:24,120
figure this out all yourself,
well, first of all, you need to

300
00:14:24,120 --> 00:14:26,680
Google who the lenders are.
And most lenders are not going

301
00:14:26,680 --> 00:14:29,080
to accept you because if you
don't have any history of

302
00:14:29,080 --> 00:14:32,400
lending or like some of them for
example on deck, they require

303
00:14:32,400 --> 00:14:35,200
that you do about $1,000,000 in
lending per month.

304
00:14:35,480 --> 00:14:37,240
Most newer people are smaller
shops.

305
00:14:37,240 --> 00:14:38,720
They don't do that kind of
volume.

306
00:14:38,920 --> 00:14:41,800
They're cut out from all these
options and most of the time

307
00:14:41,800 --> 00:14:43,720
they don't even know what they
don't know, right?

308
00:14:43,720 --> 00:14:47,760
So, but when you have the, when
you have the options and the you

309
00:14:47,760 --> 00:14:50,720
have a way of qualifying leads,
then funding doesn't really

310
00:14:50,720 --> 00:14:53,360
become a problem.
Then the secondary problem,

311
00:14:53,360 --> 00:14:56,040
which you didn't ask but I'll
explain if you don't mind, is

312
00:14:56,040 --> 00:14:59,200
when you have an offer on the
table, you need someone who can

313
00:14:59,200 --> 00:15:02,080
sell that offer, right?
So just because you generated

314
00:15:02,080 --> 00:15:05,720
the lead, the person who can
generate the lead might not be

315
00:15:05,720 --> 00:15:08,120
the best person to sell it
because it requires a different

316
00:15:08,120 --> 00:15:10,800
skill set.
So that's why we also have the

317
00:15:10,800 --> 00:15:13,720
back and sales team.
If the broker wants us to close

318
00:15:13,720 --> 00:15:16,280
the deals, we do it.
We minus it from their

319
00:15:16,280 --> 00:15:18,080
Commission.
But that's the all-purpose of

320
00:15:18,080 --> 00:15:20,160
the training.
You can be like a lead

321
00:15:20,240 --> 00:15:23,120
aggregator or generator and just
send leads and forget it.

322
00:15:23,360 --> 00:15:26,160
Or if you want to be a
full-fledged, you know, 360

323
00:15:26,160 --> 00:15:29,200
business loan broker, you want
to fund the the, and also there

324
00:15:29,200 --> 00:15:32,120
are syndication options like as
you make more money, you can

325
00:15:32,120 --> 00:15:35,040
pitch into the deals with your
own money and grow that too.

326
00:15:35,280 --> 00:15:38,680
So we give all those options to
our members so they decide what

327
00:15:38,680 --> 00:15:41,320
is a good fit for them.
Some, some of them are operators

328
00:15:41,320 --> 00:15:43,560
never sold anything and they
haven't, they don't want to be a

329
00:15:43,560 --> 00:15:45,240
closer.
We just tell them, hey, you

330
00:15:45,240 --> 00:15:47,720
either hire people or you learn
how to generate leads and we do

331
00:15:47,720 --> 00:15:49,200
the rest.
Does that answer your question?

332
00:15:49,240 --> 00:15:53,680
Yeah, totally.
And and then so is there a, a

333
00:15:53,680 --> 00:15:58,440
way to pre qualify the leads
like before with AI, for

334
00:15:58,440 --> 00:16:02,320
example, with everything that's
going on there and how fast it's

335
00:16:02,320 --> 00:16:07,200
moving so you can actually focus
on leads that are likely to get

336
00:16:07,200 --> 00:16:08,960
funded?
Yeah.

337
00:16:09,000 --> 00:16:11,640
For example, if you're doing
paid advertising right, you're

338
00:16:11,640 --> 00:16:13,600
getting leads through Facebook
ads.

339
00:16:13,840 --> 00:16:16,800
What you could do is you spend,
let's say $500.

340
00:16:16,880 --> 00:16:19,080
You can start with as low as
like $510 a day.

341
00:16:19,320 --> 00:16:22,640
But let's say you spend $500 and
you get 100 leads, depending on

342
00:16:22,640 --> 00:16:25,400
the quality of the leads, you
can feed that info back to

343
00:16:25,640 --> 00:16:29,400
Facebook's AI and tell we want
more of people like Arthur,

344
00:16:29,640 --> 00:16:31,680
let's say less of people like
Oz, right?

345
00:16:31,920 --> 00:16:34,360
And then it changes the
targeting since AI based

346
00:16:34,360 --> 00:16:37,400
targeting when you do receive
the leads that they can also run

347
00:16:37,400 --> 00:16:42,360
it through our AI system to see
how like the, how good the lead

348
00:16:42,360 --> 00:16:44,400
is, right?
So you can start having a

349
00:16:44,400 --> 00:16:46,920
conversation with your lead,
asking certain questions.

350
00:16:47,200 --> 00:16:51,520
So we're trying to simplify that
back and forth communication

351
00:16:52,000 --> 00:16:54,800
that could over disqualify
someone.

352
00:16:54,800 --> 00:16:56,680
That's usually what happens with
newer brokers.

353
00:16:56,680 --> 00:16:58,920
They go through a file, they're
like, Nah, this guy wouldn't get

354
00:16:58,920 --> 00:17:02,120
the funding right without even
having an opportunity or they

355
00:17:02,120 --> 00:17:05,040
just don't know how to
disqualify or qualify someone.

356
00:17:05,440 --> 00:17:07,119
But yeah, there's so many
different ways.

357
00:17:07,119 --> 00:17:09,240
I don't want to get into the
technical ways of doing it, but

358
00:17:09,240 --> 00:17:12,079
if you're a paid ads guy or
girl, you want to scale it.

359
00:17:12,240 --> 00:17:14,960
What you want to do is you
don't, you're not just thankful

360
00:17:14,960 --> 00:17:17,480
that you got leads because you
can get funding leads for like

361
00:17:17,920 --> 00:17:20,960
3-4 dollars, you know, per pop,
like someone filling out a

362
00:17:20,960 --> 00:17:23,599
funding form.
What, what you want is the

363
00:17:23,599 --> 00:17:26,440
person who's actually looking
for funding and they're ready to

364
00:17:26,440 --> 00:17:29,040
take action on it and they
qualify for something right.

365
00:17:29,440 --> 00:17:33,200
So we look for the cost per
quality lead, not cost per form

366
00:17:33,200 --> 00:17:36,560
fill outs, right?
And they can go up to 20 to $30,

367
00:17:36,560 --> 00:17:40,560
sometimes $50 per lead.
But usually the return on ad

368
00:17:40,560 --> 00:17:43,880
spend is five to six times if
you set it up properly, which as

369
00:17:43,880 --> 00:17:45,960
you can imagine requires some
level of training for the

370
00:17:45,960 --> 00:17:48,160
operator to know what the heck
it is that we're we've been

371
00:17:48,160 --> 00:17:51,000
talking about here.
There's a lot of talk about

372
00:17:51,360 --> 00:17:54,640
people being eliminated from
jobs because of AI.

373
00:17:55,400 --> 00:18:01,200
Is it is it your view that you
still need somebody to get on

374
00:18:01,200 --> 00:18:05,240
the phone to talk to these
people that because they're not

375
00:18:05,240 --> 00:18:10,040
going to agree to terms?
Or if I imagine there's a fair

376
00:18:10,040 --> 00:18:14,720
amount of people that would take
loans that without human

377
00:18:14,720 --> 00:18:17,920
interaction just because it was
easy and they'd like to see the

378
00:18:17,920 --> 00:18:19,920
money in their account.
But that's not really who you're

379
00:18:19,920 --> 00:18:22,960
looking for, right?
Now we're dealing with small

380
00:18:22,960 --> 00:18:25,400
business funding, like if this
is like institutional funding

381
00:18:25,400 --> 00:18:27,240
and things like that, I can see
that happening.

382
00:18:27,640 --> 00:18:29,880
People understand they have a
board already, They have an

383
00:18:29,880 --> 00:18:32,000
accounting team.
They can evaluate the deal and

384
00:18:32,000 --> 00:18:34,320
decide if it's a good for the
without talking to anyone.

385
00:18:34,560 --> 00:18:36,840
When you're talking about
talking to a restaurant owner,

386
00:18:37,200 --> 00:18:40,920
that person probably heard about
AI and they're working on it,

387
00:18:40,920 --> 00:18:43,320
but they're not at a level to
evaluate a deal and make a

388
00:18:43,320 --> 00:18:46,280
decision because their
motivation to get the money is

389
00:18:46,280 --> 00:18:48,320
usually speed.
Like they need the money.

390
00:18:48,840 --> 00:18:51,000
Think about an emergency.
Pay the staff right.

391
00:18:51,480 --> 00:18:54,760
Yeah, exactly.
Pay the staff, expand, I don't

392
00:18:54,760 --> 00:18:56,760
know, like a safety net and
things like that.

393
00:18:57,000 --> 00:18:59,600
That's where the human element
comes in, where I see it's going

394
00:18:59,600 --> 00:19:03,280
as AI augmentation, meaning what
we're doing right, give the

395
00:19:03,280 --> 00:19:07,880
brokers the tools of the AI
basically so they can help their

396
00:19:07,880 --> 00:19:10,400
customers a lot better.
I don't, I don't see that's

397
00:19:10,400 --> 00:19:12,720
changing for the small
businesses.

398
00:19:12,720 --> 00:19:14,960
But if the target audience were
totally changed, if you're

399
00:19:14,960 --> 00:19:17,520
targeting a bunch of technology
companies and they need seed

400
00:19:17,520 --> 00:19:19,720
funding and things like that,
that's different.

401
00:19:19,880 --> 00:19:24,200
But for our audience, which is,
you know, 70% of the US economy,

402
00:19:24,200 --> 00:19:27,240
basically small businesses,
they're not, they're not there

403
00:19:27,240 --> 00:19:29,960
to just take loans right and
left without understanding how

404
00:19:29,960 --> 00:19:31,600
it's going to work.
The payback terms.

405
00:19:31,840 --> 00:19:34,040
What is it in a better option?
If you were offering one

406
00:19:34,040 --> 00:19:36,760
product, Arthur, that would make
sense like Rocket Mortgage,

407
00:19:36,760 --> 00:19:38,520
right?
You're getting a mortgage.

408
00:19:39,040 --> 00:19:41,760
But now the distinguished
between, well, do you want an

409
00:19:41,760 --> 00:19:45,080
SBA versus an equipment leasing?
It's going to be very difficult

410
00:19:45,080 --> 00:19:47,480
for a merchant to go through the
options and understand what is a

411
00:19:47,480 --> 00:19:50,120
good fit for them and accept the
terms and be OK with it, you

412
00:19:50,120 --> 00:19:53,720
know?
Are the are the lenders, you

413
00:19:53,720 --> 00:19:58,600
know, things have trends, right?
Are the lenders who are well

414
00:19:58,600 --> 00:20:06,800
funded now have a good appetite
for no personal guarantees, that

415
00:20:06,800 --> 00:20:09,720
sort of thing for businesses?
Is that still something?

416
00:20:10,680 --> 00:20:14,320
It is still something most of
them, well, depending on the

417
00:20:14,320 --> 00:20:17,640
funding type, right.
So for certain funding options

418
00:20:17,640 --> 00:20:19,080
they will require personal
guarantee.

419
00:20:19,400 --> 00:20:22,960
One of the things we're doing is
educating merchants on building

420
00:20:22,960 --> 00:20:26,200
their business credit so they're
not just relying on their

421
00:20:26,200 --> 00:20:29,120
personal credit.
Because if you're personally

422
00:20:29,120 --> 00:20:34,000
signing the dotted line with
Arthur's credit score, you're

423
00:20:34,000 --> 00:20:37,200
personally guaranteeing it.
But if your business has its own

424
00:20:37,440 --> 00:20:40,080
credit score, like business
credit score, that's basically

425
00:20:40,080 --> 00:20:43,760
what it is treating as like an
entity, then not only further

426
00:20:43,760 --> 00:20:47,400
funding options open up and you
have the options of putting it

427
00:20:47,400 --> 00:20:49,920
on the strictly under the
business versus your own

428
00:20:49,920 --> 00:20:53,280
finances, right?
So they're totally open to it,

429
00:20:53,840 --> 00:20:56,560
but the problem is that that's
why we're big on training the

430
00:20:56,560 --> 00:20:59,080
small businesses.
Most businesses don't even know

431
00:20:59,080 --> 00:21:01,960
such a thing exists, such as
building business credit, which

432
00:21:01,960 --> 00:21:04,960
is not necessarily a complicated
thing, but it's just the

433
00:21:04,960 --> 00:21:08,400
awareness level is not there.
They kind of hear things but

434
00:21:08,400 --> 00:21:11,080
they don't pay attention.
It is strictly an awareness and

435
00:21:11,080 --> 00:21:13,440
education problem.
But once they understand and

436
00:21:13,440 --> 00:21:17,120
they want to unlock like larger
funding amounts, large in our

437
00:21:17,120 --> 00:21:20,400
universe is anything over 250K
and above.

438
00:21:20,400 --> 00:21:23,920
Like in your university could be
different, but in ours that's

439
00:21:23,920 --> 00:21:26,360
the amount.
And we tell them, hey, if it is

440
00:21:26,360 --> 00:21:28,040
an emergency, we'll take care of
it.

441
00:21:28,280 --> 00:21:31,520
But we highly advise you to take
these steps on the next round of

442
00:21:31,520 --> 00:21:34,240
funding.
You can get better options, the

443
00:21:34,240 --> 00:21:36,600
cheaper options with longer
terms and things like that.

444
00:21:36,600 --> 00:21:39,600
And here's why we might not be
able to do it at the current

445
00:21:39,600 --> 00:21:44,120
situation that you're in.
Is SPLIC and if I'm saying it

446
00:21:44,120 --> 00:21:48,240
right still a good option for
people who can provide the right

447
00:21:48,240 --> 00:21:50,080
documentation and take some
time?

448
00:21:50,080 --> 00:21:53,320
And is it still active lending
from the government?

449
00:21:53,320 --> 00:21:55,280
Source.
Oh yeah, I mean, they have

450
00:21:55,280 --> 00:21:57,880
multiple programs right now.
They even have their own portal,

451
00:21:58,000 --> 00:22:02,640
which you can evaluate different
options, but the caveat is that

452
00:22:02,640 --> 00:22:05,400
it requires tax return, a
certain time and business and

453
00:22:05,400 --> 00:22:09,040
certain credit score.
You know the story of your

454
00:22:09,040 --> 00:22:11,000
business, what you're going to
do with the funds and things

455
00:22:11,000 --> 00:22:13,440
like that.
That's why we have advisors.

456
00:22:13,600 --> 00:22:16,160
You can do it on your own,
obviously, but you need someone

457
00:22:16,160 --> 00:22:17,760
to decipher what the government
wants.

458
00:22:18,000 --> 00:22:20,200
Just like anything government
does, it's kind of complicated.

459
00:22:20,200 --> 00:22:22,880
It looks cumbersome and for a
small business to understand all

460
00:22:22,880 --> 00:22:25,720
of that and comply.
We have experts who get you

461
00:22:26,040 --> 00:22:29,760
funding ready, basically tell
you why we need it and what they

462
00:22:29,760 --> 00:22:33,520
mean when they say this, this an
article 4.5 and how do we get

463
00:22:33,520 --> 00:22:35,440
that information?
Who's the CPA?

464
00:22:35,440 --> 00:22:37,600
So there's a coordination effort
that happens.

465
00:22:37,880 --> 00:22:40,440
So we start that process.
If someone is adamant about

466
00:22:40,440 --> 00:22:42,400
let's say they want to get like
$2,000,000, right?

467
00:22:42,400 --> 00:22:45,320
We're like, fine, we can work on
this if you're willing to go on

468
00:22:45,320 --> 00:22:48,040
a journey with us.
However, you're also telling us

469
00:22:48,040 --> 00:22:50,280
that you need like 150 K
tomorrow.

470
00:22:50,520 --> 00:22:53,480
Which one is more urgent?
Like we can set that up and work

471
00:22:53,480 --> 00:22:57,440
on the SBA or we can just work
on the SBA, but we'll need this,

472
00:22:57,440 --> 00:22:59,600
right?
So we have that flexibility at

473
00:22:59,600 --> 00:23:03,360
least to provide them like
faster capital while working on

474
00:23:03,360 --> 00:23:05,360
a better deal.
Because obviously everyone wants

475
00:23:05,360 --> 00:23:08,880
that those type of deals with
like 10 year term and lower

476
00:23:08,880 --> 00:23:10,400
interest rates and things like
that.

477
00:23:10,600 --> 00:23:13,680
But that requires a lot more due
diligence from those government

478
00:23:13,680 --> 00:23:16,680
backed loans.
So there's an old saying that

479
00:23:16,680 --> 00:23:20,160
says you should apply for a loan
when you don't need it because

480
00:23:20,160 --> 00:23:22,520
when you do, you can't get it
right.

481
00:23:22,520 --> 00:23:25,520
So, and I know there's terms
that will probably mitigate some

482
00:23:25,520 --> 00:23:28,800
of that, but what's the what's
the sentiment now?

483
00:23:30,160 --> 00:23:33,600
Is there lots of money
available, even if it's usury

484
00:23:33,600 --> 00:23:36,280
rates or hard money lending,
whatever you want to call it?

485
00:23:37,200 --> 00:23:38,160
Oh, absolutely.
Yeah.

486
00:23:38,160 --> 00:23:40,320
That's why you're saying it's
perfectly fine.

487
00:23:40,320 --> 00:23:42,600
So you want to get money when
you don't need it?

488
00:23:43,120 --> 00:23:44,680
Can you get it when you do need
it?

489
00:23:44,680 --> 00:23:47,240
Yes, but at a cost.
It's going to be expensive

490
00:23:47,560 --> 00:23:51,920
because a lot of those funding
options are not collateralized,

491
00:23:51,920 --> 00:23:55,240
meaning, you know, the lender is
counting on you paying it back

492
00:23:55,240 --> 00:23:58,080
based on how your business is
doing today, and they're going

493
00:23:58,080 --> 00:24:01,320
to charge prime for it, right.
That's why I'm a big supporter

494
00:24:01,320 --> 00:24:03,880
of business line of credits.
Like, yeah, I don't need money

495
00:24:03,880 --> 00:24:05,720
right now.
Yeah, about six months from now

496
00:24:05,720 --> 00:24:09,280
if you do need it, if you end up
in a situation knowing the

497
00:24:09,280 --> 00:24:12,280
failure rate of the businesses
is going to be more expensive

498
00:24:12,600 --> 00:24:15,320
and you might better get
approved now while things are

499
00:24:15,320 --> 00:24:18,160
going well, let it sit there
because you can get an approval

500
00:24:18,160 --> 00:24:22,680
250,500 thousand a million you
only charge when you draw on it,

501
00:24:22,680 --> 00:24:24,640
right.
And small businesses are

502
00:24:25,200 --> 00:24:27,160
interesting in the sense that
they're entrepreneurs.

503
00:24:27,160 --> 00:24:29,520
So when there is money
available, they always like find

504
00:24:29,520 --> 00:24:32,760
opportunities to invest into it,
buy a better equipment, expand

505
00:24:32,760 --> 00:24:35,440
your existing location, buy out
your competitor moving to a

506
00:24:35,440 --> 00:24:37,960
bigger office, hire better
talent and things like that.

507
00:24:38,440 --> 00:24:39,800
So the appetite is definitely
there.

508
00:24:39,800 --> 00:24:42,280
Like we're funding all kinds of
deals from like merchant cash

509
00:24:42,280 --> 00:24:44,480
advance or terms loans to
business line of credit.

510
00:24:44,840 --> 00:24:48,760
But I'm big on advising the
business, which increases the

511
00:24:48,760 --> 00:24:50,200
lead pool, right?
If the business.

512
00:24:50,280 --> 00:24:53,920
Now Oz thinks I don't need
money, but a consultant says I

513
00:24:53,920 --> 00:24:56,400
understand it.
But do you have any resources

514
00:24:56,400 --> 00:24:59,120
when you do need the money?
If you have a, you know, a bank

515
00:24:59,120 --> 00:25:00,640
account with a lot of cash,
that's fine.

516
00:25:00,640 --> 00:25:03,400
Maybe you don't need it.
But if you're on thin margins,

517
00:25:03,400 --> 00:25:06,960
like most businesses are, some
catastrophe hits.

518
00:25:07,000 --> 00:25:08,240
What are you going to do about
it?

519
00:25:08,240 --> 00:25:10,520
And, you know, you and I talked
about COVID and it could be all

520
00:25:10,520 --> 00:25:12,160
kinds of crazy stuff, right?
So that they.

521
00:25:12,160 --> 00:25:16,280
Yeah, the.
Heater, the heater and the the

522
00:25:16,280 --> 00:25:19,800
exhaust system and a restaurant.
Anything that's a big thing

523
00:25:20,080 --> 00:25:22,160
expect could go wrong, right?
Yeah.

524
00:25:22,640 --> 00:25:25,400
And a business, anything that I
think it follows the Murphy's

525
00:25:25,400 --> 00:25:27,840
Law, anything that could go
wrong will go wrong at some

526
00:25:27,840 --> 00:25:29,320
point.
And usually when it does go

527
00:25:29,320 --> 00:25:31,680
wrong, multiple things will go
wrong at the same time too.

528
00:25:31,920 --> 00:25:34,520
That's just how it is.
Like, you know, you're playing

529
00:25:34,520 --> 00:25:37,000
the odds of succeeding in a
business.

530
00:25:37,000 --> 00:25:40,760
There's just so many moving
parts and you don't want to, you

531
00:25:40,760 --> 00:25:44,240
know, I guess let go something
you love to do because you just

532
00:25:44,240 --> 00:25:46,680
don't have the money, which is
the, the saddest way of like go.

533
00:25:46,720 --> 00:25:48,760
I, I know because my, that's
what my father had to do.

534
00:25:48,760 --> 00:25:51,080
He loved the profession.
He just couldn't keep it anymore

535
00:25:51,080 --> 00:25:52,560
because he just ran out of
money.

536
00:25:52,560 --> 00:25:54,000
He just couldn't handle the
finances.

537
00:25:54,400 --> 00:26:01,120
Yeah.
Is there a type of business that

538
00:26:01,120 --> 00:26:05,880
you like to lend to because they
need time of the essence money

539
00:26:06,320 --> 00:26:09,600
and the fees are good but they
will pay it back.

540
00:26:09,600 --> 00:26:12,280
Is there like a sweet spot right
now that you like?

541
00:26:13,160 --> 00:26:16,040
Well, we have, we have a grading
system for types of files that

542
00:26:16,040 --> 00:26:18,840
we want.
Like do you have a type of

543
00:26:18,840 --> 00:26:21,040
lender, BCD type of paper,
right.

544
00:26:21,040 --> 00:26:24,280
So you look at the paper, a lot
of the papers that we like to

545
00:26:24,280 --> 00:26:27,280
have the high transactional
industries, like there's

546
00:26:27,280 --> 00:26:29,360
multiple transactions.
For example, there might be a

547
00:26:29,360 --> 00:26:32,760
construction company, they might
be doing 10 million a year, but

548
00:26:32,760 --> 00:26:34,440
the average customer pays 2
million.

549
00:26:34,640 --> 00:26:36,200
That's like 5 transactions a
year.

550
00:26:36,200 --> 00:26:38,520
As you can imagine, that puts
the lender at a great risk

551
00:26:38,520 --> 00:26:40,800
because if any one of them
failing could be the whole

552
00:26:40,800 --> 00:26:44,440
profit margin of the business.
Whereas A consulting company,

553
00:26:44,440 --> 00:26:48,000
they charge $150.00 an hour, but
they do, they do have thousands

554
00:26:48,000 --> 00:26:50,560
of customers.
It makes it so easy to lend

555
00:26:51,640 --> 00:26:54,440
exactly so that we love
industries like that, but we

556
00:26:54,440 --> 00:26:57,160
find we fund all kinds of odd
industries as well.

557
00:26:57,560 --> 00:27:01,440
Recently one of our members
funded a jet, someone buying a,

558
00:27:01,440 --> 00:27:05,200
you know, plane for the company
and they have the right story

559
00:27:05,200 --> 00:27:07,760
and whatnot.
So there are a lot of, and we

560
00:27:07,760 --> 00:27:10,960
found a lot of equipments.
Some of the equipments I don't

561
00:27:10,960 --> 00:27:12,520
even know what they do.
Like I said, the pictures, I'm

562
00:27:12,520 --> 00:27:14,480
not cool.
I wouldn't know what that does,

563
00:27:14,480 --> 00:27:18,520
but hey, someone needed it.
But from an ease of funding

564
00:27:18,520 --> 00:27:21,760
perspective, like the funding
time goes from like 24 to 48

565
00:27:21,760 --> 00:27:23,360
hours to a couple of weeks,
right?

566
00:27:24,320 --> 00:27:25,800
So we found all kinds of
businesses.

567
00:27:25,800 --> 00:27:29,320
But when we look at a file,
it's, it's a lot easier to

568
00:27:29,320 --> 00:27:33,280
underwrite and feel confident to
see volume coming from multiple

569
00:27:33,280 --> 00:27:36,840
customers, not just a couple of
basically a key customer risk,

570
00:27:36,840 --> 00:27:38,040
right?
If the cut business has a key

571
00:27:38,040 --> 00:27:40,240
customer risk, that's kind of
dangerous.

572
00:27:40,240 --> 00:27:41,880
That comes with a premium,
unfortunately.

573
00:27:42,080 --> 00:27:48,120
Yeah, there's a lot of talk now
in large scale private credit

574
00:27:48,360 --> 00:27:51,200
funds.
I mean, just, I don't have to

575
00:27:51,200 --> 00:27:54,280
name any names, but there's,
there was a lot of private

576
00:27:54,280 --> 00:27:59,000
credit, you know, in, in, in
different sizes than what you're

577
00:27:59,000 --> 00:28:02,200
talking about, you know, 10
million, twenty, $30 million

578
00:28:02,200 --> 00:28:06,440
loans.
And some of the biggest lenders

579
00:28:06,560 --> 00:28:10,200
that we all know and love have
put gates up because there's no

580
00:28:10,200 --> 00:28:14,720
liquidity in the funds.
And so people who are getting a

581
00:28:14,720 --> 00:28:18,960
little spooked on private credit
have been subject to a gate

582
00:28:18,960 --> 00:28:20,520
where they can't get any
liquidity.

583
00:28:21,080 --> 00:28:25,680
Are you involved in, for
example, there are people who

584
00:28:25,680 --> 00:28:30,280
have illiquid founder shares and
companies that are hard to

585
00:28:30,280 --> 00:28:32,200
value, but it's likely to go
public.

586
00:28:32,200 --> 00:28:33,840
Do you fund any of those type of
things?

587
00:28:34,280 --> 00:28:37,920
We do.
Our process follows the classic

588
00:28:37,960 --> 00:28:42,720
8020 rule. 80% of the deals will
be like small businesses funding

589
00:28:42,720 --> 00:28:45,280
anywhere from like 10,000 to 2
three million.

590
00:28:45,680 --> 00:28:49,080
But we have partners who fund
crazy deals too.

591
00:28:49,080 --> 00:28:52,240
Like one of our partners
recently they're in the process

592
00:28:52,240 --> 00:28:54,760
of funding a hotel being built
in Dubai.

593
00:28:54,760 --> 00:29:00,360
I don't know how that's going to
go right now, but in a overseas

594
00:29:00,360 --> 00:29:04,240
projects and things like that.
So the project is itself is not

595
00:29:04,240 --> 00:29:06,920
liquid yet.
It's like a startup, but the

596
00:29:06,920 --> 00:29:09,480
investor has the experience.
They look at different factors.

597
00:29:09,480 --> 00:29:12,960
So those fundings could be in
hundreds of millions of dollars,

598
00:29:12,960 --> 00:29:14,920
right?
Some of them are through family

599
00:29:14,920 --> 00:29:16,200
offices that you're familiar
with.

600
00:29:16,760 --> 00:29:20,720
So I see a little bit of
appetite developed by those

601
00:29:20,720 --> 00:29:23,600
large funding companies to get
into alternative lending.

602
00:29:24,080 --> 00:29:26,840
I honestly do not know the
reason that there is definitely

603
00:29:26,840 --> 00:29:28,720
we always set the demand for
those type of deals.

604
00:29:28,720 --> 00:29:30,960
But I'm seeing like more and
more people reaching out saying,

605
00:29:30,960 --> 00:29:34,160
hey, we can fund these deals.
We can provide 10,000,050

606
00:29:34,160 --> 00:29:36,160
million, 100 million.
These are the conditions.

607
00:29:36,560 --> 00:29:39,560
And I'm like cool, like we'll,
we'll, we, we have a large

608
00:29:39,560 --> 00:29:42,080
enough community that we're
going to have the lead pool for

609
00:29:42,080 --> 00:29:44,480
those type of deals as long as
you guys are willing to fund

610
00:29:44,480 --> 00:29:45,640
them.
So it is.

611
00:29:45,640 --> 00:29:49,160
It is happening more than I've
seen in the past and I've been

612
00:29:49,160 --> 00:29:52,080
in this industry for a little
over 10 years at this point.

613
00:29:52,400 --> 00:29:56,200
Yeah, that's good to know.
There's I being that I was in

614
00:29:56,200 --> 00:30:00,840
New York City for a long time, I
got to know a lot of loan to own

615
00:30:00,880 --> 00:30:05,160
brokers, you know, people that
were basically hoping that you

616
00:30:05,160 --> 00:30:07,440
default because the covenants
were so strong and they were

617
00:30:07,440 --> 00:30:08,640
just going to take over an
asset.

618
00:30:09,080 --> 00:30:11,600
And I'm not passing any
judgement on that.

619
00:30:12,080 --> 00:30:17,520
But are you seeing that activity
increase of late or is it pretty

620
00:30:17,520 --> 00:30:19,040
much the same as it's always
been?

621
00:30:19,400 --> 00:30:23,080
It has decreased because some of
the states added some additional

622
00:30:23,080 --> 00:30:27,600
regulations to watch off or
players like that because we did

623
00:30:27,880 --> 00:30:30,840
and it wiped out some of the bad
players.

624
00:30:30,840 --> 00:30:33,080
Them again, I'm not, I don't
want to just make a blanket

625
00:30:33,080 --> 00:30:34,520
statement.
I'm not saying all of them were

626
00:30:34,520 --> 00:30:37,960
bad, but like as, as you witness
yourself, some of them kind of

627
00:30:37,960 --> 00:30:41,560
got into the habit of counting
on that and funding businesses

628
00:30:41,560 --> 00:30:44,040
that were not fundable and they
were counting on them.

629
00:30:44,440 --> 00:30:48,040
And then that became that that
can start tainting the name of

630
00:30:48,040 --> 00:30:49,720
the industrial alternative
lending, right.

631
00:30:49,720 --> 00:30:54,560
So I'm not I'm not a fan of too
much regulation, but a little

632
00:30:54,560 --> 00:30:56,200
bit of regulation is not a bad
thing.

633
00:30:56,200 --> 00:30:59,800
I believe when you have billions
of dollars exchanging hands and

634
00:30:59,800 --> 00:31:03,040
some people will figure out a
gap in the game and try to

635
00:31:03,600 --> 00:31:05,880
utilize it.
So we're seeing states like

636
00:31:05,880 --> 00:31:08,440
California and New York and
utilize one of them.

637
00:31:08,440 --> 00:31:11,440
They're setting up kind of some
level of check on that one.

638
00:31:11,680 --> 00:31:13,680
I think that worked out better
for the industry.

639
00:31:13,680 --> 00:31:15,800
This has happened over the past
two to three years.

640
00:31:16,400 --> 00:31:19,280
Yeah, there's always bad guys,
you know, of course there's bad

641
00:31:19,280 --> 00:31:21,560
guys and everything.
What about the banks?

642
00:31:21,560 --> 00:31:25,880
I mean, there's so much talk
about how banks have been

643
00:31:25,880 --> 00:31:32,080
reluctant to lend and the banks
blame the regulators and the

644
00:31:32,080 --> 00:31:35,320
regulators blame the banks.
Meanwhile, we got businesses

645
00:31:35,320 --> 00:31:39,520
that are suffering that can't
get bank lending at, you know,

646
00:31:39,720 --> 00:31:42,760
reasonable rates.
Is there any trends going on

647
00:31:42,760 --> 00:31:46,320
there?
Banks are interesting because

648
00:31:46,320 --> 00:31:49,280
they, they are, like you said,
adamant about adding

649
00:31:49,320 --> 00:31:52,200
restrictions to funding to small
businesses because they're

650
00:31:52,200 --> 00:31:54,680
publicly owned and they have a
balance sheet and all that

651
00:31:54,680 --> 00:31:57,400
stuff, right?
But they have, they kind of got

652
00:31:57,400 --> 00:32:00,360
around the game is instead of
providing direct funding to

653
00:32:00,360 --> 00:32:05,200
small businesses, they prefer to
provide funding to the

654
00:32:05,440 --> 00:32:08,160
alternative lenders.
So reduces their risk.

655
00:32:08,160 --> 00:32:12,200
So instead of underwriting a
small Joe's, you know, a pub,

656
00:32:12,560 --> 00:32:15,600
they underwrite Oskonar, the
funding system.

657
00:32:15,840 --> 00:32:19,000
And they say Wells Fargo can say
I can give you $10 million

658
00:32:19,000 --> 00:32:21,760
because they can assess the risk
because of how we operate and

659
00:32:21,760 --> 00:32:23,360
things like that.
It's an example, right?

660
00:32:23,880 --> 00:32:25,840
And then they they are still
heavily involved in the

661
00:32:25,840 --> 00:32:28,560
alternative lending industry,
but not the way people think.

662
00:32:28,560 --> 00:32:33,080
So the complaint is fair, like
they're not funding and I

663
00:32:33,080 --> 00:32:35,680
understand and no one is a fan
of their banks.

664
00:32:35,680 --> 00:32:38,560
Their favorability has been
going down drastically, right?

665
00:32:38,840 --> 00:32:42,480
And it's some of that is of
their own doing, but that they

666
00:32:42,520 --> 00:32:45,200
also is equally not true that
they're not in mall, they're

667
00:32:45,200 --> 00:32:47,640
highly in mall, but they're in
mall with different players to

668
00:32:47,640 --> 00:32:49,840
still provide funding to small
businesses.

669
00:32:50,640 --> 00:32:57,720
Did you see any increase in your
business, for example, when SVP

670
00:32:58,360 --> 00:33:03,200
Silicon Valley Bank went under,
Did that affect your business at

671
00:33:03,200 --> 00:33:06,360
all in a positive way?
Well, alternative lending has

672
00:33:06,360 --> 00:33:11,400
been growing like triple digits,
so it's been growing massively.

673
00:33:11,920 --> 00:33:15,000
What has happened is I've been
doing webinars for the past six

674
00:33:15,000 --> 00:33:17,520
years, meaning people who are
interested in becoming a

675
00:33:17,520 --> 00:33:20,000
business loan broker or people
who are in our community

676
00:33:20,000 --> 00:33:22,880
already.
One thing I noticed is that when

677
00:33:22,880 --> 00:33:26,120
I used to do webinar 6 years
ago, I would always ask the

678
00:33:26,120 --> 00:33:28,080
question, what do you guys think
about your banks?

679
00:33:28,080 --> 00:33:31,600
Right.
They, I guess the narrative, the

680
00:33:31,600 --> 00:33:34,240
rhetoric towards the banks have
changed in a negative way

681
00:33:34,240 --> 00:33:36,040
drastically over the years,
right?

682
00:33:36,040 --> 00:33:39,040
So you used to have people
saying, oh, I know Arthur from

683
00:33:39,040 --> 00:33:41,600
my branch, he's a nice guy, he
takes care of me too.

684
00:33:41,920 --> 00:33:43,840
Banks are evil.
I hate my bank.

685
00:33:43,840 --> 00:33:45,440
They only take, they don't give
back.

686
00:33:45,680 --> 00:33:48,440
They're having a major branding
issue, honestly, right.

687
00:33:48,440 --> 00:33:51,400
So that's like people are, it's
like a utility thing.

688
00:33:51,400 --> 00:33:54,440
I have to use it, but I don't
like it at all.

689
00:33:54,920 --> 00:33:57,840
They didn't fund my uncle.
He went out of business.

690
00:33:57,840 --> 00:34:01,880
The whole funding thing, it
seems like how they feel is this

691
00:34:01,880 --> 00:34:05,120
unfair equation of banks want
your money, but they never want

692
00:34:05,120 --> 00:34:07,760
to give it back to you.
And they're coming up with

693
00:34:07,760 --> 00:34:11,480
excuses not to do it right?
And it's partially right.

694
00:34:11,480 --> 00:34:14,080
But the other thing is a whole
branding issue that they have,

695
00:34:14,080 --> 00:34:15,520
right?
So I think if they were to show

696
00:34:15,520 --> 00:34:19,199
that they're involved and
they're doing some things, but I

697
00:34:19,199 --> 00:34:21,360
don't know how easy it is to fix
it.

698
00:34:21,600 --> 00:34:26,159
People who are a little older
also remember how like the banks

699
00:34:26,159 --> 00:34:30,159
caused the whole 2008 thing and
at the end they got bailed out

700
00:34:30,560 --> 00:34:34,320
with tax money, right?
So then those kind of scars live

701
00:34:34,320 --> 00:34:36,800
longer than, I guess, bank and
banks imagine.

702
00:34:37,000 --> 00:34:39,320
And then banks going down
because they bought other stuff

703
00:34:39,320 --> 00:34:42,199
with people's assets and those
assets depreciated and they just

704
00:34:42,199 --> 00:34:44,600
disappeared, right?
And like kind of nothing

705
00:34:44,600 --> 00:34:48,480
happened.
So I think anyone above like 30,

706
00:34:48,480 --> 00:34:52,520
age 30 and 40, they're feeling
against the banks is like pretty

707
00:34:52,520 --> 00:34:54,760
negative.
Does it help alternative

708
00:34:54,760 --> 00:34:56,760
lending?
What it has happened over the

709
00:34:56,760 --> 00:35:00,240
years is alternative lending.
We're really truly seeing like

710
00:35:00,240 --> 00:35:03,360
alternative, like the oddball
everyone was associating our

711
00:35:03,360 --> 00:35:07,000
industry with like, oh, hard
money lending, super expensive.

712
00:35:07,400 --> 00:35:09,080
Now that narrative has changed
quite a bit.

713
00:35:09,080 --> 00:35:10,880
Oh, I have options.
I don't have to go through my

714
00:35:10,880 --> 00:35:12,360
bank.
I think it was like a learning

715
00:35:12,360 --> 00:35:15,400
thing, which was true in the
past when I first started out,

716
00:35:15,400 --> 00:35:17,960
like term loans and MCA were
pretty much the only things.

717
00:35:18,280 --> 00:35:21,360
Now there are like so many
different products and us alone

718
00:35:21,360 --> 00:35:25,760
we have, we selectively allow 12
products, but collectively there

719
00:35:25,760 --> 00:35:29,240
are so many other products.
So we're having a positive brand

720
00:35:29,240 --> 00:35:31,840
experience with alternative
lending and banks are doing

721
00:35:31,840 --> 00:35:35,720
this, this the -1.
So not, I'm not asking you to

722
00:35:35,720 --> 00:35:41,960
prognosticate, but do you see
signs of 2008 in the willingness

723
00:35:41,960 --> 00:35:45,120
for people to lend against no
doc loans and that sort of

724
00:35:45,120 --> 00:35:47,840
thing?
I don't think so.

725
00:35:47,840 --> 00:35:49,560
I don't see signs of that,
honestly.

726
00:35:49,560 --> 00:35:53,200
I think the demand for capital
will grow even more at the times

727
00:35:53,200 --> 00:35:57,720
of uncertainty, right?
So US has a debt issue, as you

728
00:35:57,720 --> 00:36:00,080
know, right?
And also there's a war going on,

729
00:36:00,280 --> 00:36:02,680
it seems like.
And US is not foreign to seeing

730
00:36:02,680 --> 00:36:05,680
worse.
You know, US is always involved

731
00:36:05,680 --> 00:36:09,520
in some kind of conflict.
But and also there is the on the

732
00:36:09,520 --> 00:36:13,520
positive side, the growth of AI,
which is going to allow millions

733
00:36:13,520 --> 00:36:15,840
of people to start AI based
businesses.

734
00:36:16,160 --> 00:36:19,080
So I think the demand for
funding will keep going up.

735
00:36:19,120 --> 00:36:23,200
I don't see it getting getting
less and less because until the

736
00:36:23,200 --> 00:36:25,800
banks figure out how to fund a
small business using AI

737
00:36:25,800 --> 00:36:28,280
technology, alternative lending
in the shorter they figured it

738
00:36:28,280 --> 00:36:32,040
out because it's small enough to
navigate, whereas the banks just

739
00:36:32,040 --> 00:36:33,800
like navigating an aircraft
carrier.

740
00:36:34,120 --> 00:36:36,280
Even if you make the decision,
it might take a couple of months

741
00:36:36,280 --> 00:36:38,560
for you to come to terms of how
are you going to fund something.

742
00:36:38,880 --> 00:36:42,920
So the demand will go up.
But do I see unless US totally

743
00:36:42,920 --> 00:36:45,560
fails on our on its debt
obligations, but it's the

744
00:36:45,560 --> 00:36:47,360
government level thing if that
happens.

745
00:36:47,560 --> 00:36:52,120
But I don't see the underlying
reasons that we had during 2008,

746
00:36:52,120 --> 00:36:55,520
which was like people losing
their homes basically.

747
00:36:55,520 --> 00:36:58,120
So right now, if anything,
there's a shortage of homes.

748
00:36:58,720 --> 00:37:02,000
Yeah, the people who default on
their payments have been going

749
00:37:02,000 --> 00:37:04,240
up too.
But so is the growth on the

750
00:37:04,400 --> 00:37:06,600
economy because of the AI
related stuff.

751
00:37:06,600 --> 00:37:09,400
Those are big corporations.
So at least I'm not an expert,

752
00:37:09,400 --> 00:37:12,880
but on my end, it is a tough
read to conclusively say that

753
00:37:12,920 --> 00:37:14,360
oh, shoot, this is going to be
bad.

754
00:37:14,360 --> 00:37:17,360
Like it's like, yeah, we might
have some tough spots, but we're

755
00:37:17,360 --> 00:37:21,160
still US still has the leading
companies and technology and

756
00:37:21,160 --> 00:37:22,640
they're popping up right and
left.

757
00:37:22,640 --> 00:37:25,640
Like the amount of deals that we
see businesses being started

758
00:37:25,640 --> 00:37:29,200
with really, really unique ideas
gives me hope for sure and for

759
00:37:29,200 --> 00:37:31,000
the growth of the alternative
lending industry.

760
00:37:31,560 --> 00:37:33,880
Yeah.
From my perspective, just if you

761
00:37:33,880 --> 00:37:38,160
don't mind me saying please, you
know, you know, business is

762
00:37:38,400 --> 00:37:42,040
good.
People are executing, people are

763
00:37:42,040 --> 00:37:44,080
excited about becoming
entrepreneurs.

764
00:37:44,280 --> 00:37:47,240
There's lots of great sentiment.
There's lots of money around.

765
00:37:47,800 --> 00:37:51,000
People are investing in
employing capital, stock markets

766
00:37:51,000 --> 00:37:53,720
up.
So the signs are good.

767
00:37:53,720 --> 00:37:57,360
It's not good that we're in a
war, but we'll see what that

768
00:37:57,360 --> 00:37:59,920
turns out to be.
There's always something,

769
00:38:00,000 --> 00:38:01,960
there's always some sort of
conflict, as you say.

770
00:38:02,760 --> 00:38:05,160
Well, you're the massive force
in in in the world, right?

771
00:38:05,160 --> 00:38:06,960
So you're going to have to get
involved with conflict.

772
00:38:07,040 --> 00:38:10,160
And I'm not defending or nothing
like that, but it is what it is,

773
00:38:10,160 --> 00:38:11,520
right?
Unfortunately, we don't want

774
00:38:11,520 --> 00:38:13,680
people to die and we don't want
any wars to happen.

775
00:38:14,160 --> 00:38:16,840
But it is a very naive thought
that that would happen.

776
00:38:16,840 --> 00:38:20,360
When you try to run the entire
world and you're the dominant

777
00:38:20,360 --> 00:38:22,560
power and there are other
players, you want to just kind

778
00:38:22,560 --> 00:38:24,160
of topple you.
That's just.

779
00:38:24,320 --> 00:38:26,840
But how much of that stops
business growth?

780
00:38:26,840 --> 00:38:28,720
And like you said, we have
really, really innovative

781
00:38:28,720 --> 00:38:30,560
people.
People are really working hard.

782
00:38:30,800 --> 00:38:33,760
They're demanding capital.
I think a lot of the negative

783
00:38:34,320 --> 00:38:37,680
sentiment and narrative comes
from partially the crypto

784
00:38:37,680 --> 00:38:40,160
industry, right?
So because those people were

785
00:38:40,200 --> 00:38:43,160
influencers, so they had a lot
of say on social media to start

786
00:38:43,160 --> 00:38:45,120
with.
Whereas a stock investor, a lot

787
00:38:45,120 --> 00:38:47,600
of those people are not public.
Like you probably know some

788
00:38:47,600 --> 00:38:49,720
people, I know some people with
amazing net worth.

789
00:38:50,040 --> 00:38:53,760
They don't even have one tweet.
But whereas the crypto guys and

790
00:38:53,760 --> 00:38:56,640
girls that when things are good,
it looks like the oh, that it's

791
00:38:56,640 --> 00:38:57,960
going to take over the US
economy.

792
00:38:58,120 --> 00:39:00,600
When things go down, oh, U.S.
economy is going to collapse.

793
00:39:00,800 --> 00:39:02,680
I just want people to be
cautious where they're getting

794
00:39:02,680 --> 00:39:05,280
their advice from.
Like be very careful how long

795
00:39:05,280 --> 00:39:07,800
that person has been in the game
to be able to read the full

796
00:39:07,800 --> 00:39:11,440
economy.
US is massive but 2008 was

797
00:39:11,440 --> 00:39:14,880
something something bad.
Like it was like a true

798
00:39:14,880 --> 00:39:17,760
definition of bubble and I don't
see signs of that personally,

799
00:39:17,760 --> 00:39:20,840
honestly.
I agree and and I'm I'm long

800
00:39:20,840 --> 00:39:25,560
crypto, so I'll disclose that.
I mean, I I'm paying attention

801
00:39:26,080 --> 00:39:29,280
like the asset class in a
certain level, not knee deep

802
00:39:29,280 --> 00:39:32,760
like a lot of other people are.
But I will tell you the last

803
00:39:32,760 --> 00:39:37,240
thing I want to do is go to a
crypto luncheon and yes, listen

804
00:39:37,240 --> 00:39:40,040
to a bunch of crypto Bros talk
about crypto.

805
00:39:40,040 --> 00:39:43,040
I mean that to drive anybody
insane, right?

806
00:39:43,760 --> 00:39:45,640
Absolutely.
I, I don't go to any I have, I

807
00:39:45,640 --> 00:39:47,280
have crypto, just Full
disclosure.

808
00:39:47,280 --> 00:39:50,040
And yeah, I lost some money.
I want some money here and there

809
00:39:50,040 --> 00:39:51,800
too.
But you got to be very, very

810
00:39:51,800 --> 00:39:53,520
careful on new technologies
stuff.

811
00:39:53,520 --> 00:39:57,960
I still have strong belief in
the small, small business

812
00:39:57,960 --> 00:40:00,160
economy and the
entrepreneurialship, the drive

813
00:40:00,160 --> 00:40:02,760
that US has that I don't think
any other country has like we,

814
00:40:02,760 --> 00:40:06,120
we have that resiliency and
entrepreneurship Dr. and the

815
00:40:06,160 --> 00:40:09,480
people with skills to basically
adapt to the changing

816
00:40:09,480 --> 00:40:11,400
environment, you know?
I totally agree.

817
00:40:11,800 --> 00:40:16,160
What's the profile of a good
candidate for your business that

818
00:40:16,160 --> 00:40:18,120
wants to get into the lending
business?

819
00:40:18,840 --> 00:40:22,840
We put it in two buckets,
startups and existing small

820
00:40:22,840 --> 00:40:25,160
businesses.
Right, So I read a research a

821
00:40:25,160 --> 00:40:29,120
while ago.
I'm paraphrasing, but it's said

822
00:40:29,120 --> 00:40:33,200
that 70% of the US adults at
some point thought thought about

823
00:40:33,200 --> 00:40:36,000
starting a business and what
stopped them was the initial

824
00:40:36,000 --> 00:40:39,760
capital, whether you're buying a
food truck or renting place,

825
00:40:39,760 --> 00:40:41,800
leasing or investing into a
franchise.

826
00:40:42,200 --> 00:40:44,760
That's a big market for us and
it's a very credit driven

827
00:40:44,760 --> 00:40:47,120
market, right?
So we're able to provide someone

828
00:40:47,120 --> 00:40:50,040
anywhere from like 4050 thousand
to 200,000.

829
00:40:50,760 --> 00:40:53,760
Unlike Silicon Valley, small
businesses need kind of that

830
00:40:53,760 --> 00:40:55,760
much, right?
So it's rare for a business to

831
00:40:55,760 --> 00:40:59,120
need like $3,000,000 to start.
It's like usually small things

832
00:40:59,320 --> 00:41:01,960
for them to get starred.
That's a big market, startup

833
00:41:01,960 --> 00:41:04,640
market.
And it's based off of pre

834
00:41:04,640 --> 00:41:07,680
revenue, somebody's personal
credit and let's say they don't

835
00:41:07,680 --> 00:41:10,600
have the credit, we have a
credit repair and clearing

836
00:41:10,600 --> 00:41:13,560
monitoring services.
If they're willing to cooperate

837
00:41:13,560 --> 00:41:16,960
and you know they're open to us
helping them, we can get them to

838
00:41:16,960 --> 00:41:18,480
that level and provide the
funding.

839
00:41:18,680 --> 00:41:22,720
The second bucket is the small,
the true small business, right?

840
00:41:22,720 --> 00:41:27,280
Anyone generating 5000 a month
all the way up to 23510 million

841
00:41:27,280 --> 00:41:29,760
a month.
And that is a lot of times based

842
00:41:29,760 --> 00:41:32,800
on the time on business time and
business and the monthly

843
00:41:32,800 --> 00:41:33,960
revenue.
So as long as they're in

844
00:41:33,960 --> 00:41:36,920
business for as low as like 2
months and they're generating

845
00:41:36,920 --> 00:41:39,480
some kind of revenue, we're
willing to take a look at it.

846
00:41:40,000 --> 00:41:42,280
So if you look at those two
buckets, those are the biggest

847
00:41:42,280 --> 00:41:45,880
one, like small business, you're
talking about 3035 million small

848
00:41:45,880 --> 00:41:50,600
businesses and about 702,000 of
them being formed every single

849
00:41:50,600 --> 00:41:53,320
day in US.
Those are like 2 big buckets for

850
00:41:53,320 --> 00:41:55,040
us.
Yeah, that's, that's a wide

851
00:41:55,040 --> 00:41:55,680
number.
Yeah.

852
00:41:56,200 --> 00:42:00,120
Yeah, it's really encouraging,
Like it's a great time to be

853
00:42:00,120 --> 00:42:01,680
alive.
For sure.

854
00:42:01,680 --> 00:42:03,200
Oh, for sure.
Yeah, yeah.

855
00:42:04,680 --> 00:42:06,960
Are you, are you doing any
lending?

856
00:42:07,440 --> 00:42:11,560
So that's the, that's a good
description of the profile of

857
00:42:11,560 --> 00:42:13,240
the people that you lend money
to.

858
00:42:13,440 --> 00:42:15,880
What about the people that want
to get into business with you

859
00:42:15,880 --> 00:42:20,720
and help those businesses?
We have great lenders.

860
00:42:21,040 --> 00:42:24,520
So we usually, unless the person
or the company is from the

861
00:42:24,520 --> 00:42:28,160
industry, because we're we're an
alternative lending, some of the

862
00:42:28,160 --> 00:42:32,760
stuff investment applies to, you
know, standard lending or

863
00:42:33,120 --> 00:42:35,680
venture capital lending doesn't
apply to us, right?

864
00:42:35,680 --> 00:42:38,280
There's a certain element of
risk and the person needs to

865
00:42:38,280 --> 00:42:41,080
understand that.
So we usually keep it within our

866
00:42:41,080 --> 00:42:42,960
community.
So some of the deals that we

867
00:42:42,960 --> 00:42:46,440
fund through small businesses
personally come from my own

868
00:42:46,800 --> 00:42:50,640
funding because that's the path
that we show with our brokers

869
00:42:50,640 --> 00:42:53,960
that you can start and if you
want to make some side income or

870
00:42:53,960 --> 00:42:58,040
grow this and make real income
or get to a point of investing

871
00:42:58,040 --> 00:43:00,360
into the US small businesses,
which is what I'm doing.

872
00:43:00,360 --> 00:43:02,240
Like, yeah, we have the
training, we have the funding,

873
00:43:02,440 --> 00:43:06,400
but a lot of the deals that we
fund, we syndicate a portion of

874
00:43:06,400 --> 00:43:09,320
that from our own capital
deployed the capital, right.

875
00:43:09,560 --> 00:43:12,440
So we have members who reach
that level so they earn more

876
00:43:12,440 --> 00:43:15,000
than they need and they're
looking for an investment path.

877
00:43:15,000 --> 00:43:18,080
And they usually come to me and
tell me, Oz, do I buy a house or

878
00:43:18,080 --> 00:43:20,360
do I invest in crypto and things
like that.

879
00:43:20,360 --> 00:43:22,120
I tell me this is not financial
advice.

880
00:43:22,120 --> 00:43:24,040
Obviously you can do whatever
you want.

881
00:43:24,240 --> 00:43:27,280
What what I'm doing is I'm
putting back into the industry

882
00:43:27,280 --> 00:43:30,640
that I've been in for 10 years
because I would say I'm pretty

883
00:43:30,640 --> 00:43:32,200
knowledgeable on what we're
doing here.

884
00:43:32,680 --> 00:43:36,080
So that's how we operate the
lending part of that.

885
00:43:36,320 --> 00:43:39,560
Otherwise the lenders usually
unless they lead like a lot of

886
00:43:39,560 --> 00:43:42,120
capital, they can get it from
the banks for like a cheaper or

887
00:43:42,120 --> 00:43:44,560
venture capital firms for a
cheaper interest rate because

888
00:43:44,560 --> 00:43:46,960
they can calculate how much they
would make by deploying that

889
00:43:46,960 --> 00:43:48,560
capital.
In return, they keep the

890
00:43:48,560 --> 00:43:50,400
difference basically, right?
Yeah.

891
00:43:50,400 --> 00:43:53,400
But we were actively involved on
the coaching, qualifying,

892
00:43:53,400 --> 00:43:56,840
training and also funding those
deals, you know, collectively as

893
00:43:56,840 --> 00:43:59,960
business lending.
So what's the process like if

894
00:43:59,960 --> 00:44:05,280
someone wanted to 1st augment
their income by learning about

895
00:44:05,280 --> 00:44:10,360
being a business, a loan broker,
and then ones that see it's

896
00:44:10,360 --> 00:44:14,400
succeeding or want to get all
in, What's that process look

897
00:44:14,400 --> 00:44:16,880
like?
Well, we want them to understand

898
00:44:16,880 --> 00:44:19,320
all the entire aspect of
business loan brokerage, right?

899
00:44:19,320 --> 00:44:21,440
So people usually start what you
call them, refer and earn.

900
00:44:21,440 --> 00:44:25,040
They start by sending leads and
we close it and they see the

901
00:44:25,040 --> 00:44:26,640
potential.
They're like, oh, cool, this is

902
00:44:26,640 --> 00:44:28,960
really good.
They want to understand how the

903
00:44:28,960 --> 00:44:31,640
underwriting works and how the
funding process works, like how

904
00:44:31,640 --> 00:44:33,760
to close the deals.
And they go through that process

905
00:44:33,840 --> 00:44:36,680
either on their own or they hire
talent to grow up it right?

906
00:44:37,000 --> 00:44:39,400
Then we tell them, hey, you're
submitting, you know, funding,

907
00:44:39,400 --> 00:44:42,640
let's say 20 deals a month and
you're making money obviously.

908
00:44:43,000 --> 00:44:45,800
Now with this, why don't you
fund some of deals, deals like,

909
00:44:46,320 --> 00:44:48,960
you know, percentage of deals,
these deals from your earnings.

910
00:44:49,200 --> 00:44:53,520
So for, you know, let's say 50%
you get paid as a broker, but

911
00:44:53,520 --> 00:44:55,720
the remaining 50% you get paid
as a lender.

912
00:44:56,040 --> 00:44:58,720
That's.
Usually the transition for them

913
00:44:58,720 --> 00:45:01,920
to understand the full game, the
risk factors and what happens if

914
00:45:01,920 --> 00:45:04,080
someone defaults and things like
that, right.

915
00:45:04,320 --> 00:45:06,040
And who's a good underwriting
team?

916
00:45:06,040 --> 00:45:09,480
Because some lenders are amazing
on retention and collection

917
00:45:09,720 --> 00:45:12,920
while others are amazing at like
risk controls.

918
00:45:13,000 --> 00:45:15,960
So they only approve certain
files knowing that they will not

919
00:45:15,960 --> 00:45:17,400
default for the most part,
right?

920
00:45:17,680 --> 00:45:21,480
So all of that I tell them like
funding deals and making money.

921
00:45:21,720 --> 00:45:24,960
If you just, you know, put in
the work, it can take a couple

922
00:45:24,960 --> 00:45:27,600
of months.
But master in this industry, any

923
00:45:27,600 --> 00:45:29,320
kind of mastery takes time.
Yeah.

924
00:45:30,320 --> 00:45:36,400
And so is is the workout on
defaults generally handled by

925
00:45:36,400 --> 00:45:38,120
the lender?
Correct.

926
00:45:38,160 --> 00:45:40,760
Yeah, yeah, yeah.
They, they have the whole

927
00:45:40,760 --> 00:45:44,120
process built into their
contracts to follow up the

928
00:45:44,120 --> 00:45:47,920
collection units or
renegotiations, because that's

929
00:45:47,920 --> 00:45:50,360
what happened during COVID, for
example, right.

930
00:45:50,360 --> 00:45:53,400
There were in New York City many
merchants who had different

931
00:45:53,400 --> 00:45:55,920
funding options.
And a lot of our lenders just

932
00:45:55,920 --> 00:45:58,800
reached out to the merchants to
restructure the deals instead of

933
00:45:58,800 --> 00:46:01,440
going the traditional route of
collections because we were

934
00:46:01,440 --> 00:46:05,200
having an outlier event instead
of defaulting, you know, banks

935
00:46:05,200 --> 00:46:07,240
probably would have defaulted
you, but these are private

936
00:46:07,240 --> 00:46:09,720
companies saying that, hey,
Arthur, I understand you don't

937
00:46:09,720 --> 00:46:11,960
know what's going to happen.
Let's restructure this or delay

938
00:46:11,960 --> 00:46:14,520
this so it doesn't look like
you're defaulting about how much

939
00:46:14,520 --> 00:46:16,280
you can pay and things like
that.

940
00:46:16,280 --> 00:46:19,880
So it can be a lot more flexible
in that sense in a case like

941
00:46:19,880 --> 00:46:24,280
that.
Are you optimistic about and

942
00:46:24,640 --> 00:46:28,200
it's it's kind of a maybe not a
fair question because the answer

943
00:46:28,200 --> 00:46:31,120
is probably yes, but you
optimistic about your business

944
00:46:31,120 --> 00:46:33,520
in terms of growth?
Absolutely.

945
00:46:33,520 --> 00:46:38,160
Yeah, for sure, because we're
going to what what is happening

946
00:46:38,160 --> 00:46:42,040
is that this happened with the
start of COVID, right?

947
00:46:42,040 --> 00:46:44,640
We used to get a lot of people
who say, I love what you guys

948
00:46:44,640 --> 00:46:48,800
do, but I honestly like my job
and it's safe, like I get paid

949
00:46:48,800 --> 00:46:51,520
and things like that.
I think COVID eliminated that

950
00:46:51,520 --> 00:46:56,480
sense of safety net a lot.
And then now with the talks with

951
00:46:56,520 --> 00:47:01,080
AI, and I know a lot, a lot of
people are fear mongering.

952
00:47:01,400 --> 00:47:04,320
It might not be completely true,
but who knows, Probably the

953
00:47:04,320 --> 00:47:06,360
number of people who actually
knows how this is going to play

954
00:47:06,360 --> 00:47:09,120
out is not more than 100.
And most of other people are

955
00:47:09,120 --> 00:47:12,200
speculating.
But also that adds to the fear,

956
00:47:12,200 --> 00:47:14,240
especially from the aging
population.

957
00:47:14,240 --> 00:47:18,280
Like if you're in your 50s and
you really cannot foresee what

958
00:47:18,280 --> 00:47:22,240
AI is doing and you certainly
might not have the technical

959
00:47:22,240 --> 00:47:25,240
bandwidth to catch up with it,
but all you're left with is the

960
00:47:25,240 --> 00:47:28,920
fear of what happens, right?
And that creates people for

961
00:47:28,920 --> 00:47:30,440
that.
That creates the urgency to look

962
00:47:30,440 --> 00:47:33,240
for an opportunity that they can
either do it on the side or

963
00:47:33,240 --> 00:47:36,280
transition, right?
I think that's, that's as a

964
00:47:36,280 --> 00:47:37,560
company, that's what we're
leveraging.

965
00:47:37,720 --> 00:47:38,920
We're not trying to scare
people.

966
00:47:38,920 --> 00:47:40,960
We're like, hey, anything could
happen.

967
00:47:40,960 --> 00:47:45,720
We don't know, but what's your
plan if if it happens and you

968
00:47:45,720 --> 00:47:48,640
know, because at the end of the
day, what we do is a good fit

969
00:47:48,640 --> 00:47:52,200
for anyone who's hard working
and they want to build

970
00:47:52,200 --> 00:47:53,680
something.
This is not a get rich quick

971
00:47:53,680 --> 00:47:56,800
scheme or anything like that,
but it's not going to help you

972
00:47:56,800 --> 00:47:58,720
for a couch potato.
But if you're concerned about

973
00:47:58,720 --> 00:48:01,360
what you need to do and you
don't really have a solid plan,

974
00:48:01,720 --> 00:48:04,280
it makes sense to look into
financial literacy, whether you

975
00:48:04,280 --> 00:48:07,040
become a business loan broker,
but also understand how finance

976
00:48:07,040 --> 00:48:08,960
worse, how lending worse.
Is it better for you to get

977
00:48:08,960 --> 00:48:11,800
approved for a bunch of, you
know, 0% credit cards right now

978
00:48:11,800 --> 00:48:14,200
and keep it on the side in case
something changes in the next 5

979
00:48:14,320 --> 00:48:16,720
months or so?
That's what I urge people to do,

980
00:48:16,720 --> 00:48:19,720
whether they work with us or
become a business loan broker.

981
00:48:20,000 --> 00:48:22,800
Just try to don't try to
demonize debt.

982
00:48:22,960 --> 00:48:26,160
I know like if you reach, if you
listen to Dave Ramsey's talk

983
00:48:26,160 --> 00:48:28,800
about cutting your credit cards
and things like that, that's not

984
00:48:28,800 --> 00:48:31,640
a bad advice for the certain
segment of the population.

985
00:48:31,640 --> 00:48:34,080
But if you consider yourself.
A little bit of overkill, right?

986
00:48:34,480 --> 00:48:36,840
It's an overkill, right?
So if you're entrepreneurial,

987
00:48:36,840 --> 00:48:40,080
you also need to be familiarized
with how to grow through debt.

988
00:48:40,080 --> 00:48:43,440
Like I know many companies who
have massive debt, but they also

989
00:48:43,440 --> 00:48:45,480
have massive growth and they
know how to balance it.

990
00:48:45,480 --> 00:48:48,000
And that comes from
understanding how money moves

991
00:48:48,000 --> 00:48:51,560
and works and who who it ends up
with and things like that.

992
00:48:51,560 --> 00:48:54,640
So I just, I just encourage
people to not getting too

993
00:48:54,640 --> 00:48:57,480
scared, but also investing in
yourself and learn the tools

994
00:48:57,480 --> 00:49:01,280
that could help you.
You know, thanks for saying

995
00:49:01,280 --> 00:49:05,120
that.
I've had most of the people in

996
00:49:05,560 --> 00:49:10,560
that I'm in their orbit or
whatever are pretty savvy about

997
00:49:10,560 --> 00:49:12,520
money.
But I had an opportunity

998
00:49:12,520 --> 00:49:15,680
recently to speak to somebody
that really didn't understand

999
00:49:15,680 --> 00:49:19,840
money, who's normed right.
And we were talking about money.

1000
00:49:19,880 --> 00:49:22,440
And I said, well, money's just a
tool, just have to learn how to

1001
00:49:22,440 --> 00:49:25,400
use it.
And they looked at me like I

1002
00:49:25,400 --> 00:49:28,200
was, I had two heads and they
go, I never thought about it

1003
00:49:28,200 --> 00:49:31,280
that way.
In fact, that's all it is.

1004
00:49:31,280 --> 00:49:33,520
It's a tool.
And in the case where people

1005
00:49:33,520 --> 00:49:36,920
have heavy debt in a business,
it's because they're using it to

1006
00:49:38,520 --> 00:49:43,760
advance the the the timeline
rather than wait to fund it with

1007
00:49:43,760 --> 00:49:45,160
current revenue.
You fund it.

1008
00:49:45,160 --> 00:49:47,480
Yeah, it's that.
And as long as you the math

1009
00:49:47,480 --> 00:49:51,360
works out and whatever you're
paying for, it is not more than

1010
00:49:51,360 --> 00:49:54,000
what you'll get that.
I mean, it's an

1011
00:49:54,000 --> 00:49:56,320
oversimplification that probably
makes sense, right?

1012
00:49:56,920 --> 00:50:00,040
It does make sense.
Yeah, that's usually, well,

1013
00:50:00,040 --> 00:50:02,160
that's.
You might agree with this,

1014
00:50:02,160 --> 00:50:06,400
Arthur, but unfortunate thing is
many people in the US are

1015
00:50:06,400 --> 00:50:09,960
college graduates and then
almost no one is trained on how

1016
00:50:09,960 --> 00:50:13,160
money works, right?
So I remember being a biology

1017
00:50:13,160 --> 00:50:17,200
and chemistry major, I had to
take some of the odd classes and

1018
00:50:17,200 --> 00:50:20,440
one of them was like macro
economy and micro economy.

1019
00:50:20,960 --> 00:50:24,640
I was studying, I guess numbers,
but it didn't teach me anything

1020
00:50:24,640 --> 00:50:27,200
about, you know, how to save
money, how to make more money,

1021
00:50:27,200 --> 00:50:29,320
how to use debt.
Like the you would have thought

1022
00:50:29,320 --> 00:50:31,680
that they would want to
prioritize teaching me about

1023
00:50:31,680 --> 00:50:34,200
credit and funding versus micro
economy.

1024
00:50:34,440 --> 00:50:38,320
You would think you would think
right and learning it from

1025
00:50:38,320 --> 00:50:41,440
someone who's not actively doing
it someone basically and no

1026
00:50:41,640 --> 00:50:44,200
discredit to them.
But like when you're like you

1027
00:50:44,200 --> 00:50:46,720
said you're you're hanging out
with people who understand how

1028
00:50:46,720 --> 00:50:48,960
money works.
I would want to learn from those

1029
00:50:48,960 --> 00:50:51,760
people, but I had to do it
privately by paying for

1030
00:50:51,760 --> 00:50:54,280
masterminds or showing up in
rooms and networking

1031
00:50:54,280 --> 00:50:56,600
environment.
I'm not saying you can't do it,

1032
00:50:56,800 --> 00:51:00,680
but don't expect it from news or
some YouTube channels or people

1033
00:51:00,680 --> 00:51:02,800
in your circle.
It's just non existent right?

1034
00:51:02,800 --> 00:51:07,160
If you decide to, if your goal
is to become at the top 5% or 1%

1035
00:51:07,160 --> 00:51:12,440
of the the economy economical
power, that also means that 95%

1036
00:51:12,440 --> 00:51:14,520
of people around you have no
idea what tech you're talking

1037
00:51:14,520 --> 00:51:16,320
about, right?
So you have to take it with a

1038
00:51:16,320 --> 00:51:18,080
grant if you want.
To say they don't know, they

1039
00:51:18,120 --> 00:51:22,680
don't care, can't be bothered.
I mean, I've often said that

1040
00:51:23,000 --> 00:51:26,200
people are really not paying
attention to what's going on in

1041
00:51:26,200 --> 00:51:30,320
the world or in our country.
And it's not their fault because

1042
00:51:30,320 --> 00:51:34,160
they're busy making sure Johnny
goes to soccer, yes, getting up

1043
00:51:34,160 --> 00:51:36,840
and make sure the lunches are
made and making sure that you

1044
00:51:36,840 --> 00:51:39,840
get to work every day.
And after all that, there's not

1045
00:51:39,840 --> 00:51:43,320
much time to sort, to go deep on
anything for that matter.

1046
00:51:43,520 --> 00:51:49,080
So I I I give a pass to a lot of
people that don't. 100%.

1047
00:51:49,680 --> 00:51:51,520
To.
Your earlier comment when you

1048
00:51:51,520 --> 00:51:54,160
say that someone didn't
understand when you said money

1049
00:51:54,160 --> 00:51:57,760
is a tool, I'm not surprised
that's the case because for them

1050
00:51:57,760 --> 00:52:00,320
money is not a tool, it's an
exchange for the hours they

1051
00:52:00,320 --> 00:52:01,160
sell.
Right?

1052
00:52:01,160 --> 00:52:04,600
So like when they almost take it
like an insult when you say it,

1053
00:52:04,600 --> 00:52:07,240
it's like what do you mean?
I'm working like 60 hours a week

1054
00:52:07,440 --> 00:52:11,320
and I get paid, so my worth to
my company is measured in the

1055
00:52:11,320 --> 00:52:13,480
hours that I put in.
But you're telling me it's just

1056
00:52:13,480 --> 00:52:15,560
a tool, right?
That's why I think there's a big

1057
00:52:15,560 --> 00:52:18,320
discrepancy between someone
here, someone ultra well to talk

1058
00:52:18,320 --> 00:52:20,600
about money.
And then most of the population,

1059
00:52:20,760 --> 00:52:23,560
they almost get offended because
that's not their experience in

1060
00:52:23,560 --> 00:52:26,040
day-to-day life, right?
And it's never been taught that

1061
00:52:26,040 --> 00:52:27,920
way.
And if someone has that habit of

1062
00:52:27,920 --> 00:52:30,720
about money for the past 30
years, trying to break that

1063
00:52:30,720 --> 00:52:32,560
overnight is some kind of
challenge.

1064
00:52:32,560 --> 00:52:35,560
Yeah.
Yeah, and there's some some case

1065
00:52:35,560 --> 00:52:38,800
to be made for.
Look, people get jobs, they take

1066
00:52:38,800 --> 00:52:41,880
care of their family, they trade
their money, their time for

1067
00:52:41,880 --> 00:52:43,720
money.
Everything's cool.

1068
00:52:43,720 --> 00:52:46,800
Like it can be a very good way
to live.

1069
00:52:48,760 --> 00:52:53,920
And and it's not everybody that
can handle a little bit beyond

1070
00:52:53,920 --> 00:52:56,200
that, right?
I don't think any and not

1071
00:52:56,200 --> 00:52:57,880
everyone wants it though,
Arthur, right?

1072
00:52:57,880 --> 00:53:00,560
What I noticed that when I since
I hang around in entrepreneurial

1073
00:53:00,560 --> 00:53:03,640
communities years ago, I noticed
I made the mistake of assuming

1074
00:53:03,640 --> 00:53:06,160
everyone wants that.
I think a lot of people don't

1075
00:53:06,160 --> 00:53:08,280
want that.
They just want to save job and

1076
00:53:08,280 --> 00:53:12,200
they just want to go about their
lives and live in peace.

1077
00:53:12,200 --> 00:53:15,080
It's people like you and I who
didn't care about living long

1078
00:53:15,080 --> 00:53:19,600
enough, getting into finances
and money because the game

1079
00:53:19,600 --> 00:53:22,360
changes, right?
So you have a lot more stress.

1080
00:53:22,360 --> 00:53:26,200
You have to learn a lot more.
But I think the this broader

1081
00:53:26,200 --> 00:53:28,920
assumption that everyone wants
to be an entrepreneur is is just

1082
00:53:28,920 --> 00:53:32,920
not accurate.
It's not accurate, and I'm older

1083
00:53:32,920 --> 00:53:38,280
than you are, of course, but
even when I was a bit younger, I

1084
00:53:38,280 --> 00:53:43,280
always felt like my time was far
more valuable than what could be

1085
00:53:43,280 --> 00:53:47,080
traded in dollars, right?
So I didn't want it to be that

1086
00:53:47,080 --> 00:53:49,120
trade ever, right?
Yeah.

1087
00:53:49,440 --> 00:53:52,080
Just doesn't make sense.
But it's definitely a

1088
00:53:52,080 --> 00:53:55,280
perspective that's not
ubiquitous for sure.

1089
00:53:55,640 --> 00:53:58,000
Yeah, but I respect it too.
Some people just chew that.

1090
00:53:58,040 --> 00:54:01,400
That's perfectly fine.
That's why I don't like these

1091
00:54:01,400 --> 00:54:04,600
entrepreneurial gurus trying to
make the other rest of the

1092
00:54:05,000 --> 00:54:08,680
people feel like feel guilty for
just maybe wanting to spend some

1093
00:54:08,680 --> 00:54:11,560
time home or they don't have
those financial ambitious goals.

1094
00:54:11,560 --> 00:54:15,200
I know we live in a cap the most
capitalist country ever, right?

1095
00:54:15,200 --> 00:54:17,440
That I understand that it's a
part of the huge culture.

1096
00:54:17,800 --> 00:54:20,600
But like these bro shaming
basically like sometimes I

1097
00:54:20,600 --> 00:54:22,240
notice I'm like, dude, calm down
man.

1098
00:54:22,240 --> 00:54:23,680
That's OK If the guy is happy.
The guy.

1099
00:54:24,080 --> 00:54:29,120
It's totally OK.
Well, Oz, I really appreciate

1100
00:54:29,120 --> 00:54:30,840
you doing this today.
It was a really fascinating

1101
00:54:30,840 --> 00:54:33,000
discussion.
And I'm not just saying that I

1102
00:54:33,000 --> 00:54:34,240
really.
Thank you.

1103
00:54:34,240 --> 00:54:37,280
Appreciate it.
Really appreciate it and we'll

1104
00:54:37,280 --> 00:54:39,480
make sure everybody gets a
chance to connect with you if

1105
00:54:39,960 --> 00:54:43,040
they like and then share this
with with the community.

1106
00:54:43,760 --> 00:54:45,480
Perfect.
Yeah, If they want to look us

1107
00:54:45,480 --> 00:54:47,800
up, it's business lending,
blueprint.com, everything is on

1108
00:54:47,800 --> 00:54:49,840
our website.
We have a lot of free resources.

1109
00:54:50,280 --> 00:54:52,360
My YouTube channel is like 500
videos.

1110
00:54:52,360 --> 00:54:56,240
You can check it out then if you
think what we talked about kind

1111
00:54:56,240 --> 00:54:58,400
of makes sense, you can get in
contact and we can kind of take

1112
00:54:58,400 --> 00:55:00,640
it from there.
But Arthur, this has been a

1113
00:55:00,640 --> 00:55:02,080
pleasure.
You're an amazing host.

1114
00:55:02,080 --> 00:55:03,760
Thanks for having me You're.
Very kind.

1115
00:55:03,840 --> 00:55:06,000
Thanks for the kind words.
Appreciate it.

1116
00:55:06,000 --> 00:55:08,280
Hang on.
I'm going to stop this, but hang

1117
00:55:08,280 --> 00:55:10,000
on there a second.
Thank you everybody for being

1118
00:55:10,000 --> 00:55:10,520
here today.