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When does it make sense for a middle -market firm to expand overseas? Join us as Stephen Sheinbaum shares his middle-market mind-set and reveals his plan to begin serving small business customers inside the Japanese market.
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Growth: The Ah-Hah Moment
The following is an edited abstract from the CFO Thought Leader podcast featuring Stephen SheinBaum, CEO of Merchant Cash and Capital, and Jack Sweeney, co-host of CFO Thought Leader.
SHEINBAUM: In 2013, we realized we had an aha moment and we realized that the market was missing something. There were a number of companies out there that we like to refer to as aggregators who aggregate demand or generate demand and then they act as lead gen companies almost and push them to funding companies like ourselves.
And then there are funding companies like ourselves that just fund deals and when demand comes into them, when they drive marketing or leads to themselves and they don’t have a product set to fit a particular merchant that comes to them for financing, they don’t know what to do. We happened to have a sales force and the funding company operating. We have a sales force that’s a wholly owned subsidiary and we saw that we were able to take advantage of that flexibility of being able to generate demand, fund what is within our box, but still even if it’s outside our box, facilitate that merchant getting funding from someone else in and around our space and it enabled us to monetize a lot more of our leads. Then when we were going out and we were talking to investment bankers about this, we also saw that the investment community was curious or concerned about the fact that aggregation partners had no preverbal sort of skin in the game and weren’t funding part of the deals.
Interview Links:
Merchant Cash and Capital
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