MCA 2020
January capped one of the biggest months in the MCA industry in some time. Many of my clients are telling me they had record months in January. With success comes competition. People outside the industry see a tremendous opportunity to make a lot of money and are now entering the MCA space. As one funder put it to me on my trip to New York last week, “ there is zero barrier to entry, anybody with a phone and a little capital can get in the industry” Wall Street, in particular, seems to be making their way into the MCA industry. As Finra and the SEC continue to change the way business can be done and continue to put a hold on aggressive trading, many stockbrokers are being asked to leave the industry or are leaving on their own to start MCA firms. I spoke with several marketers last week who currently offer investment leads to several large investment firms and they are seeing a huge migration of stockbrokers into the MCA space. So with all this new competition coming into MCA how do you keep up the pace of funding new deals? What can you do to gain an edge on the competition?
1.Diversify your business. Do not just be a cash advance broker. Offer your clients products that will help their business and make them want to give you referrals. Help them with a credit repair product, a personal credit line, a collateralized loan. The more products you can offer your clients the more loyal they will become and continue to give you business and refer their friends to you.
2. Diversify your marketing efforts. With competition increasing, you have to use different types of marketing tools. Telephone prospecting, emailing, texting, brand building on social media, and partnerships are all ways to bring in new clients.
3. Establish partnerships with industry professionals who can refer you clients who they may not be able to help. These professionals could be Credit Unions, SBAs, Accountants, and local banks. The average cash advance broker is dialing the phone looking for the next merchant to give 10k to and missing a huge opportunity with these sources.
If January is any indication of what this year is going to look like, its going to be a great year.Make sure you have everything in place to have a edge on the competition.