VIP Capital Funding Blog - Your Business Working Capital Source

How Joshua Triplett Principal Managing Partner of VIP Capital Funding Helped Business Owners Obtain Over $100MM and Helped His Group Of Talented Consultants Thrive

Joshua Triplett has been in the financial industry for almost 7 years and has a plethora of knowledge in guiding small business owners toward the right solution. He first analyzes the business owners short term problems and creates a long term solution. The competitive advantage that he holds in the industry is by having a keen and empathetic understanding of a business’ needs and wants. This ranges from short term troughs that business owners must get by with because of the lack of capital at the time. In other cases, he will consult and tell a business owner to wait to improve areas of credit or cash flow if the offer presented by the lender is not attractive.

Joshua Triplett’s mindset based on identifying the problem and finding the best solution to the financial problem at hand, Through this approach he and his group have managed to help originate over $100 million in loans over the past 2 years. His reputation was built as being a trustworthy consultant that would aggressively get business owners offers that they deserve, and for the 5% who got declined he would help give advice for the business owner to follow so in the near future, the business owner would be approved. Joshua Triplett is a multi-millionaire and although money is rewarding, he is most fulfilled by being a great attribute to the economy by helping business owners seek working capital. He understands the sales process to a T, and through that, he has 6 trustful and highly skilled consultants who have duplicated his success. Because VIP Capital Funding is not as big as other financial companies they use their smaller size to their advantage by being more nimble. They are able to hire more talented people with higher salaries because they aren’t saturated with hundreds of mediocre employees. VIP Capital Funding is an elite group who is very effective at being personable and dedicated to their clients, and best of all they get the job done.

By having a deep grasp of understanding of the customer’s point of view Joshua Triplett and VIP Capital have been able to successfully originate hundreds of loans. Unlike banks who treat customers like a number or other merchant cash advance companies who read off scripts like robots; Joshua Triplett has been able to earn the customer’s trust through his performance and with that performance comes the confidence that business owners recognize and want to do business with. At the end of the day when a business owner comes to VIP Capital Funding for a small business loan, Joshua Triplett and VIP Capital Funding’s consultant delivers detailed consultations tailored to the business, and it’s industry nu solving financial problems. These problems could be a plethora of things such as capital for expansion, new hires, accounts receivables, strengthening the business’s cash flow. As a result, Joshua Triplett Owner of VIP Capital Funding and his consultants create great value in the economy of the 30.7 million small businesses in the United States.

August 7, 2020

How Merchant Cash Business Loans Are More Beneficial for Small Businesses than Bank Loans.

First, breaking down interest rates and repayment Merchant Cash Advance On average you will see factor rates on MCA’s between 1.25-1.499. For simplicity matter that is 25%-49.99% Interest rate. That may sound like a lot, and it is a lot for the personal consumer who is paid hourly or salary. But for a business owner who is using the capital to invest and reaping 100%-400% returns, then the cost of the capital makes sense as a profit is being made, not to mention the interest rate is a tax write off. Another benefit to this is that the interest is simple unlike a bank with hidden balloon interest who will have you running in place for years until you even begin to touch the principle. That comes out to he more expensive and disadvantageous for the business owner

Let’s take two product examples:

Bank Loan Amount: $200,000 Interest Rate with balloon: 15% APR

Repaument Type: Monthly

Term length: 60 months

Total Payment: $349,175

Interest Paid: 149,175

Prepayment penalty

Merchant Cash Advance amount: $200,000

Interest rate: 30%

Payment type: weekly or Daily

Term Length: 15 months

Total payment: $260,000

Interest Paid: $60,000

10% payment discount

From the two examples shown you will see that although a bank term is longer it is more expensive and less flexible as far as the repayment type is concerned a daily r weekly payment is a better for for small business for book keeping purposes. portunity cost of taking out a MCA loan every year with a preayment discount far outweighs the restrictions that a bank will put on your business not to mention your assets they want to hold at their fingers tips.

Now, look at the opportunity cost for taking out an MCA loan every year with a prepayment discount far outweighs the restrictions that a bank will put on your business not to mention your assets will be held at their fingers tips. Ideally speaking you want synergy with a bank loan with an MCA to cover both long and short-term expenses, and lastly do not overleverage your cash flow with MCAs that puts your account in quicksand. Use debt responsibility. At VIP Capital Funding, we will advise and put you in the best possible position to succeed. In summary: A Merchant Cash Advance gives you more capital overtime this growing your business faster, with no-prepayment discount, it can be cheaper in the long run compared to a bank loan, the funding process is a lot faster and there is no personal guaranty. The list could go further here but I will stop here.

August 5, 2020

Banks vs MCA | Merchant Cash Advance

A cartoon of two people sitting at a table

â€œNow that you signed all your assets to the bank, â€ I am happy to lend you your bus fare home.â€

When you have a merchant who is trying to compare a bank loan to a cash advance us these sales tools to help the merchant understand they are comparing apples to oranges:

-A bank loan will allow interest to write off, whereas an advance allows a loss write off, why? We are advancing the merchant based on their future receivables at a discount, therefore taking a portion of their future profits, the tax writes off when comparing is night and day, the advance gives the merchant a substantially larger tax incentive to help minimize a tax burden at end of the year.

-The bank loan wonâ€™t allow you to take additional funding year over year, an advance will.

-A bank loan wonâ€™t allow you to pay off early with a prepayment discount, our advances will.

-A bank will want the collateral the majority of the time, an advance will not.

-When a merchant tries to compound the fees on the advance to a factor they always will say the interest rate is way too high, throw this back at them and see what they think. Convert the loan they think they are going to get into a factor and show them how much more expensive a bank loan is when compounding the interest over years.

For example:

A 250,000 advance over a 12-month term at a 1.30 factor will cost the merchant 75,000 in fees annually, not including if they payoff early and get the discount. The 75k in fees is tax-deductible. The merchant will also qualify for another 250k obviously if they have made their payments on time and their revenue is still in line. Over the course of just say 5 years, we will be able to give this merchant 1.25 million dollars and a 375,000 write-off.

Now take a commercial bank loan, letâ€™s say itâ€™s 250,000 amortized over 10 years at 8%. The merchant will make 120 monthly payments at $3,033, for a total of 363,960. A TOTAL OF 113,960 In fees. Now divide that number 363,960 by the amount they took 250,000, comes to a factor or 1.45!!! The interest writes off on this annually is minimal only 19,385 in the first year, compared to a 75k write-off from a cash advance. The bank isnâ€™t going to give them another 250k each year either!

Now tell me if the merchant could potentially grow their business more in just a 5-year span, with a bank loan or cash advance? 250k with minimal benefits, or 1.25mill with a long list of positives.

Itâ€™s all about educating the merchant as most donâ€™t understand how this financing really works.

Hope this helps!

August 5, 2020

The value in having a good broker or consultant working for you in obtaining a business loan.

Analogous to having a good broker or consultant work for you is like having a good lawyer represent you in court and not a public defender your chances are slim without a good lawyer. Another example is an athlete without a sport’s agent who can negotiate and find the best contract for the athlete otherwise the athlete would get clobbered because he has no inside knowledge of how the industry works. In the alternative small business loan space this same concept applies, a good broker will value your business long term, and because of his or her expertise in the industry will have the foresight to know what may seem like a good solution at the time will be a cliff fall in the interim future. A good broker will measure all of the options available and make the proper judgment on how well the small business loan will benefit you. At VIP Capital Funding our consultants are experts in their craft with decades of experience, who strive on keeping long-term relationships with their clients to keep the business owner’s company strong. At VIP Capital Funding our consultants are experts in their craft with decades of experience, who strive on keeping long-term relationships with their clients to keep the business owner’s company strong.

Unlike many brokers in this space who are in it for a quick buck with no disregard for the health of the business owner’s company, VIP Capital Funding and it’s a group of consultants identify the problem and work to present the best long term solution that is mutually beneficial for all parties involved; the bank/investor/broker/borrower. That is what good business is all about when everyone benefits. Vise versa a bad deal everyone loses that is why we think outside of the box to make the best deals happen for our business owners. This creates great value in the economy as business owners have people who depend on them for their livelihood; so with that mindset in mind, we only want to give the best. There have been countless times where we have advised business owners to be patient and not take the deal that would solve the problem in the short term but wait a few months when revenue and credit score picks up to land an even better deal. This builds trust and confidence in the relationship between the broker and the client because now the client understands that the broker isn’t in it for the money but to solve a problem. In the economic marketplace, you are paid in direct proportion to the problems that you are able to solve, and in our case, we solve massive financial problems where many people will be let down if the business doesn’t succeed.

At VIP Capital Funding, our mission is to empower small businesses by providing them with smart and secure financing solutions. We are fully dedicated to delivering world-class service to our clients, ensuring their business growth objectives are met.

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