Everything Baxter Lanius said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Lanius expects Alternative to earn mid-20s IRR with a 10% net spread
“So we'll be able to earn probably mid, mid, mid twenties. And so our spread on our business is, you know, call it in a conservative manner, about 10%.”
Lanius: 2014-era fintech platforms lacked real product innovation
“At the time, I was pretty unimpressed with the platforms that were founded in that timeline because ultimately many of them were just customer acquisition moats and strategies around websites and podcasts and news, et cetera. And there were not really many com…”
Lanius: Pay-over-time financing reduces B2B pricing negotiation time by up to 50%
“When you think about pricing negotiations as well as part of the sales cycle, it is a significant portion of the sales cycle, and if you can limit that by 50% or 20% by allowing customers to pay over time, it's also an amazing value add.”
Alternative secured a credit facility with zero unused line or upfront fees
“And we ultimately don't have unused fees on our credit facility. So, you know, we have a basically a flat rate associated with deployed capital. There are no upfront unused fees and incremental spend, which I think you see in most obviously typical and traditi…”
Lanius: Alternative Chose an 80% Advance Rate Despite 90% Option
“Our advance rate is actually at 80% for a number of strategic reasons, but yeah, we had the ability to go up to 90%”
Lanius: Fintechs should not always maximize their available debt leverage
“Taking out, you know, as much leverage as what's available to you is not always the best strategy.”
Lanius personally invested directly in Alternative's junior debt tranche, bypassing equity
“My own personal capital is also in the junior tranche, not through the company.”
Alternative charges a 5% fee, advancing 95% of SaaS contract value upfront
“Our existing generic plan is, is six months of payment terms. So you would break that 10,000 dollar contract into six payments of about 1600 dollars. And we would front the capital to Salesforce on day one. So Salesforce is ultimately able to basically close t…”
Lanius: Alternative has raised just under $15M in debt and equity
“We've raised just under fifteen million dollars. A portion of that is in the credit facility. And so we fund that transaction through our credit facility.”
Lanius: Early-Stage Fintech Credit Facilities Typically Cost 10% to 18%
“I mean, it's more like 10 to 18%. Typically advance rates are between 90 and, or 80 and 90% depending on your credit underwriting ability, and there's also a credit box associated with all these transactions.”
Lanius: Alternative's blended debt cost of capital is 10% to 13%
“So the senior is just under 10% blended is to your .10 to 10 to 13.”
Lanius: Alternative had just over 10 active business customers in early traction
“So we have just over 10.”
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