Alex Schwartz is the CEO of revenue-based financing fintech FunKite, discussing deal underwriting and target customer criteria with host Nathan Latka.
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“So our average deal size is about a 110,000 dollars. And this, these are companies that are doing between one and five million a year in annual growth sales.”
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More from Alex Schwartz
AssertionNot checkable as stated
Schwartz: 90% of merchant defaults are orchestrated by debt settlement companies
“Nine out of 10 of those deals that go into defaults are not because the merchant is running into issues. They're going in because they get the debt settlement companies call them and say, basically stop paying. We're going to negotiate for less, right?”
Alex SchwartzMar 21, 2024▶ 18:48Miami Based Fintech did $70m in 2023 Revenue - What about Gross Margin?
Insight
Schwartz: Revenue-based financing should be evaluated by capital cost, not APR
“The better way to look at this is, is the cost of capital. So, you know, I'm getting 90,000 dollars. I got to pay back a 100,000 dollars. My cost of capital is 10,000 dollars. That's the true way to look at this. And cause there is no term and that's really, r…”
Alex SchwartzMar 21, 2024▶ 8:12Miami Based Fintech did $70m in 2023 Revenue - What about Gross Margin?
AssertionPartly supported
Schwartz: LendingClub operates as consumer lead generation, not direct business funding
“So Lending Club is really not a funder.
It's a lot of them are like kind of lead gen.
So you're, they're gathering, they're telling you they're doing it, and then they send it out.
But Lending Club is not really a business funding.
They do it more personal stu…”
Alex SchwartzMar 21, 2024▶ 11:33Miami Based Fintech did $70m in 2023 Revenue - What about Gross Margin?
PredictionNot checkable as stated
Schwartz: FundKite targets deploying $300 million in capital during 2024
“That's 300.”
Alex SchwartzMar 21, 2024▶ 24:30Miami Based Fintech did $70m in 2023 Revenue - What about Gross Margin?
Disclosure
Schwartz: FundKite avoids trucking and bail bondsmen due to industry distress
“There's some industries that we don't cater to at the moment... Like transportation and trucking. They're really in trouble. Those guys are really having a big hard time right now. Getting by. We don't do bail bondsman. So truckers, transportation, and we've p…”
Alex SchwartzMar 21, 2024▶ 2:14Miami Based Fintech did $70m in 2023 Revenue - What about Gross Margin?
Disclosure
Schwartz: FundKite's receivables discount rate ranges from 10% to 28%
“Typically it can range from anywhere from 10 to about 28% discount. So depending on the risk factors that we're facing.”
Alex SchwartzMar 21, 2024▶ 5:23Miami Based Fintech did $70m in 2023 Revenue - What about Gross Margin?
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