Baxter Lanius, founder and CEO of Alternative, shares his philosophy on risk management and credit underwriting in fintech platforms.
0:00 / 0:05exact quote · 5.4s
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“Taking out, you know, as much leverage as what's available to you is not always the best strategy.”
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More from Baxter Lanius
PredictionNot checkable as stated
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%.”
Baxter LaniusApr 13, 2022▶ 18:23He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
Opinion
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…”
Baxter LaniusApr 13, 2022▶ 1:33He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
Insight
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.”
Baxter LaniusApr 13, 2022▶ 5:10He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
Disclosure
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…”
Baxter LaniusApr 13, 2022▶ 11:08He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
Disclosure
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%”
Baxter LaniusApr 13, 2022▶ 13:17He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
“My own personal capital is also in the junior tranche, not through the company.”
Baxter LaniusApr 13, 2022▶ 14:33He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
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