- 112% of merchants say their funding search began with a cold call.
- 2Every POS and merchant fintech product now embeds a funding button.
- 3State registration and disclosure rules have raised the cost of starting a broker shop.
Ten years after the original Year of the Broker feature, brokers are still in business, but the business looks different. Here are the main contrasts with 2015.
Sales and marketing
- Cold calling: 12% of merchants say they started their search for funding from a cold call.
- Google search: organic rankings are beginning to diminish in favor of AI Q&As.
- Training: AI can listen to every call and grade each component.
- CRMs: paper notes are obsolete; each interaction on a deal should be logged and automated.
- Leads: referral networks, such as CPAs, lawyers, trade associations and chambers of commerce, are more valuable than ever.
Market structure
- Competition: every POS solution and merchant fintech product now has a funding button built in.
- Commissions: remain high.
- Funding options: MCAs, SBA, term loans, lines of credit, equipment financing, real estate lending and other options.
- Gates: brokers may need to go through a super broker to reach a top-tier funder.
Regulation and costs
- Regulations: numerous state registration and disclosure requirements now apply; see the state regulations map.
- Startup costs: registration requirements in several states have significantly raised the cost of opening a new broker shop.
Source reporting: deBanked.
