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Education

David can beat and not necessarily a fit for merchants with good standing.
The way to remedy this is by leveling the playing field,
Goliath in the providing small processors and small merchants a fully
automated financing solution.
lending game The consumer experience can be greatly enhanced by
enabling smaller processors to fully leverage data they
have access to, streamlining what can be a very complex
process. What's more, merchant financing can be instantly
available to customers, taking advantage of the full
potential of said data to provide merchants access to
affordable, competitive financing products with the click
of a button.

To make this a reality, a third party with the existing
technological infrastructure would step in to automate,
underwrite, manage risk assessment and enable machine
learning, but would white label the solution with the
processor's branding. If done correctly, everything could
be completed in a few very straightforward steps, ensuring
a seamless experience for both processors and merchants.

Here are the steps:

By Sam Schapiro • First, the processor sends merchant data to the
third party.
Fundomate
• Second, via third-party technology, the processor
he story of David and Goliath may have bibli- can easily put pre-qualified, personalized
cal roots, but its core message – that the little underwritten offers in front of their merchants.
guy can triumph – is applicable in nearly every
T industry. When it comes to alternative lending, • Lastly, merchants land on a white-label platform
for far too long giant institutions have reigned supreme. and select the best option for their needs.
While that works for established businesses, what are
small to medium-sized organizations to do when they hit Of course, for security and regulatory purposes the third
a snag or need an extra bit of capital to get through rough party would require merchant verification, but after that,
patches? it would be as easy as connecting to their bank account,
enabling an instant automated clearing house money
It's no secret that big lenders – banks like Wells Fargo, transfer.
Bank of America and Citibank – favor large businesses
with proven track records when it comes to loans. Not Though large processors have had a monopoly on
only does that dissuade small to midsize businesses with reliable business loans up to this point, the advent of new
good standing from even applying, but it also puts smaller technologies, like automation and artificial intelligence,
lenders in an uncomfortable position as well, since they is helping turn the tide. If smaller processors can learn
lose access to a quality customer base. to leverage these solutions, they will not only grow their
businesses; they will also be in a position to compete with
In addition, most processors have a hard time competing the giants of the industry, setting the pace for the future
with behemoth processing companies because they of lending, while empowering merchants to stimulate the
don't have a full suite of services for their merchants or economy and reach their business goals.
endless budgets. However, merchant financing is a missed
opportunity that smaller processors can leverage, provided Sam Schapiro is the founder and CEO of Syndimate and Fundomate.
they find a way to streamline processes by leveraging new His 10 years of alternative lending sales experience resulted in the cre-
risk scoring models and the right technology.
ation of innovative cutting-edge funding platforms that benefit clients,
Fully automated financing partners and businesses alike. Being a visionary leader, Sam is currently
responsible for on-boarding key investors, partners and lead sources.
Revenue-generating merchant data could be used to provide Sam can be reached at sam@fundomate.com.
value-added services but is currently underutilized, and
current merchant cash advance programs are expensive

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