Capital funding ranks up there as one of the most pressing challenges of an entrepreneur. Lack of funds is a common reason why some businesses miss the opportunity to scale.
Wayflyer breaks down these barriers by providing funding for businesses with scaling potential. On top of that, they also help sellers determine the next steps for their growth.
Amy Wees chats with Wayflyer’s Patrick Cleary on today’s featured Partner Spotlight video. They discuss funding qualifications, terms, and ideas for scaling your business. Watch their conversation:
How is Wayflyer Not Your Ordinary Lending Firm?
Wayflyer’s approach veers away from merely being a financing provider. How? Below are some of the additional services they provide their clients:
- Insights using data analytics, forecasting, monitoring, and more
- Auditing and marketing services
- Allow access to better deals with partner organizations, e.g. 60-day payment term with Tiktok, deals with Carro, etc.
- Help businesses scale off the Amazon platform
- Flexible interest terms – i.e. interest rates depend on the size of your business
- Long-term funding for fast-growing brands
Get The Funds and Spend Them Wisely
Financial support isn’t given to just anybody – even at Wayflyer. In fact, Wayflyer has a meticulous qualification process for businesses applying for a loan. They prefer profitable brands with a good amount of inventory on hand. They do not work with drop shippers. They get a percentage of your revenue for a given period or until the full loan amount plus interest is paid.
The strict qualification process is justified by the quality of assistance they provide. Wayflyer will not just give you the money and leave you alone with it. They will be heavily invested in your brand’s growth. They will give recommendations on where to best spend the money. They also help you bridge connections with partner organizations and open more avenues that will help you scale off Amazon. In particular:
- Putting up your website with eCommerce functionality
- Building your app
- Advertising on another brand’s website – particularly on those who have a similar audience as yours but are not competing with your product
- Wayflyer’s partnership with Tiktok allows clients to use the platform for their social media marketing with more flexible terms.
- Carro is another partner organization – this time helping multiple brands co-sell on their websites
Wayflyer has given out billions of dollars of funds to date – ranging from increments of $20,000 to six, seven, or eight-figure loans. Their flexible terms, low cost of capital, and value-added services make them a more attractive option versus ordinary lending firms. They can also continue funding even as the loan matures if they see continued growth. Wayflyer is deeply involved in moving the eCommerce industry forward by helping brands succeed with their support.
Is your brand showing great potential – but stumped due to a lack of financial resources? Get in touch with Wayflyer. They might hold the missing link to your growth.
Transcription
Amy Wees: Do you know what’s going on? I am here today with my friend, Paddy from Wayfarer. And wow, we’re going to talk about some really interesting aspects of growing your business. And those two aspects are first, the first one’s hard for everybody. And that’s gaining some funding to expand. Right. So we’re going to talk about the different types of funding you may have access to.
And then the other thing we’re going to talk about is, Wayfarer is such a unique company, because they have they got started. And I’m gonna let Paddy explain more about this in a minute here. But they got started in helping brands that weren’t traditionally Amazon, right brands that were, you know, Shopify, their own e commerce, websites, that kind of thing, helping those brands grow. And they’ve kind of fallen into helping now, people who are primarily on Amazon grow. But they got started helping these other brands grow. And they learned some key metrics that really assisted in helping those key metrics and insights and really assist in helping people grow. So we’re gonna talk about some of those key insights today. And, and I know that whether or not you you need funding or whatever, you’re gonna learn something about maybe some insights and some metrics that you’re not currently tracking that brands that have grown to become mega brands use to run their businesses. So I’m excited to learn today from Patti, I’m excited to learn about these metrics, because I am a numbers and metrics nerd, I love it. What gets measured gets managed. So I’m excited to talk to Patty about that today, as well as hopefully, you know, people need funding. Maybe there’s some people out there that that can can qualify for that as well. So welcome, Paddy. It’s so great to have you and why don’t you tell everybody a little bit about you?
Patrick Cleary: Yes. Well, I mean, firstly, thanks for million for having me on Amy, and hello to all your audience. And as you mentioned, it’s really important for us now to try to work and get in front of more Amazon brands, because over the last year or two at Wayfarer, and we’ve really focused on, we just didn’t necessarily focus we’re platform agnostic, we really just want to fund all ecommerce or any online businesses selling physical goods. And but we just started out with Shopify as that’s the first connector that we happen to build. And but really we’re agnostic and really looking at build relationships and help all online sellers. And but yeah, a bit about myself potty Patrick clear. Yeah, I’m from Dublin, Ireland and moves to the states, five or six years ago to work in finance, then quickly fell in love with E commerce and bought a few lucky choices and decisions around the way I ended up getting into a flow are quite early. And now I lead our partnerships in the US. And so yeah, I’m happy to jump in wherever you want. I think you mentioned you’re a stats person. And I’m guessing a lot of your audience are in the stats as well. And just in a very high level before even jumping into what we do a bit of background on the number of customers, we work with the amount of revenue we see coming through, and our platform or our app, so Wildflour how we get funding for our customers as they connect up their transactional data and marketing data, and customer analytical data. And then we use that to predict future revenue forecasts for each of those companies. And then we give advice, recommendations and funding and based off those data points that we collect, but just just back on your kind of love for a stat. I have some overweight look up our total amount of customers here. And this is just something I was looking at during the week that I found really interesting as I share that and love for yourself. But from our customer base we have and from collective at seven or 8000 customers as of last November, so we’ve grown quite a bit quite a lot since then last November. And Black Friday Cyber Monday we saw almost 3 billion it was $2.75 billion in revenue. Last November of true our customers and the platform’s we work with a lot of large brands, and ad have that number of the seven or 8000 so I can see that we have over 1200 of them are selling on Amazon, and some of them will be direct and pure Amazon players a lot of them though, because of our history will be and maybe a Shopify or Bigcommerce or Magento brand that also has Amazon stores. And more interesting just digging into those stats mostly for yourself, Amy is that I am We saw about half a billion in Amazon revenue on our platform, and was our biggest month, which was last December. So just an interesting fact.
Amy: That’s a, those are some big numbers, you, you have a B in there. Those are some big numbers, that’s exciting to hear that, you know, brands are doing well, and that you guys are helping them grow. So that’s, that’s cool. So I would love to know, when an Amazon went up primarily, and I don’t like to call them Amazon brands, because you know, it, Amazon is just a sales channel just like Shopify. But when we think about a brand, that’s primarily their primary sales channel is on Amazon, and they come to you how, how is it that you help them? Like how do you look at what they’re doing? And what is it that way fire actually helps them to do.
Patrick: So similar to yourself, we don’t look at any one customer as an Amazon seller or Shopify seller or brand or whatever. I wait because again, they are just distribution channels at the end of the day, and and the gold grow any brand, depending on what scale or size are, and wherever you’re at, and your lifecycle. And you will need to go into new channels and adapt and omni channel approach. And where it makes sense, and then where you can and at the right time. But what we’ve always focused on from day one is that we never wanted to be just a financing provider or someone that you could come in and get $100,000 and then pay us back and forget about it. And we always wanted to try out as much value to our customers and build a strong relationship with our customers. And that’s why when we first started with and say Shopify sellers are any direct consumer physical sellers. And we also have a data analytics platform. So from day one, and we were trying to add value to that customer by saying, okay, connect up your transactional data marketing data, and customer analytical data. And not only will we use that to underwrite the company, and decide how much funding we can give them, but we will also audit that account. And we have a full in house and team of marketing specialists that are x x, Facebook X, tick tock marketing professionals and they will go in and offer this to our customers and say, Look, if you want to sit down, we’ll do a deep dive, look at those accounts and see where you’re performing well, where you’re not performing well, what other brands are doing better that are working for them and just try add that value and build that relationship up. And, and that’s also led to us launching a lot of additional services to that customer base. And how we do that is, I think back to your original question about how we help Amazon customers today. And as we’ll always true those relationships we build to our customers. And we also monitor to see what challenges and pain points those customers are facing in real time. And for those challenges, and pain points that a lot of our customers are facing, they then lead us to say, Okay, well, this is a more macro problem for all sellers, we should be trying to address this and they can actually lead to us and putting teams. So we’ve raised quite a lot of equity capital over the last few years, which has put us in a nice position to be able to invest into our own teams. And we have I think, maybe over 100 people purely focused on building new products. And again, where we have we decided to build those new products is how, what new products can we develop in the we don’t want to grow outside of our core vertical, which is those direct consumer direct consumer. And sellers. So have you want to grow is by adding value add products that help our core customer base. And so one of them and to add on to the Keith kind of marketing insights and analytics and tools that we actually built a partnership with tick tock now that we get payment terms with tick tock that nobody else know their lending providers be able to get your know of anywhere else, you can get these payment terms in the market. As we’ve seen a lot of our customers struggle with other ad platforms, and with the latest updates in iOS 14 and 15. And that’s led them to go into their channels like tick tock and then we developed a relationship with tick tock and then we pass on 60 day net payment terms with 0% fee to all of our customers as they tested this new app platform. So it’s just an example of
Amy: Curious about that like what kind of things our brands doing and your brands that you’re working with kind of things are they doing on tick tock to move the needle?
Patrick: Yeah, that’s a great question. Look We have again 1000s of brands. So it runs the gamut of what vertical or niche they might be in and, and whatever that’ll obviously determine what they’re doing on the likes tick tock, but what I’ve probably seen work, work best. And this is anecdotally for a couple of brands that I’ve met, know, personally, and what I’ve seen work best is on tick tock they will, and just try to incentivize their customer base to to create UGC to create user generated content. And then, if any of those, so an easy way to incentivize a customer to do that would be, um, I don’t know, but give them 10% off, give them a discount for future purchases or something if they and or a
Amy: brand ambassador or something like
Patrick: Yeah, yeah, so, so standard practices like that. But then the nuance with Tik Tok is, so they’ve they’re posting it on tick tock. And because it’s very hard for a brand to, to come up with a tick tock strategy, it’s very new for him, especially depending on who’s running that brand. But if you can, if you can empower your customer base to do it. And that’s typically what performs very well on a platform like Tic toc. And then like by having, and I don’t fully understand tic toc either. Don’t use it too much. But I know that something can go viral very quickly, that there’s no way of really knowing what’s going to go viral. But if you can incentivize your whole customer base to put up a few videos and one of them goes viral, then you can actually choose that one video that one of your customers has created. So it doesn’t cost you anything to do that maybe it’s cost your free gift. And then you can actually take that video that you know is performing well on tick tock and actually throw out dollars behind this
Amy : gasoline on the things that are converting already organically, which works well across the board, whether it’s YouTube, or whether it’s Facebook, or you know, once you know that something is performing, like why not throw it out to a bigger audience. And you can do that with advertising, very smart. So you mentioned you mentioned you have this data analytics platform and you share data between between all of the different brands that you’re working with you, you basically compile that data and use it to those growth indicators to grow the different brands. I would love to know a little bit more about the metrics there like so what are the metrics that are the most important in growing in growing a business? So what should What do you guys track when you analyze a brand to see how much funding you can give them? You know, what does that look like? And what’s important when it comes to metrics?
Patrick: Yeah, of course, I mean, I think in our type of financing, it’s very important that and that a company is growing efficiently. And so what that means. So in our type of financing, we don’t take any, personally, we don’t take any personal guarantees, no covenants, will set junior to, to debt. It’s very founder friendly, and very little. And also, because it’s revenue based, it also means that if you’re, if you fail as a company, you don’t owe us anything, we don’t have any guarantees, you don’t have any liens on your assets. And so we have to really make sure that the customers that we work with are strong customers and strong brand or strong sellers that are going to do well and be able to pay us back. So what we look at in that instance, is being able to scale effectively. And what I mean by that is, and and the metrics that answer your question that that kind of boils down to is really what like how are you acquiring your customer? And so what is your customer acquisition cost? And what is that customer acquisition cost over time, relative to the lifetime value of a customer that you have? So that can change a lot of course, depending on what products you’re selling, if the classic example is if you’re selling a mattress, and that customer probably isn’t going to be repurchasing under their mattress anytime and soon but if you’re selling a subscription, toilet paper company which we have a couple of them JOAs which are great products and they’re recurring revenue coming in so you can actually a video mute there
Amy: subscription toilet paper.
Patrick: Oh yeah, what’s what’s a great one I think, who gives a crap might be might be one we have which is a jam.
Amy : I need to get into that business y’all subscription no paper I’m in?
Patrick: I mean, we’ve all we’ve all been there when you run it.
Amy: Where are we? Where are we going to? We love consumables, right? Where are we going to do something?
Patrick: Like we want to do? A health company, I believe, yeah,
Amy: we were gonna do which which my pipeline anyway, someday we will work together. We just been busy with other stuff. But it’s good to know that for our liquid health company that we were going to start, the most important thing is we look at how do we acquire customers? Right? Like, how are we getting? We’re getting them on Facebook? Are we getting them with ads? Are we getting them organically? Are we how are we acquiring a customer? And then number two, what is the acquisition cost? So for every customer, depending on how many ads we’re running, and you know what we’re spending to acquire a customer? What’s the cost per customer? And then what is that over time? Is that growing? Is it going up? We would hope that our customer acquisition costs in the beginning, of course, is going to be a little more expensive. But we would hope that we see that go down over time, right? Because then that means that we’re getting repeat purchases that aren’t costing us ad dollars that are you know, word of mouth is spreading. So yeah, that’s really interesting when it comes to a brand that’s primarily on Amazon. How do you calculate that? And do you calculate that?
Patrick: When it comes to so again, we haven’t focused just on Amazon, we’ve never just had a specific focus on that, I’d say where we add the most value to Amazon sellers today is that most Amazon sellers that come to us, again, aren’t just an Amazon brand, they typically do have other channels that they sell them. And if they started off on Amazon, they might be looking to grow into other channels, I think that’s where we add the most value is that that’s our specialty. That’s that’s our, that’s what we’ve analyzed pays, like I think we’ve done is over 30,000 direct consumer brands in the last two years. And, and we’ve helped them to scale who’s going to advise them. So we almost have, like our customer success team, which, again, thanks to the success we’ve seen over the last two years, we’ve been able to develop a lot of resource and put it into that team to add value those customers, so an Amazon brand, where we help them today is advising them to say okay, well, you were doing 70% of your revenue on Amazon, and you’ve just started doing 10 or 20%, off and on on your own branded site. What are the nuances there? What can we help you to understand what do you and what’s the low hanging fruit there that every other brand that is lives in this other world? Because there’s, I’ve only started to notice this over the last year or two, there are almost completely separate worlds of them, kind of people who just have been really successful on Amazon and have just kind of developed more, maybe what they’ve done is created more brands on Amazon if they’ve because that’s what they know, where they still have this really good underlying products that if you’re only selling it on one distribution channel, there’s so much potential out there and those other channels, I’m not just online, I mean, you could depending on your product vertical.
Amy: Great question for you there, like what channels you know, off of Amazon, do you see have the most promise for brands? Like what are what are brands doing that are in your portfolio, right that you guys are helping? What are they doing that are you know, outside of Amazon that are really what you’re seeing are some of the most powerful channels?
Patrick: Well, I mean, owning your own, like having your own website, of course, is is very important. That’s where we see most of our customers and building that your own brand and building your own customer list and customer base. And so you’re able to retarget to them at a much lower cost. Even you go a step further. What we’re seeing a lot of brands doing today is once they have once they’ve developed their brand and grow to a certain size, then it makes sense for them to not only have a website, but maybe have an app, and that has its own nuances to it if you have your own app. And can you is there’s a service called Tap car that we partner with that that helps brands typically you need to be doing maybe a million or more on your website for that to make sense. But then what value is added to you there’s you can you know, you know live on your customers phone, you have your own dedicated app that you don’t have to pay Facebook or Tik Tok or anybody to advertise within your own app because you you own that whole place. And so there’s those kinds of nuances. And there’s also we’re seeing a lot of customers again, the larger ones do maybe partnerships with other brands or even just doing placements on other brands, websites, so if you think about owning your own website and your, how you acquire that customer is you run ads and you drive, you spend money to drive traffic onto the website that you’ve created. And that’s fantastic. But all these other 1000s of companies are doing the same thing. And some company brands, some brands might have very similar audience, but not be competing with you on products. And, and they’re paying a lot of money to get the traffic onto their website. If you partner with that company, and you can get your product on their website, then that means you’re just getting more exposure, you’re getting more eyeballs on your products. And also, so there’s a company that partner with there as well. And be good friends with the team now called called Cairo, get Cairo dot.com. Car Oh, and they, they their software just enables that, and CO selling, let’s call it co selling between brands. So an example I like that there’s a there’s an electric bike company called Super 73 i and i have one in New York. But an easy example for them is they sell these bikes or these are, I guess higher end electric bikes, there might be two or $3,000 for different skews. And but again, the repurchase rate isn’t a huge amount, I’m not gonna buy a bike every two or three weeks. And but they’ve used this, they never do co selling where you can, you can lease out merchandise and stuff. But you can also buy helmets, they don’t denigrate helmets, but a popular helmet brand 1000s I think it’s called. And now sell all their helmets on the bike website. And I believe they do a lot of volume to that website. Because again, that makes sense. Intuitively, if I’m going to buy a bike, I’m probably gonna need to buy a helmet instead of me having to search or, or or me have 10 helmet brands fight for my fight for my five my attention by advertising to me over and over and spending money on Facebook and whatever else to try to get me onto their website. I’m already on this website buying the bike, and it hasn’t cost them, they just do a arrangement with that website. That’s something cool I see as well. Some of our brands doing Wow,
Amy: oh my I can talk. So we just got to do a whole show about this, because I want you to give me like I just learned so much that I didn’t even I didn’t even think about the app perspective for for brands to have their own app or the CO selling aspect is I mean, of course I thought about partnering with other brands and like you know, working together but in terms of actually building up your website to the point where you can sell something on someone else’s website like so much cheaper and you already had they already have the ranking your organic traffic so smart, I hadn’t even thought about that. Like, let’s just Can I mean there was so much gold and what you just in all those examples you just gave like I love it, let’s keep going
Patrick: through all the most important point about that as well. To keep note is you still own you still receive the customer’s information so you actually still fulfill the the order and in that scenario so if I’m on super 73 and I buy a peasant helmet, and peasants were still fulfill the order they’ll send me the helmet, and it makes it logistics easier. And then also they they receive my information and they can retarget me to emails or asked me to download their app or something.
Amy: Yeah, and you know the other thing that you guys are doing and just want to say hi to Rhea, Rhea, thank you so much for saying hello and reassess. 100% never put your eggs in one basket. All platforms have differences all I’ve seen sellers do very well and at the very higher priced products I agree at 100% like you shouldn’t just limit yourself especially in E commerce. And you know, Patti has given us all these good ideas about like you could put your your brand at another brands website and like you know get all that attention. You can have an app where you can follow up with your customers and have that you know software side that supports your product. You know, there’s so many different things that you can do. And what I’ve noticed that he brought up here is there are so many ways there’s so many companies out there that specialize in making helping you make that connection like you were talking about having a discount with tick tock for Tiktok partnerships we were talking about, you know this can help get carol.com The that where you can be able to they can help you get to partner with another brand and be recognized that way. I think there’s so many huge strategies that work today that we weren’t even thinking about right on Amazon, we think about PPC, we think about, yes, maybe I can grow my list off of Amazon a little bit. And maybe I can follow up so they can watch my next product on Amazon. But so many opportunities in growth off of Amazon. And yes, there’s more setup required for sure. But the the margin can be higher, and the snowball effect that happens is huge. Right? Like, yes, initially, you’re you’re getting started. But you know, I’m sure that you guys see that when you help with funding is, yeah, we’ve we’ve got some potential here. Let’s fund this. So let’s switch over to the funding side of things. When it comes to funding. Let’s talk about that. What do people use the money for? And what are you guys seeing that moves the needle the most and can create that that snowball?
Patrick: Yeah, of course, I’m sorry, there might be a bit of background, I am at a conference here. I actually at a CFO conference in Salt Lake. And typically we work mostly the CEOs and CFOs and brands. But to and that kind of ties up to your question, then what is the typical use of funds, and that our brands will take the money for and that’s our, the term of our financing is typically anywhere between kind of 469 12 months, and that’s for working capital needs, it’s very specific need. And that’s mostly inventory. Financing, or marketing costs really is what we see. And the challenge, which I’m sure is the same across any business, really, especially online businesses. And while you’re no matter what platform you’re on, and is that there’s a vary depending on your product, and how long the manufacturer they long takes to manufacture, and you have a different cash conversion cycle, the longer your cash conversion cycle is, the more difficult it is to finance that product. And if it takes longer to turn that product into profits, gets harder to reinvest. And that’s where our type of financing or and revenue based financing becomes very important, or very necessary to scale out a certain race. And that’s the main use cases, brands that are scaling quickly and miss out on their potential to scale quicker because they couldn’t buy a big enough inventory order or spend enough on ads or, or invest into going off or developing a new channel going off Amazon. And for example here is is the main main main. I’d say what we see customers using the funds or is that yeah, working capital. And I think I’ve gone a bit of a tangent. Yeah, the Yeah, that’s a it’s 70% of our customers are using our financing to purchase inventory. And then we mostly marketing are day to day costs. And it’s that certain crunch time is coming up. Like right now, for example, especially in the shop floor space. But any brand space, I guess coming into holiday Black Friday is where we see this, this is our busiest and few months, like in preparation for that, as all brands, no matter what how long or short their cash conversion cycle is. And they typically have a lower few months in preparation for their biggest few months of the year. And so that’s where their balance sheets get under a lot of stress or their or their cash balance gets under a lot of stress. And they need to use, and they need to use someone like us. And that’s where we’ve always prided ourselves on being as flexible as possible for each of our customers. So any customer that signs up away flyer, and creates an account, we will like it can be pretty much all automatic, all automated if you would like and but what we like to do is to what we’ve noticed over the last from the 1000s of customers we now work with, and it’s no customer wants to be fully automated. And it doesn’t actually add value to either side of it, because there’s only so much you can get from data. But what’s more important, really is actually talking to the founder to see what their specific need is. And so we do have a huge team of growth capital managers and then also customer success managers to figure out what is the need for that company because a company could come in to us and say I need $100,000 today, are you okay, well, what do you need that $100,000 for? And in some cases we might say, oh, yeah, you’re you’re spot on. That’s what we’d agree. Or might say yes, you only need 50,000 Or you could say you need 200,000 And also How would you structured? How should that be structured? Like, should we give you that right now? Or is it for an emergency purchase that, and you might only have to pay half of it this week, and then three weeks time is your next payment. So we’ll actually spread out those, and the time that we give you that funding, so we’re not charging you for giving you the full amount when you don’t need all of your capital. So those kind of bits of information, we need to speak to the founders as well and try to come up with a bespoke solution for them to take that for me.
Amy: So yeah, you kind of work hand in hand. And so that being said, like, I mean, as we’re coming into wrapping this up here today, let’s talk about who do you help, like, what kinds of brands are the right fit for Wave flyer, when you’re qualifying somebody to come in and work with you, Who’s your ideal client?
Patrick: I mean, our ideal client is now so over the last two years, we’ve done a very good job at, at our at choosing the brands that we work with, and keeping, making sure that everyone we worked with could take on the money and spend it effectively, as I alluded to at the start, which has meant we’ve actually given out over a billion dollars, the last kind of year, year and a half, to customers, and not a lot of them have defaulted, which has meant we now have the top tier one banks, giving us our desks to our customers. So our customers get access to the JPMorgan Credit Suisse, and give us our give us our debt, which is the lowest cost of capital than any kind of alternative financing provider in the space. And certainly any that I’ve seen. So what what that means is, we focus on her ICPs as kind of those larger brands, and doing upwards of I think some of our biggest brands are doing over 100 200 million, but we can go down as little as $20,000 in monthly recurring revenue. And we can work with anyone from in between, so 20k a month up to doing hundreds of millions. And we have slightly different products for the different size, merchants typically will need. We prefer profitable brands. But again, and as I alluded to earlier, if they have a really strong recurring element to it and have a really strong path to profitability, we can we can work with them. And we’d like to see inventory on hand as well. If the brand is out of inventory and waiting for him to to come in, it gets difficult for us to work with them right away. But in that scenario, we would just wait until that inventory order comes in, and
Amy: to work with them. Got it. And then
Patrick: which is actually important. Just one one last bit is we don’t we don’t work with dropshippers. And it’s one customer or one private niche that we can work in.
Amy: Got it. So you work with all sorts of brands, that, you know, lower five figure revenue a month, you know, and up. And, you know, you’re you’re kind of looking for them to have that inventory and stuff. You want them to be profitable. But there’s different scenarios where you can make things work. So let’s talk about funding fees. So you mentioned you know that you you mentioned a bragging point here, you said me we have the lowest cost of capital compared to any other alternative lender. So what does that mean low cost of capital? What are we looking at for fees?
Patrick: Yeah, I mean, this depends on the risk profile and the size of the merchant. But it can be as low as point 6% A month, up to maybe a percent a month. And then it comes down to how long the need for that funding is, if the brand needs funds, for six months, we might have a 6% fee, if they’re getting just keep it simple. And also to talk a little bit to the structure of our financing. Let’s say a customer takes $100,000 and we give them a 6% fee, not last scenario, then we will send them the $100,000 in cash, if that’s the ideal solution. We agree with them. So we’ll send them $100,000 cash into their bank account. And then, as part of that agreement, we’ll also and agree a percentage of revenue that we get paid back until that total amount is paid back to us. So that’s 130 106,000 in that case. Depending on the time and the size of the merchant, it could be anywhere between 1% and 10%. Let’s call it
Amy: Okay, which is fair. And, you know, if if you’re just if you’re flipping that money fast, it’s a very low percentage. So
Patrick: good. Yeah. And the importance I guess is and Figuring out with each brand, what makes the most sense for them. And if if they need it, because they use the phones, if it’s a if they want to put it into, like a, let’s say, if they’re using the funds to develop a whole new team or hire a team to go off Amazon. And that’s, that’s a much longer term project, and it probably doesn’t make sense to use our type of funding to fund something that’s not going to get a return on that revenue right away. But if it’s, you know, coming into Black Friday, you have no money but and you need money for marketing and know that you’re gonna have a huge day, if you spend that marketing, you might only need that from those funds for a month, and then those might just be paying a less than a percent fee on that, or anywhere in between. If it’s an inventory purchase, it could be four months for you to get that cash paid back. And, and then it gives you the flexibility as well to reassess kind of throughout that lifecycle of the relationship as well, if you’re, let’s call it 60% of the way paid back to us the scenario I mentioned earlier, let’s say you pay back $60,000. And, but things are actually going really well. And your brand is continuing to scale and continuing to grow. And you already spent all your capital again on reinvesting it into your brand, and purchasing more inventory personally more ads that are performing well. We’ll see that right away and say, Okay, well, we can give you more funding to keep that growth going. And, but obviously, that works both ways. And if it’s not going so well, and it gets more difficult to work together. And also doesn’t, we would never recommend brands who are having more systemic problem to typically taking more debt on. And if you’re struggling in many other ways, at death isn’t always the answer. And so typically, it’s brands that are having issues, scaling, and scaling too quickly that that that we are a good fit for.
Amy: Very good. And so I just want to bring up the website, I’m going to show it on the screen so that people see. And you can see that you can go to wave flyer.com And go check out everything that wave flyer offers. And you know, you’ve got your get funded and speak to an expert here. And Patrick, you mentioned that they can contact you at at your email, if they have some questions beyond this, and I’ll put that on the screen. That’s patrick@wayfair.com. So you guys can check that out and, and get in contact and just check out the website, read a little bit more about what they do. And they have a special deal for us. They said, If you mentioned Amy from amazing at home, you can actually receive 10% off your first piece of that’s pretty cool. Thanks for doing that. Patty.
Patrick: And thanks for you, me.
Amy: Very cool. Yeah. So I just want to thank you today for you know, spending some time with us and giving us some gold about what we could do different ways that you guys help brands grow and the different brands that you help and how you help them and I learned some new things that I think I might have to explore, you gave us some really cool options for different companies that helped make those connections. So I’m definitely going to check that out. And yeah, thank you for for spending the time today and for being with us. And and yeah, hopefully people reach out and and get some, some help and some assistance in growing their brands.
Patrick: Yeah, please do. My emails are open. And if you do just sign up, you just go to the website just mentioned Amy. And we’ll get that discount for you. Thanks for having me on and getting in front of your audience. And I know they’re very highly engaged audience and doing some great things and setting some really cool brands. So we’ll be able to work with more of them.
Amy: Yes, for sure. And you know, we hope to see you guys we’re doing a cellar meetup Christmas party coming up here December 14 in Austin, Texas, you guys can go to seller meetup.com and check that out. Come visit where your ugliest Christmas sweater. Because I always
Patrick: need a reason to go to Austin. So do send me the JH anyway. Yes,
Amy: December 14. I will follow up with you. And you guys come spend the holidays with us in Austin in December. We’d love to have you don’t forget to reach out to way flyer and get get some funding, get some expertise. See what’s available to you and and hopefully you learned a little bit on this live stream today and we’ll see you guys is next time and hopefully I’ll see some of you guys at the q4 party. We’re celebrating q4 with a ball drop next week in Miami. It is going to be so much fun. So get get yourself over. It’s q4 kickoff.com. So that’s those are the next to events I’ll be at and and hopefully we’ll see you guys there too. We’ll see you guys next time. Have a great rest of your day. And thanks again, Patti. Thanks a lot.
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