Tag Archives: Finance

Handling rapid growth

Nearly every time I write the word “rapid”, I spell it “rabid” first.  Not sure whether that’s a subconscious slip or just muscle memory, but I paused for a minute writing the title because “rabid” might be a better word in this context. How does a company, particularly a newer business, deal with rapid growth? […]

CFPB Update: BMO Harris Bank switches to flat fee participation

With the CFPB pushing to change the dealer income model in the auto industry, it seemed inevitable that lenders would adjust.  The question was who would get the ball rolling?  The answer: BMO Harris Bank.  (For previous discussions of the fight between the CFPB and the auto industry, see all the links here.) As reported […]

Origination for sale vs. portfolio

Can it be said there is a best lender structure in a given marketplace? For example, is there an inherent advantage or superiority to the loans originated for sale model versus loans originated for portfolio?  As a contractor, should you care which model your lender uses? Originating loans to hold in portfolio is the traditional […]

What is the price or cost of easy?

Guest Post by Tim Thiel, Account Executive–North Region   If all outcomes are the same then easiest is best. But if the outcomes are different, what is the price you are willing to pay for easy? Fifteen years ago, a typical home improvement salesman left a house with not just a credit application but a […]

As the CFPB turns

Schadenfreude – noun, often capitalized: a feeling of enjoyment that comes from seeing or hearing about the troubles of other people. Auto dealers everywhere, and possibly the banking industry in general, had to choke down some strong feelings of schadenfreude a couple weeks ago.  The CFPB, after months of emphasizing its proxy methodology for determining […]

Free Soda: Is Easiest Always Best?

Guest Post by Tim Thiel, Account Executive–North Region. Recently, I had the pleasure of presenting Medallion Bank’s no cost/no fee Home Improvement Lending program to a group of contractors through one of our manufacturer relationships. Before I got started, I offered a cold soda to the audience members. In the conference room were two simple […]

Ally unexpectedly “wins” battle; war on dealer payments undecided

(For background on the auto dealer participation battle with regulators, see our previous posts on the topic.) As the brouhaha on auto dealer participation reached its peak in late 2013, the CFPB claimed a victory with a $98 million settlement of discrimination claims against Ally Financial.  But now that the details are out, it appears […]

Staged funding is not a requirement, part 2

In the last post, we left you hanging with the assertion that staged funding is not a requirement to do business in our niche.  Before we can show you why, we need to quickly go over a couple of financial analysis and commercial banking topics. Opportunity Cost This question is one of trade-offs.  When evaluating […]

Salesperson incentives and promotional financing

In the last few years, the percentage of contractors relying on promotional finance options seems to have increased significantly.  We haven’t done a study, but we recall the good ol’ days when promotional options were exactly that: promotional (and infrequent).  However, times were difficult during the recession and sales were hard to come by.  This […]

Constructive Tension

One of my favorite elements of the Medallion Bank work culture is the concept of “constructive tension”.  Constructive tension is about designing the organizational structure in order to regularly have employees pulling against each other.  At first blush, this sounds counter-intuitive.  Isn’t that like having two oarsmen in a boat pulling in opposite directions? To […]