On March 27th, Total Merchant Resources CEO, Jason Reddish, appeared on CBS2 NY to discuss 401Ks and retirement accounts when faced with volatile markets due to political uncertainty.
Dec 2, 2016 / Piscataway, NJ – An old name in the industry is now a new kid on the block with wholesale. Total Merchant Resources in Piscataway, NJ announced today that it is finished with a first round of funding and has secured $20 million in private equity. This new designation allows TMR to quickly and easily service ISO’s from coast to coast via its wholesale funding division, TMRNOW.
“We are thrilled to open our very successful funding platform to the entire industry. In addition, TMR is now perfectly positioned to do business in California since we are one of the few in this space to obtain a California lending license.” said TMR Co-Founder and CEO Jason Reddish.
Reddish and co-founder Val Pinkhasov, who were featured on CNBC’s ‘Shark Tank’, were among the very first business lenders to enter this space. They are a respected name in the industry and, thanks to their major prime time TV appearance, have brought attention to this underutilized model for businesses to obtain working capital.
“Funding on the retail side all these years, we understand where funders have failed in the past and being that our money is completely private, we have no one to answer to in regards to underwriting. We create our own programs and common sense pricing. We look forward to being a name that ISO’s can trust on every level and making common sense, in house decisions” says Val Pinkhasov President of TMR.
Both Reddish and Pinkhasov have several decades of finance experience and have helped thousands of businesses achieve their goals. They are now excited, in a properly regulated fashion, to do so in on the wholesale side. Please visit TMRNOW.COM for more information.
For more information call Gary Lane +1 (212) 220-9872.
Two years after their appearance on the popular TV show, Shark Tank, Kerry Lutz of the Financial Survival Network interviews our CEO, Jason Reddish, two-years after Jason and Val appeared on Shark Tank. Jason talks about lessons learned, how business increased 500%, and how their experience on Shark Tank and their dealings with all the Shark’s shaped the days, months, and now years after the show.
Total Merchant Resources supplies working capital to small business for any reason. Fill out our quick app in the sidebar of this page and get a preliminary approval in 24-48 hours, or contact us by clicking the orange box below on your mobile phone to speed dial our office and an account manager will qualify you and get you the capital you need fast.
WWNN 1470 Palm Beach radio talk show host, Michael Blum, interviewed Total Merchant Resources CEO, Jason Reddish, on Monday, March 21, 2016 about TMR’s appearance on Shark Tank, as well as the Total Merchant Resources merchant cash advance and merchant services platform. Jason also shares his view on the question Blum poses about the perceived demise of the middle class in the United States and how Total Merchant Resources programs can assist workers transitioning into their own businesses with funding after they are in business for over 3 months.
If you’re looking to fund an expansion, temporary payroll needs, or to make a large, capital-intensive purchase, contact us now and we’ll work with you to get the funding you need.
On March 2nd and 3rd, Total Merchant Resources attended the Jet Line Products conference at the Renaissance Hotel in Woodbridge, NJ. Jet Line Products is a family owned and operated full-line wholesale distributor of swimming pool supplies and equipment, whose clients include swimming pool builders, pool service businesses, and retail stores.
[dropcap]P[/dropcap]iscataway, N.J.-based merchant cash advance (MCA) provider Total Merchant Resources LLC appeared on the Oct. 25, 2013, edition of the popular venture funding game show Shark Tank and walked away with $200,000 in capital and a new celebrity business partner. One month later, they are pleased with the dramatic uptick in their business that ensued.
TMR co-founders Jason Reddish and Val Pinkhasov pitched their MCA solution to five Shark Tank panelists, including Mark Cuban, high-profile owner of the Dallas Mavericks, and Canadian businessman and venture capitalist Kevin O’Leary. Reddish and Pinkhasov said TMR’s strategy is to offer merchants upfront capital for a percentage of the revenue from their bankcard receivables as a way to then become the processor of all their electronic payments.
The TMR executives initially sought $250,000 in funding from the “sharks” for a 20 percent stake in the company. Four of the panelists declined the opportunity before O’Leary, who is known as “Mr. Wonderful” on the show, agreed to invest $200,000 for 50 percent equity. Reddish and Pinkhasov were initially resistant to the offer, but finally agreed to take on O’Leary as investor and business partner.
Life in the tank
Pinkhasov said he and Reddish were among approximately 150 small business owners and entrepreneurs out of 37,000 applicants to be picked to pitch on this season of Shark Tank. The co-founders provided an audition “tape” and then underwent what Pinkhasov called a rigorous application process that included financial statement reviews and background checks. However, when the co-founders pitched to the “sharks,” the panelists knew nothing about TMR or its MCA product.
Pinkhasov said the panelists responded positively to their value proposition. “We use common sense to get [merchants] the money that they need very quickly,” he noted. “And the payment terms are what they are. They can use that money to create jobs, by hiring new people, or buying equipment – and just help improve our economy. And that’s what [the panelists] liked that there was a true necessity in our economy for financing businesses the way we do.”
Reddish added that when Hurricane Sandy hit the East Coast in October 2012, TMR shut off its MCA program for merchants who were flooded out or otherwise incapacitated and unable to conduct business. Merchants with bank loans to pay off had a tougher time. “If you had a bank loan, think of all the hoops you had to jump through to even get to the person at the back-end to work with the business,” he said. “And that’s the relationship that’s missing right now in the financial world.”
Hook, line and sinker
Despite TMR being chosen by O’Leary as worthy of his backing, Reddish said being selected for the show was the biggest accomplishment. “I think the home run was getting on the show in the first place with no [physical] product,” he said. “And getting attention to this industry. It’s amazing how many business owners still don’t realize this [MCA] is an option.”
On the surface, O’Leary could be viewed as getting the better of the deal, as a 50 percent interest in a growing business can result in a lot of money for little work. Reddish said he and Pinkhasov thought the same thing at first. “Looking back on it, we were thinking so small,” Reddish said. “We’re very happy just to have him involved. Good will is priceless. And it’s very hard to establish. And the celebrity of his name and his credibility, you just can’t put a price tag on that.”
Expanding beyond the pond
Reddish said TMR, which processes payments via North American Bancard, is in the process of becoming a full-risk ISO. TMR opened its doors in July 2011 and has reportedly provided over $2.8 million in funding to merchants in that time. TMR’s goal is to become a super ISO by leveraging O’Leary’s influence and contacts to land larger processing contracts from larger merchants.
Since doing the show, TMR has been inundated with new business and other inquiries. “In one week we’ve gotten the equivalent of about seven months worth of business,” Pinkhasov said.
With O’Leary’s resources under sail, TMR is seeking to expand nationally. “What we’re looking to do is cookie-cutter branch platforms around the country, where people can become self sufficient and build their own books of business,” Reddish said. “We offer aggressive enough splits where you’re piggybacking off of our relationships. The amount of money you would be making on our split is more than the amount of money you would make at 100 percent trying to do it on your own.”
Recently, when I sat down to watch the ABC reality show “Shark Tank” with my children, I was surprised to see a merchant cash advance lender, Total Merchant Resources, pitching the Sharks. Typically, the companies that present on the show offer a unique service or product. Instead, Total Merchant Resources is a “me too” player in the highly commoditized and competitive alternative-lending industry.
After some negotiation and discussion, Kevin O’Leary, a shark/investor known on the show as “Mr. Wonderful,” agreed to buy a 50 percent stake in the company for $200,000. As a loan broker, I know quite a bit about the cash-advance industry. While there are stories about how these loans have helped businesses grow despite the prices of the loans, I have also seen the negative impact they can have on small businesses. I was eager to understand what Mr. O’Leary was thinking, and I decided to contact him after the show aired. When I spoke with him, he told me that while the investment was not completed, everything was proceeding as planned.
Total Merchant Resources, like hundreds of other companies in the cash-advance business, is essentially running an unregulated bank for business owners. Based in Piscataway, N.J., it lends money to small businesses based on their credit card receivables. Sometimes, these loans are the only source of financing available to struggling small businesses, but they generally come with very high annual percentage rates — as much as 50 percent or more — and with very short amortization periods. As a result, these loans can put small-business owners on a high-interest treadmill that can be tough to get off. They can even ruin companies.
Mr. O’Leary explained his logic by saying that he was O.K. with participating in this endeavor because a market has been created for these loans since the recession. He said that his due diligence determined that there were about 20 comparable companies whose rates were all within 2 or 3 percentage points of each other.
I think that Mr. O’Leary’s due diligence might have been right, say, six months ago, but there has been some innovation and progress among alternative lenders over the last few months. We’re seeing companies such as Dealstruck, Fundation and Funding Circle come into the market with products at much lower rates than those offered by the cash-advance lenders and with much longer amortization periods – some as long as four years. And the market is expected to heat up further with the widely anticipated entrance of Lending Club. When I raised these issues with Jason T. Reddish, chief executive of Total Merchant Resources, and Val Pinkhasov, the company’s president, they said they expected the new players to strengthen the market.
On “Shark Tank,” Mr. Reddish and Mr. Pinkhasov gave an example of a client that needed $18,000 for a new air-conditioning unit for its tanning salon. The lenders suggested that they came to the client’s rescue by offering quick money — albeit at an expensive rate and with the requirement that the money be paid back quickly. The tanning salon chose to take the cash advance. But I wonder whether the client knew about the new — less expensive — players in the market and whether it might have been able to save money and improve its cash flow position by choosing a different option.
In my loan brokerage, we often get calls from borrowers like the tanning salon who are in tight spots and need money quickly. And there certainly are times when we put clients who have no better option into cash-advance loans. But even within the cash-advance industry, our experience is that the market is not as tight as Mr. O’Leary seems to think. One player in particular, IOU Central, offers borrowers a one-year term loan at an all-in annual rate of about 21 percent. This is considerably cheaper than other players in the market.
And there is yet another new platform in the market, SmartBiz, that is offering loans through the Small Business Administration Express Loan Program. These loans are typically for less than $25,000 with a 10-year amortization. And it can take as little as five days to close the loan.
If you had the option to borrow $25,000 and pay it back at an annual percentage rate of 8 percent over a 10-year period or to take the same money and have nine months to pay it back at an annual rate of 50 percent or more, which option would you pick? Is Mr. O’Leary backing the right company? If you had the money — and Mr. O’Leary’s brand name — would you have made the same investment he did?
If you missed Friday night’s episode of Shark Tank, you absolutely must catch a rerun of it. Jason Reddish and Val Pinkhasov came on the show to pitch their merchant cash advance company, Total Merchant Resources. It was one of the best few minutes in merchant cash advance history for several reasons:
- Mark Cuban, the 213th richest man in the U.S. feared the growing popularity of expensive short term financing would invite tough government regulation.
- Kevin O’Leary understood that there were no barriers to entry and thus anyone with money can get into the industry.
- Robert Herjavec thought the capital was too expensive for small businesses.
- Kevin O’Leary said that non-bank alternative lenders like Total Merchant Resources were necessary to keep businesses afloat.
- Jason Reddish went at the Sharks like a Shark himself.
TMR walked away with a rather small 400k valuation through the deal they made with Kevin O’Leary that gave them 200k for 50% equity. It was O’Leary’s claim that his connections and capital would blow the lid off their business that was too good to pass up.
O’Leary had a compelling argument for why his terms were non-negotiable. Anyone can be in this business. The valuation itself was moot because two guys with a relatively small operation just became partners with a famous venture capitalist worth $300 million. Had I been in their circumstances, I would’ve taken the deal as well.
At the end of the day, there are a lot of profitable ISOs and small funders. Pinkhasov and Reddish did what no one else to date has done, gone on TV and pitched Mark Cuban on merchant cash advance. And for that, they will go down in history. We’ll follow their story as it develops and I invite them to e-mail me if they’d like to comment.
You can follow the thread about their appearance on the show and find the link to the video on DailyFunder.
No doubt about it, TMR (Total Merchant Resource’s) is going to completely change the Shark Tank Show in a very positive and big way starting this Friday Night on Episode 509. If there’s one thing all small businesses need is the access to working capital to keep the business afloat in lean times or to buy a much needed piece of equipment that would greatly pay off in the long run.
You have orders pouring in at a steady rate but you also have a lot of money going right back out making sure you keep all you’re vendors happy “first”. It’s a constant tug-of-war for a lot of Small Businesses stuck in this trap from taking their Business to the next level. If only they had access to a Bridge Loan that was backed up not by their credit score, but solely based on how successful the product is selling and the number of credit card orders the business is generating. This is where Total Merchant Resource’s comes in with a very creative solution that a lot of entrepreneurs of all types will be interested in what they have to say.
Unlike getting a Traditional Loan from a Bank for the most part Total Merchant Resource’s could care a less what your Credit Score is or what you intend to do with the loan for that matter. TMR makes loans to Small Businesse’s and Franchisees mostly based on revenue being generated by credit card sales. If your a brand new start up company with no track record of creditcard sales, you may want to wait a few months until you have an established track record before you apply to TMR. The one main requirement to get a loan from Total Merchant Resource’s is having a minimum of $5,000.00 in credit card sales each month.
Total Merchant Resources owners Jason Reddish and Val Pinkhasov specialize in Alternative Business Financing which makes loans in as little as 3 to 5 days backed by you’re creditcard sales. TMR not only makes loans to small businesses that may not qualify for a traditional loan from a bank, they also specialize in Franchisee Loans from some of the most recognized Franchises in the country. The Franchise Loans Total Merchant Resource’s has already made in the past covers companies such as Taco Bell, Burger King, Subway, Midas, KFC and Dunkin Donuts to name just a few.
Total Resource’s Get’s $4 Million Deal On Shark Tank
We know from the previews of Shark Tank that one business gets a $4 million dollar deal from atleast one of the Sharks on tonight’s episode. Considering this business is all about “money” and attracting some of the most well known Franchises in the country, its a safe bet the Sharks will want a piece of this alternative business loan company and will be willing to invest big bucks to get a piece of the action. As hard as I tried I could not find out how much it costs to get a loan from Total Merchant Resource’s or even the terms of the agreement. I would imagine most loans are done on a case-by-case basis with the better terms for businesses that use this service frequently. Even if you don’t need the money today, it has to be a good feeling if something should arise you have access to the money if you ever need it.
This reminds me of something I heard John Paul DeJornia say in a video I watched earlier this year when he was talking about being a Guest Shark on the Shark Tank. John Paul who is now the “Richest Shark to ever appear on the Shark Tank Show” did mention he made one very large investment during Season 5 that has huge potential for becoming a Very Successful part of his financial empire. H’m, could John Paul DeJornia’s very first Shark Tank appearance also be the single largest investment ever made on the Show?
It’s also interesting to note that TMR might be the first beneficiary of the new rules for appearing on the Shark Tank where contestants are no longer obligated to give up a percentage of their business whether they get a deal or not. Thanks to Mark Cuban that threatened to quit the Show if this rule was not ammended, it opened up the doors for bigger companies that now will appear on the Show.
Jason Reddish and Val Pinkhasov enter the Shark Tank to pitch Total Merchant Resources in episode 509 on October 25, 2013. They are in the merchant processing business; that means they set up businesses to process credit and debit cards. They offer other services too, which may appeal to many entrepreneurs whether they’re on Shark Tank or not.
Total Merchant Resources is in the credit card receivables factoring business. That means they buy future credit card receivables at a discount from a business and give them a lump sum, cash distribution. This allows businesses to get access to working capital to expand or purchase inventory without taking out a bank loan. It’s a fairly common practice and businesses that have a lot of credit card transactions can get their hands on large amounts of cash quickly.
Total Merchant Resources Shark Tank Recap
Self described “mini sharks” Jason and Val enter and ask for $200K for 20% of their business. They explain how they provide small businesses for alternative financing solutions. Kevin asks a hypothetical loan scenario question and they explain how they recoup their loan by taking payments from their credit card processing. They use these loans to take over the credit card processing for businesses. They end up getting 74% of their clients processing business as a by-product of their lending activities.
Jason and Val explain they both have a background in the mortgage industry. They want the Sharks to introduce them to larger processing accounts, so they can get residual earnings. Lori is unsure, so she’s out. Robert says it isn’t a market for him, so he’s out. Mark thinks the industry will get regulated, he sees the value of the business, but he doesn’t want to be the deep pockets in the business – he’s out. Daymond goes out too.
Kevin says he’ll partner with Total Merchant Resources, but he wants 50% of the business for $200K. Mr. Wonderful says he’ll take them to places they can’t imagine. He’ll offer his access to capital and his connections. O’Leary says he can do this business himself without them. Jason and Val step intoi the hall and Robert says every Shark Tank business could use his services.
They guys come back in and counter with $250K for 25%. Kevin says his name will geometrically increase their business. He asks for a yes or no answer. The guys think about flipping a coin about the deal, but accept Kevin’s offer.
Total Merchant Resources Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. Once an episode has aired, we monitor the progress of the businesses featured, whether they receive funding or not and report on their progress. The Shark Tank Blog will follow-up on Total Merchant Resources, Jason Reddish and Val Pinkhasov as more details become available.