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.