Replies to post #157050 on Verb Technology Company Inc (VERB)

[downdraft]

Too many sales reps already dependent on using taggCRM to help improve their number of closings so those individuals certainly want the product.

More importantly, big MLM companies don't have much risk in implementing a new sales strategy from VERB, especially since the monthly costs are typically paid by the individual sales reps who implement it in their sales effort.

That simply means it's a low cost, low risk approach for many large MLM companies to implement a new sales strategy that can improve their annual sales.

I wouldn't surprise me to see some large companies mandate that their sales reps use VERB's platform.

As such, I believe there will be plenty of funding options available to VERB to keep them well afloat until they get on solid financial ground in the future.

Most important is just building a huge base of users first, like many companies successfully do (i.e. Facebook) before ever turning a profit. Just wait for it!

[Anvil]

Verb has negative cash flow and as you stated receivable financing is the only option. Herein lies the problem.

When “hard money” lenders do collateral dependent financing on receivables, they will look at who the receivables are from.

If the receivable is of decent size ($ amount) from Oracle, Microsoft or a decent size company, no problem.

If receivables are from individuals and are $10/$100 per mo. They won’t do it, too much hassle to go after these small amounts.

Unless,

I have lent against a “seasoned pool of receivables”, think installment sales for a large purchase, where the company has criteria such as minimum FICO stores.

Unless Rory will personally guarantee the bank facility, assuming he has the financial wherewithal, I don’t see traditional bank financing in Verb’s near term future.

Even the company paid analyst from Litchfield doesn’t project cash flow break even until 2021