From Regional Lender to 7 Figure Debt Advisory Business (Ep. 6)

The BTF podcast is about RAW, no-filter conversations where successful creators and entrepreneurs share their come up stories and the challenges of "breaking out".
Please LIKE and Subscribe for more content 🙏🏼
Thank you for supporting the Channel!
In this episode, I interview Matthias Smith, CEO and Founder of Pioneer Capital Advisory LLC, a boutique lending advisory firm founded in 2022, focused on helping acquisition entrepreneurs obtain favorable loan financings to fund their acquisitions, primarily under the SBA loan program.
Previously, he worked for nearly a decade at numerous regional banks in lending operations. Pioneer closed $65M in SBA loans on behalf of their clients in 2023 and expects to close in excess of $100M in 2024.
Follow Matthias:
Linkedin: / matthiassmith
Twitter/X: x.com/sba_matthias
www.pioneercapitaladvisory.com/
FOLLOW NATE►
Nate’s LinkedIn: / nate-shantz
Nate's Link Tree: linktr.ee/nateshx
Contact/ Media / Sponsorship:
[e-mail]
Time Stamps:
[0:00:00] Intro sequence
[0:00:59] Nate welcomes Matthias to the podcast in Atlanta.
[0:01:21] Nate asks Matthias about his first impressions of Atlanta.
[0:02:08] Nate expresses his excitement about having Matthias on the podcast to discuss debt financing.
[0:03:31] Matthias explains his role in helping searchers navigate the SBA financing process.
[0:04:56] Nate provides an overview of the SBA loan program and its benefits for acquisition entrepreneurs.
[0:06:16] Nate asks Matthias about his background and where he grew up.
[0:09:15] Matthias discusses his internships during college and his first job at a bank.
[0:13:32] Matthias discusses the variety of transactions and industries he has worked on in SBA lending.
[0:17:26] Matthias talks about his academic experience and favorite courses in college.
[0:21:28] Matthias explains why he believes a well-rounded education is valuable in understanding the world.
[0:23:10] Matthias shares a story about a landscaper taking a dump in a customer's yard and how these events can't be modeled in financial statements.
[0:24:28] Matthias talks about his first job at First Bank Financial Center and their focus on commercial real estate lending.
[0:26:03] Matthias explains the importance of tangible assets for banks in lending decisions.
[0:28:16] Matthias shares his experience of being let go from his first job and driving Uber while searching for a new job.
[0:30:11] Matthias talks about his transition to Byline Bank and his role as a closer in the middle office. He contrasts between regional banks and their roles as well as an explanation of the different roles in SBA lending
[0:31:55] Overview of the workflow from initial pre-screen to closing of an acquisition deal.
[0:36:43] Matthias provides an overview of the number of SBA banks and becoming a preferred SBA lender and why SBA banks increase likelihood of funding compared to non-SBA banks. He also discusses factors banks look at including financing acquisitions without significant assets.
[0:44:02] Exploring the possibility of financing the remaining amount with a seller note and reducing the entrepreneur’s down payment as much as possible.
[0:46:50] Options for raising the remaining equity from family, friends, or investors.
[0:48:59] Banks may be open to flexible down payment structures for experienced buyers.
[0:52:05] Nate and Matthias discuss the potential cash flow and salary opportunities in buying a business
[0:56:47]
Nate asks Matthias about his career plans and his decision to join Live Oak Bank, the largest SBA lender in the US. Matthias describes the different verticals and types of deals Live Oak bank handles.
[1:09:37] Matthias considers switching banks for better work-life balance. He shares that he interviews with First Business Bank and gets hired.
[1:13:00] Matthias talks about the frustrations of the nine-to-five corporate world and the difficulties of finding a balance while working on deals.
[1:19:20] Matthias starts networking on Twitter and generates $15 million in potential deal flow for his bank. Matthias's bank's head of marketing and compliance express concerns about his Twitter activity and his boss advises him to stop posting about banking, SBA, and acquisitions on Twitter.
[1:24:29] Matthias feels restricted and decides to explore starting his own business to harness the Twitter market.
[1:27:02] Matthias discusses his understanding of different banks' criteria for funding deals. Loan consultants/brokers play a significant role in SBA deals
[1:32:41] Matthias explains why he quit his job via email while on vacation in Greece. He decides to start his own SBA loan advisory firm.
[1:39:12] Matthias describes his experience after returning from Greece and starting his own business.

[@BreaktheFormula]

We put a lot of effort into this episode to delve into the story of Matthias as an entrepreneur starting a firm
While also providing valuable insights on the acquisition financing which is a growing area for wealth creation
We hope you enjoyed and appreciate a Like and Subscribe to support the channel and encourage our team to keep producing 🎉 thank you

[@NaughtyRalph]

Insightful podcast
Thanks

[@BreaktheFormula]

Thanks for listening and glad you received value from it

[@matthiass2011]

Thanks for having me!

[@BreaktheFormula]

Was a pleasure. Thanks for being so candid and transparent- I’m sure many will benefit from your insights 💪🏼

[@adityatiwari5690]

It truly is a masterclass 👍

[@BreaktheFormula]

Thank you - we try to bring financial education to the modern age in high quality production