[len@accfunding.com]

I do business with a very well known direct lender, let's call him Lender A. Lender A took the deals which I sent him and brokered them out to other lenders which I was already signed up with or was planning on signing up with, Lender B and Lender C. I never really paid close attention to the Merchant Contracts Lender A was sending me, I just saw his logo on them and assumed he was funding the deals.

A few weeks later when I sent some deals over to Lender B and Lender C, they told me they can't do business with me directly because Lender A is strong arming them into not doing business with me. Lender A told Lenders B and C if they accept by business directly he will no longer send them any other business. Well needless to say, I am furious. My Rep at Lender A told me it wasn't him but the owner of the company, which I seriously doubt cares who I am or who I do business with.

Has this ever happened to anyone else? How do you feel about Lenders brokering out your deals out without your prior permission?

[Zach]

Sounds like you're working with a broker who white-labels deals. You should sever that relationship.

[JSL23]

Sounds like you're working with a broker who white-labels deals. You should sever that relationship.

Yup.... and read every contract you sign word for word. You live and you learn.

[Zach]

I actually got screwed over by one of those early in my days... Continental Advance -- we funded a 100K deal through them, got paid 7 points, then they renewed the client a few months later for another 100K and paid us 0 commission. They also tried to rob one of my clients for a large processing fee ($2,500), even though the deal did not fund.

Like JSL says... live and learn.

[ElisaMVF]

so Lender A was putting their logo on the clients contracts??
I've never heard of that, but with some of these lenders it's not surprising.

I'm sure there's lot of bad karma out there...

[len@accfunding.com]

I guess you live and you learn. I've lending money for 20 years and always did business with whoever I wanted with. This is a well know lender and I am sure everyone on here uses them.

[anonymous]

so Lender A was putting their logo on the clients contracts??
I've never heard of that, but with some of these lenders it's not surprising.

Happens all the time, business as usual...

Lender A sounds like a well established broker (presumably YSC) who primarily brokers deals for other brokers. The actions he/she has taken are needed for that business model to be sustainable.

Don't hate the player, hate the game.

[Jared_Weitz]

Happens all the time, business as usual...

Lender A sounds like a well established broker (presumably YSC) who primarily brokers deals for other brokers. The actions he/she has taken are needed for that business model to be sustainable.

Don't hate the player, hate the game.

Yeah I agree, some models are a "super broker" or "broker/funder" model. Anyone who doesn't agree with or like those models doesn't have to work with such companies. In general, I will say there is a need for companies like that though as we help serve both smaller ISO's and larger funders.

[JSL23]

Yeah I agree, some models are a "super broker" or "broker/funder" model. Anyone who doesn't agree with or like those models doesn't have to work with such companies. In general, I will say there is a need for companies like that though as we help serve both smaller ISO's and larger funders.

Agreed....however they should disclose that they are "super brokers" or "Broker/Lenders" when contact is initiated before they send an ISO agreement and not do things in an underhanded way.

[MCAVeteran]

Agreed....however they should disclose that they are "super brokers" or "Broker/Lenders" when contact is initiated before they send an ISO agreement and not do things in an underhanded way.

Did they disclose on agreement they send deals to other companies or have the right to? Somewhere in that agreement, there prob is a clause that gives them the right to. But I agree, your contact there should tell you who they work with as you may have a relationship already with the direct lenders and get higher commissions renewals etc.

If it is a super broker, although hard to get disclosure, make sure they are solvent or you could get screwed down the road. Check out the BBB on them. How long they have been around, etc -

[bizloanbroker]

In the last few months I have started using Yellow more and more as a super broker. They take my deal that I would send to Fast Business or someone else and they get it done in half the time, my guess is that they just get more attention by the funders because of their volume.

I cant get Steven saffer on the phone to save my life but if my guy there Avi Dahan calls him he picks up on the first ring.

I still use them for my deals that are super high risk on their in house program

[len@accfunding.com]

I just want to mention Lender A was NOT Yellowstone. I think YSC is terrific and gives me great service.

[commericallender]

We are a direct lender and will look at all deals.

[anonymous]

We are a direct lender and will look at all deals.

No way?!

[J.Celifarco]

We are a direct lender and will look at all deals.

what exactly does that have to do with what anyone in this thread is saying???

[isaacdstern]

Thanks Len! Who is your rep here?

I just want to mention Lender A was NOT Yellowstone. I think YSC is terrific and gives me great service.

[len@accfunding.com]

I work with Avi Dahan. He definitely deserves a gold star.

[isaacdstern]

Avi has literally taken the company by storm over the last 18 months, he is an absolute animal and works his tail off for his isos. I am going to give him 2 gold stars!!