Question-ISO agreements

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02-27-2020, 02:13 PM
Hedley Lamarr

Question-ISO agreements

Hey DF,

Most of you know we are a bank owned factor and asset based lender. Most of our business is referred to us from current clients, industry professionals, and referral partners (Loan Advisors, Investment Banks, Accountants, Attorneys, Consultants, Banks, and brokers.....). It seems we get a host of calls from brokers more eager to get a referral agreement than actually spend the time to learn what we do in efforts that we can possibly help clients in the future.

So here's the question: Do firms pay people to collect referral agreements from funders, factors, ABL shops, etc....

Best,

Kevin

PS: We hardly ever release a referral agreement to a new broker unless there is an actionable transaction.
03-12-2020, 01:58 AM
SFC

Nope. Work with hundreds and I've never heard of someone getting paid to sign up with a funder/lender. Generally it's uneducated noobs signing up with whomever to get a file they don't understand funded.

They're not looking to learn your product, just to get the same thing thats been rejected or not gotten the right offer elsewhere, funded by you.
03-12-2020, 09:53 AM
J.Celifarco

Asking for a referal/iso agreement is just standard operating procedure in the MCA world because people are scared of getting screwed over. They have never worked in any other type of lending where referral agreements are signed when you get your first approval or even after your first deal actually closes. It comes from lack of experience in any type of funding outside the MCA world.. Inside the MCA world I would never send a file to a funder without having an iso agreement in place, outside that space it is much more common practice.
03-12-2020, 11:16 AM
RickyR3712

Quote:

Originally Posted by Kevin Henry-Seacoast

Hey DF,

Most of you know we are a bank owned factor and asset based lender. Most of our business is referred to us from current clients, industry professionals, and referral partners (Loan Advisors, Investment Banks, Accountants, Attorneys, Consultants, Banks, and brokers.....). It seems we get a host of calls from brokers more eager to get a referral agreement than actually spend the time to learn what we do in efforts that we can possibly help clients in the future.

So here's the question: Do firms pay people to collect referral agreements from funders, factors, ABL shops, etc....

Best,

Kevin

PS: We hardly ever release a referral agreement to a new broker unless there is an actionable transaction.

yes, most banks will underwrite you for compliance and can take several weeks to get approved.Cant wait till you have the deal to sign up.With bottom garbage mca funders you can sign up in 1 min right before it funds
03-12-2020, 11:21 AM
Hedley Lamarr

Quote:

Originally Posted by RickyR3712

yes, most banks will underwrite you for compliance and can take several weeks to get approved.Cant wait till you have the deal to sign up.With bottom garbage mca funders you can sign up in 1 min right before it funds

Wow...thank God it does not take us that long to underwrite and approve......
03-12-2020, 11:27 AM
RickyR3712

Quote:

Originally Posted by Kevin Henry-Seacoast

Wow...thank God it does not take us that long to underwrite and approve......

it is crazy the amount of times i had to switch/add my terms and conditions on my website based on different banks with different states that have different rules for compliance.