[funding pro]

That's a bunch of crap. You can't say stacking is prominent because brokers are signing and agreeing to the terms of the contracts, later regretting their decision and deciding to use that as a reason behind stacking a deal. If that's the catalyst, the issue is on those brokers, not those funders.

Now, that doesn't mean I don't agree with your position on those agreements being one-sided. With all of the reputable funders out there that do pay full commission on renewals and on the full contracted amount of a refi, I don't understand why a business owner would agree to sign one of these contracts saying that they would take a reduced commission. Its the same argument people make that small business owners should be intelligent enough to make those decisions when signing a cash advance contract.

[JSL23]

That's a bunch of crap. You can't say stacking is prominent because brokers are signing and agreeing to the terms of the contracts, later regretting their decision and deciding to use that as a reason behind stacking a deal. If that's the catalyst, the issue is on those brokers, not those funders.

Now, that doesn't mean I don't agree with your position on those agreements being one-sided. With all of the reputable funders out there that do pay full commission on renewals and on the full contracted amount of a refi, I don't understand why a business owner would agree to sign one of these contracts saying that they would take a reduced commission. Its the same argument people make that small business owners should be intelligent enough to make those decisions when signing a cash advance contract.

I'm not saying it is the sole reason of stacking (greed is still the prominent one) but it adds to it. Calling it a catalyst isn't off the mark. Now I'd never regret signing an agreement like that, because I wouldn't do it in the first place. With that said, if there was an agreement in place already with my office and the Lender and I funded someone through them, I would have ZERO problem with sending them elsewhere come time for a REFI or a 2nd if the Merchant needed some extra capital. It just does not inspire loyalty at all, just the opposite. It is just bush league and sets up a borderline adversarial relationship.