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  1. #1
    Senior Member Reputation points: 15507
    Join Date
    Dec 2016
    Brooklyn N.Y.

    This is old news

    Even worse:
    We recently funded a deal, behind two funders. $1 million rev, crazy balances, the guy was funded almost $800k in two weeks, with the broker promising another $1 million to follow.. But here's where things got ugly: the broker took a unauthorized $30k PSF, when the Merchant called him he explained that it was a "mistake" (instead of $3k..) and that he will return the funds as soon as it clears. 3 days passed and the funds were gone. The Merchant ended up blocking payments after realizing what happened and we all got screwed.

    Sadly the broker is still doing business as usual.
    A lot of people on this Forum saw this story (waiting for your comments).
    High risk paper

  2. #2
    Senior Member Reputation points: 30492 Jstarr's Avatar
    Join Date
    Nov 2014
    South Florida

    i'd like to know who he is so i can send it over to my reputation management company and ensure he doesn't do it to anyone else, im not in them mca space but i dont like to hear that someones been screwed -
    Jerry Starr
    nsource Funding
    433 Plaza Real, Ste 275
    Boca Raton, Fl 33432
    P: 800-805-3391|


  3. #3
    I can see the situation from different vantage points ( I didn't read all the specifics just making a comment on just what you said )

    a)The Merchant might have been in on it with the mca me 30k then default..sends it off to debt relief or coaches him on what to say
    b) Broker just did it and faked docs
    c) merchant lied and used the non-knowledge of the psf to leverage his position to default ( when balances get too hight merchants will sell out their mother and their first born will some brokers on commission )

    As a broker when we send someone to a funder to verify things...1/4 of the time the Funder will go to take them from you ( 1/2 for newbies) So we wait to verify until the last second to not have that long hang time where the merchant can be taken away.( industry created backdoor protection thing)
    No matter what someone has to answer for that..its fraud. Either on the merchant's side, brokers side or both.Since I do not have all the facts I cant be judge and jury. Someone did something fraudulent.

    Is anyone suing anyone? Or visiting their offices? Or just demanding repayment?

    one thing ** I do not think a merchant would stop payments after receiving 800k? because of a 30k psf fee. No way. It's more like a bribe and a convenient excuse to bail.

  4. #4
    One last point before someone says I am talking with myself.

    I hate the argument of , the logic of ( it's flawed)... the merchant took 500k to pay back 800k ( just giving an example with numbers ) he paid 50k in psf fees and is pissed now he won't pay.

    Ok so here is the offer ....give us back the 500k and forget the 50k psf and the a wash...just give back the 500k...or even give us back 450k...(less 50k psf)

    The guy will tell you to fk off or that he spent it. Even if you offer to make a payment arrangement for the 450k ( no fees etc) he still won't pay it.

    Then you know he is a con artist. Back him to the wall, blanket lien/garnish all the banks in his area ( find the money )and scoop his $$$ back
    Last edited by Karen37a; 11-16-2017 at 08:41 PM.

  5. #5
    10 Solutions to all this make it stop

    # 1 ( Cant post more than one I am past my typing quota for the day)

    ***Isos who want to build a book of business do not do these things. Strong Isos have a vested interest in their renewals *wink * Skin in the game in the form of future renewals and commission, Built thru sweat equity and strong marketing efforts, cold calling, seo, face to face. cost of leads $$)
    ...the hit and run guys do not give a crap. Taking away renewals turned some brokers into monsters in the Philipeans.

    I cant control the 1099 lunatics on my team until they get a mini book of business( which I will and have always paid them on, since I entered Financial services in the 80s). And some of them do not give a crap about renewals...seperates them right away for compliance reasons.

    If their book of business gets swiped from them and they break away from their original Isos...YOU did it not the isos. Some of these brokers hate certain companies with every fiber of their being. New Funders will get caught in a wake...they have turned to the dark side no bringing them back.

    There is a reason some of us Fired them and they are stalking us, we blocked a heist.( they think we cost them money by stopping it)

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