We were handed a file for a growing Logistics entity doing 300-500k per month with horrible balances and negative days. Being that the receivables were not leveraged we sent it out to a few Sub Prime shops and told them that if you get the client some short term capital, we have had conversations with competitive AR groups that would take out their high risk position shortly.

Spoke to the CEO's/Owners of the group(s), and produced documentation showing that the client was not in contract with another factor/ABL shop. Received a soft offer, then had contracts sent. Before the client could send back contracts, the client received contracts (WE HAVE THE EMAIL TRAIL THAT LEADS BACK TO SOLOMON at MIDNIGHT) for a higher amount from another funder- who gave Midnight the permission to White Label on their paper the day before.

Question is: is saving the $5000 in commission worth everyone knowing that you're not worth dealing with? If we were to look at the APR on this deal, the Funders return on Investment would be over 100%. Is that not enough?

We were charging our ISO only for our time- and he was to make the Lion's share of the commission- our play was the AR deal on the back end.

Since this happens all the time I wonder how many times people on this Blog have been messed with..