[Sachip24]

I am only few years into this industry so forgive naive question. I know there is no barrier for entry but don't lenders need proven platforms to stay organized syndicate, have some type of capital minimum requirement even before calling themselves a lender? How do new lenders literally just pop up by the hundreds daily? I don't get it. No history or experience in the business and just say yea they are a lender now. I am stating this question because I just had a conversation with lender trying to sign us up...I will keep their name off this not trying to drag them but had no lending experience 3 guys not one of them with MCA experience but were they were very successful in their respective fields according to them and decided to say ok lets join our money together and start lending? is it really that easy?

[Eagle Funding]

Sign up with an ACH company

Photoshop someones contracts

Get merchant to sign

Send funds and begin to pull

Boom, youre a lender

[HDF]

I am only few years into this industry so forgive naive question. I know there is no barrier for entry but don't lenders need proven platforms to stay organized syndicate, have some type of capital minimum requirement even before calling themselves a lender? How do new lenders literally just pop up by the hundreds daily? I don't get it. No history or experience in the business and just say yea they are a lender now. I am stating this question because I just had a conversation with lender trying to sign us up...I will keep their name off this not trying to drag them but had no lending experience 3 guys not one of them with MCA experience but were they were very successful in their respective fields according to them and decided to say ok lets join our money together and start lending? is it really that easy?

Well, if my spam box is any indication, someone is making money selling ISO data big time. That breaks down at least one barrier.

Also, small new funders seem to be backed by at least one "experienced" player and basic bones, affiliate or framework. Unseen or not.

Files sent to these newbies end up god-knows-where. But as Chris Rock famously said: "A guy is only as faithful as his options."

[Karen37a]

is it really that easy?

They will soon be on the df or calling some of us to tell us how to fund deals and to send them all our deals because we don't know what a 1.35 rate vs a 1.45 is or what the term "algorithms" means or "escoteric scoring model" because we are just "phone sales"...then they get that cocky attitude, tell you they have a degree and they would NEVER make phone calls

Then they lose all their money because they do not really know what they are doing

Then they come on the df in a complete Meltdown..turn on the salespeople who are successful...toss in a "id never be a sleazy salesperson" " id never rip someone off" " never sell a high rate " into the mix.....curse out Karen for the hell of it then they are driving uber or back to an office job or micky dees or they sell leads / seo or write a book

[jotucker1983]

I am only few years into this industry so forgive naive question. I know there is no barrier for entry but don't lenders need proven platforms to stay organized syndicate, have some type of capital minimum requirement even before calling themselves a lender? How do new lenders literally just pop up by the hundreds daily? I don't get it. No history or experience in the business and just say yea they are a lender now. I am stating this question because I just had a conversation with lender trying to sign us up...I will keep their name off this not trying to drag them but had no lending experience 3 guys not one of them with MCA experience but were they were very successful in their respective fields according to them and decided to say ok lets join our money together and start lending? is it really that easy?

In a way yes, because there's no real barrier to entry "per say". Now it also depends upon how the funder categorizes themselves, because if they are doing actual "loans" that might require additional regulatory procedures.

But in general, it would be great if this industry had a real barrier, where individuals can't just walk in here and open up a shop as either a broker or a funder.

I just think with the mass amount of personal and commercial sensitive data we collect, that in and of itself should warrant real regulatory barriers that require various testing/licensure/certifications to get in and stay in.

It would help clean up the industry, help protect profit margins, and help protect portfolios.

[Karen37a]

LOL

this is the visual part of the presentation....what to do to be successful and what not to do


( and a live example of the uber/driver ...degree..phone sales...book thing a ma bob)

ha

[ridextreme]

A lot of them aren't funding 100% out of their own pocket. They think since they syndicate and white label they can call themselves a funder then sign up ISO's to send them deals. Buyer beware.

[Karen37a]

A lot of them aren't funding 100% out of their own pocket. They think since they syndicate and white label they can call themselves a funder then sign up ISO's to send them deals. Buyer beware.

some of them are not even syndicating

just white label big mouths who cant find their own clients or if they do they cant CLOSE them , then they expect someone like me to close the deal FOR them and they get the money.

not a chance in hell

[Karen37a]

I have a pounding headache


edit ...watch

[DiamondBL]

It's not easy getting ACH approved or getting licensed (at least in CA).

[Karen37a]

It's not easy getting ACH approved or getting licensed (at least in CA).

Calif use to be one of the easier states to get licenced for securities, loans etc, and if you got a licence in NY there was reciprocity.

Commercial lending ( broker ) isnt that hard to get once you are in the system...and again reciprocity, just fees

Calif is a pain in the butt with the audits though

Nothing compares to sec regulations, finra etc so maybe thats why I do not think its that hard.

[ryan $]

Well, if my spam box is any indication, someone is making money selling ISO data big time. That breaks down at least one barrier.

Also, small new funders seem to be backed by at least one "experienced" player and basic bones, affiliate or framework. Unseen or not.

Files sent to these newbies end up god-knows-where. But as Chris Rock famously said: "A guy is only as faithful as his options."

There was one blast that went out from a direct lender that CC'd a Huge ISO list.

Everyone on the list got everyones email.... and it has been becoming blasted ever since

[Karen37a]

There was one blast that went out from a direct lender that CC'd a Huge ISO list.

Everyone on the list got everyones email.... and it has been becoming blasted ever since

3 Funders over the last few years blasted out their iso list to me by accident (I saw others on the cc list too). I got to see who was sending deals in and were pretending to be funders as well...so i guess it was a God send

one sent a list of all their merchants on excel spreadsheets

I called them to tell them about it and me like the moron that I am didn't call anyone

[Karen37a]

There are lead brokers selling off massive files to brokers...and ex isos/ funders who quit and are monetizing their lead base and files.

( I think someone sold off their book of business to paypal)

see you all soon


** not that you cant get to the same merchants thru uccs or the yellow pages , because you can, just takes a bit more effort and skill.