[Nunya]

Here's what the funders are saying... There's a theme here: relationships = residual revenue. What say you?

“I think the first thing, which many of them do already, is get to know the lenders really well – so that they can tailor what they submit to each funding company appropriately. Secondly, and again, a lot of brokers do a great job with this, know who the client is or who the customer is that you’re sending to a funding company to make an offer. Because the more targeted that is, the more efficient we can be in providing the right types of offers back to the broker so that they can present the right offers to their customers.”
– Jeremy Brown, Chairman, RapidAdvance | https://www.rapidadvance.com/

“A broker shouldn’t feel the need to have 25 different funders. Work on building strategic relationships with a handful of funders. What I would like to say to brokers is: Have a few options in all the categories, but you don’t need 10 options in all the categories. Work to build relationships. Relationships are going to count more and more in the future.”
– David Frascella, Co-founder, Funding Metrics | https://fundingmetrics.com/

“A lot of people are using a shotgun approach, working with a variety of lenders. When you look at the expense load, a lot of it is front loaded with marketing costs and sales expense. And the only profit really is long-term residual value or renewal income. It takes some thought process on how companies usually sift through decisions on what product you really want to offer because it’s the owner’s choice of what’s being sold. And, “Are you selling the best product that’s going to give you long-term value, or are you giving that up for quick speed or convenience?””
– Dave Gilbert, CEO, National Funding | https://www.nationalfunding.com/

[gaxisa]

Agree 100%. I only like to work with a few lenders that I know will get things done on their end.

[CraaaCraaa Radio]

Here's what the funders are saying... There's a theme here: relationships = residual revenue. What say you?

Sending your file everywhere just gives the file more risk of being backdoored by a funder who has a sales floor and gives out the ISO Leads as the hot 🔥 Glen Gary Leads. Don't become a statistic

[TheConfidentBroker]

Though the relationships in the background of our space gives a great advantage of getting deals done in strategic ways - depending on who the broker is - it give a huge unfair advantage to the merchant if you don't have the relationships.

[TheConfidentBroker]

I beg to differ on this now. NOW - we all can agree there are leaks. In this stage of our industry, FUNDERS are VERY picky. Even if they see credit pulled a few times before or catch wind of shopping, they will decline on virtue of the deal not being handled correctly.

SO YES - stop shopping your deals #1 - but #2 retention is everything. How many "Brokers" that you know handle the retention/renewals/residuals of their merchants and have close relationships to follow? THOSE are the relationships they are talking about.

[Nunya]

Sending your file everywhere just gives the file more risk of being backdoored by a funder who has a sales floor and gives out the ISO Leads as the hot  Glen Gary Leads. Don't become a statistic

Name names...

[mcaguru]

Correct.. Many of our smart ISO's after-files gets declined by A paper Funder (for good reasons and falls into the Mantis Box) then ONLY (KEY-WORD) submit to Mantis those deals once funded at mantis keep renewing many times... so our ISO's keep getting repeat commissions !!! or best case scenario for Mr. merchant is he organically pays off the advance and never needs funding again.

[blbokeb]

Correct.. Many of our smart ISO's after-files gets declined by A paper Funder (for good reasons and falls into the Mantis Box) then ONLY (KEY-WORD) submit to Mantis those deals once funded at mantis keep renewing many times... so our ISO's keep getting repeat commissions !!! or best case scenario for Mr. merchant is he organically pays off the advance and never needs funding again.

Up

[blbokeb]

Up

Ok

[fundingsmbs]

I would hope by now funders have recognized the unscrupulous practices of certain brokers and vetted them out. Was actually surprised in what seemed to be a trend to go all direct sales and marketing to accepting more broker business by many of the funders in the industry and by the high level of bonus promos hitting inboxes daily from funders to obtain a broker application. This is either a testament that it is very hard to scale going 100% direct, or, certain brokers business are profitable and work in the end. As far as the "relationship" I think its true to have those but let's face it, how many of the ISO agreements that have do not stack clauses are being followed out there today? is that a true relationship if you breach the iso agreements? In the end, its about the $ all around from any party who participates in this business.