Originally Posted by
fundingsmbs
For those who don't know this already, many funders have direct sales (retail) that market their turn downs to other funding companies. Whether its through their company or an entity they created to broker business. The real question is are those deals broker deals or direct marketing acquisition deals. There really isn't a way to know for sure. You will know soon after you submit to a company if they are a legit company to build a book with. I would say the majority of no names are not worth the effort to build any business with. We all know who the main players are and unless you want to stack deals 3-6 position deep, you really cannot cry foul play as the stacking itself is a violation of your ISO agreement with first position funders and the merchant contracts that have no stacking clauses. Because of this grey area of the business, we see a ton of backdooring dialogue in the mca space now. This didn't happen as much (it still happened though) when it was just a first position industry with a lot less funders and white labels in the marketplace. The articles about folks getting arrested, learning certain brokers were past felons, investors in this business being involved in usurious payday loan scams, etc etc all adds icing on the cake. These are all the symptoms of an unregulated business. So, let's not forget what it is we all do day to day, and crying foul play , just seems to be part of the culture/business now and you can choose to not sign up with the majority of newbie companies who solicit you, or, take a chance and know going in there is a chance that your deals will be stolen, shared, flipped over come renewal time, rogue employee stealing the data etc etc. Its the mca business. As you can see from the above claims, it is a large list of companies that folks have had issues with. you can either walk away and go do something else for a career or income, or, deal with today's current waters of the mca space. On the positive side, those who can figure out this game and make good incomes and build a healthy book of business, the reward may still be there.
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