[Brightpoint]

There is absolutely nothing wrong with ISO or broker, but I found so many shops want to be appeared as a direct funder. (even found it from today’s post about Nulook Capital). I’m a direct funder.. but very small funder that I personally work with merchants in K-town in LA. But after a couple years in the MCA industry, I see ISO business model appears to be more stable and solid, AND more profitable unless you have at least $10 million cash in hand to circulate and able to absorb all losses from defaults.

ISO shops can just focus on sales and make about 20% of what funders make, and don’t have to deal with data entry, ach, split, analysis, underwriting, collection, plus at least 10 more stuffs that funders have to work behind.

In my opinion, with a right technology implemented and team-up with good people, ISO shop can be much well positioned and grow faster than a small direct funder with much less money invested. Having said that, I will be jumping into ISO as soon as I find the right people. Who wants to join our new venture?

[TheShitzuofMCA]

They act like funding company in order to get deal flow. Its gotten very hard and expensive to originate good leads as a broker shop. They get to cherry pick deals I believe. Im sure there are more reasons.

[Karen37a]

There is absolutely nothing wrong with ISO or broker, but I found so many shops want to be appeared as a direct funder. (even found it from today’s post about Nulook Capital). I’m a direct funder.. but very small funder that I personally work with merchants in K-town in LA. But after a couple years in the MCA industry, I see ISO business model appears to be more stable and solid, AND more profitable unless you have at least $10 million cash in hand to circulate and able to absorb all losses from defaults.

ISO shops can just focus on sales and make about 20% of what funders make, and don’t have to deal with data entry, ach, split, analysis, underwriting, collection, plus at least 10 more stuffs that funders have to work behind.

In my opinion, with a right technology implemented and team-up with good people, ISO shop can be much well positioned and grow faster than a small direct funder with much less money invested. Having said that, I will be jumping into ISO as soon as I find the right people. Who wants to join our new venture?

Because there are people in this world who would rather steal 1 million than make 2 million

Its their nature

Scorpion and the Frog

A scorpion asks a frog to carry it across a river. The frog hesitates, afraid of being stung, but the scorpion argues that if it did so, they would both drown. Considering this, the frog agrees, but midway across the river the scorpion does indeed sting the frog, dooming them both. When the frog asks the scorpion why, the scorpion replies that it was in its nature to do so.

Egos come into play as well

Also some Funders will have a hard time with someone like me...I want $$$....THEY want all the money

[Esteban2000]

In the case of many of these guys, it's more of a shading of the truth than "pretending..." I am consulting for a couple of Brokers right now who just want to be able to cherry-pick the best 5% or 10% of what they come across and Broker out everything else...if you Fund $50K a month, you can call yourself a Funder, even if you are placing 10X that much elsewhere.

[Winning]

ISO shops can just focus on sales and make about 20% of what funders make....

In my opinion, with a right technology implemented and team-up with good people, ISO shop can be much well positioned and grow faster than a small direct funder with much less money invested.

Really...... Hmmmmmm... You make it sound so easy, but I (think I) know better than that.

Brightpoint, how long you been in this business, and what did you do before getting into this line of work?

[WestCoastFunding]

Basically theyre brokers that can’t generate leads on their own, so they pretend to be funders, then white label someone else’s product. They’re paid 10-15 points and they pay their ISO 8 points.

Personally I wish these guys would **** off. Anyone that feels the need to lie to get dealflow is not anyone worth trusting.

[shopitout]

A lot of merchants have taken advances before and worked with brokers. A broker may have shopped it out to 15 places, 15 credit pulls. Now that merchant thinks every broker does it. Direct lender- one credit pull.

A good broker will look at the file and know 1-3 lenders to send it to- getting the merchant the best deal. But as soon as you say "broker" to that merchant again.. goodbye.

Although a good broker could prolly turn some of them around

[kevin85k]

A lot of merchants have taken advances before and worked with brokers. A broker may have shopped it out to 15 places, 15 credit pulls. Now that merchant thinks every broker does it. Direct lender- one credit pull.

A good broker will look at the file and know 1-3 lenders to send it to- getting the merchant the best deal. But as soon as you say "broker" to that merchant again.. goodbye.

Although a good broker could prolly turn some of them around

you mean the brokers "shopitout" haha