[fundingsmbs]

Has anyone else had issues with A funder's that out of the blue, they email you to tell you they are not going to pay you on a renewal that funded that day? When questioned, they pulled out an ISO agreement and highlighted a section that states if you don't fund a deal within 90 days, they will essentially take your book of business and not pay you. It is a vague clause as it says refers within 90 days but also states funds. We filed a complaint with the BBB for starters but the more I think of this, it is the first time anything like this has happened. There is a small book with this funder and we are told we HAVE to fund with them to get paid on renewals. It is a well known company that many use, so, curious if anyone else has had a recent issue like this as it is concerning. I believe they are also a SBFA member.

[Anthony@torro]

It's in our ISO agreement as well I believe, but any ISO of mine that got a merchant funded with me and didn't do business with me for whatever period of time always got paid on their renewals. I guess it will boil down to your ISO rep's financial situation, if someone needs to STEAL to get by, they will. Good luck.

[AdvanceFund]

Has anyone else had issues with A funder's that out of the blue, they email you to tell you they are not going to pay you on a renewal that funded that day? When questioned, they pulled out an ISO agreement and highlighted a section that states if you don't fund a deal within 90 days, they will essentially take your book of business and not pay you. It is a vague clause as it says refers within 90 days but also states funds. We filed a complaint with the BBB for starters but the more I think of this, it is the first time anything like this has happened. There is a small book with this funder and we are told we HAVE to fund with them to get paid on renewals. It is a well known company that many use, so, curious if anyone else has had a recent issue like this as it is concerning. I believe they are also a SBFA member.

If it's in the ISO agreement then they are allowed to do that but that sounds extremely shady - never actually seen a funder do this. If I were you I'd take any deal you funded with them and stack it deep to make your money back.

[fundingsmbs]

If it's in the ISO agreement then they are allowed to do that but that sounds extremely shady - never actually seen a funder do this. If I were you I'd take any deal you funded with them and stack it deep to make your money back.

Not only did they do it, they did it the day the deal funded after keeping us up to date on progress of the file. Bait and Switch 101

[Karen37a]

Has anyone else had issues with A funder's that out of the blue, they email you to tell you they are not going to pay you on a renewal that funded that day? When questioned, they pulled out an ISO agreement and highlighted a section that states if you don't fund a deal within 90 days, they will essentially take your book of business and not pay you. It is a vague clause as it says refers within 90 days but also states funds. We filed a complaint with the BBB for starters but the more I think of this, it is the first time anything like this has happened. There is a small book with this funder and we are told we HAVE to fund with them to get paid on renewals. It is a well known company that many use, so, curious if anyone else has had a recent issue like this as it is concerning. I believe they are also a SBFA member.

30% of the Funders do this and they terminate for lack of production or unreachable quotas . Its common place.

Thats how the fights happen and how books of business's get moved from place to place on top of the backdooring

( thats why I am yelling ...where the f are your renwals to certain people, when they put down the super iso concept)

it comes down to the strongest salesperson wins

And this is why small isos join larger ones to make the quota

[fundingsmbs]

Quota for ISOs and 1099 Contractor's, now that's interesting.

[Karen37a]

Quota for ISOs and 1099 Contractor's, now that's interesting.

Yep and some of the fools arguing with me...the w/2 ones had their books of business taken from them after I warned them

kinda funny they want the rest of us to go down with them

[fundingsmbs]

Forcing a 1099 contractor to fund business with you can be easily interpreted as an employee. That's a fine line to enforce.

[Karen37a]

Forcing a 1099 contractor to fund business with you can be easily interpreted as an employee. That's a fine line to enforce.

I agree...and because I was compliance for so many years I know it


This is why I went way out of my way to get away from non iso friendly... non-renewal friendly companies

And I hold a 95% renewal ratio..100% with some...i block the stacks and defaults...win win...we all get paid

[fundingsmbs]

The ISO agreement also blocks any class action suits. So, assuming they picked a % of the ISO book to do this to, legal made sure to block out this clause as well.

[Karen37a]

The ISO agreement also blocks any class action suits. So, assuming they picked a % of the ISO book to do this to, legal made sure to block out this clause as well.

I do not think that's enforceable,,,, taking away due process...

but who knows...I am not a lawyer


Ps ...this is how they get stacked and the deal gets passed ...no one wants to argue these points. I just avoid these companies ...easier for me...you do not want my business, dont take it

[HDF]

If it's in the ISO agreement then they are allowed to do that but that sounds extremely shady - never actually seen a funder do this. If I were you I'd take any deal you funded with them and stack it deep to make your money back.

And....this is not a solution. This is pathetic.

[fundingsmbs]

lesson learned here is, the ISO agreements are not written to protect the ISO. Even the smallest skip on reading them can lead to future problems. That said, the day you have to take an ISO agreement, highlight a clause like this and enforce it, speaks volumes to how you conduct business. I hope if the SBFA broker association is formed, they form an ethics committee to handle some of these issues. If they take on the fight, they may find that ISOs are more inclined to pay the monthly dues. There are issues happening on BOTH sides of the fence.

[Karen37a]

And....this is not a solution. This is pathetic.

BUT...the reality is ...you cant keep saying ,,bad iso, bad 1099

[fundingsmbs]

And....this is not a solution. This is pathetic.

it is what many agents would do, but, our philosophy has always been, when they go low, we go high.

[jotucker1983]

Has anyone else had issues with A funder's that out of the blue, they email you to tell you they are not going to pay you on a renewal that funded that day? When questioned, they pulled out an ISO agreement and highlighted a section that states if you don't fund a deal within 90 days, they will essentially take your book of business and not pay you. It is a vague clause as it says refers within 90 days but also states funds. We filed a complaint with the BBB for starters but the more I think of this, it is the first time anything like this has happened. There is a small book with this funder and we are told we HAVE to fund with them to get paid on renewals. It is a well known company that many use, so, curious if anyone else has had a recent issue like this as it is concerning. I believe they are also a SBFA member.

Yes, this issue has been going on for a while now. I touched on it in this thread here and also in another article here.

The practice takes place most of the time with the funder randomly changing their compensation structure to include new deal quotas. So you sign one Agreement at the time of sign up, then randomly they just change the Agreement.

It goes back to the need for more forms of regulation and oversight within this industry because it's too much of a Wild Wild West. If I'm truly a 1099 employee with no benefits, no marketing assistance, no leads, etc., from the Funder, then what exactly is the issue with paying me for the lifetime duration of the client's relationship considering the fact we are partners?

There should never be a new deal quota for a 1099 agent.

[Karen37a]

it is what many agents would do, but, our philosophy has always been, when they go low, we go high.

I just escape and find better Funders ....ones who want to pay me..help me build a book of business...help my isos get paid

Now what happens to the iso...when they can't pay the broker their commission? Can they get sued?

[Karen37a]

And the worst/ best most ironic part of ALL of this

some * B/C/D Paper treats isos WAY better than 80% of the A paper

Which is why they call for regulation against the Isos and broker...not themselves

[WestCoastFunding]

This industry is getting worse.

[fundingsmbs]

^ yes, if you have sub reps referring you business, this practice will absolutely put you in a bad position and damage you company's name.

on the other post, if your a 1099, you are not an employee. you are a 1099. you cannot force a 1099 to wake up and sell for you, work 9-10 hours a day, etc etc. they are a contractor by definition. These clauses are being inserted to STEAL YOUR BOOK OF BUSINESS.

[Karen37a]

^ yes, if you have sub reps referring you business, this practice will absolutely put you in a bad position and damage you company's name.

on the other post, if your a 1099, you are not an employee. you are a 1099. you cannot force a 1099 to wake up and sell for you, work 9-10 hours a day, etc etc. they are a contractor by definition. These clauses are being inserted to STEAL YOUR BOOK OF BUSINESS.

Yep

Welcome to the club

You have bled with Wallace...now bleed with me

https://www.youtube.com/watch?v=eclbaC3q94k


( this is also why I like when the inside Funders rep gets paid a bonus on what I do...they want me to make money because they make money)

[Karen37a]

Yes, this issue has been going on for a while now. I touched on it in this thread here and also in another article here.

The practice takes place most of the time with the funder randomly changing their compensation structure to include new deal quotas. So you sign one Agreement at the time of sign up, then randomly they just change the Agreement.

It goes back to the need for more forms of regulation and oversight within this industry because it's too much of a Wild Wild West. If I'm truly a 1099 employee with no benefits, no marketing assistance, no leads, etc., from the Funder, then what exactly is the issue with paying me for the lifetime duration of the client's relationship considering the fact we are partners?

There should never be a new deal quota for a 1099 agent.

You cant regulate Iso agreements( and some are not enforeable, too far and broad reaching) and you are terminated AT WILL..

this isnt some of our first rodeos....many many many DECADES of surviving and thriving in this

[fundingsmbs]

I would encourage any hard working agent or ISO to read the ISO agreements. Because someone verbally tells you "it will never happen with me" but its still in the agreement, not good enough. If it's written, its a loophole to get out of paying you. My bet is a majority of ISO agreements are being signed without really understanding these "outs" nationwide. No telling how many brokers get stiffed annually and how many $$$s that funder keeps to themselves by having these clauses. It has to be significant.

[HDF]

BUT...the reality is ...you cant keep saying ,,bad iso, bad 1099

If "you" is referring to me, you are misplacing your derangement.

[Karen37a]

Not you hdf ...some funders ..

And someone personally hammered MANY brokers who did nothing wrong...nothing but hook up with the wrong company by accident.

Some people will never forgive some of you or the merry band of misfits who have no clue and shouldn't be in Finance