[J.Celifarco]

I have to say it is very difficult taking any of this in context without knowing the lender/sales office you are speaking about. If you would like our opinion ion a situation we need all the info or we are just guessing as to what happened and why you are reacting as you are. If you would like the opinions of the people on the forum give all the information then we will be able to answer based on fact instead of trying to guess as to what happened

[Quickfunder]

I was asking what other ISO's have done/would do in a situation where it is given that a deal has been sold out from under them. Not the how's, the why's, etc. It's simple enough: lender didn't want to add additional debt to large deal so capped the commission. We said we'd take it elsewhere. They retracted the cap requirement. They tried killing the deal claiming applicant was late with a Trade Partner. Trade Partner disputed that. We contacted execs at the lender to ask for another review. We got the 2nd review and were told the deal was being funded. We got a call at the end of the day saying they were backing out with no reason and they weren't willing to even revise the approval. The underwriter claimed he didn't know why they were backing out. The merchant did not know this. Merchant immediately started receiving unsolicited phone calls on his cellphone referencing our approval to the merchant and that they already had a better approval for him. The merchant did not submit to anyone else - did not even know he was declined by the first bank. Merchant's credit was run a 2nd time before we were notified the deal was not going through. We later rcvd a phone call from a 2nd lender to check on the "approval" for this business. They obviously didn't mean to call me and I asked who issued the approval. They mentioned the name of the underwriter from the 1st lender. When I asked some follow up questions I was put on hold and disconnected. This merchant ended up going with that 2nd lender in our process of seeking out our own 2nd approval for him. Lots of other details that confirm this. I made my own calls to each party and there simply is not enough oversight for these types of practices and it's simple to find out who called who. The 2nd lender went so far as to tell my back-up lender that they already funded this merchant when they did not. They prematurely filed a UCC on it other a Corp. Service Co. Preventing our deal from ever having a chance. Merchant said he went with this lender NOT BECAUSE they offered him essentially better terms, but because he was tired of waiting for us to resolve the first lender backing out and saying he had been told we fabricated that approval in the first place - wasting his time. I asked who he was working with and he mentioned the Sales Office of the 1st lender.

[Andy]

Similar things have happened to me with 2 funders. However I funded both with different funders so got the last laugh
And we no longer do business with either of those funders. And they were 2 of the large funding companies.

It would be a very hard legal case to convince a jury 100% that they violated their agreement with you. In my opinion its not worth the money and effort into it. Concentrate on funding that deal with someone else instead. And don't do any more business with that funder. And tell all your friends that also run cash advance shops not to use that funder either. That's the best way to get them back, is cost them future business.

Also I think its worth pointing out that the behavior does not necessarily reflect the funder as a whole. How many of their employees had that file pass through their hands? Any one of them could've sent it to a buddy of theirs that works for another company. If you have been in this industry a while, then you know this happens all the time, unfortunately.

Especially given your scenario this could be possible. In my case, I had a funder decline a deal to me, and approve it for another ISO a couple hours later. So in my book that funder as whole in no good. Luckily I got it funded anyway

This should just motivate you to work all the more harder each time you come across deals with balances or offers from that company, to take that business from them.

[MCNetwork]

Quickfunder, it sounds like your relationship with the merchant wasn't that solid if the merchant was easily influenced by another voice. It's important to maintain a close relationship with your clients to prevent these types of shenanigans from happening. In this business, you have to make three assumptions going in: 1) there is no such thing as an exclusive lead, 2) every funder has an unethical employee who will try to sell your merchant's info to another party, and 3) merchants cannot be trusted. If you understand these things and take steps to minimize your exposure, then you have a chance to succeed.

[channin19]

Quickfunder, it sounds like your relationship with the merchant wasn't that solid if the merchant was easily influenced by another voice. It's important to maintain a close relationship with your clients to prevent these types of shenanigans from happening. In this business, you have to make three assumptions going in: 1) there is no such thing as an exclusive lead, 2) every funder has an unethical employee who will try to sell your merchant's info to another party, and 3) merchants cannot be trusted. If you understand these things and take steps to minimize your exposure, then you have a chance to succeed.

Besides those three points... Don't assume anything.

[Sean Cash]

Quickfunder, it sounds like your relationship with the merchant wasn't that solid if the merchant was easily influenced by another voice. It's important to maintain a close relationship with your clients to prevent these types of shenanigans from happening. In this business, you have to make three assumptions going in: 1) there is no such thing as an exclusive lead, 2) every funder has an unethical employee who will try to sell your merchant's info to another party, and 3) merchants cannot be trusted. If you understand these things and take steps to minimize your exposure, then you have a chance to succeed.

trustnoone.jpg

[J.Celifarco]

those 3 points say it all

[Quickfunder]

I agree 100%. Have to be as vigilant as possible. But everyone has a trick up their sleeve. When your merchant gets a call from someone who knows your business and the approval you were issued -- which you are no longer receiving -- and tells you that a Sales Office (me) fabricated the approval from the bank which is why it didn't go through ... it's an outright dirty tactic. Merchant was told a number of things that the merchant was communicating to me along the way until it just turned out that he needed the money sooner than later. It made us look uncredible and untrustworthy.

[MCNetwork]

There are 3 sides to every cash advance story: the ISO's, the funder's and the truth