The thing that bothers me about the renewal policy is that the account is active already. It's not like it paid off or anything. It was a standard 60% paid down renewal. I just think it's a ****ty policy on active accounts. I spent the money and took the time to get the deal done. Renewals on active accounts is the franchise of the iso business. If every deal was a one off transaction ISO's would go broke pretty quick.

I don't have any problem with the first one back with the contract or any paid in full account is fair game. That's fine. Good ISO's close better and stay on top of their book better than bad one. These policies reward hard work, selling ability, and good client relations.

As far as OD's profitability goes. They have a lot of venture capital invested in them. I'm sure there is a healthy debt service going on. No way that money costs less than 12%/yr. Prob the mid to upper teens. I also think they are holding more than 10% of their paper too.

My company is privately funded and doesn't pay anything on our money. We underwrite similar to OD and our margins are similar. Even with that the margins are never as sweet as one would think. There is no way OD's bad debt is less than 3%. Not a chance. Add bad debt + cost of funds + big overhead and it's pretty easy to see why OD isn't profitable. Doesn't mean they're bleeding red or anything but not hard to understand why they aren't showing a profit. It's all relative anyway.