[Michael I]

I had a merchant that was fully paid off and the funder gave the offer to 2 other iso who submitted it,after i funded it i am getting paid as a renewal. Based on iso agreement they are correct ,however is that fair? How can you consider it a renewal for me yet give other people the offer and say its first contract in
Love to hear some opinion on this especially from a funder prospective

[Nunya]

Funder's need to increase their odds of success. If 3 ISOs now how the file, it's in the funder's best interest to ensure all 3 get the offer - it increases their odds of fund the deal.

If the funder was loyal to you they risk the other ISOs taking that merchant somewhere else.

[abfunders]

Nunya, that's not Michael's question here.
The question is why is Michael getting paid as a "renewal," as in 8 vs 10

[Kevin Henry-Seacoast]

I had a merchant that was fully paid off and the funder gave the offer to 2 other iso who submitted it,after i funded it i am getting paid as a renewal. Based on iso agreement they are correct ,however is that fair? How can you consider it a renewal for me yet give other people the offer and say its first contract in
Love to hear some opinion on this especially from a funder prospective

Michael,

If you are the referral partner of record and the Company paid off then took another round of capital, you should be considered the referral partner of record. I don't understand why a lender/funder/factor would put you in a horse race with other referral partners. Keep it simple! Too many people in the room muddies the water. If you have a good relationship with the client and the capital source, why in the hell should anybody else be involved.

Best,

Kevin

[Nunya]

Michael,

If you are the referral partner of record and the Company paid off then took another round of capital, you should be considered the referral partner of record. I don't understand why a lender/funder/factor would put you in a horse race with other referral partners. Keep it simple! Too many people in the room muddies the water. If you have a good relationship with the client and the capital source, why in the hell should anybody else be involved.

Best,

Kevin

In a perfect world, I agree. But funders can't ignore that there are others in the room - if they do, they risk having their deals moved which diminishes lifetime value of the customer.

To go a step further - this broker doesn't seem to have a strong relationship with his clients if the client is also working with 2 other brokers.

[Nunya]

Nunya, that's not Michael's question here.
The question is why is Michael getting paid as a "renewal," as in 8 vs 10

That's a fair question. I've seen it a few ways. If the merchant was paid off for a while then you should be getting paid new deal commission rates. If it's a recent payoff, you're getting paid renewal rates unless you take it to another funder.

[Kevin Henry-Seacoast]

In a perfect world, I agree. But funders can't ignore that there are others in the room - if they do, they risk having their deals moved which diminishes lifetime value of the customer.

To go a step further - this broker doesn't seem to have a strong relationship with his clients if the client is also working with 2 other brokers.

Nunya,

True- Relationships are everything. When I see a deal from multiple sources we determine the referral partner of record whom has the best relationship with the client and a complete financial package. Determining the relationship part is difficult, but asking the client who else they are working with can narrow it down.

When we get a referral from a company we don't know we are relying on our referral partner's knowledge of what we do, knowledge of our process and relationship with the client.

It's all about relationships.

[NoBigDeal]

I had a merchant that was fully paid off and the funder gave the offer to 2 other iso who submitted it,after i funded it i am getting paid as a renewal. Based on iso agreement they are correct ,however is that fair? How can you consider it a renewal for me yet give other people the offer and say its first contract in
Love to hear some opinion on this especially from a funder prospective

I feel when a broker closes a merchant with a certain funder, that broker "owns" the deal for minimally the lifetime it pays the funder (including refi's). Only time it gets tricky is if the merchant pays down organically and then a certain amount of time passes until it's brought back around to the same funder, whether it's from the original broker or 2 (or more) other brokers who the merchant decided to work with now

[RickyR3712]

If the offer went out to other people you should be paid as a new deal.

[Nunya]

Nunya,

True- Relationships are everything.
It's all about relationships.

Agreed. But it's rare. Maybe not in the low volume, high contract value space, but in MCA... these merchants ain't loyal.

[Shorebird]

I agree with Nunya.

There is no merchant loyalty in the MCA biz.