[ABC2016]

I funded a file with a pretty large B funder in the business for B paper last summer for $90k. His last payment was in February 2019.

March 22, 2019 I submitted updated bank statements for renewal ( if its considered a renewal) or just another advance since this merchant had excellent payment history with this funder but I was told "I think we may need to wait a little longer on this one."

This was obviously because the merchant received funds from 2 other funders in February 2019. I was not surprised I received that as the answer although disappointed I wasn't the one doing either of those deals.

Monday March 25 - the next business day after this file was declined for me, the merchant received a contract from that same bank that told me I need to wait for $150k which he signed and they funded.

I asked them why I received a decline and someone else got an approval for $150k and they said "another iso submitted the same bank statements I submitted but included the financials."

I understand some may say that the iso packaged the deal better, however I wasn't given a glimpse of hope that had I made the file look more attractive, they would throw an $150k approval my way. I was simply told to wait.

Was I supposed to harass them and send them financials and say pretty please can you consider this file for approval? I did what any good broker would do and shopped the file out for another approval.

How do I even know if another broker really did submit it with financials? How do I know it wasn't them who called the guy directly and funded it?

Either way, is this fair treatment or do I deserve to be paid on the deal?

[Fetachini]

Lenders sometimes will decline yours and approve another ISO because there's a better chance of that ISO getting the contracts back. Lenders prefer ISO's that can get the deal closed or they would rather decline you wait a week or two and fund it themselves.

[Chambo]

If the other ISO provided more documentation to justify the offer, then, buddy, sorry, but you are out of luck

Happens all the time. You want a six figures offer, it should be Pavlovian to request financials up front. Chances are most of the other kids out there are either too lazy, or just didn't think of that

[ABC2016]

If the other ISO provided more documentation to justify the offer, then, buddy, sorry, but you are out of luck

Happens all the time. You want a six figures offer, it should be Pavlovian to request financials up front. Chances are most of the other kids out there are either too lazy, or just didn't think of that

What about the part where I am uncertain if another "iso" even exists?

You're saying that within minutes of me submitting, its fine for a bank to issue me a decline without any hope of an approval, or telling me declined until I can provide additional docs, then approve said file for $150k and not even let me know I am competing or anything?

[Michael I]

I have been called on a deal that was declined that i syndicated 30% to make it an approval . Ask for the iso info and confirm with your merchant that he was working with them

[Chambo]

What about the part where I am uncertain if another "iso" even exists?

You're saying that within minutes of me submitting, its fine for a bank to issue me a decline without any hope of an approval, or telling me declined until I can provide additional docs, then approve said file for $150k and not even let me know I am competing or anything?

Heh.....EVERYBODY thinks they are the only one speaking to the merchant

[OC Funder]

What about the part where I am uncertain if another "iso" even exists?

You're saying that within minutes of me submitting, its fine for a bank to issue me a decline without any hope of an approval, or telling me declined until I can provide additional docs, then approve said file for $150k and not even let me know I am competing or anything?

It's not typical practice for an underwriter to tell you what other possible documentation could turn a decline into an approval... they make their decision based on what's presented and move on. Another thing to consider is that in some shops, previous performance weighs into the decision on iffy files. If the other ISO has a 5% default rate in their portfolio, and you have a 20% default rate, they may get the benefit of the doubt when they submit (especially if they're providing more info). Not saying that's the case here, but it does happen.

Bottom line: if you don't trust the funder, and think they'd stoop to making up fake ISOs to avoid paying you a commission, stop submitting immediately. It does sound like there are multiple reasons not to pay you in this situation, and if they are staying consistent to their policies then move on knowing you can't win 'em all.

[brokerCompany]

let us know who the funder is. We can see if we had similar experience.

[moneypenny1]

im going to guess and say this is KNIGHT.... just a gut feeling

[Cashman1]

let us know who the funder is. We can see if we had similar experience.

I’m ready to bet this is KCG....they very good not trying to bad mouth them. However, if your loyal to them they will deliver to you!

[Franklin]

Underwriters are usually pretty busy and under pressure. There are also different personality types and different degrees of experience, so it’s not
A great strategy to assume they’re going to give you step by step instructions
To close your own deal, isn’t that what a broker is for anyway?

For a deal that size, (or any deal) your question should always be
“What will it take to get this done today”? And maybe the answer
would have been, updated financials. But I bet moving forward,
you will never lose a 100k deal again for THAT reason, so at least
you’re better man now.














Www.UccRadar.com

[ABC2016]

Underwriters are usually pretty busy and under pressure. There are also different personality types and different degrees of experience, so it’s not
A great strategy to assume they’re going to give you step by step instructions
To close your own deal, isn’t that what a broker is for anyway?

For a deal that size, (or any deal) your question should always be
“What will it take to get this done today”? And maybe the answer
would have been, updated financials. But I bet moving forward,
you will never lose a 100k deal again for THAT reason, so at least
you’re better man now.














Www.UccRadar.com

Been in the business for years, I never saw a bank decline a file for renewal and a day later approve it for $150k paying off 2 positions that were less than a month old. If you are experienced you would know very well this doesn’t happen. The merchant net $15k. This was the dumbest approval I have ever seen and the deal will most likely default. Every broker wishes they can fund 2 positions then get the guy consolidated within a month.

Obviously I know financials help gain/solidify an approval but a decline for an iso that has a large performing book and then approving it for $150k is unheard of.

Are you saying a decline is never a decline and I should just keep shoving deals down the banks throat with different stips until I find the one stip that will make them approve it?

[Franklin]

I’ve seen a decline become an approval in 30 minutes.

Doing something for years doesn’t mean youve been doing it correctly for years, (and I don’t necessarily mean you specifically).

Based on the information provided, you told us how you lost the deal. Regardless of what you think of the funder, a competitor came in and beat you by doing more than you. That’s what really should be going through your head, because that’s what you can control. Changing the lender won’t change that.


Shoving deals down a banks throat is a poor example and looking at the issue the wrong way. Nothing I said remotely sounded like that, so taking that tone indicates you believe you’re doing everything right and don’t really need to grow from this, meaning you feel it’s more likely that you were a victim, than it is something you can change. And you can learn from this, as others have already.

[rdgllc]

Heh.....EVERYBODY thinks they are the only one speaking to the merchant

This.

[Franklin]

Heh.....EVERYBODY thinks they are the only one speaking to the merchant

I remember having artificial intelligence agent call a merchant, who happened to be on the phone with a broker, and the merchant was so intrigued he kept his broker on hold while he was transferred to a different broker, to have a full funding conversation, with his original still on the other line. He did have a relationship with the original broker, so he told him that another broker was pitching something he found valuable and the original broker was like, let me speak to this broker.

The original broker called up the new broker and started cursing him out, "how dare you talk to my client, who the *** do you think you are”, that type of stuff... All we had been doing was calling previous opt-in merchants, (with automation) but he wasn't targeting anyone specifically.

It actually ended well; the original broker was impressed with the new broker and offered to co-broker with him.










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[Franklin]

The only way to know that you are dealing with a 100% exclusive merchant...

...is to be dealing with a merchant who doesn't take cold solicitation phone calls,
doesn't believe its a good idea to go online to look for money,

and who believes face to face or referral is the only way to conduct a lending
transaction (with about 40% ALL lending/funding (not just MCA) last year being done either face to face or via referral, according the the federal credit reserve).

Those people will rely on a trusted lawyer, accountant, banker, or someone in their personal or business circle for a recommendation. If the lead you're working with didn't match all three of those criteria, then you are not the father.

Now it is possibly to narrow a lead's perspective on outside brokers after the fact, by being yourself amazing to work with for a couple of different reasons, (problem solver, loyal, entertaining, positive influence, etc.) but that lead is still about 85-90% at best, because just as he was won over by a stranger (you) at one point, he has the ability to be swooped off his feet again, albeit it would be difficult.


Merchants tend to fall into two camps: I only work with who I know, or make me an offer I can't refuse and you got me.

Unless of course they're in dire straits and have no more options, but then you get the, "make me an offer, any offer, please, I'll take whatever you have, I just need it, can you help me out, can you do it just this one time..."









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