Results 1 to 25 of 46
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04-03-2019, 07:34 PM #1
- Join Date
- Feb 2019
- Location
- New York
- Posts
- 7
We want our commission back!!!
Hi
I joined the forum a little over a month ago, I’m new to the alternative lending industry. I've been reading the threads and learning.
I would like to ask your opinion on a referral agreement. Within the agreement it states
“If a funding (excluding a lease funding) defaults within 45 calendar days, then the commission paid to Agent must be returned upon notice of default. If a lease funding defaults within 4 months of funding, then the commission paid to Agent must be returned upon notice of default. The time frames that trigger a commission being returned due to client default are determined by funding sources and may change from time to time. We reserve the right to debit (via ACH) Agent’s checking account if any commissions are not promptly returned notice of a default.”
Is this standard practice with some lenders? I don't agree with it. I work hard to find businesses that are in need of funding. I feel that the underwriting department should be diligent enough to minimize accepting businesses that default. And, if they are willing to fund a high-risk business the funding company who accepted the risk should not punish the agent, who is working hard to bring business to them, by taking back the commission.
Would you sign a contract with that stipulation in it? I'd appreciate your opinion on this matter.
Thank you
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04-03-2019, 08:19 PM #2
- Join Date
- Mar 2017
- Location
- Nunya
- Posts
- 830
Pretty standard from my experience.
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04-03-2019, 08:45 PM #3
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04-03-2019, 09:11 PM #4
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04-03-2019, 09:51 PM #5
- Join Date
- Feb 2016
- Posts
- 244
lol what
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04-03-2019, 11:42 PM #6
- Join Date
- Feb 2018
- Posts
- 1,349
seen 30-45 days on most contracts. saw up to 6 months on one that seemed unfair. also, what defines a default is spelled out differently on several agreements. one missed payment could constitute a default. add in a cure period to save yourself headaches.
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04-04-2019, 07:01 AM #7
- Join Date
- Oct 2016
- Posts
- 4,318
This is standard in the industry.
This may be your first default/clawback, but if you stay in the industry it damn sure won’t be your last.
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04-04-2019, 09:10 AM #8
- Join Date
- Jun 2015
- Posts
- 3,325
agreed i had a clawback from a company from someone that missed a payment in the first 30 days . missed a couple of more throughout the term and fully paid off 2 weeks behind schedule on a 9 month term . The company renewed and were still not paying me on the first due to their iso agreement . I did get paid on the renewal and no longer work with that funder.
Bottom line make sure a default means where they dont get paid or sell it to a third party collection service .
Side note , any agreement that has multiple types of default like above usually means you are dealing with an iso
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04-04-2019, 09:34 AM #9
- Join Date
- Aug 2017
- Posts
- 249
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04-04-2019, 09:52 AM #10
- Join Date
- Oct 2016
- Posts
- 4,318
What funder was it?
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04-04-2019, 10:06 AM #11
- Join Date
- Jun 2015
- Posts
- 3,325
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04-04-2019, 10:29 AM #12
- Join Date
- Mar 2017
- Location
- Nunya
- Posts
- 830
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04-04-2019, 10:32 AM #13
- Join Date
- Apr 2013
- Posts
- 245
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04-04-2019, 11:05 AM #14
I think this should be fine with everyone specially 30 days default policy if they miss 3-4 payments or so. There are lot of brokers they say a lot of ****s or promise them long term loans with 10% rates if they continue payment for a month or so. Eventually merchant doesn;t get what they were promised so they stop payments.
Patrick Wilson
Managing Partner
www.PremierCapitalNetwork.com
(NO MORE LENDER/FUNDER CALL PLZ)
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04-04-2019, 11:35 AM #15
- Join Date
- Mar 2016
- Posts
- 657
So the first deal paid off, but they didn't send back the commission they clawed back? That's insane and unfair, especially cuz the funder still made money on the deal. I've had situations where merchant defaulted and I needed to clawback from an ISO, but multiple times, we get the merchant back on track and they pay off. Once the deal reaches "profit" we send the commission back out to the ISO
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04-04-2019, 11:43 AM #16
- Join Date
- Aug 2016
- Posts
- 831
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04-04-2019, 12:29 PM #17
- Join Date
- Feb 2017
- Posts
- 3,456
This is clearly a broker who's helping the newbie out, not a funder/lender.
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04-04-2019, 12:39 PM #18
- Join Date
- Feb 2019
- Location
- New York
- Posts
- 7
The funder was, National Business Capital and Services.
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04-04-2019, 12:40 PM #19
- Join Date
- Mar 2017
- Location
- Nunya
- Posts
- 830
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04-04-2019, 01:18 PM #20
- Join Date
- Dec 2015
- Location
- Texas
- Posts
- 552
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04-04-2019, 01:22 PM #21
- Join Date
- Jan 2018
- Posts
- 519
You know what. I think its time we all demanded our commission back. No more letting the 1% funders control the 99% brokers commission. Give us our commission back!
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04-04-2019, 01:26 PM #22
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,502
Question: Do any cash advance funders send regular statements to referral partners outlining the client's activity?
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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04-04-2019, 01:30 PM #23
- Join Date
- Dec 2015
- Location
- Texas
- Posts
- 552
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04-04-2019, 01:35 PM #24
- Join Date
- Mar 2016
- Posts
- 657
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04-04-2019, 01:37 PM #25
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,502
We send out monthly statements to our referral partners that details volume and profits.
In the advance space it seems there are a lot of layers involved sometimes when getting a deal done. Broker A send deal to ISO.... ISO send deal to funder. Without having a really good relationship with the client, the ISO, or the funder....it leaves room for somebody to not pay for whatever reason.Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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